Rockwater Capital Corp. today reported a return to profitability for the second quarter ended June 30, 2004.

The firm said earnings for the quarter were $114,000 on net revenues of $31.7 million, compared with a loss of $1.8 million on net revenues of $24.2 million in the second quarter of 2003.

Earnings before taxes, amortization of deferred employment arrangements and recovery on prior business activities were $2.6 million for the quarter compared with $119 thousand for the second quarter of last year.

“Our business remains steady, despite last quarter’s uncertain markets,” said Robert Schultz, Chairman of Rockwater, in a news release. “Our total net revenue for the quarter represents an increase of $7.5 million, or 31%, from the second quarter of 2003. We are pleased to report that our growth remains balanced throughout our three business units.”

“Within our Wealth Management group, assets under administration are up $1.5 billion compared to the second quarter of 2003,” said Bill Packham, president and CEO of Rockwater.

The company also announced that Robert Buchan, president and CEO of Kinross Gold Corp, was appointed to Rockwater’s board of directors today.

Rockwater Capital Corporation (TSX:RCC) is building Canada’s leading independent investment management organization. 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.