Flow Capital Corp. (TSXV:FW) (“Flow Capital” and “Company”), a
leading provider of venture debt to high growth companies,
announces its unaudited financial and operating results for the
three-months ended March 31, 2024 (“Q1 2024”). Financial references
are in Canadian dollars unless otherwise specified.
Q1 2024 Performance
Highlights
- A record $1.8 million in recurring
loan interest income1 up 6.7% from Q4 2023 and 16.4% from Q1
2023.
- A 16% cash yield on our current
loan book of $43.7
- $1.23 book value per share up 2.9%
over the prior quarter and up 49% over the past two years.
- $0.4 million in recurring free cash
flow2 in Q1 2024; and $1.1 million over the past 4 quarters.
- $65.4 million in total assets up
2.9% from Q4 2023 and 10.6% over Q1 2023.
- $28.1 million in new capital
deployments over the past 12 months, a new record for the
Company.
(1) Recurring Loan Interest Income is an
internally defined, non-IFRS measure calculated as Loan Interest
Income less Loan Amortization Income and one-time payments (e.g.
prepayment fees). Reconciliations of non-IFRS measures to the
nearest IFRS measure can be found in this press release under
“Reconciliation of Non-IFRS Measures”.(2) Recurring Free Cash Flow
is an internally defined, non-IFRS measure calculated as Recurring
Loan Interest Income less Salaries, Professional fees, Office and
general administrative and Financing expenses. Reconciliations of
non-IFRS measures to the nearest IFRS measure can be found in this
press release under “Reconciliation of Non-IFRS Measures”.
“We are pleased with our results this quarter.
Book value per share continued to grow and recurring revenues hit
$1.8 million this quarter, a record for us. The recurring revenue
represents a 16% annual cash return on our current loan book of
$43.7 million.” said Alex Baluta, CEO of Flow Capital. “As we
continue to accelerate the deployment of capital into new loans, we
expect to maintain this cash-on-cash return while also achieving a
higher long-term IRR based on the contributions of our equity
positions, similar to what we have seen over the last 6 years.”
Flow’s business development program continues to
surface excellent investment opportunities. In Q1 we closed a $5.25
million financing into UK based CrowdProperty, a digital “platform
as a service” marketplace, $2.15 million into a Canadian based
fintech SaaS company, and after the end of the quarter, an
additional $2.7 million into existing portfolio company Miniluxe,
and $5.4 into GetTattle Inc. a global Customer Experience
Improvement SaaS platform. We continue to see strong pipeline
growth and expect that portfolio growth should only be tempered by
our access to supporting capital.
In order to build our capital base, we continue
to offer our redeemable floating rate debentures to institutional
and accredited investors. The debenture pays a floating rate of
interest, currently set at 10.5%.
In addition to supporting our growth the
debenture also serves our investors and shareholders well, allowing
us to bifurcate investor returns between capital gains-oriented
investors in our common shares and income-oriented investors in our
debentures.
Said Mr. Baluta, “The goal here at Flow is to
serve all our stakeholders well. Borrowers with capital that
supports their growth, book value per share growth for our common
shareholders, and significant income from an attractive interest
rate for our debenture holders.”
Detailed Financial results are available on our
website at www.flowcap.com or on www.sedar.com.
RESULTS OF OPERATIONS
|
Three-months ended March 31, 2024 |
Three-months ended March 31, 2023 |
Recurring Loan Interest Income (1) |
$ |
1,757,553 |
$ |
1,509,437 |
Total Loan Interest Income |
|
2,005,586 |
|
1,691,481 |
Total Revenues per IFRS |
|
1,914,445 |
|
1,747,126 |
Net income/(loss) |
|
720,237 |
|
345,450 |
Adjusted Recurring Free Cash Flow (2) |
|
415,851 |
|
298,756 |
Basic Earnings per share |
|
0.0229 |
|
0.0111 |
Diluted Earnings per share |
|
0.0228 |
|
0.0105 |
Book Value per outstanding share (3) |
|
1.226 |
|
1.2335 |
Weighted basic average number of shares outstanding |
|
31,442,753 |
|
31,204,227 |
Weighted diluted average number of shares outstanding |
|
31,540,741 |
|
32,766,042 |
(1) Recurring Loan Interest
Income is an internally defined, non-IFRS measure calculated as
Loan Interest Income less Loan Amortization Income and one-time
payments (e.g. prepayment fees). See the section “Use of Non-IFRS
Financial Measures”.(2) Recurring Free Cash Flow
is an internally defined, non-IFRS measure calculated as Recurring
Loan Interest Income less Salaries, Professional fees, Office and
general administrative and Financing expenses. See the section “Use
of Non-IFRS Financial Measures”.(3) Calculated by
taking Total Shareholders’ Equity as reported on the Statements of
Financial Position over the number of outstanding shares. See the
section “Use of Non-IFRS Financial Measures”.
Conference Call Details
Flow Capital will host a conference call to
discuss these results at 9:00 a.m. Eastern Time, on Thursday, May
23, 2024. Participants should call +1 800-717-1738 or +1
289-514-5100 and ask an operator for the Flow Capital earnings
call, Conference ID 70834. Please dial in 10 minutes prior to the
call to secure a line. A replay will be available shortly after the
call. To access the replay, please dial +1 888-660-6264 or +1
289-819-1325 and enter passcode 70834#. The replay recording will
be available until 11:59 p.m. Eastern Time, June 06, 2024.
An audio recording of the conference call will
be also available on the investors’ page of Flow Capital’s website
at www.flowcap.com/financials.
About
Flow Capital
Flow Capital Corp. is a Canadian based, publicly
listed venture debt lender. Since 2018 we have financed high growth
companies in the US, the UK, and Canada. We help companies speed
their growth without the dilutive effect of an equity issue or the
difficulties associated with traditional lenders, such as banks. We
specialize in revenue generating VC sponsored and founder owned
businesses seeking $3 to $7 million in capital to fund continued
growth. To learn more about us, visit www.flowcap.com.
For further information, please contact:
Flow Capital Corp.Alex BalutaChief Executive
Officeralex@flowcap.com
47 Colborne St, Suite 303, Toronto, Ontario M5E 1P8
Non-IFRS Financial Measures
This press release includes references to
certain non-IFRS financial measures such as recurring Loan Interest
income and recurring free cash flow. These financial measures are
employed by the Company to measure its operating and economic
performance and to assist in business decision-making, as well as
providing key performance information to senior management. The
Company believes that, in addition to conventional measures
prepared in accordance with IFRS, certain investors and analysts
use this information to evaluate the Company’s operating and
financial performance. These financial measures are not defined
under IFRS nor do they replace or supersede any standardized
measure under IFRS. Other companies in our industry may calculate
these measures differently than we do, limiting their usefulness as
comparative measures. Reconciliations of non-IFRS measures to the
nearest IFRS measure can be found in this press release under
“Reconciliation of Non-IFRS Measures”.
Reconciliation of Non-IFRS
Measures
The tables below reconcile Loan Interest Income
to Recurring Loan Interest Income and recurring free cash flow for
the periods indicated.
Recurring Loan Interest Income is an internally
defined, non-IFRS measure calculated as Loan Interest Income, less
Loan Amortization Income and one-time payments (e.g. prepayment
fees).
|
Three-months ended March 31, 2024 |
Three-months ended December 31, 2023 |
Three-months ended September 30, 2023 |
Three-months ended June 30, 2023 |
Three-months ended March 31, 2023 |
Loan Interest Income |
$ |
2,005,586 |
|
$ |
1,882,908 |
|
$ |
1,697,147 |
|
$ |
1,843,406 |
|
$ |
1,691,481 |
|
Less: Loan Amortization Income |
|
(248,033 |
) |
|
(236,251 |
) |
$ |
(195,054 |
) |
$ |
(235,357 |
) |
$ |
(182,044 |
) |
Less: One-time payments |
|
- |
|
|
- |
|
$ |
- |
|
$ |
(161,844 |
) |
$ |
- |
|
Total Adjustments |
|
(248,033 |
) |
|
(236,251 |
) |
$ |
(195,054 |
) |
$ |
(397,201 |
) |
$ |
(182,044 |
) |
Recurring Loan Interest Income |
$ |
1,757,553 |
|
$ |
1,646,657 |
|
$ |
1,502,093 |
|
$ |
1,446,205 |
|
$ |
1,509,437 |
|
Recurring Free Cash Flow is an internally
defined, non-IFRS measure calculated as Recurring Loan Interest
Income less Salaries, Professional fees, Office and general
administrative and Financing expense.
|
Three-months ended March 31, 2024 |
Three-months ended December 31, 2023 |
Three-months ended September 30, 2023 |
Three-months ended June 30, 2023 |
Three-months ended March 31, 2023 |
Recurring Loan Interest Income |
$ |
1,757,553 |
$ |
1,646,657 |
|
$ |
1,502,093 |
$ |
1,446,205 |
$ |
1,509,437 |
Less: Salaries |
|
427,280 |
|
463,971 |
|
|
426,714 |
|
411,828 |
|
376,606 |
Less: Professional fees |
|
99,100 |
|
18,167 |
|
|
132,767 |
|
276,601 |
|
213,652 |
Less: One-time non-cash expense |
|
- |
|
538,640 |
|
|
- |
|
- |
|
- |
Less: Office and general administrative |
|
171,202 |
|
(336,873 |
) |
|
180,284 |
|
187,408 |
|
175,211 |
Less: Financing Expense |
|
644,120 |
|
624,869 |
|
|
525,387 |
|
443,472 |
|
445,212 |
Total Adjustments |
|
1,341,702 |
|
1,308,774 |
|
|
1,265,152 |
|
1,319,309 |
|
1,210,681 |
Recurring Free Cash Flow |
$ |
415,851 |
$ |
337,883 |
|
$ |
236,941 |
$ |
126,896 |
$ |
298,756 |
Forward-Looking Information and
StatementsCertain statements herein may be
“forward-looking” statements that involve known and unknown risks,
uncertainties and other factors that may cause the actual results,
performance or achievements of Flow or the industry to be
materially different from any future results, performance or
achievements expressed or implied by such forward-looking
statements. Forward looking statements involve significant risks
and uncertainties, should not be read as guarantees of future
performance or results, and will not necessarily be accurate
indications of whether or not such results will be achieved. A
number of factors could cause actual results to vary significantly
from the results discussed in the forward-looking statements. These
forward-looking statements reflect current assumptions and
expectations regarding future events and operating performance and
are made as of the date hereof and Flow assumes no obligation,
except as required by law, to update any forward-looking statements
to reflect new events or circumstances.
Flow Capital (TSXV:FW)
Historical Stock Chart
From May 2024 to Jun 2024
Flow Capital (TSXV:FW)
Historical Stock Chart
From Jun 2023 to Jun 2024