Q1 2024 Financial Highlights(as compared to Q1 2023) AUA1,2 and Revenue Ending AUA1,2 increased to $37.0 billion, up 3% or $1.0 billion, driven by strong equity markets Revenue increased 2% to $89.4 million, led by a 5% increase in fee revenue and a 21% increase in insurance commissions Profitability and Cash Flow Gross margin increased 2% to $52.8 million, consistent with the increase in revenue Adjusted EBITDA1 increased 4% to $13.5 million, due to revenue growth outpacing adjusted operating expense1 growth Net loss from continuing operations improved to $1.1 million from $5.3 million, as the Company has completed its transformation journey and did not incur any related charges in Q1 2024 (Q1 2023 - $4.1 million) Cash from operating activities was $(11.8) million as compared to $(313.7) million, with Q1 2023 reflecting the fact that client cash became custodied at Fidelity and was no longer reported as cash on the Company's balance sheet Free cash flow available for growth1 increased 4% to $7.5 million, in line with EBITDA growth Free cash flow1 was up by $10.2 million to $3.9 million, due to lower capital expenditures and transformation costs Balance sheet Net working capital1 was $88.3 million, effectively unchanged TORONTO, May 1, 2024 /CNW/ - RF Capital Group Inc. (RF Capital or the Company) (TSX:RCG) today reported revenue of $89.4 million in the first quarter of 2024, up 2% as compared to the prior year. The increase in revenue was driven by AUA1,2 growth of 3% or $1.0 billion, which is attributable mainly to strong equity markets. With year-over-year growth in adjusted operating expenses1 contained to 2%, Adjusted EBITDA1 increased 4% to $13.5 million. For more detail on our results, please refer to our MD&A for the period ending March 31, 2024. 1. Considered to be non-GAAP or supplemental financial measures, which do not have any standardized meaning prescribed by GAAP under IFRS and are therefore unlikely to be comparable to similar measures presented by other issuers. For further information, please see the "Non-GAAP and Supplemental Financial Measures" section of this release. 2. AUA is a measure of client assets and is common in the wealth management business. It represents the market value of client assets managed and administered by us. Kish Kapoor, President and Chief Executive Officer, commented, "2024 has started off strong with AUA1,2 reaching $37.0 billion at the end of Q1, up $1.8 billion or 5% over the last three months. This growth was driven largely by continued strength in equity markets and supported by both recruiting and the success that our outstanding advisors have had growing their practices. This AUA1,2 growth led to an increase in recurring fee revenue of 3% sequentially and 5% versus last year. Combined with the Company's vigilant cost containment efforts, revenue growth drove Q1 Adjusted EBITDA1 to $13.5 million, up 4% from Q1 2023." Mr. Kapoor continued, "Looking ahead, we are laser-focused on our three strategic growth pillars and expect to continue deploying our free cash flow for growth1 into recruitment. I am excited by the addition of three new leaders to our Company – Dave Kelly, Kevin Shubley, and Steve Hunter – who will be accountable for driving our organic growth and are already having an impact. We are confident that our team, our focus, and the foundation that we have built – including our exceptional advisors, scale, and technology platforms – will enable us to grow the brand of choice for Canada's top advisors and translate into accelerated growth for Richardson Wealth." Outlook and Key Performance Drivers Our view with respect to the drivers of our financial performance and profitability in 2024 is as follows: AUA1,2 is highly correlated with equity market movements but will also be supported by growth in our existing advisors' client assets and by recruiting. We expect recruiting to accelerate over the coming quarters. Interest revenue is likely to follow prime rate trends, which economists expect to decline from current levels starting in the middle of the year Transaction activity underlying our corporate finance revenue could rebound but is likely to remain subdued through the first half of the year Although we expect inflation to continue at elevated rates, we are committed to finding operating cost savings and efficiencies in our business as a partial offset Free cash flow for growth1 is expected to be deployed towards advisor recruitment Preferred Share Dividend On May 1, 2024, the board of directors approved a cash dividend of $0.233313 per Series B Preferred Share for a total of $1,073, payable on June 28, 20243, to preferred shareholders of record on June 14, 2024. Q1 2024 Conference Call A conference call and live audio webcast to discuss RF Capital's first quarter 2024 financial results will be held on Thursday, May 2, 2024, at 10:00 a.m. (EST). Interested parties are invited to access the conference call on a listen-only basis by dialing 416-406-0743 or 1-800-898-3989 (toll-free) and entering participant passcode 8739205#, or via live audio webcast at https://www.richardsonwealth.com/investor-relations/financial-information. A recording of the conference call will be available until Tuesday, June 4, 2024, by dialing 905-694-9451 or 1-800-408-3053 and entering access code 2453497#. The audio webcast will be archived at https://www.richardsonwealth.com/investor-relations/financial-information 1. Considered to be non-GAAP or supplemental financial measures, which do not have any standardized meaning prescribed by GAAP under IFRS and are therefore unlikely to be comparable to similar measures presented by other issuers. For further information, please see the "Non-GAAP and Supplemental Financial Measures" section of this release. 2. AUA is a measure of client assets and is common in the wealth management business. It represents the market value of client assets managed and administered by us. 3. In the event that the payment date is not a business day, such dividend shall be paid on the next succeeding day that is a business day. Select Financial Information The following table presents the Company's financial results for Q1 2024, Q4 2023 and Q1 2023. As at or for the three months ended March 31  December 31  Increase/   March 31  Increase/  ($000s, except as otherwise indicated) 2024 2023 (decrease) 2023 (decrease) Key performance drivers1: AUA - ending2 ($ millions) 37,010 35,236 5 % 35,965 3 % AUA - average2 ($ millions) 36,060 34,926 3 % 35,872 1 % Fee revenue 66,146 64,145 3 % 63,042 5 % Fee revenue3 (%) 92 89           +310 bps 88           +356 bps Adjusted operating expense ratio4 (%) 74.3 71.5           +287 bps 74.7             (35) bps Adjusted EBITDA margin5  (%) 15.2 16.7          (159) bps 14.9             +26 bps Asset yield6 (%) 0.88 0.87                +1 bps 0.87                +1 bps Advisory teams7 (#) 154 157 (2 %) 159 (3 %) Operating Performance Reported results: Revenue 89,361 86,752 3 % 87,700 2 % Operating expenses1,8 39,229 36,368 8 % 42,647 (8 %) EBITDA1 13,539 14,518 (7 %) 8,958 51 % Income (loss) before income taxes 63 (2,169)  n/m  (5,649)  n/m  Net income (loss) from continuing operations (1,127) (2,882) (61 %) (5,332) (79 %) Net loss per common share from continuing operations - diluted (0.14) (0.26) (45 %) (0.51) (72 %) Adjusted results1: Operating expenses8 39,229 36,368 8 % 38,546 2 % EBITDA 13,539 14,518 (7 %) 13,059 4 % Income (loss) before income taxes 3,326 1,094 204 % 1,715 94 % Net income (loss)  1,271 (483)  n/m  105  n/m  Adjusted earnings (loss) per common share - diluted 0.01 (0.10)  n/m  (0.08)  n/m  Cash flow: Cash provided by (used in) operating activities (11,826) 2,834  n/m  (313,698) (96 %) Free cash flow available for growth1 7,455 8,312 (10 %) 7,162 4 % Free cash flow1  3,888 (9,612)  n/m  (6,309)  n/m  1. Considered to be non-GAAP or supplementary financial measures, which do not have any standardized meaning prescribed by GAAP under IFRS and are therefore unlikely to be comparable to similar measures presented by other issuers. For further information, please see the "Non-GAAP and Supplementary Financial Measures" section of the MD&A. 2. AUA is a measure of client assets and is common in the wealth management business. It represents the market value of client assets managed and administered by us. 3. Calculated as fee revenue divided by commissionable revenue. Commissionable revenue includes fee revenue, trading commissions, and commissions earned in connection with the placement of new issues and the sale of insurance products. 4. Calculated as adjusted operating expenses divided by gross margin 5. Calculated as Adjusted EBITDA divided by revenue 6. Calculated as fee revenue, trading commissions, and interest on cash, divided by average AUA 7. Prior year has been revised to reflect the internal consolidation of certain teams 8. Operating expenses include employee compensation and benefits, selling, general, and administrative expenses, and transformation costs and other provisions. Adjusted operating expenses are calculated as operating expenses less transformation costs and other provisions. Quarterly Results The following table presents selected quarterly financial information for our eight most recently completed financial quarters. 2024 2023 2022 ($000s, except as otherwise indicated)  Q1   Q4   Q3   Q2   Q1   Q4   Q3   Q2  Key performance drivers1: AUA - ending2 ($ millions) 37,010 35,236 34,726 35,788 35,965 34,948 33,604 33,841 AUA - average2 ($ millions) 36,060 34,926 35,630 35,880 35,872 34,788 34,679 35,607 Fee revenue 66,146