Revenues and earnings at Toronto-based brokerage firm GMP Capital Inc. took a hit in the first quarter as markets plunged. Client assets, however, held up much better than the equity markets.

GMP reported a first-quarter loss of $3.0 million from continuing operations, down from net income of $0.2 million in the first quarter last year.

About half of the $3.2-million drop in net income was attributed to fees and restructuring costs incurred as part of GMP’s efforts to take 100% control of Richardson GMP (RGMP), which was originally announced on Feb. 26.

That transaction remains on pause due to the impact of the Covid-19 outbreak. GMP, Richardson Financial Group and RGMP’s advisors have agreed to extend the negotiation period to 60 days after Ontario lifts its lockdown order.

In the meantime, the firms said they are continuing to work at reaching a definitive agreement, and that they “remain hopeful that they will do so in the future.”

Alongside the restructuring costs, the first-quarter results were negatively impacted by decreased net income from RGMP, reduced dividends from RGMP, tax expenses and a lower contribution from its emerging markets division, which was sold off in the fourth quarter of 2019, among other factors.

While the pandemic weighed on all aspects of the capital markets, GMP reported that assets under administration (AUA) at RGMP declined by 12% during the quarter to $25.4 billion, whereas the S&P/TSX composite index dropped by 21.6% in the same period.

With AUA down, adjusted EBITDA at RGMP dropped by 13% in the quarter to $11.5 million.

“These results highlight the strength of Richardson GMP’s professional investment advisors and their approach to helping their clients through these incredibly difficult circumstances where North American equity markets experienced 20% to 25% value declines,” said Kish Kapoor, interim president and CEO of GMP.

The firm also reported that, while its net working capital remains strong at $126.1 million, it has suspended its common share dividend “out of an abundance of caution and conservative approach to capital and risk management.”

GMP continues to pay a dividend on its preferred shares.