Binah Capital Group, Inc.(BCG) - 2024 Q4 - Annual Report

Financial Performance - For the year ended December 31, 2024, the company reported a net loss of approximately $4.6 million and total revenue of approximately$168.9 million, compared to a net income of $0.5 million and total revenue of approximately$168.0 million for 2023[166]. - Gross profit for the year ended December 31, 2024, was $32.0 million, reflecting a 0.6$31.8 million in 2023[169]. - Total revenue from contracts with customers increased to $164.4 million in 2024, up 2.9$159.9 million in 2023[179]. - Total commission revenue for the year ended December 31, 2024, was $164.4 million, an increase of 2.8$159.9 million in 2023[184]. - EBITDA for the year ended December 31, 2024, was $1.9 million, a decrease from$6.8 million in 2023[172]. Asset Management - Total advisory and brokerage assets served were $27.1 billion at December 31, 2024, an increase from$23.9 billion at December 31, 2023[167]. - Advisory assets grew to $2.6 billion in 2024 from$2.1 billion in 2023[188]. - Brokerage assets increased to $24.5 billion in 2024 from$21.8 billion in 2023, with trail-eligible assets rising to $17.9 billion from$15.6 billion[185]. - Advisory assets increased by approximately 21% to $2.5 billion at December 31, 2024, from$2.1 billion at December 31, 2023[168]. Revenue Composition - Sales-based commission revenue decreased by approximately $11.7 million or 15.7$16.2 million or 19.0%[184]. - Advisory fees increased by approximately 15% for the year ended December 31, 2024, driven by positive market impacts[187]. Expenses and Costs - Employee compensation and benefits expenses rose by 16.1% to $15.5 million in 2024, compared to$13.4 million in 2023[179]. - Employee compensation and benefits increased by $2.2 million in 2024 due to additional personnel costs related to the company operating as a public entity[195]. - Professional fees rose by$2.3 million in 2024, linked to transaction costs associated with the Business Combination and refinancing efforts[197]. Cash Flow and Financing - The company reported a net cash used in operating activities of $0.6 million for the year ended December 31, 2024, a decrease of approximately$3.2 million or 124% compared to $2.6 million provided in 2023[225]. - Net cash provided by financing activities was approximately$1.6 million for the year ended December 31, 2024, compared to cash used of $2.7 million in 2023[227]. - The company has total contractual obligations of$30.1 million as of December 31, 2024, with $2.9 million due in less than one year[228]. - The company issued new promissory notes totaling approximately$5.3 million with a maturity date of May 15, 2027, carrying an interest rate of Prime plus 1.00%, but no less than 7.50% per annum[223]. Debt and Interest - As of December 31, 2024, the company had $19.6 million outstanding under its Credit Agreement with Byline Bank[205]. - The effective interest rate on the Term Loan as of December 31, 2024, was 8.3$20.3 million of outstanding debt subject to floating interest rate risk as of December 31, 2024[241]. Dividends and Shareholder Returns - For the year ended December 31, 2024, the company paid approximately $1.1 million in dividends under the Series A PIPE, with$0.56 million paid in cash and $0.55 million paid in-kind[214]. - The company recognized total dividends related to the Series B Convertible Preferred Stock of approximately$0.03 million for the year ended December 31, 2024[219]. Economic Context - The U.S. economy grew by 2.8% in 2024, with an unemployment rate averaging 4.2% in the fourth quarter[176]. Impairment and Valuation - The estimated fair value of the reporting units was approximately 270% greater than its carrying value as of December 31, 2024, indicating no impairment[234].