Bridgemarq Real Estate Services? Reports First Quarter Results and Declares Monthly Dividend

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TORONTO, May 15, 2024 /CNW/ - Bridgemarq Real Estate Services Inc. ("Bridgemarq" or the "Company") (TSX: BRE) today released its first quarter consolidated financial results and announced a monthly dividend to holders of the Company's restricted voting shares.

HIGHLIGHTS

  • On March 31, 2024, the Company completed a transaction with Brookfield Business Partners ("Brookfield") whereby the Company acquired certain real estate brokerages, internalized its management team and settled deferred distributions owing to Brookfield for total proceeds of $40.8 million.

  • Revenue in the first quarter amounted to $11.8 million, compared to the $12.0 million generated in the first quarter of 2023, as a result of lower average agent count in the quarter compared to the prior year, partly offset by fee increases implemented during the quarter.

  • During the quarter, the Company generated a net loss $2.0 million or $0.21 per share, compared to a net loss of $4.7 million or $0.50 per share in 2023, primarily driven by a loss of $2.7 million on the fair valuation of the Exchangeable Units and a charge for impairment of intangibles in the first quarter, partly offset by a gain of $1.3 million on the settlement of deferred payments. In the first quarter of 2023, Bridgemarq generated a loss of $6.0 million on the fair valuation of the Exchangeable Units.

  • Cash provided by operating activities amounted to $2.1 million in the first quarter of 2024, compared to $3.2 million in 2023, due to higher administration and interest expenses associated with the transaction.

  • The Board of Directors approved a dividend to shareholders of $0.1125 per Restricted Voting Share payable June 28, 2024, to shareholders of record on May 31, 2024.

  • The Company's annual shareholders' meeting will be held virtually on May 15th, 2024, at 10 a.m. Eastern Daylight Time.

FIRST QUARTER OPERATING RESULTS

Revenues during the first quarter were $11.8 million, compared to the $12.0 million generated in the same quarter in 2023. The change in revenues is primarily due to lower average agent counts in the Company's network of REATORS?, partly offset by an increase in the fees paid by REALTORS? operating under the Royal LePage? and Johnston & Daniel? brands.

During the quarter, the Company generated a net loss of $2.0 million or $0.21 per share, compared to a net loss of $4.7 million or $0.50 per share in 2023. The lower net loss is largely driven by a loss of $2.7 million on the valuation of the Exchangeable Units in the quarter (compared to a loss of $6.0 million in the prior year), and a charge related to impairment of intangibles of $1.6 million partly offset by a gain of $1.3 million on the settlement of deferred payments. The fair valuation adjustment on the Exchangeable Units is directly related to changes in the market price of the Corporation's Restricted Voting Shares.