TORONTO, ONTARIO (February 4, 2022) – Lorne Park Capital Partners Inc. (TSXV:LPC) (“LPCP” or the “Company”) today announced preliminary revenue and Adjusted EBITDA1 estimates for the quarter ending December 31, 2021 (“Q4 2021”) and for the year ending December 31, 2021 (“FY 2021”), announced the appointment of two Vice President and Portfolio Managers for its wholly owned subsidiary Bellwether Investment Management Inc. (“Bellwether”), and announced the triggering of an earn out payment pursuant to the previous acquisition of a book of business.
Preliminary Unaudited Results
Preliminary revenue for Q4 2021 is anticipated to be $8.4 million, an increase of approximately $3.3 million or 66%, compared to $5.0 million for the quarter ending December 31, 2020 (“Q4 2020”). Revenue for FY 2021 is anticipated to be $25.2 million, an increase of approximately $6.4 million or 34%, compared to $18.7 million for the twelve-month period ended December 31, 2020 (“FY 2020”).
Adjusted EBITDA1, a non-IFRS measure, for Q4 2021 is anticipated to be $3.5 million, an increase of $2.5 million or 258%, compared to $1.0 million for Q4 2020. Adjusted EBITDA1 for FY 2021 is anticipated to be $7.0 million, an increase of approximately $4.2 million or 147%, compared to $2.8 million for FY 2020.
As at December 31, 2021, assets under management are expected to be $1.96 billion, compared to $1.79 billion as at September 30, 2021 and $1.59 billion as at December 31, 2020.
“I am very pleased with our preliminary financial results for the fourth quarter and the full year,” said Robert Sewell, LPCP’s President and CEO. “We continue to see significant momentum in our business and execute well on our strategic priorities, driving strong financial results for our shareholders. Our record high fourth quarter preliminary results were driven by net additions to our assets under management and strong investment returns for our clients. I want to thank all of the team members of LPCP and Bellwether for their continued contributions, and our clients for their continued trust in our management of their portfolios.”
The preliminary results set forth above are based on an initial review of the Company’s operating and financial results for Q4 2021 and FY 2021 and are subject to change. Final reported results could differ from these preliminary results following the completion of quarter-end and year-end accounting procedures, final adjustments and other developments arising between now and the time that the Company’s financial results are finalized. Such changes could be material. The Company’s independent auditor, MNP LLP, has not audited, reviewed, or performed any procedures with respect to the accompanying preliminary financial results and other data, and accordingly does not express an opinion or any other form of assurance with respect thereto. The preliminary results have been prepared by, and are the responsibly of, the Company’s management, and were approved by management on February 4, 2022. In addition, these preliminary results are not a comprehensive statement of the Company’s financial results for Q4 2021 and FY 2021. They should not be viewed as a substitute for audited financial statements prepared in accordance with International Financial Reporting Standards and are not necessarily indicative of the Company’s results for any future period. The Company anticipates releasing its audited financial statements on February 24, 2022.
1 Adjusted EBITDA is a non-IFRS measure. See “Non-IFRS Measures”
LPCP is pleased to announce the appointment of Mr. Craig Ellis and Mr. Wayne Wiggins, each as Vice President and Portfolio Manager of its wholly owned subsidiary Bellwether effective February 4, 2022.
Earn Out Payment
On September 18, 2015, as previously reported, the Company entered into an agreement with an investment advisor to acquire that advisor’s book of business. On acquisition, the Company became committed to an additional earn out payment at the time the advisor voluntarily retired or was terminated by the Company. On January 31, 2022 the earn out payment was triggered, resulting in an obligation by the Company to pay an earn out of $643,331, subject to the satisfaction of certain conditions.
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.
For further information, please contact:
Chief Executive Officer
Lorne Park Capital Partners Inc.
LPCP’s annual consolidated financial statements will be prepared in accordance with IFRS as issued by the International Accounting Standards Board. The information presented in this press release includes a non-IFRS financial measure, namely Adjusted EBITDA. This measure is not a recognized measure under IFRS and does not have a standardized meaning prescribed by IFRS and is therefore unlikely to be comparable to a similar measure presented by other companies. Rather, this measure is provided as additional information to complement IFRS measures by providing further understanding of the Company’s results of operations from management’s perspective. Accordingly, this measure should not be considered in isolation nor as a substitute for analysis of the Company’s financial information reported under IFRS. Adjusted EBITDA is used to provide investors with a supplemental measure 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 Adjusted EBITDA is an important supplemental measure of LPCP’s performance, primarily because it and similar measures are used widely among others in the investment management industry as a means of evaluating a company’s underlying operating performance. Adjusted EBITDA is defined as net income (loss) before finance costs, depreciation and amortization, income taxes expense/recovery, acquisition, integration and severance costs, share-based payments, and other.
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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