TORONTO, Aug. 13, 2024 /CNW/ - Bridgemarq Real Estate Services Inc. ("Bridgemarq" or the "Company") (TSX:BRE) today released its second quarter consolidated financial results and announced a monthly dividend to holders of the Company's restricted voting shares. HIGHLIGHTS On March 31, 2024, the Company acquired certain real estate brokerages from Brookfield Business Partners ("Brookfield"), internalized its management team and settled deferred distributions owing to Brookfield for total proceeds of approximately $40.9 million. Revenue in the second quarter amounted to $110.1 million, compared to the $12.8 million generated in the second quarter of 2023, due to the inclusion of gross commission income and other revenues of the acquired businesses, franchise fee increases implemented at the start of 2024, and improving market conditions. The Company generated net earnings of $10.6 million or $0.17 per fully diluted share, compared to net earnings of $1.1 million or $0.12 per share in 2023, primarily due to earnings from the brokerage business acquired from Brookfield. Cash provided by operating activities amounted to $10.5 million in the second quarter of 2024, compared to $3.7 million in 2023. The increase of $6.8 million includes approximately $4.8 million that will ultimately be paid to sales representatives, positive cash flow from the acquired businesses, and lower overall working capital balances, partly offset by higher interest costs and a one-time increase in expenses related to the completion and approval of the transaction. The Board of Directors approved a dividend to shareholders of $0.1125 per Restricted Voting Share payable on September 30, 2024, to shareholders of record on August 30, 2024. SECOND QUARTER OPERATING RESULTS Revenues during the second quarter were $110.1 million, compared to the $12.8 million generated in Q2 of 2023. The increase in revenues is substantially due to the inclusion of gross commission income of $92 million and other revenues of the acquired businesses. Franchise fees improved driven by fee increases implemented on January 1, 2024, and improving market conditions, partly offset by the elimination of franchise fees received from the acquired businesses for the quarter. The franchise fees received from the acquired businesses were treated as third party revenue prior to March 31, 2024. During the quarter, the Company generated net earnings of $10.6 million or $0.17 per fully diluted restricted voting share ("Share"), compared to net earnings of $1.1 million or $0.12 per Share in the same quarter in 2023. The higher earnings are largely driven by a gain of $10.6 million on the valuation of the Exchangeable Units in the second quarter of 2024, compared to a loss of $0.5 million in the same quarter in 2023, due to earnings from the brokerage business acquired from Brookfield. Cash provided by operating activities amounted to $10.5 million in the second quarter of 2024, compared to $3.7 million in the same quarter last year. The increase of $6.8 million includes an increase of approximately $4.8 million in cash received that will ultimately be paid to sales representatives, positive cash flow from the acquired businesses, and lower overall working capital balances, partly offset by higher interest costs and a one-time increase in expenses related to the completion and approval of the transaction. "We are very pleased with the Company's performance in the second quarter, which demonstrated positive results for the organization and its shareholders, and underscored the Company's potential for continued growth following the closing of the transaction," said Spencer Enright, Chief Executive Officer, Bridgemarq Real Estate Services Inc. "Looking ahead at the Canadian real estate market, the recent rate reductions by the Bank of Canada have reduced the cost of borrowing for potential homebuyers and the signaling of further reductions may provide for additional housing activity as consumer confidence is gradually restored. "We are excited about our recent acquisition which provides Bridgemarq with the opportunity to more broadly participate in the growing Canadian real estate market. The addition of brokerage operations is expected to complement our well-established and successful franchise business. Our unwavering dedication to achieving the best results for our agents and their clients – including through continued investment in top-tier technology platforms, best-in-class training and coaching programs, and unique networking and referral opportunities – will continue to attract both industry professionals and clients to our trusted brands," noted Enright. MARKET UPDATE  The Canadian Market posted a national decline in transactional dollar volume of 4% in the second quarter of 2024, compared to the same period last year.1 According to the Canadian Real Estate Association, the national average selling price decreased modestly by 3% in the second quarter compared to the same period last year, as transactions recorded a decline of 2%. On a quarter-over-quarter basis, however, the average selling price rose 2% and total unit sales were up 40%. While spring sales activity has not fully rebounded, some buyers who had been waiting on the sidelines during the period of rising borrowing costs appear to have begun re-entering the housing market in the second quarter of 2024, encouraged by interest rate cuts by the Bank of Canada. For the first time in more than four years, the Bank of Canada reduced interest rates announcing two reductions to its overnight lending rate, which now sits at 4.5%.2 As the unemployment rate rises and employment gains continue to slow, the central bank expects the Canadian economy will post modest gains in 2024, followed by more significant growth in 2025 and 2026. In June, Canada's Consumer Price Index sat at 2.7%, modestly lower than the inflation rate recorded in May and in line with historical norms.3 The market is widely expecting that the Bank of Canada will cut rates further this year, increasing consumer confidence and encouraging housing market activity. ______________________________ 1 CREA Canadian Housing Market Statistics 2 Bank of Canada reduces policy rate by 25 basis points to 4½%, July 24, 2024 3 Consumer Price Index, June 2024, July 16, 2024 CASH DIVIDEND The Company declared a cash dividend of $0.1125 per Restricted Voting Share payable on September 30, 2024, to shareholders of record on August 30, 2024. The dividend distribution represents a target annual dividend of $1.35 per Restricted Voting Share, which is consistent with 2023. THE COMPANY NETWORK As at June 30, 2024, the Company Network was comprised of 20,570 REALTORS® operating under 281 franchise agreements from 686 locations. The Company's corporately owned real estate brokerages operate 38 real estate locations in the Greater Toronto Area, Greater Vancouver and within the province of Quebec, with 2,751 sales representatives.  CONFERENCE CALL Bridgemarq Real Estate Services Inc. will host a conference call on Tuesday, August 13, 2024, at 10 a.m. Eastern Daylight Time to discuss its second quarter financial results. To access the call by telephone, please dial 1-888-664-6383 or 416-764-8650. To access the call online, please visit https://app.webinar.net/L4vA3J01ZYn. Please connect approximately ten minutes prior to the beginning of the call to ensure participation. A recording of the conference call will be available in the Investor Centre section of the Company's website by Monday, August 19, 2024. FORWARD-LOOKING STATEMENTS This news release contains forward-looking information and other "forward-looking statements". Words such as "additional", "continue", "continued", "encouraging", "expects", "expecting", "expected", "further", "gradually", "growing", "growth", "increasing", "looking ahead", "may", "participate", "potential", "rises", "will", and other expressions that are predictions of or could indicate future events and trends and that do not relate to historical matters identify forward-looking statements. Reliance should not be placed on forward-looking statements because they involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to differ materially from anticipated future results, performance or achievement expressed ...