Rockwater Capital Corp. is reporting a profit for the first quarter ended March 31.

The parent company of brokerage firm First Associates Investments said first quarter earnings were $2.5 million, or 2¢ per share, on net revenues of $41.7 million. That compares with a loss of $2.9 million on net revenues of $20.9 million in the first quarter of 2003.

Earnings before taxes, amortization of deferred employment arrangements and recovery on prior business activities were $4.7 million for the quarter compared to a loss of $0.7 million this time last year-an improvement of $5.4 million.

“We doubled our revenues from last year which demonstrates our ability to grow revenues in each area of our business,” said Bill Packham, president and CEO of Rockwater, in a news release.

“Our Wealth Management revenues are now $31.5 million compared to $17.2 million last year. Similar focus on business building in other areas increased Asset Management revenues by 97%, from $2.3 million to $4.6 million, and Capital Markets revenues by 330%, from $1.3 million to $5.7 million, compared to last year. Overall, total client assets have grown from $3.8 billion last year to $6 billion.”

“Last year at this time, we were focused on building each area of the business,” said Robert Schultz, chairman of Rockwater. “Now our performance reflects these efforts. We are optimistic about Rockwater’s future in the Canadian financial services industry.”

Rockwater serves individuals, corporations and institutions through its subsidiaries-First Associates Investments Inc., a full service investment dealer, and Rockwater Asset Management Inc., an investment counseling and portfolio management firm.

Rockwater also announced today that it plans to present a proposal to shareholders for a consolidation of its outstanding common shares at the company’s upcoming annual meeting on June 23.

Shareholders will be asked to consider and approve a special resolution to consolidate Rockwater’s common shares on the basis of one new common share for either five, six or seven existing common shares.

Upon approval, the board of directors will have the authority to determine the ultimate timing and exchange ratio of the consolidation.

A management information circular explaining the consolidation will be mailed to shareholders on May 25.

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