Jovian Capital Corp. is reporting a loss for the third quarter end December 31, volatile markets slashed revenues.
Jovian reported a loss for the quarter ended Dec. 31, 2007 of $1.9 million and a $4.7 million loss for the nine month period. This compares to net earnings of $1.9 and $2.2 million in earnings for the corresponding periods ended Dec. 31, 2006.
The company reported EBITDA (defined as earnings before interest, taxes, revaluation of share redemption liability, non-controlling interest, depreciation, and amortization) of ($0.3 million) for the three months ended December 31, 2007, representing a diluted EBITDA per share of ($0.02) compared to $0.02 per share for the same quarter in the previous year.
Revenue for the quarter and nine months ended Dec. 31, 2007 was $25.9 and $79.3 million, compared to $36.7 and $97.6 million in the prior year. This represents a decrease of $10.8 million or 29% for the comparable quarter, and a decrease of $18.3 million or 19% for the comparable nine month period.
Total expenses for the three month period ended Dec. 31, 2007 was $27.8 million compared to $34.8 million in the corresponding quarter of the prior year. Total expenses for the nine months ended Dec. 31, 2007 was $84 million, compared to $95.3 million for the nine months ended Dec. 31, 2006. Selling, general and administration expense was $8.7 million for the three months and $26.1 million for the nine months ended Dec. 31, 2007, compared to $10.2 and $28 million during the same periods the prior year.
Selling, general and administration expense represents 33% of total revenues and comprises 33% of total expenses for the nine months ended Dec. 31, 2007, compared to 29% of total revenues and 33% of total expenses for the nine months ended Dec. 31, 2006.
“Challenging market conditions during the third quarter continue to affect our investee companies,” says Jason Mackey, CFO of Jovian. “This environment, once again, had a significant impact on our investment dealer, MGI Securities. Although positive advancements were made in our private client advisory business at MGI, making progress in our investment banking business and initiating product launches in our asset management and product businesses have been difficult.”
Jovian is a management and holding company with interests in a variety of financial service firms specializing in wealth and asset management.
Jovian posts Q3 loss
Market conditions weigh on investment dealer unit
- By: IE Staff
- February 14, 2008 February 14, 2008
- 09:10