RCS Capital Corporation Announces an Upwards Adjustment to Third Quarter 2013 Net Income

News provided by

RCS Capital Corporation

Oct 28, 2013, 09:24 ET

NEW YORK, Oct. 28, 2013 /PRNewswire/ -- RCS Capital Corporation (NYSE: RCAP) ("RCAP") announced today an upwards adjustment to third quarter 2013 earnings and earnings per share attributable to RCAP from those previously reported on October 24, 2013. The upward adjustment resulted from the allocation of certain corporate overhead expenses to non-controlling interests. The adjusted earnings and earnings per share are reflected in the table below and will appear in the financial statements included in the Company's Quarterly Report on Form 10-Q to be filed in early November.

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Three Months Ended

Nine Months Ended


September 30, 2013

September 30, 2013

(Dollars in thousands, except share and per share data)

As

Reported

Corrected

As

Reported

Corrected













Income before taxes

$

11,645

$

11,645

$

64,996

$

64,996

Provision for income taxes

246


466


406


626

Net Income

11,399


11,179


64,590


64,370

Less: Income attributable to non-controlling interests

11,088


10,541


64,077


63,530

Net Income attributable to RCS Capital Corporation

$

311

$

638

$

513

$

840

















Per Share Data















Net Income per share attributable to RCS Capital Corporation

$

0.12

$

0.26

$

0.21

$

0.34

Weighted average shares used in basic and diluted net income per share

2,500,000


2,500,000


2,500,000


2,500,000

About RCAP

RCAP is a publicly traded Delaware holding company listed on the New York Stock Exchange that was formed to operate and grow businesses focused on the retail direct investment industry. RCAP holds a direct minority economic interest in Realty Capital Securities, LLC, a FINRA registered wholesale broker-dealer and an investment banking and capital markets business, American National Stock Transfer, LLC, an SEC registered transfer agent, and RCS Advisory Services, LLC, a transaction management services business. Additional information about RCAP can be found on its website at www.rcscapital.com. RCAP may disseminate information about itself, including the results of its operations and financial information, via social media platforms such as Facebook, LinkedIn and Twitter.

Important Notice

The statements in this press release include statements regarding the intent, belief or current expectations of RCAP and members of its management team, as well as the assumptions on which such statements are based, and generally are identified by the use of words such as "may," "will," "seeks," "strives," "anticipates," "believes," "estimates," "expects," "plans," "intends," "should" or similar expressions. Actual results may differ materially from those contemplated by such forward-looking statements, including as a result of those factors set forth in the Risk Factors section of RCAP's prospectus. The following additional factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: the ability to obtain requisite approvals necessary for potential acquisitions; market volatility; unexpected costs or unexpected liabilities that may arise from the potential acquisitions, whether or not consummated; the inability to retain key personnel; the deterioration of market conditions; and future regulatory or legislative actions that could adversely affect the parties to potential acquisitions. Further, forward-looking statements speak only as of the date they are made, and RCAP undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time, unless required by law.

RCS Capital Corporation

Consolidated Statements of Income

(Unaudited)

(Dollars in thousands, except share and per share data)



















Three Months Ended

Nine Months Ended


September 30,

September 30,


2013

2012

2013

2012

REVENUES















Commissions

$

139,166

$

64,999

$

408,869

$

139,685

Dealer manager fees

69,485


41,545


231,586


81,823

Investment banking advisory services

7,445


-


15,415


925

Transfer agency revenue

2,830


-


5,760


-

Services revenue

3,006


253


8,000


786

Reimbursable expenses

1,754


19


2,689


141

Other

99


-


113


36

Total revenues

223,785


106,816


672,432


223,396

















EXPENSES















Third-party commissions

139,205


64,985


408,913


139,664

Third-party reallowance

24,109


10,106


66,337


21,240

Internal commissions, payroll and benefits

31,938


14,306


90,298


32,858

Conferences and seminars

5,476


2,946


17,730


10,524

Travel

2,315


1,302


4,738


4,329

Marketing and advertising

1,655


924


4,876


1,077

Professional fees

1,503


288


3,467


1,104

Data processing

2,045


-


4,388


-

Management fee

1,335


-


2,013


-

Other

2,559


384


4,676


1,060

Total expenses

212,140


95,241


607,436


211,856

Income before taxes

11,645


11,575


64,996


11,540

Provision for income taxes

466


-


626


-

Net income

11,179


11,575


64,370


11,540

Less: Net Income attributable to non-controlling interests

10,541


11,575


63,530


11,540

Net income attributable to RCS Capital Corporation

$

638

$

-

$

840

$

-

Per Share Data















Net Income per share attributable to RCS Capital Corporation

$

0.26


 n/a



$

0.34


 n/a


Weighted average shares used in basic and diluted net

income per share

2,500,000






2,500,000




SOURCE RCS Capital Corporation

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