- 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 payableJune 28, 2024 , to shareholders of record onMay 31, 2024 . - The Company's annual shareholders' meeting will be held virtually on
May 15th, 2024 , at 10 a.m. Eastern Daylight Time.
Revenues during the first quarter were
During the quarter, the Company generated a net loss of
As a result of the acquisition, the Company changed the methodology by which they allocate expenses in determining the net recoverable amount of the franchise agreements from which they earn their revenue. This change resulted in an impairment charge of
The internalization of the management of the Company resulted in the settlement of deferred payments and other obligations owing to the acquired entities. The Company recorded a gain of
Cash provided by operating activities amounted to
"The Company has shown its ability to grow while the number of agents in the industry dropped during the quarter. Conversions completed in BC and
"Looking ahead, we are thrilled at the possibilities presented by our recent acquisition. The addition of brokerage operations to our respected franchise business will provide long-term value for our shareholders, and truly set us apart as a progressive industry innovator focused on meeting Canadians' ever evolving home-related needs and preferences."
The Canadian residential real estate market showed signs of renewal at the start of this year, growing by 17% in the first quarter of 2024, compared to same quarter in 2023.1 According to the
The
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1 CREA Canadian Housing Market Statistics |
2 |
3 |
ACQUISITION OF BROKERAGE OPERATIONS AND INTERNALIZATION OF MANAGEMENT
On
As a result of the acquisition of the brokerage operations, beginning in the second quarter of this year the Company will benefit from a broader revenue base and will earn revenues from the gross commission income earned directly by our owned brokerages operating under the Royal LePage, Via Capitale®,
The Board of Directors approved the appointment of Mr.
In addition, the Board has established a
The Company declared a cash dividend of
As at
Since the start of 2024, the Company has completed two major conversions to the Royal LePage brand from its competitors. In April, we converted a competing brokerage in Metro Vancouver with more than 180 sales representatives to the Royal LePage network, following the conversion of a strategic 12-agent office in
The Company will be holding its annual meeting of shareholders on
To access the shareholders' meeting, please visit https://virtual-meetings.tsxtrust.com/1600
and follow the login instructions, using the case-sensitive password 'bresi2024'. Shareholders and proxyholders will require their unique control number, which is provided by TSX Trust Company Canada in accordance with the instructions provided to shareholders. Guests are welcome to join the meeting by following the platform's instructions on the morning of the meeting.
For more information on participation at the virtual, live audio webcast, please review the Company's meeting guide (http://www.bridgemarq.com/meeting-guide) and the Management Information Circular.
This news release contains forward-looking information and other "forward-looking statements". Words such as "ahead", "begin", "continue", "expecting", "expects", "possibly", "provide", "set to", "to", "will", "will be", 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
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
Bridgemarq is an affiliate of Brookfield Business Partners, a business services and industrials company focused on owning and operating high-quality businesses that benefit from barriers to entry and/or low production costs. Brookfield Business Partners is listed on the
Balance Sheet Highlights | 2024 | 2023 |
Cash | $ 8,594 | $ 5,743 |
Other current assets | 64,968 | 4,671 |
Total current assets | 73,562 | 10,414 |
Non-current assets | 107,580 | 54,478 |
Total assets | $ 181,142 | $ 64,892 |
Accounts payable and accrued liabilities | $ 14,799 | $ 1,407 |
Customer deposits | 52,367 | - |
Interest payable on Exchangeable Units | 484 | 484 |
Dividends payable to shareholders | 1,067 | 1,067 |
Contract transfer obligation | - | 356 |
Lease liabilities | 3,731 | - |
Exchangeable Units | 87,292 | - |
Total current liabilities | 159,740 | 3,314 |
Debt facilities | 66,947 | 67,022 |
Other non-current liabilities | 16,744 | 7,851 |
Exchangeable Units | - | 43,825 |
Total Liabilities | 243,431 | 122,012 |
Shareholders' deficit | (62,289) | (57,120) |
Total Liabilities and Shareholders' deficit | $ 181,142 | $ 64,892 |
Three months | Three months | |
ended | ended | |
Interim Earnings Highlights | 2024 | 2023 |
Fixed franchise fees | $ 8,362 | $ 8,380 |
Variable franchise fees | 2,714 | 2,799 |
Other revenue | 691 | 812 |
Revenues | 11,767 | 11,991 |
Cost of other revenue | (152) | (226) |
Administration expenses | (1,111) | (367) |
Management fees | (4,742) | (4,852) |
Interest expense | (1,193) | (743) |
4,569 | 5,803 | |
Impairment and write-off of intangible assets | (1,552) | (102) |
Amortization of intangible assets | (1,695) | (1,741) |
Interest on Exchangeable Units | (1,452) | (1,452) |
Loss on fair value of Exchangeable Units | (2,662) | (5,990) |
Loss on interest rate swap | - | (378) |
Loss on debt facility amendment | - | (122) |
Gain on settlement of deferred payments | 1,224 | - |
Gain on settlement of contract transfer obligation | 99 | - |
Income tax expense | (575) | (937) |
Deferred income tax recovery | 76 | 214 |
Net and comprehensive loss | $ (1,968) | $ (4,705) |
Basic loss per Restricted Voting Share | $ (0.21) | $ (0.50) |
Diluted loss per Share | $ (0.21) | $ (0.50) |
Cash Flow Highlights | ||
Cash provided by operating activities: | $ 2,073 | $ 3,220 |
Cash provided by (used for) investing activities: | 4,055 | (220) |
Cash used for financing activities: | (3,277) | (3,259) |
Change in cash for the period | 2,851 | (259) |
Cash, beginning of the period | 5,743 | 6,419 |
Cash, end of the period | $ 8,594 | $ 6,160 |
BRIDGEMARQ® & DESIGN / BRIDGEMARQ REAL ESTATE SERVICES®, VIA CAPITALE®, JOHNSTON & DANIEL® and PROPRIO DIRECT® are registered trademarks of |
The trademarks REALTOR®, REALTORS® and the REALTOR® logo are controlled by The |
SOURCE
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