Jovian Releases Results for the Second Quarter of Fiscal 2011

TORONTO, Nov. 10 /CNW/ - Jovian Capital Corporation (TSX: JOV) ("Jovian") today released its results for the three and six months ended September 30, 2010.

Q2 Fiscal 2011 Highlights

• Revenue for the six months ended was $55.4 million, compared to $54.1 million for the same period in fiscal 2010
• Revenue for the quarter was $28.3 million, compared to $28.8 million in the second quarter of fiscal 2010
• Client assets increased by $0.9 billion to $12.7 billion from $11.8 billion in the second quarter of fiscal 2010
• Launched five new ETF products:
• Horizons AlphaPro S&P/TSX 60TM Equal Weight Index ETF
• Horizons AlphaPro Corporate Bond ETF
• Horizons AlphPro Global Dividend ETF
• Horizons AlphaPro Balanced ETF o Horizons BetaPro S&P/TSX 60(TM) Index ETF

"Our asset base continued to grow during the second quarter of fiscal 2011, with $900 million in new client assets," said Philip Armstrong, CEO. "A significant portion of this increase in assets was due to the ongoing growth of our ETF franchises, as well growth from our traditional asset management business."

"Our position as a market leader in the ETF space continues to strengthen," added Mr. Armstrong. "During the quarter we brought five innovative new ETF products to market, which together contributed $400 million to our total Assets Under Management. Included in these new products was the actively managed Horizons AlphaPro Corporate Bond ETF, which marked our most successful actively managed ETF launch to date, and is now one of the largest actively managed ETFs in the world."

Selected Financial Data (unaudited)

(in thousands of Canadian dollars)	Three months ended		Six months ended
	Sept 30/10	Sept 30/09	Sept 30/10	Sept 30/09
Revenues	28,301	28,805	55,411	54,161
Compensation and Benefits, Selling, General and Administration	28,299	27,372	55,633	53,420
Adjusted EBITDA^2	2	1,433	(222)	741
Stock-based Compensation Expense^1	179	291	421	453
EBITDA^2	(177)	1,142	(643)	288
Loss	(1,985)	(1,430)	(4,918)	(5,309)
Loss Per Share - Basic*	(0.23)	(0.17)	(0.58)	(0.63)
Loss Per Share - Diluted*	(0.23)	(0.17)	(0.58)	(0.63)

¹ For measurement purposes, stock-based compensation expense, which is a non-cash item, is excluded from compensation and benefits expense in this table in order to determine Adjusted EBITDA.
² EBITDA and Adjusted EBITDA are non-GAAP performance measures utilized by Jovian. EBITDA is defined here as earnings before interest on long-term debt, taxes, depreciation, amortization, impairment, revaluation of share redemption liability and non-controlling interest. Adjusted EBITDA is EBITDA adjusted for stock-based compensation.
* Earnings per share for all periods have been adjusted to reflect the 20:1 common shares consolidation.

Financial Review
Revenue for the quarter ended September 30, 2010, was virtually flat at $28.3 million, compared to $28.8 million in the second quarter of fiscal 2010. For the six months ended September 30, 2010, revenue increased by 2% to $55.4 million from $54.1 million in the prior year period.

Compensation and benefits expenses were $15.2 million for the second quarter of 2011, virtually unchanged from the same period in fiscal 2010. For the six month periods ended September, compensation and benefits expenses were $30.5 million in 2010 and $28.9 million in 2009.

Selling, general and administration expenses for the quarter and six months ended September 30, 2010, were $13.3 and $25.6 million, compared to $12.6 and 25.0 million for the same periods of fiscal 2010.

Adjusted EBTIDA², a key management performance measure, was nil for the current quarter, compared to $1.4 million during the same period the prior fiscal year. The change was largely a result of the decrease in comparable EBITDA of $1.0 million in the Wealth Management segment and $0.5 million in the Traditional Asset Management segment. Net loss for the three-month period ended September 30, 2010, was $2.0 million, compared with a loss of $1.4 million in the second quarter of fiscal 2010.

For the six months ended September 30, 2010, Adjusted EBTIDA² was negative $0.2 million, compared to $0.7 million during the same period the prior fiscal year. On a comparative basis, an increase in revenue related to the increased AUM and AUA levels experienced during the current year has not been sufficient enough to offset the absence of revenue and EBITDA forfeited as a result of the termination of the Canadian Medical Discoveries Fund management contracts which occurred during the first quarter of the prior year. In addition, our Wealth Management segment continues to operate at a revenue level that is not sufficient to absorb its operating costs. The net loss for the first six months of fiscal 2011 was $4.9 million, or $0.58 per share, compared to a loss of $5.3 million, or $0.63 per share, for the corresponding period last year.

Liquidity and Capital Resources
Cash and those investments considered highly liquid, included in securities owned on the consolidated balance sheet, were $26.3 million as at September 30, 2010, compared with $26.6 million as at June 30, 2010. Jovian has a capital structure comprising of debt, capital stock, warrants, contributed surplus, deficit and accumulated other comprehensive income.

About Jovian Capital Corporation (www.joviancapital.com)
Jovian acquires, creates and grows financial services companies specializing in wealth and asset management. The Jovian group of companies (AlphaPro Management Inc., BetaPro Management Inc., Horizons Exchange Traded Funds Inc., Hahn Investment Stewards & Company Inc., Horizons Funds Inc., JovInvestment Management Inc., Leon Frazer & Associates Inc., MGI Financial Inc., MGI Securities Inc., MGI Securities (USA) Inc. and T.E. Wealth) manages $12.5 billion of client assets ($7.5 billion in assets under management and $5.0 billion in assets under administration). Additional information is available at www.sedar.com.

For further information:

Don Sangster, Investor Relations, Jovian Capital Corporation, [phone]; or
Philip Armstrong. C.E.O., Jovian Capital Corporation, [phone].