Investment manager YMG Capital Management Inc. yesterday reported a reduced net loss for the third quarter.

Net loss for the quarter ended September 30 was $117,000, compared with a net loss of $310,000 for the same period in 2003.

The company said net income was affected by restructuring charges in the third quarter of 2004 and 2003 of $838,000 and $875,000 respectively. Excluding these restructuring charges, management estimates that net income would have been approximately $418,000 for the third quarter of 2004 compared to $249,000 in 2003.

Earnings before amortization, income taxes, investment income (loss) and other income, non-controlling interest and restructuring costs for the three months ended September 30, 2004 was $860,000 compared to $709,000 for the comparable period of 2003.

YMG achieved an operating margin of 24.3% in the third quarter of 200, an improvement from 22.5% over the comparable period of 2003.

Assets under management (AUM) increased to a record $14.8 billion at September 30, 2004, an increase of $2.4 billion or 19.4% since December 31, 2003, and $2.8 billion or 23.0% since September 30, 2003. This growth is primarily the result of new or expanded mandates with existing clients. Positive market returns also contributed to AUM growth.

Fee revenue for the three months ended September 30, 2004 was $3,539,000, an increase of 12.5% compared to the third quarter of 2003.

Selling, general and administration expenses (SG&A) increased 10.0% in the third quarter of 2004 to $2,679,000, compared to the third quarter of 2003.
YMG also declared a quarterly dividend of 1¢ per common share.