Toronto, Ontario--(Newsfile Corp. - April 27, 2022) - Lorne Park Capital Partners Inc. (TSXV: LPC) ("LPCP" or the "Company") today announced its results for the quarter ending March 31, 2022 ("Q1 2022") and also announced an update to a previously announced acquisition.
Results for the Quarter Ending March 31, 2022
Revenue for Q1 2022 was $6.6 million, an increase of $1.3 million or 26%, compared to $5.3 million for the quarter ending March 31, 2021 ("Q1 2021").
As previously announced, assets under management ("AUM") surpassed $2 billion, and was $2.06 billion on March 31, 2022. This was an increase of $98.8 million or 5.1% from the AUM at December 31, 2021, and an increase of $378.1 million or 22.5% from March 31, 2021. During Q1 2022, the Company added $95.1 million in net new assets and had market appreciation of $3.7 million.
"We continue to execute on our growth plans with advisor transitions and the addition of an experienced portfolio manager to the Bellwether team," said Robert Sewell, President and CEO. "We look forward to welcoming these and other established relationship managers and their clients to our growing firm."
Adjusted EBITDA1, a non-IFRS measure, for Q1 2022 was $1.5 million, an increase of $0.5 million or 51%, compared to $1.0 million for Q1 2021.
These results are not a comprehensive statement of the Company's financial results for Q1 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.
Update to a Previously Announced Acquisition
On February 4, 2022, as previously announced, Bellwether agreed to the principal terms of an agreement to acquire 100% of the outstanding securities of W.H. Shutt & Associates Inc. The agreement was not finalized and efforts to conclude it have been deferred to a later date. There can be no assurance that the proposed transaction will be completed as proposed or at all.
About Lorne Park Capital Partners Inc.
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.
About Bellwether Investment Management Inc.
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.
For further information, please contact:
Robert Sewell
Chief Executive Officer
Lorne Park Capital Partners Inc.
investor.relations@lpcp.ca
(905) 337-2227
Non-IFRS Measures
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.
Cautionary Notes
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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