Financial Performance - For the three months ended June 30, 2024, total revenue was approximately $40.6 million, compared to $40.4 million for the same period in 2023, reflecting a slight increase of 0.5%[111] - The net loss for the three months ended June 30, 2024, was approximately $(0.7) million, compared to a net income of $0.1 million for the same period in 2023[111] - Gross profit for the three months ended June 30, 2024, was $7.3 million, a decrease of 3% from $7.5 million for the same period in 2023[115] - EBITDA for the three months ended June 30, 2024, was $0.6 million, down from $2.2 million for the same period in 2023[120] - Total expenses for the three months ended June 30, 2024, increased by 2.8% to $41.171 million from $40.062 million in the same period of 2023[129] - Net income for the three months ended June 30, 2024, was a loss of $736,000, compared to a profit of $131,000 in the same period of 2023, representing a decline of 601.4%[129] - The company reported a 64.2% decrease in interest and other income for the three months ended June 30, 2024, totaling $665,000 compared to $1.857 million in the same period of 2023[129] Asset Management - Total advisory and brokerage assets served were $25.1 billion at June 30, 2024, an increase of approximately 8.7% from $23.1 billion at June 30, 2023[112] - Brokerage assets as of June 30, 2024, were $22.8 billion, up from $21.1 billion as of June 30, 2023[134] - Trail-eligible assets increased to $16.3 billion as of June 30, 2024, compared to $14.2 billion as of June 30, 2023[134] - Net new brokerage assets were $(0.8) billion for the three months ended June 30, 2024, compared to $(0.7) billion for the same period in 2023[114] - Net new advisory assets were $0.0 billion for the three months ended June 30, 2024, compared to $(0.3) billion for the same period in 2023[113] - Total net new assets for the three months ended June 30, 2024, were $(0.8) billion, compared to $(1.0) billion for the same period in 2023[120] Revenue Breakdown - Commission revenue for the three months ended June 30, 2024, was $33.663 million, a 1% increase from $33.322 million in the same period of 2023[133] - Advisory fees rose by 20.2% to $6.320 million for the three months ended June 30, 2024, compared to $5.259 million in the same period of 2023[129] - Advisory fees increased by approximately 20.2% and 10.3% for the three and six-month periods ended June 30, 2024, respectively, compared to the same periods in 2023[138] Expenses and Liabilities - Employee compensation and benefits increased by approximately 9% for the three-month period and 4% for the six-month period ended June 30, 2024, compared to the same periods in 2023[144] - Rent and occupancy expenses decreased by approximately 7% for the three-month period and 5% for the six-month period ended June 30, 2024, compared to the same periods in 2023[146] - Interest expense decreased by $0.7 million and $0.8 million for the three and six-month periods ended June 30, 2024, respectively, compared to 2023[149] - Total contractual obligations as of June 30, 2024, amounted to $39.1 million, including long-term debt obligations of $20.3 million and interest payments of $8.8 million[174] Corporate Actions - The Company completed a merger on March 15, 2024, with Kingswood Acquisition Corp, resulting in Wentworth becoming a wholly-owned subsidiary of Binah Capital[106] - Binah Capital entered into a Subscription Agreement for the purchase of 1,500,000 shares of Series A Redeemable Convertible Preferred Stock at $9.60 per share, totaling $14.4 million[109] - The Holdings Series A Stock carries a cumulative dividend of 9% per annum, payable quarterly[160] - The minimum payments and maturities of the Oak Street notes as of June 30, 2024, total $20.3 million[158] Cash Flow - Net cash used in operating activities was $2.1 million for the six-month period ended June 30, 2024, a decrease of approximately $2.3 million compared to net cash provided of $0.2 million for the same period in 2023[171] - Net cash used in investing activities was $0.0 million for the six-month period ended June 30, 2024, compared to $0.1 million for the same period in 2023, primarily due to reduced purchases of property and equipment[172] - Net cash provided by financing activities was approximately $1.3 million for the six-month period ended June 30, 2024, compared to cash used of approximately $1.3 million for the same period in 2023, mainly due to proceeds from Redeemable Convertible Preferred Financing[173] Tax and Valuation - The effective income tax rate was (29.0)% and (15.2)% for the three and six-month periods ended June 30, 2024, compared to 187.8% and 44.2% for the same periods in 2023[152] - The estimated fair value of reporting units was 257% and 266% greater than their carrying value in the annual impairment tests for 2023 and 2022, respectively[180]
Binah Capital Group, Inc.(BCG) - 2024 Q2 - Quarterly Report