Efforts to reduce expenses have paid off for Vancouver–based Matrix Asset Management Inc. (TSX:MTA), as the company reported a smaller fourth quarter loss from a year ago.
Net loss for the fourth quarter ended Dec. 31, was $(3.2) million compared to $(9.1) million during the fourth quarter of 2011.
Total expenses for the quarter decreased by $3.4 million or 31% compared to the fourth quarter of 2011, while total revenue slipped to $5.0 million compared to $6.6 million a year ago.
Assets under management (AUM) were $1.1 billion at year end, compared to $1.1 billion as at Sept. 30, and to $1.6 billion as at Dec. 31, 2011.
“The first half of 2012 was a challenging period for Matrix yet we are pleased with some of the progress we have made since the second quarter,” said David Levi, president and CEO of Matrix.
“Efforts aimed at reducing expenses have resulted in a 5.1% decrease in recurring expenses in 2012,” he said.
Levi noted that SEAMARK’s AUM increased in the fourth quarter. “The return of three former principals who re-joined SEAMARK from LeeSide Capital Management Inc. in March 2012 has been a stabilizing influence,” he said.
For the year, Matrix reported a net loss of $(4.9) million compared to $(10.2) million in 2011. Total expenses for the year decreased by $12.1 million or 29% compared to 2011, while total revenue for the year was $24.3 million compared to $30.7 million in 2011.
Matrix is also planning to join forces through a merger with Toronto-based Marquest Asset Management Inc. The proposal was announced in February.
Matrix, Marquest set to team up
The merger is expected to produce a stronger team and help the combined entity take advantage of economies of scale.