Crown Capital Partners Announces Q1 2016 Financial Results

CALGARY, May 11, 2016 /CNW/ - Crown Capital Partners Inc. ("Crown" or the "Corporation") (TSX: CRN), which provides growth capital to successful mid-market companies, today announced its financial results for the three months ended March 31, 2016 ("Q1 2016"). Crown's complete financial statements and management's discussion and analysis for Q1 2016 are available on SEDAR at www.sedar.com.

Q1 2016 Financial & Operating Highlights

  • Revenue of $5.1 million, including fees and other income of $0.6 million, interest revenue of $2.4 million, net realized gain on sale of investments of $1.7 million, and net change in unrealized gains in fair value of investments of $0.4 million.
  • Adjusted EBIT1 of $2.7 million.
  • Total comprehensive income, net of non-controlling interest, of $1.6 million, or $0.17 per common share (basic).
  • Total equity per common share (basic) of $10.56 at March 31, 2016.
  • Total assets of $131.8 million at March 31, 2016, up from 130.1 million at December 31, 2015.
  • Cash and cash equivalents increased to $46.9 million, compared with $43.6 million at
    December 31, 2015.
  • Established a dividend policy and, on January 29, 2016, paid a first quarterly dividend of $0.11 per common share.
  • Sold all the common shares of Claude Resources Inc. held by the Norrep Credit Opportunities Fund II, LP ("NCOF II") and Norrep Credit Opportunities Fund II (Parallel), LP for a realized gain to the Corporation of $1.7 million.
  • Subsequent to quarter end, on April 22, 2016, Crown declared a quarterly dividend of $0.11 per common share.

"In the first quarter of 2016, we implemented a dividend, which was an important milestone for the company, and generated a strong increase in interest revenue, reflecting the impact of the loans we announced in 2015," said Chris Johnson, President and CEO of Crown. "We also increased cash in the quarter, and continue to carry a significant cash balance, which we expect to deploy in the near-term, both in our special situations and long-term products, to generate growing earnings for shareholders. Our transaction pipeline remains strong, supported by the team members we added last year and a very positive market environment for Crown. With 34 transactions completed over our history, we are one of the most experienced and active participants in the mid-market, positioning us well to benefit from these market conditions."

Q1 2016 Financial Results Summary

Crown's financial position at March 31, 2016 and its financial results for the quarter ended March 31, 2016 are not comparable to the same period in the prior year due mostly to the initial public offering of Crown's common shares and the acquisition of a 69.75% interest in NCOF II, both in July 2015, and the establishment of Crown Capital Fund IV LP in September 2015 and Crown Capital Private Credit LP in December 2015.



Selected Quarterly Information

Three Months
Ended March 31
2016

Revenue:




Fees and other income

$

554,610


Interest revenue


2,385,697


Net realized gain on sale of investments


1,741,260


Net change in unrealized gains in fair value of investments


410,315

Total Revenue

$

5,091,882

Total comprehensive income (loss), net of non-controlling interests

$

1,638,766

Weighted average shares outstanding - basic


9,493,353

Total comprehensive income(loss) per share - basic

$

0.17

Weighted average shares outstanding - diluted


9,745,986

Total comprehensive income(loss) per share - diluted

$

0.17

Adjusted EBIT1

$

2,744,500

Investments, at fair value through profit or loss

$

82,811,699

Total assets

$

131,819,371

Total non-current liabilities

$

26,201,127

Total equity

$

100,230,152

Common Shares outstanding at March 31, 2016


9,494,002

Total equity per share - basic

$

10.56

 



Reconciliation of Earnings before Income Taxes to Adjusted EBIT

Three Months
Ended March 31
2016

Earnings before income taxes

$

3,385,957

add: financing costs

-

add: non-cash share-based compensation

374,749

deduct: net income and comprehensive income attributable to


non-controlling interests

(1,016,206)

Adjusted EBIT

$

2,744,500

 


1.Adjusted EBIT is not a measure of financial performance (nor does it have a standardized meaning) under IFRS. In evaluating this measure, investors should consider that the methodology applied in calculating this measure may differ among companies and analysts. Adjusted EBIT is calculated by Crown as earnings before non-cash share-based compensation, finance costs and income taxes less net income and comprehensive income attributable to non-controlling interests. The Corporation has provided a reconciliation of earnings before income taxes to Adjusted EBIT in this news release. The Corporation believes Adjusted EBIT is a useful supplemental measure that may assist investors in assessing the financial performance and the cash anticipated to be generated by Crown's business. Adjusted EBIT should not be considered as the sole measure of Crown's performance and should not be considered in isolation from, or as a substitute for, analysis of the Corporation's financial statements.

 

Conference Call & Webcast

Crown will host a conference call to discuss its Q1 2016 financial results at 2:00 p.m. EDT on May 11, 2016. The call will be hosted by Chris Johnson, President & CEO, and Lyle Bolen, CFO. To participate in the call, dial 647-427-7450 or 1-888-231-8191 using the conference ID  94982204. The audio webcast can be accessed at www.crowncapital.ca under Investor Relations or at http://bit.ly/1UeXhA6. Listeners should access the webcast or call 10-15 minutes before the start time to ensure they are connected.

ABOUT CROWN

Crown (TSX: CRN) is a specialty finance company focused on providing capital to successful Canadian and select U.S. companies that are unwilling or unable to obtain suitable financing from traditional capital providers such as banks and private equity funds. Crown also manages capital pools, including some in which Crown has a direct ownership interest. Crown originates, structures and provides tailored special situation and long-term financing solutions to a diversified group of private and public mid-market companies in the form of loans, royalties and other structures with minimal or no ownership dilution.

FORWARD-LOOKING STATEMENTS

This news release contains certain "forward looking statements" and certain "forward looking information" as defined under applicable Canadian and U.S. securities laws. Forward-looking statements can generally be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "continue", "plans" or similar terminology. Forward-looking statements in this news release include, but are not limited to, statements, management's beliefs, expectations or intentions regarding the alternative financial market and the general economy, transaction pipeline, Crown's business plans and strategy, including anticipated capital deployments, and Crown's future cash flow and shareholder value. Forward-looking statements are based on forecasts of future results, estimates of amounts not yet determinable and assumptions that while believed by management to be reasonable, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Forward-looking statements are subject to various risks and uncertainties concerning the specific factors identified in the Crown's periodic filings with Canadian securities regulators. See the AIF for a detailed discussion of the risk factors affecting Crown. In addition, Crown's dividend policy will be reviewed from time to time in the context of the Corporation's earnings, financial requirements for its operations, and other relevant factors and the declaration of a dividend will always be at the discretion of the board of directors of the Corporation. Crown undertakes no obligation to update forward-looking information except as required by applicable law. Such forward-looking information represents management's best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information.

SOURCE Crown Capital Partners Inc.

For further information: Christopher A. Johnson, CFA, President & CEO, chris.johnson@crowncapital.ca, (416) 640-6715; Craig Armitage, Investor Relations, craig.armitage@crowncapital.ca, (416) 347-8954; Additional information relating to Crown is available on SEDAR at www.sedar.com


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