Rockwater Capital Corp. today released its unaudited consolidated results for the first quarter of fiscal 2006, ended March 31, in which net earnings grew to $2.5 million from $1 million during the same period last year.
Revenue also rose 22.4% to $60.8 million from $49.7 million; EBITDA increased 38.3% to $10.3 million from $7.5 million; and total client assets of $14.2 billion up 8.5% from $13 billion.
Net earnings for the first quarter include a one-time non-cash charge of $1.1 million after taxes, related to the departure of a senior executive. Excluding this one-time charge, net earnings were $3.6 million comparing to $1 million for the prior year period.
“Our first quarter results are further evidence of Rockwater’s rapid growth in just three years,” said Robert Schultz, chairman of Rockwater. “We are still in the early stages of building a leading independent financial services firm, but are consistently delivering growth in revenue and earnings as we invest in high quality professionals and platforms that will deliver long-term value.”
“We continue to execute on our strategy to maximize each of our three platforms,” added William Packham, president and CEO. “In the Wealth Management group, average assets per advisor increased 38% year over year. In Capital Markets, momentum continued with increased investment banking revenue and growth in our U.S. institutional business. While total assets under management declined in our Asset Management group, investment performance has been strong.”
Rockwater’s asset management business is comprised of KBSH Capital Management Inc. and the Disciplined Leadership Group, both of which delivered strong investment performance over the quarter.
Total assets under management were $5.7 billion, a decrease from $6.3 billion at Dec. 31, 2005 and $6.5 billion at March 31, 2005. The reduction primarily reflects the loss of certain WRAP mandates.
Revenue was $7.8 million compared to $8.6 million in the first quarter of 2005, mainly due to a reduction in asset management fees as a result of the decline in AUM
As for Blackmont Capital Inc., increased commissions and managed account fees in the wealth management business and higher investment banking revenue and institutional sales commissions in the capital markets business, resulted in revenue for the first quarter increasing 28.9% to $52.2 million.
For Blackmont’s wealth management business, revenue increased 19.9% to $37.5 million from the first quarter of 2005. Assets under administration were $8.5 billion, up 9% from Dec. 31, 2005 and up 30.8% from March 31, 2005
Average AUA per investment advisor was $48.0 million, up 10.3% from $43.5 million as of Dec. 31, 2005 and 38% from $34.9 million as at March 31, 2005
For its capital markets business, revenue increased 59.6% to $14.7 million from the first quarter of 2005.
Rockwater reports record revenue for Q1
But AUM fall for KBSH Capital Management and Disciplined Leadership Group
- By: IE Staff
- May 2, 2006 May 2, 2006
- 16:00