(January 9 – 11:00 ET) – BRM Capital Corp. is reporting revenues of $195 million for the fiscal year ended Sept. 30, 2000, compared to $26.1 million for the previous year.

The company says this increase reflects the six acquisitions completed during fiscal 2000: Cartier Mutual Funds, The Investment Centre Financial Group, Balanced Planning Financial Group, Heritage Financial Services, Regal Capital Planners and the Courvie-Dubeau group.

BRM says the acquisitions have given it a network of 4,000 independent financial advisors across Canada and a majority stake in a mutual fund company with a unique line of multimanager funds. The company’s priority for the 2001 fiscal year is to continue with the integration of the six planning firms into a unified national organization.

BRM changed its year-end from August 31 to September 30, effective September 30, 2000. All figures for the 2000 fiscal year are for the 13-month period between September 1, 1999 and September 30, 2000.

For fiscal 2000, EBITDA (earnings before interest, taxes and amortization) amounted to $1.5 million. While the distribution of mutual funds and insurance products generated approximately $7.5 million in EBITDA, this was substantially reduced, as expected, by the expenses associated with: the initial development and marketing costs for Cartier Mutual Funds; the first stages of integrating the six planning firms; and establishing the new BRM corporate centre.

Before goodwill amortization, BRM generated a loss of $4.1 million or 2.8¢ per share. The acquisitions generated a significant amount of goodwill which is being amortized over 15 years. Including goodwill amortization from the acquisitions, which amounted to $5 million, BRM had a net loss of $9.1 million or 6.4¢ a share.
-IE Staff