Bridgemarq Real Estate Services Inc.

Good morning. My name is Sylvie and I will be your conference operator. I would like to welcome everyone to Bridgemark Real Estate Services, Inc. 2024 fourth 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 who dialed in to the conference call, If you would like to ask a question, simply press star then the number one on your telephone keypad. If you would like to withdraw from the question queue, please press star then two on your keypad. For those of you joining us via webcast, if you would like to ask a question, simply type it in the Q&A box on your screen. We will answer these questions following the dial-in questions after the presentation, time permitting. And I would like to introduce Mr. Spencer Enright, Chief Executive Officer of Bridgemark Real Estate Services, Inc. Mr. Enright, you may begin.

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'll turn it over to Glenn in a moment to talk about our financial results and summarize what the real estate markets did in 2024. I will then provide some remarks on operational highlights, company updates, and broader 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 found in our news release and on our regulatory filings. These can be found on our website and on CDAR+. 2024 was an exciting year for Bridgemark. The expansion of our business into real estate brokerage operations and the internalization of management of our franchise business opens the door to future growth for the company. Revenue for 2024 amounted to $350.7 million, compared to $48.5 million in 2023, which is reflective of the addition of the brokerage operations we acquired on March 31st. At its meeting yesterday, our Board of Directors approved a dividend payable on April 30th of $11.25 per share to shareholders of record on March 31st. This indicates an annualized dividend of $1.35 per share. And with that, I'll turn the call over to Glenn for a closer look at our full year financial performance.

Thank you, Spencer, and good morning, everyone. As Spencer mentioned, revenue for 2024 was up significantly year over year due to the inclusion of the operating results of our brokerage business. In the fourth quarter, revenues amounted to $101.5 million compared to $10.8 million in the fourth quarter of last year. The number of realtors in our franchise network currently sits at 20,283. This includes approximately 2,000 agents operating at the Royal LePage and Via Capitel brokerages, which we acquired as part of the transaction. Including the Quebec-based Proprio Direct brokerage, our corporately-owned brokerages are comprised of approximately 2,700 realtors operating in the Greater Toronto and Vancouver areas, and in the province of Quebec. In 2024, the company generated a net loss of $10.3 million, compared to net earnings of $4 million last year. The lower net earnings are largely driven by a non-cash accounting loss on the fair valuation of the exchangeable units, higher interest expense on our debt, and increased depreciation and amortization expenses associated with the acquired brokerage business. Starting last quarter, we introduced the concept of adjusted net earnings in an effort to remove some of the accounting noise and provide users with a measure that better reflects the operating results of the company. Adjusted net earnings represents our after-tax operating income before giving effect to certain non-cash and non-operating adjustments, including... the loss on the fair value of exchangeable units, which I spoke about a moment ago, and also excluding payments to exchangeable unit holders. In 2024, adjusted net earnings amounted to $7.3 million, down from $12.4 million in the prior year. The reduction is largely due to higher interest expense on third-party debt, an increase in non-cash amortization of intangible assets acquired as part of the acquisition, and other non-cash impairment charges, partly offset by the positive impact of the acquired brokerage business system. Cash provided by operating activities increased by $3.4 million in the year compared to last year. due primarily to the inclusion of the results of the brokerage operations, a reduction in working capital, partly offset by higher interest costs. The company generated $16.8 million in free cash flow in 2024, down from the 18.1 million generated in 2023, with the driver due to increased interest expenses. Up until the end of 2023, we had a favorable fixed rate interest rate swap, which matured at the end of that year. And as a result, interest expense on our debt increased by $1.7 million in 2024. Despite periods of weak activity in certain markets last year, the overall Canadian market showed positive growth, closing at $338 billion, an increase of 12% compared to 2023. This was driven by an 11% increase in unit sales and a 2% rise in average selling price. The Greater Toronto real estate market expanded by a modest 2% year-over-year compared to 2023, as prices remained flat and unit sales increased by 2%. The Greater Vancouver real estate market also recorded modest gains of 2%, driven by a 1% increase in both unit sales and average price. Meanwhile, in the province of Quebec, the residential real estate market recorded a healthy 28% increase compared to the previous year, reflecting a 19% increase in unit sales and an 8% increase in average selling prices. Now I'll turn it over to Spencer to provide additional insights into the market and an update on our operations. Thanks, Glenn.