Bridgemarq Real Estate Services Inc.

Good morning. My name is Sylvie, and I would like to welcome everyone to Bridgemark Real Estate Services, Inc. 2024 Third Quarter Results Conference Call. This call is being recorded. Note that 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 into 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 from the question queue, press star then two. And for those of you joining us via webcast, if you would like to ask a question, simply type it into the Q&A box on your screen. We will answer these questions following the dial-in questions after the presentation, time permitted. I would now like to introduce Mr. Spencer Enright, Chief Executive Officer of Bridgemark Real Estate Services, Inc. Sir, you may begin your conference.

Thank you, Sylvie. 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 third quarter results. 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 developments. 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 in our news release and on all our regulatory filings. These can be found on our website and on CDAR+. We are pleased with our performance in the third quarter. Revenue for Q3 was $126.8 million compared to $12.8 million last year, which I'll remind you reflects the addition of the businesses that were acquired on March 31st. At its meeting yesterday, the Board of Directors approved a dividend payable on December 31st of $11.25 per share to shareholders of record on November 29th. 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 third quarter financial performance. Thank you, Spencer, and good morning, everyone. Revenue during the first nine months of the year was $249.2 million, a significant increase over the $37.6 million that we recorded in 2023. And as Spencer mentioned during the quarter, revenues were $126 million up from $12.8 million recorded in the same period last year. The year-over-year improvements are a result of including gross commission income from the brokerage operations we acquired at the beginning of the second quarter. Franchise fees were substantially unchanged from the prior year after adjusting for intercompany elimination. The number of realtors in our franchise network currently sits at 20,430, a net decline of 99 agents since the start of the year. This includes 2,010 agents operating at the Royal LePage and Via Capital brokerages that we recently acquired. Including the Proprio Direct brokerage, which operates throughout the province of Quebec, our corporately owned brokerages are comprised of 2,724 realtors operating in the GTA, the Greater Vancouver Area, and the Province of Quebec. In the third quarter, the company generated a net loss of $10.8 million, compared to net earnings of $8.6 million in 2023. The lower earnings are largely driven by a loss of $10.8 million on the fair valuation of the exchangeable units, compared to a gain last year. Our adjusted net earnings, which considers our operating earnings before certain non-cash, non-operating adjustments and payments to holders of exchangeable units, amounted to $2.7 million in the quarter, down from $3.7 million in the third quarter of last year. The lower results were as a result of higher amortization expense on the assets that we acquired in March, higher interest rates, partly offset by the positive earnings impact of the brokerage operations. During the quarter, cash provided by operating activities amounted to $2.7 million compared to $4.5 million in 2023. The decrease is driven primarily by increased distributions to holders of exchangeable units, which were issued to complete the acquisition earlier in the year. and increased working capital investment. The company generated $5.3 million in free cash flow in the quarter, an improvement over the $5.1 million generated in the same quarter of last year. The Canadian residential real estate market grew in the third quarter of 2024, closing at $80 billion, an increase of 5% compared to the same period in 2023, driven by a 1% rise in average selling price and a 4% increase in sales. The Greater Toronto Area real estate market was flat year-over-year, closing at $16.7 billion in the third quarter. The Greater Vancouver real estate market was down 9% year-over-year, driven by an 8% decrease in unit sales and a 2% decline in average selling price. In the province of Quebec, The residential real estate market reported an increase of 18%, closing at $10.3 billion in the third quarter of 24 compared to last year. This reflects a 12% increase in unit sales and a 5% increase in average selling prices. Spencer will now provide some additional insights into the market and update on our operations. Thanks, Glenn.