Mr. Kish Kapoor reports

RF CAPITAL REPORTS FIRST QUARTER 2023 RESULTS

RF Capital Group Inc. had adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $13-million for the first quarter of 2023, an increase of 18 per cent over last year. While fee and corporate finance revenue declined due to capital market conditions, those factors were partly offset by interest and insurance revenue, which were up by 179 per cent and 12 per cent, respectively. The 18-per-cent increase in adjusted EBITDA was the result of an 8-per-cent increase in gross margin relative to a 5-per-cent increase in adjusted operating expenses. While the company is realizing inflationary increases to certain operating expenses, savings from the transition to the Fidelity platform have begun to take effect, and management remains vigilant toward cost containment.

Kish Kapoor, president and chief executive officer, commented: "With most of the transformation of our digital and physical footprint behind us, we are now focused on creating a steady state for our advisers, so that they can provide exceptional service to their clients and build their practices. We are also now able to reinvigorate our recruiting efforts and aggressively pursue opportunities in our recruiting pipeline. We remain well positioned to achieve 10-per-cent growth in adjusted EBITDA in 2023 as we benefit from resilient fee-based revenue, diversifying revenue streams and continued operating leverage."

Q1 2023 -- financial performance

The attached table presents the company's financial results for Q1 2023, fourth quarter 2022 and Q1 2022.

Normal course issuer bid

While the company executed its NCIB program throughout 2022 and early 2023, it chose to not renew the NCIB after March 8, 2023. While management and the board still believe that the market may misprice RF Capital's shares from time to time, they also believe that there are other higher return options for deploying the company's capital.

Preferred share dividend

On May 3, 2023, the board of directors approved a quarterly cash dividend of 23.3313 cents per cumulative five-year rate-reset preferred share, Series B, payable on June 30, 2023, to preferred shareholders of record on June 15, 2023.

Annual general meeting

The company will hold its annual meeting of shareholders, in person, at the Toronto Region Board of Trade, on Thursday, May 4, at 11 a.m. EST. The chair of RF Capital's board of directors, Donald Wright, will host the meeting. Mr. Kapoor will discuss the financial and strategic highlights of 2022 and provide an update on the financial results for first quarter 2023. A slide presentation and live audio webcast will be available on-line.

About RF Capital Group Inc.

RF Capital is a Toronto Stock Exchange-listed (RCG) wealth-management-focused company. Operating under the Richardson Wealth brand, the company is one of the largest independent wealth management firms in Canada with $36.3-billion in assets under administration (as of April 30, 2023) and 21 offices across the country. The firm's adviser teams are focused exclusively on providing strategic wealth advice and innovative investment solutions customized for high-net-worth or ultrahigh-net-worth families and entrepreneurs. The company is committed to maintaining exceptional fiduciary standards and has earned certification -- determined annually -- from the Center for Fiduciary Excellence for its separately managed and portfolio management account platforms. Richardson Wealth has also been recognized as a great place to work, a best workplace for women, a best workplace in Canada and Ontario, and a best workplace for mental wellness, financial services and insurance, and hybrid work.

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