RF CAPITAL REPORTS FIRST QUARTER 2025 RESULTS

Canada NewsWire

TORONTO, April 30, 2024

Q1 2025 Financial Highlights

(compared to Q1 2024)

AUA(1,2) and Revenue

   -- Ending AUA1,2 increased to $39.2 billion, up 6% or $2.1 billion driven by 
      strong equity markets. 
 
   -- Revenue increased 11% to $99.4 million, led by 17% higher fee revenue and 
      despite a 14% decrease in interest revenue. 

Profitability and Cash Flow

   -- Gross margin increased 5% to $55.4 million, consistent with the increase 
      in revenue. 
 
   -- EBITDA1 decreased 30% to $9.5 million due to higher operating expense1 
      growth, primarily driven by mark-to-market adjustments on restricted and 
      deferred share units (RSUs and DSUs) and foreign exchange (FX) 
      translation adjustments, both of which represent gains or losses from the 
      change in fair value of balance sheet items (balance sheet revaluation 
      adjustments). Excluding these adjustments, EBITDA increased 3% to $12.7 
      million as gross margin growth outpaced operating expense growth. 
 
   -- Net loss increased to $4.1 million from $1.1 million in Q1 2024 primarily 
      due to balance sheet revaluation adjustments. 
 
   -- Cash from operating activities was $5.4 million compared to ($11.8) 
      million in Q1 2024, driven by higher fee revenue. 
 
   -- Free cash flow available for growth1,3 was $2.0 million compared to 
      ($13.3) million in Q1 2024, in line with higher operating cash flows. 
 
   -- Free cash flow1,3 was ($1.8) million compared to ($15.7) million in Q1 
      2024, in line with the increase in free cash flow available for growth. 

Balance sheet

   -- Net working capital1, 4 was $86.7 million, a decrease of $2.1 million 
      from Q4 2024 as the reduction in liquid assets more than offset the 
      decrease in current liabilities. 

TORONTO, April 30, 2024 /CNW/ - RF Capital Group Inc. (RF Capital or the Company) (TSX: RCG) today reported revenue of $99.4 million in the first quarter of 2025, up 11% compared to the prior year. The increase in revenue was driven by AUA(1,2) of $39.2 billion, up $2.1 billion compared to prior year Q1 attributable mainly to strong equity markets, recruiting, and net new asset gains. With year-over-year growth in operating expenses(1) increasing 17% to $46.0 million due to balance sheet revaluation adjustments, EBITDA(1) decreased 30% to $9.5 million.

For more detail on our results, please refer to our MD&A for the period ending March 31, 2025.

 
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.  Commencing Q1 2025, we have updated our free cash 
     flow available for growth and free cash flow calculations. 
     Prior period amounts have been revised to conform 
     with the change. For further information, please see 
     the "Non-GAAP and Supplementary Financial Measures" 
     section of this release. 
4.  Commencing Q4 2024, we have updated our net working 
     capital calculation to exclude the non-repayable portion 
     of employee and other loans receivable from current 
     assets. For further information, please see the "Non-GAAP 
     and Supplementary Financial Measures" section of this 
     release". 
 

Dave Kelly, President and Chief Executive Officer, commented, "Looking ahead in 2025, in light of the political and macroeconomic uncertainty in the markets, we will continue to be laser-focused on our three strategic growth pillars. We expect to continue deploying our free cash flow available for growth(1) to ensure our advisor teams have the products, services, and tools needed to provide superior client advice and service, as well as into recruitment. We are excited by the recent appointment of Kevin Shubley to SVP, Head of Advisor Experience and Growth. Kevin will lead the work to help our advisor teams grow, make their practices more valuable and to ensure a relentless focus on creating operational excellence. With our corporate teams, advisor teams, and the Executive Committee aligned, we are the best independent choice for Canada's top advisors and their clients." |

Outlook and Key Performance Drivers

Our current view on the drivers of our financial performance and profitability for 2025 is as follows:

   -- AUA1,2 is highly correlated with equity and bond market movements which 
      are inherently difficult to predict and can be impacted by broader 
      economic conditions. We expect to see increased volatility in these 
      markets as a result of the new U.S. trade and tariff policies and their 
      global ramifications. However, AUA will also be impacted by growth in our 
      existing advisors' client assets and by recruiting and attrition. 
 
   -- Interest revenue is impacted by prime rate trends, which economists 
      expect to continue to decline before stabilizing later in 2025. 
 
   -- Transaction activity underlying our corporate finance revenue could 
      rebound but is more likely to remain subdued. 
 
   -- We expect inflation to remain in the Bank of Canada's target range for 
      2025, although there is uncertainty due to the new U.S. trade and tariff 
      policies. We remain committed to finding operating cost savings and 
      efficiencies in our business. 
 
   -- Free cash flow available for growth1 is expected to be deployed towards 
      advisor recruitment. 

Preferred Share Dividend

On April 30, 2025, 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 30, 2025(3) to preferred shareholders of record on June 13, 2025.

First Quarter 2025 and Annual Meeting of Shareholders

The Company will hold its annual meeting of shareholders (the Meeting), in person, at its head office in Toronto, on the 25(th) floor, at 100 Queens Quay East, on Thursday, May 1, at 11:00 a.m. $(EST.UK)$.

The Chair of RF Capital's Board of Directors, Donald Wright, will host the Meeting. President and CEO, Dave Kelly, will then discuss the financial and strategic highlights of 2024, and provide a brief update on the Company's first quarter 2025 results and outlook for the remainder of the year. A live and archived audio webcast with slide presentation will be accessible at https://richardsonwealth.com/investor-relations/shareholder-meetings/.

 
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 2025, Q4 2024 and Q1 2024.

 
                                                                        As at or for the three months ended 
                   March 31,   December   Increase/                      March     Increase/ 
                               31,                                       31, 
($ thousands,           2025       2024  (decrease)                         2024  (decrease) 
except as 
otherwise 
indicated) 
Key performance 
drivers(1) : 
AUA - ending(2) 
 ($ millions)         39,152     39,527                          (1 %)    37,010                            6 % 
AUA - average(2) 
 ($ millions)         39,746     39,760                          (0 %)    36,060                           10 % 
Fee revenue           77,496     73,821                            5 %    66,146                           17 % 
Fee revenue(3) 
 (%)                      91         90                       +100 bps        92                         (50.0) 
Operating expense 
 ratio(4) (%)           82.9       70.5                     +1,240 bps      74.3                       +860 bps 
EBITDA margin(5) 
 (%)                     9.5       16.8                      (730) bps      15.2                      $(570.SI)$ bps 
Asset yield(6)                                                      +5                                       +1 
 (%)                    0.89       0.84                            bps      0.88                            bps 
Advisory teams(7) 
 (#)                     149        150                          (1 %)       151                          (1 %) 
Operating 
Performance 
Reported results: 
Revenue               99,393     96,887                            3 %    89,361                           11 % 
Gross margin(8)       55,417     55,073                            1 %    52,768                            5 % 
Operating 
 expenses(1,9)        45,951     38,835                           18 %    39,229                           17 % 
EBITDA(1)              9,466     16,238                         (42 %)    13,539                         (30 %) 
Income/(loss) 
 before income 
 taxes               (3,301)      3,094                            n/m        63                            n/m 
Net income/(loss)    (4,112)      1,290                            n/m   (1,127)                          265 % 
Net income/(loss) 

 per common share     (0.33)       0.01                            n/m    (0.14)                          136 % 
Net income/(loss) 
 per common share 
 - diluted            (0.33)       0.01                            n/m    (0.14)                          136 % 
Adjusted 
results(1) : 
Income/(loss) 
 before income 
 taxes                  (38)      6,357                            n/m     3,326                            n/m 
Net income/(loss)    (1,714)      3,688                            n/m     1,271                            n/m 
Net income/(loss) 
 per common share 
 - diluted            (0.18)       0.17                            n/m      0.01                            n/m 
Cash flow: 
Cash provided 
 by/(used in) 
 operating 
 activities            5,401     14,442                         (63 %)  (11,826)                            n/m 
Free cash flow 
 available for 
 growth(1, 10)         1,981     11,466                         (83 %)  (13,335)                            n/m 
Free cash flow(1, 
 10)                 (1,808)      9,731                            n/m  (15,666)                         (88 %) 
 
 
                                                                                                          As at 
                   March 31,   December                      Increase/ 
                                    31, 
($ thousands,           2025       2024                     (decrease) 
except as 
otherwise 
indicated) 
Select balance 
sheet 
information: 
Total assets       1,400,887  1,458,681                          (4 %) 
Debt                 110,922    110,922                              - 
Shareholders' 
 equity              321,803    326,982                          (2 %) 
Net working 
 capital(1,11)        86,665     88,729                          (2 %) 
Common share 
information: 
Book value per 
 common share ($)      13.32      13.65                          (2 %) 
Closing share 
 price ($)             10.01       7.51                           33 % 
Weighted-average 
 number of common 
 shares 
 outstanding 
 - diluted 
 (millions)            15.73      15.73                             -- 
Common share 
 market 
 capitalization 
 ($ millions)            157        118                           33 % 
 
 
1.   Considered to be non-GAAP or SFMs, 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 
      release. 
2.   AUA is a measure of client assets and is common in 
      the wealth management industry. It represents the 
      market value of client assets that we administer. 
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 operating expenses divided by gross 
      margin. There have been no adjusting items impacting 
      operating expenses beyond Q2 2023. 
5.   Calculated as EBITDA divided by revenue. There have 
      been no adjusting items impacting EBITDA beyond Q2 
      2023. 
6.   Calculated as fee revenue, trading commissions, and 
      interest on cash, divided by average AUA. 
7.   Prior periods have 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. 
10.  Commencing Q1 2025, we have updated our free cash 
      flow available for growth and free cash flow calculations. 
      Prior period amounts have been revised to conform 
      with the change. For further information, please see 
      the "Non-GAAP and Supplementary Financial Measures" 
      section of this release. 
11.  Calculated as current assets less current liabilities. 
      For further information, please see the "Liquidity 
      and Share Capital" section of this release. 
 

Quarterly Results

The following table presents selected quarterly financial information for our eight most recently completed financial quarters.

 
                    2025                              2024                       2023 
($ thousands,        Q1       Q4      Q3       Q2      Q1        Q4       Q3      Q2 
except as 
otherwise 
indicated) 
Key performance 
drivers(1) : 
AUA - ending(2) ($ 
 millions)           39,152  39,527   39,004  37,125    37,010   35,236  34,726   35,788 
AUA - average(2) 
 ($ millions)        39,746  39,760   38,065  36,976    36,060   34,926  35,630   35,880 
Fee revenue(3) (%)       91      90       91      90        92       89      92       90 
Adjusted operating 
 expense ratio(4) 
 (%)                   82.9    70.5     75.8    71.9      74.3     71.5    67.3     70.9 
Adjusted EBITDA 
 margin(5) (%)          9.5    16.8     13.6    16.5      15.2     16.7    19.3     16.9 
Asset yield(6) (%)     0.89    0.84     0.85    0.86      0.88     0.87    0.87     0.86 
Advisory teams(7) 
 (#)                    149     150      153     152       151      153     155      154 
Operating 
Performance: 
Reported results: 
Revenue              99,393  96,887   91,871  91,216    89,361   86,752  87,836   88,832 
Variable advisor 
 compensation        43,976  41,814   40,183  37,650    36,593   35,866  36,012   37,305 
Gross margin(8)      55,417  55,073   51,688  53,566    52,768   50,886  51,824   51,527 
Operating 
 expenses(1,9)       45,951  38,835   39,195  38,496    39,229   36,368  34,892   36,946 
EBITDA(1)             9,466  16,238   12,493  15,070    13,539   14,518  16,932   14,581 
Advisor award and 
 loan amortization    3,125   3,211    3,103   2,909     3,161    5,844   4,457    3,884 
Interest              3,322   3,649    3,725   3,413     3,750    3,994   3,527    3,675 
Amortization and 
 depreciation of 
 premises and 
 equipment            2,694   2,677    2,660   2,749     3,049    3,385   3,414    3,366 
Amortization of 
 intangibles          3,626   3,607    3,563   3,537     3,516    3,464   3,442    3,439 
Income/(loss) 
 before income 
 taxes              (3,301)   3,094    $(558.SI)$   2,462        63  (2,169)   2,092      217 
Net income/(loss) 
 from continuing 
 operations         (4,112)   1,290  (2,309)   2,714   (1,127)  (2,882)   (189)  (1,425) 
Net income/(loss) 
 from discontinued 
 operations(10)           -       -        -       -         -        -       -  (2,064) 
Net 
 income/(loss)(10)  (4,112)   1,290  (2,309)   2,714   (1,127)  (2,882)   (189)  (3,489) 
Net income/(loss) 
 per common share 
 from continuing 
 operations          (0.33)    0.01   (0.22)    0.11    (0.14)   (0.26)  (0.10)   (0.20) 
Net income/(loss) 
 per common share 
 from continuing 
 operations - 
 diluted             (0.33)    0.01   (0.22)    0.10    (0.14)   (0.26)  (0.10)   (0.20) 
Net income/(loss) 
 per common 
 share(10)           (0.33)    0.01   (0.22)    0.11    (0.14)   (0.26)  (0.10)   (0.37) 
Net income/(loss) 
 per common share 
 - diluted(10)       (0.33)    0.01   (0.22)    0.10    (0.14)   (0.26)  (0.10)   (0.37) 
Adjusted 
results(1) : 
Operating 
 expenses(9)         45,951  38,835   39,195  38,496    39,229   36,368  34,892   36,533 
EBITDA                9,466  16,238   12,493  15,070    13,539   14,518  16,932   14,994 
Income/(loss) 
 before income 
 taxes                 (38)   6,357    2,705   5,725     3,326    1,094   5,355    3,893 
Net income/(loss)   (1,714)   3,688       89   5,112     1,271    (483)   2,209    1,279 
Cash flow: 
Cash provided 
 by/(used in) 
 operating 
 activities           5,401  14,442   15,977   5,162  (11,826)    2,836  16,624   25,741 
Free cash flow 
 available for 
 growth(1, 11)        1,981  11,466   18,208   8,019  (13,335)   12,149  13,716   21,532 
Free cash flow(1, 
 11)                (1,808)   9,731   11,803   1,859  (15,666)    (139)  13,384   20,922 
 
 
1.   Considered to be non-GAAP or SFMs, 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 industry. It represents the 
      market value of client assets that we administer. 
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. There have been no adjusting items 
      impacting operating expenses beyond Q2 2023. 
5.   Calculated as adjusted EBITDA divided by revenue. 
      There have been no adjusting items impacting EBITDA 
      beyond Q2 2023. 
6.   Calculated as fee revenue, trading commissions, and 
      interest on cash, divided by average AUA. 
7.   Prior periods have 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. 
11.  Commencing Q1 2025, we have updated our free cash 
      flow available for growth and free cash flow calculations. 
      Prior period amounts have been revised to conform 
      with the change. For further information, please see 
      the "Non-GAAP and Supplementary Financial Measures" 
      section of this MD&A. 
 

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 SFMs 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 SFMs 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.

Adjusted Results

Some of our non-GAAP financial measures (including non-GAAP ratios) reflect 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. All adjusting items affect reported expenses.

Adjusting items in this release include the following:

   -- Transformation costs and other provisions: charges in connection with the 
      transformation of our business and other matters. These charges encompass 
      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 new strategy across 
      the Company. There have been no transformation costs recorded since Q2 
      2023. 
 
   -- Amortization of acquired intangibles: amortization of intangible assets 
      created on the acquisition of Richardson Wealth. 
 
   -- The following items are not included as adjusting items in this release: 
 
   -- Balance sheet revaluation adjustments such as mark-to-market adjustments 
      on our share-based compensation (RSUs and DSUs) and FX translation 
 
   -- Costs related to our 2024 leadership transition 
 
   -- Other one-time expenses or recoveries that we consider to be normal 
      course of business, unless otherwise specified 

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 2024 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

EBITDA is commonly used in the wealth management industry. We believe it provides a more accurate measure of our core operating results 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 debt 
 
   -- Income tax expense/(recovery) 
 
   -- Amortization and depreciation which we record in connection with leases, 
      equipment, and leasehold improvements 
 
   -- Amortization related to intangible assets 
 
   -- 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. 

Adjusted EBITDA is defined as EBITDA excluding adjusting items.

Adjusted EBITDA margin is a non-GAAP ratio defined as adjusted EBITDA as a percentage of revenue.

The table in the "Quarterly Non-GAAP Information" section below reconciles our reported net income/(loss) to EBITDA and adjusted EBITDA.

Operating Expenses

Operating expenses are defined as total reported expenses less interest, advisor award and loan amortization, amortization and depreciation of premises and equipment, and amortization of intangibles. These are the expenses that factor into the EBITDA calculation discussed above.

Operating expense ratio is a non-GAAP ratio defined as operating expenses divided by gross margin.

Adjusted operating expenses are defined as operating expenses less adjusting items.

Adjusted operating expense ratio is a non-GAAP ratio defined as adjusted operating expenses divided by gross margin.

The table in the "Quarterly Non-GAAP Information" section below reconciles our reported total expenses to operating expenses and adjusted operating expenses.

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).

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.

Net Working Capital

Commencing Q4 2024, we updated our calculation to exclude the non-repayable portion of employee and other loans receivable from current assets.

Net working capital represents the excess capital available to deploy in operations or growth and is comprised of current assets less current liabilities. We use net working capital to manage our liquidity as well as evaluate the efficiency of our operations. Net working capital is widely used across the wealth management industry and beyond to assess the financial health of entities and associated risks.

The table in the "Quarterly Non-GAAP Information" section below provides our net working capital calculation.

Free Cash Flow

Commencing Q1 2025, we have updated our free cash flow available for growth and free cash flow calculations to consider cash impacts of non-cash operating items and RF Capital preferred share dividends. Comparative periods have been revised to conform with the current period presentation.

Free cash flow available for growth is the cash flow the Company generates from its continuing operations before any investments in growth or transformation initiatives. We use this metric to evaluate the efficiency of our operations and assess the capital available to reinvest in growth activities. It is calculated as cash provided by/(used in) operating activities per the Consolidated Statement of Cash Flows add adjusting items and net outlays to attract new advisors to the firm, less lease payments, RF Capital preferred share dividends, and maintenance capital expenditures.

Free cash flow is the net cash flow that the Company generates from its continuing operations after investments in growth and transformation initiatives. We use free cash flow to evaluate the efficiency of our growth initiatives and assess the capital available after investments in growth. It is calculated as free cash flow available for growth less net outlays to attract new advisors to the firm, capital expenditures on growth initiatives, and adjusting items.

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.

Supplementary Financial Measures

An 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 this release include AUA, average AUA per team, recruited assets, and asset yield. 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 an SFM is provided in this release where the measure is first disclosed if the SFM's labeling is not sufficiently descriptive.

Quarterly Non-GAAP Information

The following table presents select quarterly non-GAAP financial information for our eight most recently completed financial quarters.

 
                     2025                                2024                         2023 
($ thousands,         Q1       Q4       Q3       Q2       Q1        Q4        Q3       Q2 
except as otherwise 
indicated) 
Adjusted EBITDA: 
Net income/(loss) 
 from continuing 
 operations - 
 reported            (4,112)    1,290  (2,309)    2,714   (1,127)   (2,882)    (189)  (1,425) 
Income tax 
 expense/(recovery)      811    1,804    1,751    (252)     1,190       713    2,281    1,642 
Income/(loss) 
 before income 
 taxes - reported    (3,301)    3,094    (558)    2,462        63   (2,169)    2,092      217 
Interest               3,322    3,649    3,725    3,413     3,750     3,994    3,527    3,675 
Advisor award and 
 loan amortization     3,125    3,211    3,103    2,909     3,161     5,844    4,457    3,884 
Amortization and 
 depreciation of 
 premises and 
 equipment             2,694    2,677    2,660    2,749     3,049     3,385    3,414    3,366 
Amortization of 
 intangibles           3,626    3,607    3,563    3,537     3,516     3,464    3,442    3,439 
EBITDA                 9,466   16,238   12,493   15,070    13,539    14,518   16,932   14,581 
Transformation 
 costs and other 
 provisions                -        -        -        -         -         -        -      413 
Adjusted EBITDA        9,466   16,238   12,493   15,070    13,539    14,518   16,932   14,994 
 
Adjusted operating 
expenses: 
Total expenses - 
 reported             58,718   51,979   52,246   51,104    52,705    53,055   49,732   51,310 
Interest               3,322    3,649    3,725    3,413     3,750     3,994    3,527    3,675 
Advisor award and 
 loan amortization     3,125    3,211    3,103    2,909     3,161     5,844    4,457    3,884 
Amortization and 
 depreciation of 
 premises and 
 equipment             2,694    2,677    2,660    2,749     3,049     3,385    3,414    3,366 
Amortization of 
 intangibles           3,626    3,607    3,563    3,537     3,516     3,464    3,442    3,439 
Operating expenses    45,951   38,835   39,195   38,496    39,229    36,368   34,892   36,946 
Transformation 
 costs and other 
 provisions                -        -        -        -         -         -        -      413 
Adjusted operating 
 expenses             45,951   38,835   39,195   38,496    39,229    36,368   34,892   36,533 
 
Adjusted net 
income: 
Net income/(loss) 
 from continuing 
 operations - 
 reported            (4,112)    1,290  (2,309)    2,714   (1,127)   (2,882)    (189)  (1,425) 
After-tax adjusting 
items: 
Transformation 
 costs and other 
 provisions                -        -        -        -         -         -        -      306 
Amortization of 
 acquired 
 intangibles           2,398    2,398    2,398    2,398     2,398     2,399    2,398    2,398 
Adjusted net 
 income/(loss)       (1,714)    3,688       89    5,112     1,271     (483)    2,209    1,279 
Net income/(loss) 
per common share 
from continuing 
operations: 
Basic                 (0.33)     0.01   (0.22)     0.11    (0.14)    (0.26)   (0.10)   (0.20) 
Diluted               (0.33)     0.01   (0.22)     0.10    (0.14)    (0.26)   (0.10)   (0.20) 
Adjusted net 
income/(loss) per 
common share: 
Basic                 (0.18)     0.17   (0.06)     0.26      0.01    (0.10)     0.09     0.02 
Diluted               (0.18)     0.17   (0.06)     0.26      0.01    (0.10)     0.07     0.01 
 
Cash flow: 
Cash provided 
 by/(used in) 
 operating 
 activities            5,401   14,442   15,977    5,162  (11,826)     2,836   16,624   25,741 
Add/(less): 
Transformation 
 costs and other 
 provisions 
 (pre-tax)                 -        -        -        -         -         -        -      413 
Advisor loans net 
 of repayments         1,820    1,270    6,290    7,088     2,249    13,224      557    (657) 
Capital 
 expenditures - 
 maintenance         (1,995)  (1,004)    (790)    (901)     (419)     (797)    (348)    (619) 
Lease payments       (2,172)  (2,169)  (2,196)  (2,257)   (2,266)   (2,041)  (2,044)  (2,273) 
Preferred share 
 dividends           (1,073)  (1,073)  (1,073)  (1,073)   (1,073)   (1,073)  (1,073)  (1,073) 
Free cash flow 
 available for 
 growth                1,981   11,466   18,208    8,019  (13,335)    12,149   13,716   21,532 
Transformation 
 costs and other 
 provisions 
 (pre-tax)                 -        -        -        -         -         -        -    (413) 
Advisor loans net 
 of repayments       (1,820)  (1,270)  (6,290)  (7,088)   (2,249)  (13,224)    (557)      657 
Capital 
 expenditures - 
 growth (net of 
 lease inducements)  (1,969)    (465)    (115)      928      (82)       936      225    (854) 
Free cash flow       (1,808)    9,731   11,803    1,859  (15,666)     (139)   13,384   20,922 
 
 
                                                  For the three months ended 
($ thousands, except as otherwise indicated)      March 31,     December 31, 
                                                   2025          2025 
Net working capital: 
Current assets: 
Cash and cash equivalents (non-client portion)          86,748          88,556 
Securities owned                                           820           1,593 
Net receivable from brokers (non-client portion)        60,034          61,125 
Employee and other loans receivable (current 
 portion)                                                1,113           1,244 
Other assets                                            15,156          14,758 
Current liabilities: 
Accounts payable and accrued liabilities                60,500          60,261 
Provisions (current portion)                            12,030          13,587 
Lease liabilities (current portion)                      4,676           4,699 
Net working capital                                     86,665          88,729 
 

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 $39.2 billion in assets under administration (as of March 31, 2025) and 23 offices across the country. The firm's Advisor teams are focused exclusively on providing strategic wealth advice and innovative investment solutions customized for high net worth or ultra-high net worth families and entrepreneurs. The Company is committed to maintaining exceptional fiduciary standards and has earned certification -- determined annually -- from the Centre for Fiduciary Excellence for its Separately Managed and Portfolio Management Account platforms. For the seventh year in a row, Richardson Wealth has been certified as a "great place to work" by Great Place to Work$(R)$, a global authority on workplace culture.

To learn more about the Company, please visit www.rfcapgroup.com and www.RichardsonWealth.com to view our 2024 annual report and our latest recruiting brochure.

SOURCE RF Capital Group Inc.

View original content: http://www.newswire.ca/en/releases/archive/April2025/30/c2128.html

/CONTACT:

For Further Information Please Contact: RF Capital Group Inc., Investor Relations, Tel: (416) 943-6607; e-mail investorrelations@rfcapgroup.com

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(END) Dow Jones Newswires

April 30, 2025 16:30 ET (20:30 GMT)