Lorne Park Capital Partners Inc. Announces Results for The Fourth Quarter and Year Ended December 31, 2022 and Announces a Change in Officers and Directors of Its Wholly-Owned Subsidiaries
Toronto, Ontario--(Newsfile Corp. - February 23, 2023) - Lorne Park Capital Partners Inc. (TSXV: LPC) ("LPCP" or the "Company") today announced its results for the quarter ending December 31, 2022 ("Q4 2022") and for the year ending December 31, 2022 ("FY 2022"), and announced a change in the officers and directors of its wholly-owned subsidiaries.
Results for Q4 2022 and FY 2022
Revenue for FY 2022 was $26.6 million, an increase of $1.4 million or 5.6%, compared to $25.2 million for the year ended December 31, 2021 ("FY 2021"). Revenue for Q4 2022 was $6.7 million, a decrease of $1.7 million or 20.1%, compared to $8.4 million for the quarter ending December 31, 2021 ("Q4 2021"). The 2021 periods included a performance fee of $2.3 million which did not occur in the current year periods. Excluding this amount, the changes during FY 2022 and Q4 2022 over the prior year would have been an increase of $3.7 million or 16.1% and $0.6 million or 10.0%, respectively.
Assets under management was $2.58 billion on December 31, 2022, compared to $1.96 billion on December 31, 2021. During FY 2022, the Company added $140 million in net new assets and had market depreciation of $76 million. As previously released, on December 30, 2022, the Company acquired an 80% membership interest of Promus Asset Management, LLC ("Promus"). Although this acquisition did not have an impact on LPCP's statements of operations and comprehensive income in FY 2022 arising from Promus operations, the acquisition resulted in the addition of $562 million of assets at December 31, 2022.
Net earnings for FY 2022 was $1.0 million, a decrease of $0.2 million or 16.7%, compared to $1.2 million during FY 2021, and was $8 thousand for Q4 2022, a decrease of $0.7 million or 98.8%, compared to $0.7 million during Q4 2021. Adjusted EBITDA1, a non-IFRS measure, for FY 2022 was $6.5 million, a decrease of $0.5 million or 6.7%, compared to $7.0 million during FY 2021, and was $1.8 million for Q4 2022, a decrease of $1.7 million or 49.6%, compared to $3.5 million during Q4 2021. As noted above, the 2021 periods included a performance fee of $2.3 million which did not occur in the current year periods. Excluding this amount, the changes to Adjusted EBITDA1 during the FY 2022 and Q4 2022 over the prior year periods would have been an increase of $1.8 million or 38.7% and $0.6 million or 45.2%, respectively.
These results are not a comprehensive statement of the Company's financial results for FY 2022 and Q4 2022. They should not be viewed as a substitute for financial statements prepared in accordance with International Financial Reporting Standards and are not necessarily indicative of the Company's results for any future period.
Change in Officers and Directors of Wholly-Owned Subsidiaries
The Company announced that effective March 1, 2023, Stephen Meehan will be resigning from his roles with Bellwether Investment Management Inc., Bellwether Estate and Insurance Services Inc. and Bellwether Investment Management USA, Inc. due to personal health reasons. Mr. Meehan will remain on the Board of LPCP and will continue to provide strategic advice and support as needed.
About Lorne Park Capital Partners Inc.
LPCP was created to bring together boutique investment management and wealth advisory firms in order to deliver robust, cost effective investment solutions to affluent investors, foundations, estates and trusts. LPCP's unique strategy creates better alignment between investment managers and wealth advisors while providing them with additional resources to accelerate their growth.
About Bellwether Investment Management Inc.
Bellwether is a boutique investment manager that offers tailored investment solutions for affluent investors, foundations, estates and trusts utilizing its proprietary "Disciplined Dividend Growth" Investment Process. Bellwether provides discretionary investment management focused on North American Dividend Growth investing and is dedicated to serving the distinct needs of affluent families. Bellwether's suite of investment solutions includes Canadian, US and global equity and fixed income strategies. Bellwether is a subsidiary of LPCP, and is registered as a portfolio manager in Alberta, British Columbia, Manitoba, Nova Scotia, Ontario, Quebec and Saskatchewan, an exempt market dealer in Alberta, Ontario and Quebec, and an investment fund manager in Ontario and Quebec.
About Promus Asset Management, LLC
Promus is an award-winning wealth management firm based in Dallas, Texas and registered with the Securities and Exchange Commission as an investment advisor.
For further information, please contact:
Chief Executive Officer
Lorne Park Capital Partners Inc.
LPCP's annual consolidated financial statements are prepared in accordance with IFRS as issued by the International Accounting Standards Board. The information presented in this press release includes non-IFRS financial measures, namely EBITDA and Adjusted EBITDA. These measures are not recognized measures under IFRS and do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to a similar measure presented by other companies. Rather, these measures are provided as additional information to complement IFRS measures by providing further understanding of the Company's results of operations from management's perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of the Company's financial information reported under IFRS. EBITDA and Adjusted EBITDA is used to provide investors with supplemental measures of the Company's operating performance and thus highlight trends in LPCP's core business that may not otherwise be apparent when relying solely on IFRS measures. The Company's management also believes that securities analysts, investors and other interested parties frequently use non-IFRS measures in the evaluation of issuers. LPCP's management also uses non-IFRS measures in order to facilitate operating performance comparisons from period to period, to prepare annual operating budgets and forecasts and to determine components of management compensation. The Company's management believes EBITDA and Adjusted EBITDA are an important supplemental measure of LPCP's performance, primarily because they and similar measures are used widely among others in the investment management industry as a means of evaluating a company's underlying operating performance. EBITDA is defined as net earnings before financing costs, income taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA, adjusted for acquisition, restructuring, integration, and share-based compensation expenses.
The following table outlines how EBITDA and Adjusted EBITDA was determined:
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Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains statements which constitute "forward-looking information" within the meaning of applicable securities laws. Forward-looking information may be identified by such terms as "believes", "anticipates", "expects", "estimates", "may", "could", "would", "will", "plan", and other similar expressions. Forward-looking information in this news release includes, without limitation, LPCP's objectives, goals and future plans. Forward-looking information addresses possible future events, conditions and financial performance based upon management's current expectations, estimates, projections and assumptions. In particular, the forward-looking information contained in this news release reflects assumptions about the timing and results of the amalgamation and regulatory approvals. Management of LPCP considers the assumptions on which the forward-looking information contained herein are based to be reasonable. However, by its very nature, forward-looking information inherently involves known and unknown risks and uncertainties that may cause actual results to differ materially from those expressed or implied by such information. Such risks include, without limitation, changes in economic conditions, applicable laws or regulations. Accordingly, readers are cautioned not to place undue reliance on forward-looking information. LPCP disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
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