RCS Capital (RCAP) Misses Q3 EPS by 3c

RCS Capital (NYSE: RCAP) reported Q3 EPS of $0.10, $0.03 worse than the analyst estimate of $0.13. Revenue for the quarter came in at $589.6 million versus the consensus estimate of $532.7 million.

"This was a transitional quarter as we continued to strategically reposition the Company to focus on our independent retail advice business, Cetera Financial Group ("CFG"), and strengthen our balance sheet and financial position," said Mark Auerbach, Non-Executive Chairman RCS Capital. "While asset based revenues, including cash sweep and strategic partner revenues, and advisor retention remain strong within CFG, we continue to face a challenging overall environment characterized by volatility in the equity markets and historically low interest rates."

Mr. Auerbach continued, "As we previously announced, the transition of RCS Capital to a retail-focused entity is underway and we view the developments announced over the past couple of weeks as incrementally positive. The additional cash and lender modifications will allow time for the Company to complete its work with Lazard in the exploration of options to raise additional capital and make asset divestitures. Additionally, the sale of Hatteras and the sale of the wholesale distribution division, including Realty Capital Securities and Strategic Capital, pursuant to the amended agreement, once consummated, will help further rationalize the business model to refocus the business as a Cetera-only organization, while the addition of Michael Conboy of Luxor Capital Group on our board brings a long-time stakeholder into a more active role. Finally, by granting the independent RCS Capital board members a proxy to vote the single outstanding Class B share, RCAP Holdings has cleared a path to the recapitalization process. As we look ahead, we are focused on our core retail business and recognize the earnings potential of Cetera Financial Group."

For earnings history and earnings-related data on RCS Capital (RCAP) click here.

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