Cash provided by operating activities amounted to $10.5 million in the second quarter of 2024, compared to $3.7 million in the same quarter last year. The increase of $6.8 million includes an increase of approximately $4.8 million in cash received that will ultimately be paid to sales representatives, positive cash flow from the acquired businesses, and lower overall working capital balances, partly offset by higher interest costs and a one-time increase in expenses related to the completion and approval of the transaction.

"We are very pleased with the Company's performance in the second quarter, which demonstrated positive results for the organization and its shareholders, and underscored the Company's potential for continued growth following the closing of the transaction," said Spencer Enright, Chief Executive Officer, Bridgemarq Real Estate Services Inc. "Looking ahead at the Canadian real estate market, the recent rate reductions by the Bank of Canada have reduced the cost of borrowing for potential homebuyers and the signaling of further reductions may provide for additional housing activity as consumer confidence is gradually restored.

"We are excited about our recent acquisition which provides Bridgemarq with the opportunity to more broadly participate in the growing Canadian real estate market. The addition of brokerage operations is expected to complement our well-established and successful franchise business. Our unwavering dedication to achieving the best results for our agents and their clients – including through continued investment in top-tier technology platforms, best-in-class training and coaching programs, and unique networking and referral opportunities – will continue to attract both industry professionals and clients to our trusted brands," noted Enright.

MARKET UPDATE

The Canadian Market posted a national decline in transactional dollar volume of 4% in the second quarter of 2024, compared to the same period last year.¹ According to the Canadian Real Estate Association, the national average selling price decreased modestly by 3% in the second quarter compared to the same period last year, as transactions recorded a decline of 2%. On a quarter-over-quarter basis, however, the average selling price rose 2% and total unit sales were up 40%.

While spring sales activity has not fully rebounded, some buyers who had been waiting on the sidelines during the period of rising borrowing costs appear to have begun re-entering the housing market in the second quarter of 2024, encouraged by interest rate cuts by the Bank of Canada.

For the first time in more than four years, the Bank of Canada reduced interest rates announcing two reductions to its overnight lending rate, which now sits at 4.5%.² As the unemployment rate rises and employment gains continue to slow, the central bank expects the Canadian economy will post modest gains in 2024, followed by more significant growth in 2025 and 2026. In June, Canada's Consumer Price Index sat at 2.7%, modestly lower than the inflation rate recorded in May and in line with historical norms.³ The market is widely expecting that the Bank of Canada will cut rates further this year, increasing consumer confidence and encouraging housing market activity.

CASH DIVIDEND

The Company declared a cash dividend of $0.1125 per Restricted Voting Share payable on September 30, 2024, to shareholders of record on August 30, 2024. The dividend distribution represents a target annual dividend of $1.35 per Restricted Voting Share, which is consistent with 2023.

THE COMPANY NETWORK

As at June 30, 2024, the Company Network was comprised of 20,570 REALTORS^? operating under 281 franchise agreements from 686 locations. The Company's corporately owned real estate brokerages operate 38 real estate locations in the Greater Toronto Area, Greater Vancouver and within the province of Quebec, with 2,751 sales representatives.

CONFERENCE CALL

Bridgemarq Real Estate Services Inc. will host a conference call on Tuesday, August 13, 2024, at 10 a.m. Eastern Daylight Time to discuss its second quarter financial results.

To access the call by telephone, please dial 1-888-664-6383 or 416-764-8650.

To access the call online, please visit https://app.webinar.net/L4vA3J01ZYn.

Please connect approximately ten minutes prior to the beginning of the call to ensure participation.

A recording of the conference call will be available in the Investor Centre section of the Company's website by Monday, August 19, 2024.

FORWARD-LOOKING STATEMENTS

This news release contains forward-looking information and other "forward-looking statements". Words such as "additional", "continue", "continued", "encouraging", "expects", "expecting", "expected", "further", "gradually", "growing", "growth", "increasing", "looking ahead", "may", "participate", "potential", "rises", "will", and other expressions that are predictions of or could indicate future events and trends and that do not relate to historical matters identify forward-looking statements. Reliance should not be placed on forward-looking statements because they involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from those indicated in the forward-looking statements include, but are not limited to: any resurgence of COVID-19 (including any impact of COVID-19 on the economy and the Company's business), changes in the supply or demand of houses for sale in Canada or in any particular region within Canada, changes in the selling price for houses in Canada or any particular region within Canada, changes in the Company's cash flow, changes in the Company's strategy with respect to and/or ability to pay dividends, changes in the productivity of the Company's REALTORS^? or the commissions they charge their customers, changes in government policy, laws or regulations which could reasonably affect the housing markets in Canada or the economy in general, changes to any products or services developed or offered by the Company, consumer response to any changes in the housing markets in Canada or any changes in government policy, laws or regulations, changes in general economic conditions (including interest rates, consumer confidence and other general economic factors or indicators), changes in global and regional economic growth, changes in the demand for and prices of natural resources on local and international markets, the level of residential real estate transactions, competition from other real estate brokers or from discount and/or Internet-based real estate alternatives, the closing of existing real estate brokerage offices, other developments in the residential real estate brokerage industry or the Company that reduce the number of REALTORS^? in the Company's network or revenue from the Company's network of REALTORS^?, our ability to maintain brand equity through the use of trademarks, the methods used by shareholders or analysts to evaluate the value of the Company and its publicly-traded securities, changes in tax laws or regulations, and other risks detailed in the Company's annual information form, which is filed with securities commissions and posted on SEDAR+ at www.sedarplus.ca. Forward-looking information is based on various material factors or assumptions, which are based on information currently available to management. Material factors or assumptions that were applied in drawing conclusions or making estimates set out in the forward-looking statements include, but are not limited to: anticipated economic conditions, anticipated impact of government policies, anticipated financial performance, anticipated market conditions, business prospects, the successful execution of the Company's business strategies and recent regulatory developments, including as the foregoing relate to COVID-19. The factors underlying current expectations are dynamic and subject to change. Although the forward-looking statements contained in this release are based upon what management believes are reasonable assumptions, the Company cannot assure readers that actual results will be consistent with these forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

About Bridgemarq Real Estate Services

Bridgemarq is a leading provider of services to residential real estate brokers and a network of more than 21,000 REALTORS^? through its franchise network and corporately owned brokerages. We operate in Canada under the Royal LePage^?, Proprio Direct^?, Via Capitale^? and Johnston & Daniel^? brands. For more information, go to www.bridgemarq.com.

 

 

SOURCE Bridgemarq Real Estate Services Inc.

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