Bridgemarq Real Estate Services Inc.

Good morning, my name is Sylvie and I would like to welcome everyone to the Bridgemark Real Estate Services, Inc. 2024 Second Quarter Results Conference Call. Note that this call is being recorded. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. For those of you who dialed in to the conference call, if you would like to ask a question, simply press star then number one on your telephone keypad. And if you would like to withdraw your question, simply press star, star two. And for those of you joining us via webcast, if you would like to ask a question, simply type it in the webcast Q&A box on your screen. We will answer these questions following the dial-in questions after the presentation, time permitting. I would like to introduce Mr. Spencer Enright, Chief Executive Officer of Bridgemark Real Estate Services, Inc. Please go ahead, sir.

Thank you, Operator. Good morning, everyone, and thanks for joining us on the call today. With me today is our Chief Financial Officer, Glenn McMillan. I will begin with a brief overview of our company's second quarter results and provide an update on our newly expanded business operations. Glenn will then discuss our financial results in more detail, and I'll conclude by providing some remarks on operational highlights, company updates, and market development. Following our remarks, Glenn and I would be happy to take your questions. I want to remind you that some of the remarks expressed during this call may contain forward-looking statements. You should not place reliance on these forward-looking statements because they involve known and unknown risks and uncertainties that may cause the actual results and performance of the company to differ materially from the anticipated future results expressed or implied by such forward-looking statements. I encourage everyone to review the cautionary language found in our news release. and on all our regulatory filings. These can be found on our website and on CDAR+. Okay, starting with the market, in the second quarter, Canada's residential resale housing market recorded modest declines compared to the same period last year. On a quarter-over-quarter basis, however, the average selling price rose slightly, and unit sales showed a healthy seasonal increase of approximately 40%. We are very pleased with our performance in the second quarter. the first full quarter since the closing of the transaction. Revenue for the second quarter was $110.1 million, compared to $12.8 million last year. Now, this reflects the inclusion of gross commission income and other revenues in the acquired businesses, as well as franchise fee rate increases, which were implemented at the start of 2024. At its meeting yesterday, our Board of Directors approved a dividend payable on September 30th of 11.25 cents per share to shareholders of record on August 30th. This indicates an annualized dividend of $1.35 per share, which is consistent with 2023. And with that, I'll turn the call over to Glenn for a closer look at our second quarter financial performance.

Thank you, Spencer, and good morning, everyone. Revenue during the first six months of the year was $122 million. a significant increase over the $24.8 million recorded in 2023. The year-over-year improvements in the quarterly and year-to-date numbers include $92 million in gross commission income from the brokerage operations we acquired at the beginning of the quarter. The number of realtors in our franchise network currently sits at 20,570, a net increase of 41 agents since the start of the year. This includes 2,055 agents operating at the Royal LePage and Via Capital brokerages we recently acquired. Including the Proprio Direct brokerage, which operates throughout Quebec, our corporately owned brokerages are comprised of 2,751 realtors operating in the GTA, the Greater Vancouver Area, and the Province of Quebec. In the second quarter, the company generated net earnings of $10.6 million compared to $1.1 million in 2023. The higher earnings are largely driven by a gain of $10.6 million on the valuation of the exchangeable units in the second quarter compared to a loss of a half a million dollars in the same quarter last year. During the quarter, cash provided by operating activities amounted to $10.5 million. compared to $3.7 million in 2023. The increase of $6.8 million is partly due to an increase of approximately $4.8 million in cash receipts that will ultimately be paid to sales representatives. The remaining increase in cash flow is due to positive cash flow generated by the acquired businesses, lower overall working capital balances, partly offset by higher interest costs. The Canadian residential real estate market contracted modestly in the second quarter of 2024, closing at $102 billion, a decline of 4% compared to 2023, driven by a 3% decrease in average selling price and a 2% decline in unit sales. Compared to the previous quarter, however, the average selling price posted an increase of 2%, and as Spencer mentioned, total unit sales were up 40%. The Greater Toronto Area real estate market saw a year-over-year increase of 17%, closing at $23.5 billion in the second quarter of 2024, driven by a 15% drop in unit sales and a modest 1% decline in average selling prices. However, again, on a quarter-over-quarter basis, total transactional dollar volume was up 32%, driven by a 24% increase in unit sales and a 6% increase in average selling price. The Greater Vancouver real estate market was down 11% year-over-year, closing at $10.6 billion in the second quarter, driven by a 13% decrease in unit sales, partly offset by a 3% increase in average selling price. Again, on a quarter-over-quarter basis, total transactional dollar volume was up by 39%, driven by a 35% increase in unit sales. The Greater Montreal Area market recorded an increase of 15% to $7.9 billion in the second quarter compared to the previous year. This reflects a 10% increase in unit sales and a 4% increase in average selling price. Spencer will now provide additional insights into the market and an update on our operations.