VANCOUVER, BC, May 28, 2024 /CNW/ - Montfort Capital Corporation ("Montfort" or the "Company") (TSXV:MONT) (OTCQB:MONTF), today announced financial results for the first quarter ended March 31, 2024. All figures are reported in Canadian dollars unless otherwise noted. First Quarter 2024 Highlights For the three months ended March 31, 2024, the Company had the following highlights: Total revenue of $12.0 million, a decrease of $1.1 million or 8.4% from $13.1 million in the three months ended March 31, 2023 (the "Prior Year Period"). The change was driven by a reduction in portfolio size, as well as a decrease in fee generating activities year over year. Interest income from investments was $9.2 million, a decrease of $0.3 million or 2.7% from $9.5 million in the Prior Year Period, driven by a smaller portfolio overall and the return of a low-margin portfolio of loans under administration in July 2023. Income from transaction and other fees of $2.5 million, a decrease of $0.6 million or 19.1% from $3.1 million in the Prior Year Period, a result of fewer loan originations. Total expenses of $14.4 million, a decrease of $0.5 million or 3.3% from $14.9 million in the Prior Year Period. The change was driven by a one-time restructuring fee in the comparative period and a net decrease related to expected credit loss. Net loss of $2.2 million or three cent loss per common share compared to net loss of $1.9 million or three cent loss per common share in the Prior Year Period, largely driven by a decline in year over year revenue, offset by a decline in total expenses. As at March 31, 2024, the Company's cash balance was $8.1 million compared to $8.3 million as at December 31, 2023, while working capital was $26.6 million compared to negative $21.4 million as at December 31, 2023. Total assets of $432.5 million as at March 31, 2024 compared to $402.5 million at December 31, 2023. Montfort's loan investment portfolio (loans receivable) increased to $348.2 million in the first quarter 2024 compared to $320.6 million as of December 31, 2023. Adjusted net income (loss) (a non-GAAP measure)1 attributable to shareholders and adjusted net income (loss) per common share (a non-GAAP measure)2 were a loss of $1.4 million and $0.02 loss per share in the three months ending March 31, 2024 compared to adjusted net loss attributable to shareholders of $0.5 million and $0.01 adjusted net loss per share in the Prior Year Period. On a comprehensive basis: Reported net comprehensive loss of $2.1 million or $0.03 per common share for the three months ended March 31, 2024, compared to net comprehensive loss of $1.9 million or $0.03 per common share for the three months ending March 31, 2023.  "While most of our lending segments performed on or ahead of plan in the quarter, originations in our mortgage lending segment encountered the industry-wide headwinds of reduced transaction activity in the Ontario single family housing market," said Ken Thomson, CEO of Montfort Capital Corporation. "We're optimistic that an active spring/summer housing market, combined with anticipated interest rate reductions from the Bank of Canada, will lead to higher mortgage origination volumes in the coming quarters.  In the meantime, we will continue to maintain our focus on controlling costs and responsibly deploying the capital that we have available to us." Detailed Financial Review The Company originates, underwrites and manages secured loans through the following operating divisions: Brightpath Capital, one of Canada's leading providers of alternative residential mortgages. Langhaus Financial, provides insurance policy-backed lending solutions to high-net-worth individuals and entrepreneurs in Canada. Nuvo Financial, is focused on providing net asset value (NAV) loans to small and mid-sized investment funds in Canada. Pivot Financial which specializes in asset-backed private credit targeting mid-market borrowers in Canada. TIMIA Capital, a technology lending platform that offers revenue-based investment to fast growing, business-to-business Software-as-a-Service (or SaaS) businesses in North America. _________________________________ 1 "Adjusted net income" is a non-GAAP financial measure. Refer to "Cautionary Note on Non-GAAP Financial Measures" section of this release for additional details. 2 "Adjusted net income per common share" is a non-GAAP financial measure. Refer to "Cautionary Note on Non-GAAP Financial Measures" section of this release for additional details. Montfort's overall Assets Under Management ...