Q2 2024 RF Capital Group Inc Earnings Call Transcript
Key Points
- RF Capital Group Inc (GMPXF) reported a record high of $38.2 billion in Assets Under Administration (AUA), up $3 billion since the beginning of the year.
- The company has been recognized by Great Place to Work for 6 consecutive years and named one of the best workplaces in financial services and insurance for 5 consecutive years.
- Fee-based revenue increased by 5% to $133.7 million for the first 6 months of 2024 compared to the same period last year.
- Net income rose significantly to $6.4 million for the 6-month period, up from $1.38 million in 2023.
- The company successfully recruited 5 new advisory teams in Q2, including top-producing teams with a combined $800 million in AUA.
- Interest income declined by 16% due to lower client cash and margin balances.
- Free cash flow decreased by $5.2 million to $2 million, primarily due to higher advisor recruiting and associated payments.
- Operating expenses increased, driven by a $1.6 million swing in mark-to-market expenses on RSUs and DSUs.
- The stock price does not yet reflect the growing intrinsic value of the company, which is disappointing to the management.
- The search for a new Chief Financial Officer is still underway, following the announcement that Tim Wilson will be leaving the company.
Good morning, ladies and gentlemen. Welcome to the RF Capital Second Quarter Earnings Conference Call. I would now like to turn the meeting over to Mr. Tim Wilson, Chief Financial Officer. Please go ahead, Mr.
Thank you, Karl. Good morning and welcome to RF Capital's second quarter 2024 earnings call. I'd like to remind you that our remarks may contain forward-looking information and actual results could differ materially. Forward-looking information is subject to many risks and uncertainties. Certain factors or assumptions implied to the forward-looking information can be found in our latest AIF and MD&A.
These documents are available on our website and at sedarplus.ca. Today I'm joined by our President and CEO, Kish Kapoor; and our Chief Operating Officer, Dave Kelly. Kish and Dave will discuss the executive succession plan that we announced yesterday; I will cover our detailed financial results and financial outlook; and Kish will then end with closing remarks
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