RCS Capital (RCAP), which includes the Cetera Financial Group of independent broker-dealers, said Thursday its equity sales dropped 54% in the first quarter of 2015 from last year to $1.1 billion. Its adjusted net income fell 54% as well to $17.4 million, or $0.19 a share, from $38.4 million, or $0.44 a share, in the first quarter of 2014.
On a pre-adjusted basis, the company reported a net loss of -$13.5 million, or -0.14 a share, vs. a net loss of -$7.4 million, or -0.09 a share in the year-ago period. Total revenue was down 8% year over year to $625.6 million in the period ending March 31.
“We delivered steady improvements in our business as reflected in our key performance indicators across the platform during the first quarter,” said RCS Capital CEO Michael Weil, in a press release. “Focused operational execution, prudent investments in growth initiatives and our continuing commitment to innovation, have positioned the company to capitalize on the many long-term opportunities we see in the industry.”
The number of advisors in the Cetera IBDs stands at 9,539, up 4% from a year ago, while retail assets under administration grew 15% year over year to $240.3 million. Retail assets under management improved 32% to $46.5 billion
The company says it recruited 823 financial advisors added in the first quarter, including advisors brought on via the purchase of VSR and Girard Securities; beyond acquisitions, 345 financial advisors were recruited in the period with $38.1 million in yearly fees and commissions, which the company says is 160% higher than the production level of advisors who left the platform.
The firm notes it had $23.5 million in net recruited production in Q1’15 vs $20.9 million in Q4’14. Its broker-dealer operations are led by CEO Larry Roth and President Adam Antoniades.