Q1 2024 Financial Highlights
(as compared to Q1 2023)
AUA1,2 and Revenue
- Ending AUA1,2 increased to $37.0 billion, up 3% or $1.0 billion, driven by strong equity
markets
- Revenue increased 2% to $89.4
million, led by a 5% increase in fee revenue and a 21%
increase in insurance commissions
Profitability and Cash Flow
- Gross margin increased 2% to $52.8
million, consistent with the increase in revenue
- Adjusted EBITDA1 increased 4% to $13.5 million, due to revenue growth outpacing
adjusted operating expense1 growth
- Net loss from continuing operations improved to $1.1 million from $5.3
million, as the Company has completed its transformation
journey and did not incur any related charges in Q1 2024 (Q1 2023 -
$4.1 million)
- Cash from operating activities was $(11.8) million as compared to $(313.7) million, with Q1 2023 reflecting the
fact that client cash became custodied at Fidelity and was no
longer reported as cash on the Company's balance sheet
- Free cash flow available for growth1 increased 4% to
$7.5 million, in line with EBITDA
growth
- Free cash flow1 was up by $10.2 million to $3.9
million, due to lower capital expenditures and
transformation costs
Balance sheet
- Net working capital1 was $88.3 million, effectively unchanged
TORONTO, May 1, 2024
/CNW/ - RF Capital Group Inc. (RF Capital or the Company)
(TSX: RCG) today reported revenue of $89.4
million in the first quarter of 2024, up 2% as compared to
the prior year. The increase in revenue was driven by
AUA1,2 growth of 3% or $1.0
billion, which is attributable mainly to strong equity
markets. With year-over-year growth in adjusted operating
expenses1 contained to 2%, Adjusted EBITDA1
increased 4% to $13.5 million.
For more detail on our results, please refer to our MD&A for
the period ending March 31, 2024.
1.
|
Considered to be
non-GAAP or supplemental financial measures, which do not have any
standardized meaning prescribed by GAAP under IFRS and are
therefore unlikely to be comparable to similar measures presented
by other issuers. For further information, please see the "Non-GAAP
and Supplemental Financial Measures" section of this
release.
|
2.
|
AUA is a measure of
client assets and is common in the wealth management business. It
represents the market value of client assets managed and
administered by us.
|
Kish Kapoor, President and Chief Executive Officer,
commented, "2024 has started off strong with AUA1,2
reaching $37.0 billion at the end of
Q1, up $1.8 billion or 5% over the
last three months. This growth was driven largely by continued
strength in equity markets and supported by both recruiting and the
success that our outstanding advisors have had growing their
practices. This AUA1,2 growth led to an increase in
recurring fee revenue of 3% sequentially and 5% versus last year.
Combined with the Company's vigilant cost containment efforts,
revenue growth drove Q1 Adjusted EBITDA1 to $13.5 million, up 4% from Q1 2023."
Mr. Kapoor continued, "Looking ahead, we are laser-focused on
our three strategic growth pillars and expect to continue deploying
our free cash flow for growth1 into recruitment. I am
excited by the addition of three new leaders to our Company –
Dave Kelly, Kevin Shubley, and Steve
Hunter – who will be accountable for driving our organic
growth and are already having an impact. We are confident that our
team, our focus, and the foundation that we have built – including
our exceptional advisors, scale, and technology platforms – will
enable us to grow the brand of choice for Canada's top advisors and translate into
accelerated growth for Richardson Wealth."
Outlook and Key Performance Drivers
Our view with respect to the drivers of our financial
performance and profitability in 2024 is as follows:
- AUA1,2 is highly correlated with equity market
movements but will also be supported by growth in our existing
advisors' client assets and by recruiting. We expect recruiting to
accelerate over the coming quarters.
- Interest revenue is likely to follow prime rate trends, which
economists expect to decline from current levels starting in the
middle of the year
- Transaction activity underlying our corporate finance revenue
could rebound but is likely to remain subdued through the first
half of the year
- Although we expect inflation to continue at elevated rates, we
are committed to finding operating cost savings and efficiencies in
our business as a partial offset
- Free cash flow for growth1 is expected to be
deployed towards advisor recruitment
Preferred Share Dividend
On May 1, 2024, the board of
directors approved a cash dividend of $0.233313 per Series B Preferred Share for a
total of $1,073, payable on
June 28, 20243, to
preferred shareholders of record on June 14,
2024.
Q1 2024 Conference Call
A conference call and live audio webcast to discuss RF Capital's
first quarter 2024 financial results will be held on Thursday, May 2, 2024, at 10:00 a.m. (EST). Interested parties are invited
to access the conference call on a listen-only basis by dialing
416-406-0743 or 1-800-898-3989 (toll-free) and entering participant
passcode 8739205#, or via live audio webcast at
https://www.richardsonwealth.com/investor-relations/financial-information.
A recording of the conference call will be available until
Tuesday, June 4, 2024, by dialing
905-694-9451 or 1-800-408-3053 and entering access code 2453497#.
The audio webcast will be archived at
https://www.richardsonwealth.com/investor-relations/financial-information
1.
|
Considered to be
non-GAAP or supplemental financial measures, which do not have any
standardized meaning prescribed by GAAP under IFRS and are
therefore unlikely to be comparable to similar measures presented
by other issuers. For further information, please see the "Non-GAAP
and Supplemental Financial Measures" section of this
release.
|
2.
|
AUA is a measure of
client assets and is common in the wealth management business. It
represents the market value of client assets managed and
administered by us.
|
3.
|
In the event that the
payment date is not a business day, such dividend shall be paid on
the next succeeding day that is a business day.
|
Select Financial Information
The following table presents the Company's financial results for
Q1 2024, Q4 2023 and Q1 2023.
|
As at or for the three
months ended
|
|
March
31
|
December
31
|
Increase/
|
March
31
|
Increase/
|
($000s, except as
otherwise indicated)
|
2024
|
2023
|
(decrease)
|
2023
|
(decrease)
|
Key performance
drivers1:
|
|
|
|
|
|
AUA -
ending2 ($ millions)
|
37,010
|
35,236
|
5 %
|
35,965
|
3 %
|
AUA -
average2 ($ millions)
|
36,060
|
34,926
|
3 %
|
35,872
|
1 %
|
Fee revenue
|
66,146
|
64,145
|
3 %
|
63,042
|
5 %
|
Fee revenue3
(%)
|
92
|
89
|
+310 bps
|
88
|
+356 bps
|
Adjusted operating
expense ratio4 (%)
|
74.3
|
71.5
|
+287 bps
|
74.7
|
(35) bps
|
Adjusted EBITDA
margin5 (%)
|
15.2
|
16.7
|
(159) bps
|
14.9
|
+26 bps
|
Asset yield6
(%)
|
0.88
|
0.87
|
+1 bps
|
0.87
|
+1 bps
|
Advisory
teams7 (#)
|
154
|
157
|
(2 %)
|
159
|
(3 %)
|
Operating
Performance
|
|
|
|
|
|
Reported
results:
|
|
|
|
|
|
Revenue
|
89,361
|
86,752
|
3 %
|
87,700
|
2 %
|
Operating
expenses1,8
|
39,229
|
36,368
|
8 %
|
42,647
|
(8 %)
|
EBITDA1
|
13,539
|
14,518
|
(7 %)
|
8,958
|
51 %
|
Income (loss) before
income taxes
|
63
|
(2,169)
|
n/m
|
(5,649)
|
n/m
|
Net income (loss) from
continuing operations
|
(1,127)
|
(2,882)
|
(61 %)
|
(5,332)
|
(79 %)
|
Net loss per common
share from continuing operations - diluted
|
(0.14)
|
(0.26)
|
(45 %)
|
(0.51)
|
(72 %)
|
Adjusted
results1:
|
|
|
|
|
|
Operating
expenses8
|
39,229
|
36,368
|
8 %
|
38,546
|
2 %
|
EBITDA
|
13,539
|
14,518
|
(7 %)
|
13,059
|
4 %
|
Income (loss) before
income taxes
|
3,326
|
1,094
|
204 %
|
1,715
|
94 %
|
Net income
(loss)
|
1,271
|
(483)
|
n/m
|
105
|
n/m
|
Adjusted earnings
(loss) per common share - diluted
|
0.01
|
(0.10)
|
n/m
|
(0.08)
|
n/m
|
Cash
flow:
|
|
|
|
|
|
Cash provided by (used
in) operating activities
|
(11,826)
|
2,834
|
n/m
|
(313,698)
|
(96 %)
|
Free cash flow
available for growth1
|
7,455
|
8,312
|
(10 %)
|
7,162
|
4 %
|
Free cash
flow1
|
3,888
|
(9,612)
|
n/m
|
(6,309)
|
n/m
|
1.
|
Considered to be
non-GAAP or supplementary financial measures, which do not have any
standardized meaning prescribed by GAAP under IFRS and are
therefore unlikely to be comparable to similar measures presented
by other issuers. For further information, please see the "Non-GAAP
and Supplementary Financial Measures" section of the
MD&A.
|
2.
|
AUA is a measure of
client assets and is common in the wealth management business. It
represents the market value of client assets managed and
administered by us.
|
3.
|
Calculated as fee
revenue divided by commissionable revenue. Commissionable revenue
includes fee revenue, trading commissions, and commissions earned
in connection with the placement of new issues and the sale of
insurance products.
|
4.
|
Calculated as adjusted
operating expenses divided by gross margin
|
5.
|
Calculated as Adjusted
EBITDA divided by revenue
|
6.
|
Calculated as fee
revenue, trading commissions, and interest on cash, divided by
average AUA
|
7.
|
Prior year has been
revised to reflect the internal consolidation of certain
teams
|
8.
|
Operating expenses
include employee compensation and benefits, selling, general, and
administrative expenses, and transformation costs and other
provisions. Adjusted operating expenses are calculated as operating
expenses less transformation costs and other provisions.
|
Quarterly Results
The following table presents selected quarterly financial
information for our eight most recently completed financial
quarters.
|
2024
|
|
|
|
|
2023
|
|
|
|
2022
|
($000s, except as
otherwise indicated)
|
Q1
|
|
Q4
|
Q3
|
Q2
|
Q1
|
|
Q4
|
Q3
|
Q2
|
Key performance
drivers1:
|
|
|
|
|
|
|
|
|
|
|
AUA -
ending2 ($ millions)
|
37,010
|
|
35,236
|
34,726
|
35,788
|
35,965
|
|
34,948
|
33,604
|
33,841
|
AUA -
average2 ($ millions)
|
36,060
|
|
34,926
|
35,630
|
35,880
|
35,872
|
|
34,788
|
34,679
|
35,607
|
Fee revenue
|
66,146
|
|
64,145
|
66,046
|
64,581
|
63,042
|
|
63,150
|
62,505
|
62,816
|
Fee revenue3
(%)
|
92
|
|
89
|
92
|
90
|
88
|
|
90
|
93
|
82
|
Adjusted operating
expense ratio4 (%)
|
74.3
|
|
71.5
|
67.3
|
70.9
|
74.7
|
|
68.1
|
66.9
|
67.9
|
Adjusted EBITDA
margin5 (%)
|
15.2
|
|
16.7
|
19.3
|
16.9
|
14.9
|
|
19.2
|
19.8
|
18.3
|
Asset yield6
(%)
|
0.88
|
|
0.87
|
0.87
|
0.86
|
0.87
|
|
0.87
|
0.87
|
0.82
|
Advisory
teams7 (#)
|
154
|
|
157
|
159
|
158
|
159
|
|
163
|
162
|
162
|
Operating
Performance:
|
|
|
|
|
|
|
|
|
|
|
Reported
results:
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
89,361
|
|
86,752
|
87,836
|
88,832
|
87,700
|
|
88,531
|
85,928
|
90,753
|
Variable advisor
compensation
|
36,593
|
|
35,866
|
36,012
|
37,305
|
36,095
|
|
35,276
|
34,555
|
39,078
|
Gross
margin8
|
52,768
|
|
50,886
|
51,824
|
51,527
|
51,605
|
|
53,255
|
51,373
|
51,675
|
Operating
expenses1,9
|
39,229
|
|
36,368
|
34,892
|
36,947
|
42,647
|
|
38,868
|
36,435
|
37,493
|
EBITDA1
|
13,539
|
|
14,518
|
16,932
|
14,580
|
8,958
|
|
14,388
|
14,938
|
14,182
|
Interest
|
3,750
|
|
3,994
|
3,527
|
3,675
|
3,511
|
|
3,294
|
3,015
|
2,348
|
Depreciation and
amortization
|
6,565
|
|
6,849
|
6,856
|
6,805
|
6,895
|
|
7,851
|
6,936
|
6,743
|
Advisor award and loan
amortization
|
3,161
|
|
5,844
|
4,457
|
3,884
|
4,201
|
|
4,634
|
4,381
|
4,240
|
Income (loss) before
income taxes
|
63
|
|
(2,169)
|
2,092
|
217
|
(5,649)
|
|
(1,391)
|
606
|
851
|
Net income (loss) from
continuing operations
|
(1,127)
|
|
(2,882)
|
(189)
|
(1,425)
|
(5,332)
|
|
(990)
|
(724)
|
58
|
Net income (loss) from
discontinued operations10
|
—
|
|
—
|
—
|
(2,064)
|
—
|
|
—
|
—
|
—
|
Adjusted
results1:
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses9
|
39,229
|
|
36,368
|
34,892
|
36,533
|
38,546
|
|
36,246
|
34,380
|
35,078
|
EBITDA
|
13,539
|
|
14,518
|
16,932
|
14,993
|
13,059
|
|
17,009
|
16,993
|
16,597
|
Income (loss) before
income taxes
|
3,326
|
|
1,094
|
5,355
|
3,892
|
1,715
|
|
4,493
|
5,924
|
6,529
|
Net income
(loss)
|
1,271
|
|
(483)
|
2,209
|
1,279
|
105
|
|
3,500
|
3,197
|
4,010
|
Cash
flow:
|
|
|
|
|
|
|
|
|
|
|
Cash provided by (used
in) operating activities
|
(11,826)
|
|
2,834
|
16,624
|
25,741
|
(313,698)
|
|
(93,752)
|
(283,619)
|
213,248
|
Free cash flow
available for growth1
|
7,455
|
|
8,312
|
11,180
|
8,746
|
7,162
|
|
10,761
|
12,357
|
11,511
|
Free cash
flow1
|
3,888
|
|
(9,612)
|
6,151
|
7,206
|
(6,309)
|
|
(4,011)
|
(1,148)
|
(3,591)
|
1.
|
Considered to be
non-GAAP or supplementary financial measures, which do not have any
standardized meaning prescribed by GAAP under IFRS and are
therefore unlikely to be comparable to similar measures presented
by other issuers. For further information, please see the "Non-GAAP
and Supplementary Financial Measures" section of this
MD&A.
|
2.
|
AUA is a measure of
client assets and is common in the wealth management business. It
represents the market value of client assets managed and
administered by us.
|
3.
|
Calculated as fee
revenue divided by commissionable revenue. Commissionable revenue
includes fee revenue, trading commissions, and commissions earned
in connection with the placement of new issues and the sale of
insurance products.
|
4.
|
Calculated as adjusted
operating expenses divided by gross margin
|
5.
|
Calculated as Adjusted
EBITDA divided by revenue
|
6.
|
Calculated as fee
revenue, trading commissions, and interest on cash, divided by
average AUA
|
7.
|
Prior year has been
revised to reflect the internal consolidation of certain
teams
|
8.
|
Calculated as revenue
less advisor variable compensation. We use gross margin to measure
operating profitability on the revenue that accrues to the Company
after making advisor payments that are directly linked to
revenue.
|
9.
|
Operating expenses
include employee compensation and benefits, selling, general, and
administrative expenses, and transformation costs and other
provisions. Adjusted operating expenses are calculated as operating
expenses less transformation costs and other provisions.
|
10.
|
In Q2 2023, we recorded
a provision for a legacy employment litigation matter related to
the 2019 sale of our capital markets business to Stifel Nicolaus
Canada Inc. See Note 25 to the 2023 Annual Financial
Statements.
|
Non-GAAP and Supplemental Financial Measures
In addition to GAAP prescribed measures, we use a variety of
non-GAAP financial measures, non-GAAP ratios and supplemental
financial measures to assess our performance. We use these non-GAAP
financial measures and SFMs because we believe that they provide
useful information to investors regarding our performance and
results of operations. Readers are cautioned that non-GAAP
financial measures, including non-GAAP ratios, and supplemental
financial measures often do not have any standardized meaning and
therefore may not be comparable to similar measures presented by
other issuers. Non-GAAP measures are reported in addition to, and
should not be considered alternatives to, measures of performance
according to IFRS.
Non-GAAP Financial Measures
A non-GAAP financial measure is a financial measure used to
depict our historical or expected future financial performance,
financial position or cash flow and, with respect to its
composition, either excludes an amount that is included in, or
includes an amount that is excluded from, the composition of the
most directly comparable financial measure disclosed in our 2022
Annual Financial Statements. A non-GAAP ratio is a financial
measure disclosed in the form of a ratio, fraction, percentage, or
similar representation and that has a non-GAAP financial measure as
one or more of its components.
The primary non-GAAP financial measures (including non-GAAP
ratios) used in this document are:
EBITDA
The use of EBITDA is common in the wealth management industry.
We believe it provides a more accurate measure of our core
operating results, is a proxy for operating cash flow, and is a
commonly used basis for enterprise valuation. EBITDA is used to
evaluate core operating performance by adjusting net income/(loss)
to exclude:
- Interest expense, which we record primarily in connection with
term debt and preferred share liability;
- Income tax expense/(benefit);
- Depreciation and amortization expense, which we record
primarily in connection with intangible assets, leases, equipment,
and leasehold improvements; and
- Amortization in connection with investment advisor transition
and loan programs. We view these loans as an effective recruiting
and retention tool for advisors, the cost of which is assessed by
management upfront when the loan is provided rather than over its
term.
The table in the "Quarterly Non-GAAP Information" section below
reconciles our reported net income/(loss) to adjusted EBITDA.
Operating Expenses
Operating expenses include:
- Employee compensation and benefits
- Selling, general, and administrative expenses
- Transformation costs and other provisions
These are the expense categories that factor into the EBITDA
calculation discussed above.
Fee Revenue
Fee revenue represents the fees that our advisors generate for
providing wealth management services and investment advice to their
clients. The majority of fee revenue is fees charged to clients as
a percentage of AUA. It is often referred to as recurring fee
revenue because of the fact that the revenue tends to be less
volatile than other types of revenue. Fee revenue also includes
performance fees, which are charged by several of our advisors in
the first quarter of each year based on performance in the prior
calendar year and therefore experience more volatility.
Commissionable Revenue
Commissionable revenue includes fee revenue, trading
commissions, commission revenue earned in connection with the
placement of new issues, and revenue earned on the sale of
insurance products. We use commissionable revenue to evaluate
advisor compensation paid on that revenue.
Adjusted Results
In periods that we determine adjusting items have a significant
impact on a user's assessment of ongoing business performance, we
may present adjusted results in addition to reported results by
removing these items from the reported results. Management
considers the adjusting items to be outside of our core operating
performance. We believe that adjusted results can enhance
comparability across reporting periods and provide the reader with
a better understanding of how management views core performance.
Adjusted results are also intended to provide the user with results
that have greater consistency and comparability to those of other
issuers.
Adjusted EBITDA Margin
Adjusted EBITDA margin is a non-GAAP ratio defined as Adjusted
EBITDA as a percentage of revenue.
Adjusting items in this document include the following:
- Transformation costs and other provisions: charges in
connection with the ongoing transformation of our business and
other matters. These charges have encompassed a range of
transformation initiatives, including refining our ongoing
operating model, outsourcing our carrying broker operations,
realigning parts of our real estate footprint, and rolling out our
new strategy across the Company.
- Amortization of acquired intangible assets: amortization of
intangible assets created on the acquisition of Richardson
Wealth.
All adjusting items affect reported expenses.
Adjusted Operating Expenses
Adjusted operating expenses are defined as total reported
expenses less interest, advisor award and loan amortization,
depreciation and amortization, and transformation costs and other
provisions.
The table in the "Quarterly Non-GAAP Information" section below
reconciles our reported total expenses to adjusted operating
expenses.
Adjusted Operating Expense Ratio
Adjusted operating expense ratio is a non-GAAP ratio defined as
adjusted operating expenses divided by gross margin.
Adjusted Net Income
Adjusted net income is defined as net income (loss) from
continuing operations less adjusting items.
The table in the "Quarterly Non-GAAP Information" section below
reconciles our reported net income/(loss) to adjusted net
income/(loss).
Free Cash Flow Available for Growth
Free cash flow available for growth is the cash flow that the
Company generates from its continuing operations before any
investments in growth or transformation initiatives. It is
calculated as cash provided by (used in) operating activities per
the Consolidated Statement of Cash Flows before any changes
in non-cash operating items, less lease payments and
maintenance capital expenditures. It does not consider
transformation charges, the income (loss) from discontinued
operations, or dividends.
Free Cash Flow
Free cash flow is the net cash flow that the Company generates
from its operations after funding its growth and transformation
initiatives, including building out new offices to accommodate its
growth. It is calculated as Free cash flow available for growth
plus the income (loss) from discontinued operations
less cash outlays to recruit new advisors to the firm,
capital expenditures on growth initiatives, transformation costs,
and the net change in balance sheet provisions.
The table in the "Quarterly Non-GAAP Information" section below
reconciles our reported cash provided by (used in) operating
activities to free cash flow for growth and free cash flow.
Quarterly Non-GAAP Information
The following table presents select quarterly non-GAAP financial
information for our eight most recently completed financial
quarters.
|
2024
|
|
|
|
|
2023
|
|
|
|
2022
|
($000s, except as
otherwise indicated)
|
Q1
|
|
Q4
|
Q3
|
Q2
|
Q1
|
|
Q4
|
Q3
|
Q2
|
Adjusted
EBITDA:
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) from
continuing operations - reported
|
(1,127)
|
|
(2,882)
|
(189)
|
(1,425)
|
(5,332)
|
|
(990)
|
(724)
|
58
|
Income tax expense
(recovery)
|
1,190
|
|
713
|
2,281
|
1,642
|
(317)
|
|
(401)
|
1,330
|
793
|
Income (loss) before
income taxes - reported
|
63
|
|
(2,169)
|
2,092
|
217
|
(5,649)
|
|
(1,391)
|
606
|
851
|
Interest
|
3,750
|
|
3,994
|
3,527
|
3,675
|
3,511
|
|
3,294
|
3,015
|
2,348
|
Advisor award and loan
amortization
|
3,161
|
|
5,844
|
4,457
|
3,884
|
4,201
|
|
4,634
|
4,381
|
4,240
|
Depreciation and
amortization
|
6,565
|
|
6,849
|
6,856
|
6,805
|
6,895
|
|
7,851
|
6,936
|
6,743
|
EBITDA
|
13,539
|
|
14,518
|
16,932
|
14,580
|
8,958
|
|
14,388
|
14,938
|
14,182
|
Transformation costs
and other provisions
|
—
|
|
—
|
—
|
413
|
4,101
|
|
2,621
|
2,055
|
2,415
|
Adjusted
EBITDA
|
13,539
|
|
14,518
|
16,932
|
14,993
|
13,059
|
|
17,009
|
16,993
|
16,597
|
Adjusted operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
Total expenses -
reported
|
52,705
|
|
53,055
|
49,732
|
51,310
|
57,254
|
|
54,646
|
50,767
|
50,823
|
Interest
|
3,750
|
|
3,994
|
3,527
|
3,675
|
3,511
|
|
3,294
|
3,015
|
2,348
|
Advisor award and loan
amortization
|
3,161
|
|
5,844
|
4,457
|
3,884
|
4,201
|
|
4,634
|
4,381
|
4,240
|
Depreciation and
amortization
|
6,565
|
|
6,849
|
6,856
|
6,805
|
6,895
|
|
7,851
|
6,936
|
6,743
|
Operating
expenses
|
39,229
|
|
36,368
|
34,892
|
36,947
|
42,647
|
|
38,868
|
36,435
|
37,493
|
Transformation costs
and other provisions
|
—
|
|
—
|
—
|
413
|
4,101
|
|
2,621
|
2,055
|
2,415
|
Adjusted operating
expenses
|
39,229
|
|
36,368
|
34,892
|
36,533
|
38,546
|
|
36,246
|
34,380
|
35,078
|
Adjusted net
income:
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) from
continuing operations - reported
|
(1,127)
|
|
(2,882)
|
(189)
|
(1,425)
|
(5,332)
|
|
(990)
|
(724)
|
58
|
After-tax adjusting
items:
|
|
|
|
|
|
|
|
|
|
|
Transformation costs
and other provisions
|
—
|
|
—
|
—
|
306
|
3,039
|
|
2,093
|
1,522
|
1,554
|
Amortization of
acquired intangibles
|
2,398
|
|
2,399
|
2,398
|
2,398
|
2,398
|
|
2,398
|
2,398
|
2,398
|
Adjusted net income
(loss)
|
1,271
|
|
(483)
|
2,209
|
1,279
|
105
|
|
3,500
|
3,197
|
4,010
|
Earnings per common
share from continuing operations:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
(0.14)
|
|
(0.26)
|
(0.10)
|
(0.20)
|
(0.51)
|
|
(0.21)
|
(0.19)
|
(0.11)
|
Diluted
|
(0.14)
|
|
(0.26)
|
(0.10)
|
(0.20)
|
(0.51)
|
|
(0.21)
|
(0.19)
|
(0.11)
|
Adjusted earnings per
common share:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
0.01
|
|
(0.10)
|
0.09
|
0.02
|
(0.08)
|
|
0.25
|
0.22
|
0.31
|
Diluted
|
0.01
|
|
(0.10)
|
0.07
|
0.01
|
(0.08)
|
|
0.15
|
0.13
|
0.19
|
Cash
flow:
|
|
|
|
|
|
|
|
|
|
|
Cash provided by (used
in) operating activities
|
(11,826)
|
|
2,834
|
16,624
|
25,741
|
(313,698)
|
|
(93,752)
|
(283,619)
|
213,248
|
Net change in non-cash
operating items
|
21,966
|
|
8,315
|
(3,052)
|
(16,580)
|
319,577
|
|
105,331
|
296,031
|
(201,029)
|
Capital expenditures -
maintenance
|
(419)
|
|
(797)
|
(348)
|
(619)
|
(555)
|
|
(1,247)
|
—
|
(891)
|
Lease
payments
|
(2,266)
|
|
(2,040)
|
(2,044)
|
(2,273)
|
(2,263)
|
|
(2,192)
|
(2,110)
|
(2,232)
|
Net loss from
discontinued operations
|
—
|
|
—
|
—
|
2,064
|
—
|
|
—
|
—
|
—
|
Transformation costs
and other provisions (pre-tax)
|
—
|
|
—
|
—
|
412
|
4,101
|
|
2,621
|
2,055
|
2,415
|
Free cash flow
available for growth
|
7,455
|
|
8,312
|
11,180
|
8,746
|
7,162
|
|
10,761
|
12,357
|
11,511
|
Advisor loans net of
repayments
|
(2,249)
|
|
(13,224)
|
(557)
|
657
|
(2,961)
|
|
(3,519)
|
(956)
|
(6,194)
|
Capital expenditures -
office build outs (net of lease inducements)
|
(82)
|
|
936
|
225
|
(854)
|
(3,175)
|
|
(8,737)
|
(9,514)
|
(6,146)
|
Net loss from
discontinued operations
|
—
|
|
—
|
—
|
(2,064)
|
—
|
|
—
|
—
|
—
|
Transformation costs
and other provisions (pre-tax)
|
—
|
|
—
|
—
|
(413)
|
(4,101)
|
|
(2,621)
|
(2,055)
|
(2,415)
|
Net change in
provisions
|
(1,236)
|
|
(5,636)
|
(4,697)
|
1,134
|
(3,234)
|
|
105
|
(980)
|
(347)
|
Free cash
flow
|
3,888
|
|
(9,612)
|
6,151
|
7,206
|
(6,309)
|
|
(4,011)
|
(1,148)
|
(3,591)
|
Supplementary Financial Measures
A supplementary financial measure (SFM) is a financial measure
that is not reported in our Financial Statements, and is, or is
intended to be, reported periodically to represent historical or
expected future financial performance, financial position, or cash
flows. The Company's key SFMs disclosed in the MD&A include
AUA, recruiting pipeline, net new and recruited assets, and working
capital. Management uses these measures to assess the operational
performance of the Company. These measures do not have any
definition prescribed under IFRS and do not meet the definition of
a non-GAAP measure or non-GAAP ratio and may differ from the
methods used by other companies and therefore these measures may
not be comparable to other companies. The composition and
explanation of a SFM is provided in the MD&A where the measure
is first disclosed if the SFM's labelling is not sufficiently
descriptive.
About RF Capital Group Inc.
RF Capital Group Inc. is a TSX-listed (TSX: RCG) wealth
management-focused company. Operating under the Richardson Wealth
brand, the Company is one of the largest independent wealth
management firms in Canada with
$37.0 billion in assets under
administration (as of March 31, 2024)
and 22 offices across the country. The firm's Advisor teams are
focused exclusively on providing strategic wealth advice and
innovative investment solutions customized for high net worth or
ultra-high net worth families and entrepreneurs. The Company is
committed to maintaining exceptional fiduciary standards and has
earned certification – determined annually – from the Centre for
Fiduciary Excellence for its Separately Managed and Portfolio
Management Account platforms. Richardson Wealth has also been
recognized as a Great Place to Work®, a Best Workplace for Women, a
Best Workplace in Canada and
Ontario, a Best Workplace for
Mental Wellness, for Financial Services and Insurance, and for
Hybrid Work. For further information, please visit
www.rfcapgroup.com and
www.RichardsonWealth.com.
SOURCE RF Capital Group Inc.