RCS Capital Slips To Loss In Q3

(RTTNews) - RCS Capital Corp. (RCAP) Thursday reported loss for the third quarter compared with a profit last year, as the earnings were hurt by higher expenses, and income tax charges. However, revenues for the period improved, particularly helped by the rise in retail and investment management segment revenue.

Net loss attributable to Class A common stockholders totaled $36.99 million or $0.59 per share as against a profit of $559 thousand or $0.17 per share last year.

Excluding certain items, the company earned $35.5 million or $0.40 per share.

Analysts polled by Thomson Reuters expected the company to report earnings of $0.43 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenues climbed to $678.57 million from $229.52 million a year ago. Pro forma revenues were up 10 percent to $725.0 million.

Total expenses soared to $718.21 million from $217.89 million in the year-ago period.

Provision for income taxes totaled $7.37 million, much higher than $536 thousand last year.

Looking ahead, for fiscal 2014, the firm expects pro forma adjusted EBITDA in a range of $288 million - $300 million. This includes annualized impact of $57 million - $65 million.