Toronto, Ontario–(Newsfile Corp. – July 26, 2022) – Lorne Park Capital Partners Inc. (TSXV: LPC) (“LPCP” or the “Company”) today announced its results for the six month and three month periods ending June 30, 2022 and also announced its shareholder meeting results.
Results for the Six Month and Three Month Periods Ending June 30, 2022
Revenue for the six month period ended June 30, 2022 (“YTD 2022”) was $13.3 million, an increase of $2.4 million or 21.6%, compared to $10.9 million for the six month period ended June 30, 2021 (“YTD 2021”). Revenue for the three month period ended June 30, 2022 (“Q2 2022”) was $6.6 million, an increase of $1.0 million or 17.8%, compared to $5.6 million for the three month period ended June 30, 2021 (“Q2 2021”).
Assets under management was $1.96 billion on June 30, 2022. This was an increase of $8.4 million or 0.4% from the AUM at December 31, 2021, and an increase of $217.0 million or 12.4% from June 30, 2021. During the YTD 2022 and Q2 2022, the Company added $123.3 million and $28.2 million, respectively, in net new assets, but had market depreciation of $114.9 million and $118.7 million, respectively.
“Although the market impact was challenging this quarter as both bond and stock markets experienced significant declines, the Bellwether fixed income and income-oriented equity strategies have continued to hold up very well in comparison to market indices,” said Robert Sewell, President and CEO. “We also continue to execute on our growth plans with advisor transitions.”
Adjusted EBITDA1, a non-IFRS measure, for the YTD 2022 was $3.1 million, an increase of $0.9 million or 41.5%, compared to $2.2 million during the YTD 2021, and was $1.6 million for Q2 2022, an increase of $0.4 million or 34.0%, compared to $1.2 million during Q2 2021.
These results are not a comprehensive statement of the Company’s financial results for YTD 2022 and Q2 2022. They should not be viewed as a substitute for financial statements prepared in accordance with International Financial Reporting Standards and are not necessarily indicative of the Company’s results for any future period.
The Company is pleased to announce that the shareholders approved all matters put forth for approval at the annual and special shareholders’ meeting held on June 24, 2022 (the “Meeting”). The shareholders re-elected Robert Sewell, Stephen Meehan, Christopher Dingle, David Brown, Peter Patchet and James Williams to the board of directors and re-appointed MNP LLP to be the auditors of the Company. The shareholders also approved certain amendments to the Company’s stock option plan (the “Option Plan”) to comply with the new TSX Venture Exchange Policy 4.4. For complete details about the amendments to the Option Plan and further information about the Meeting, please see the Management Information Circular filed under the Company’s profile on www.sedar.com.
LPCP was created to bring together boutique investment management and wealth advisory firms in order to deliver robust, cost effective investment solutions to affluent investors, foundations, estates and trusts. LPCP’s unique strategy creates better alignment between investment managers and wealth advisors while providing them with additional resources to accelerate their growth.
Bellwether is a boutique investment manager that offers tailored investment solutions for affluent investors, foundations, estates and trusts utilizing its proprietary “Disciplined Dividend Growth” Investment Process. Bellwether provides discretionary investment management focused on North American Dividend Growth investing and is dedicated to serving the distinct needs of affluent families. Bellwether’s suite of investment solutions includes Canadian, US and global equity and fixed income strategies. Bellwether is a subsidiary of LPCP, and is registered as a portfolio manager in Alberta, British Columbia, Manitoba, Nova Scotia, Ontario, Quebec and Saskatchewan, an exempt market dealer in Alberta, Ontario and Quebec, and an investment fund manager in Ontario and Quebec.
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LPCP’s annual consolidated financial statements are prepared in accordance with IFRS as issued by the International Accounting Standards Board. The information presented in this press release includes a non-IFRS financial measure, namely Adjusted EBITDA. This measure is not a recognized measure under IFRS and does not have a standardized meaning prescribed by IFRS and is therefore unlikely to be comparable to a similar measure presented by other companies. Rather, this measure is provided as additional information to complement IFRS measures by providing further understanding of the Company’s results of operations from management’s perspective. Accordingly, this measure should not be considered in isolation nor as a substitute for analysis of the Company’s financial information reported under IFRS. Adjusted EBITDA is used to provide investors with a supplemental measure of the Company’s operating performance and thus highlight trends in LPCP’s core business that may not otherwise be apparent when relying solely on IFRS measures. The Company’s management also believes that securities analysts, investors and other interested parties frequently use non-IFRS measures in the evaluation of issuers. LPCP’s management also uses non-IFRS measures in order to facilitate operating performance comparisons from period to period, to prepare annual operating budgets and forecasts and to determine components of management compensation. The Company’s management believes Adjusted EBITDA is an important supplemental measure of LPCP’s performance, primarily because it and similar measures are used widely among others in the investment management industry as a means of evaluating a company’s underlying operating performance. Adjusted EBITDA is defined as net income (loss) before finance costs, depreciation and amortization, income taxes expense/recovery, acquisition, integration and severance costs, share-based payments, and other.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains statements which constitute “forward-looking information” within the meaning of applicable securities laws. Forward-looking information may be identified by such terms as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, “plan”, and other similar expressions. Forward-looking information in this news release includes, without limitation, LPCP’s objectives, goals and future plans. Forward-looking information addresses possible future events, conditions and financial performance based upon management’s current expectations, estimates, projections and assumptions. In particular, the forward-looking information contained in this news release reflects assumptions about the timing and results of the amalgamation and regulatory approvals. Management of LPCP considers the assumptions on which the forward-looking information contained herein are based to be reasonable. However, by its very nature, forward-looking information inherently involves known and unknown risks and uncertainties that may cause actual results to differ materially from those expressed or implied by such information. Such risks include, without limitation, changes in economic conditions, applicable laws or regulations. Accordingly, readers are cautioned not to place undue reliance on forward-looking information. LPCP disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
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