RCS Capital Corp, the new owner of the fastest-growing independent brokerage business in the securities industry, disclosed on Wednesday just how skinny profits in that business are. Cetera Financial Group, which RCS bought two weeks ago for about $1.2 billion, eked out net income of $991,000 in the first quarter on revenue of $301.2 million. It lost $545,000 in the prior quarter, RCS said in regulatory filings detailing three purchases it expects to complete this quarter.The numbers may explain a management shakeup that RCS announced at Cetera on Tuesday. RCS elevated veteran independent brokerage executive Lawrence (Larry) Roth to chief executive to replace Valerie Brown."Ms. Brown believes now is the right time for her to transition from her role as CEO of Cetera into a consulting role with Cetera and on to other pursuits," RCS President Michael Weil said in a prepared statement.Brown, who oversaw about 6,800 brokers in 4,544 offices at Cetera's three brokerage units, could not be reached for comment.
RCS Capital Corporation, is a holding company. The Company is engaged in the business of wholesale broker-dealer, investment banking and capital markets business, a transaction management services provider and a transfer agent. Shares of RCAP fell by 0.42% or $-0.14/share to $33.15. In the past year, the shares have traded as low as $14.86 and as high as $39.98. On average, 82928 shares of RCAP exchange hands on a given day and today's volume is recorded at 49293.
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