Crown Capital Partners Announces Q3 2016 Financial Results

CALGARY, Nov. 9, 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 and nine months ended September 30, 2016. Crown's complete financial statements and management's discussion and analysis for the third quarter of 2016 are available on SEDAR at www.sedar.com.

Q3 2016 Financial & Operating Highlights

  • Revenue of $2.9 million, including interest revenue of $3.0 million, fees and other income of $0.2 million, and net change in unrealized gains in fair value of investments of ($0.3) million.
  • Adjusted EBIT1 of $1.5 million.
  • Total comprehensive income, net of non-controlling interest, of $0.8 million, or $0.09 per common share (basic).
  • Total equity per common share (basic) of $10.65 at September 30, 2016.
  • Total assets of $151.6 million at September 30, 2016, up from $130.1 million at December 31, 2015.
  • Cash and cash equivalents of $46.5 million, compared with $43.6 million at December 31, 2015.
  • On September 9, 2016, paid a third quarterly dividend of $0.11 per common share.
  • On July 15, 2016, completed a $25 million closing for Crown Capital Fund IV LP ("CCF IV LP"), bringing the current total capital committed to the Fund to $125 million.
  • On November 8, 2016, Crown announced the signing in escrow by CCF IV LP of a $15.0 million term loan (the "Agreement") with Touchstone Exploration Inc., a Calgary-based publicly-traded company engaged in acquiring interests in petroleum and natural gas rights, and the exploration, development, production and sale of petroleum and natural gas, with its primary focus in the Republic of Trinidad.

"Our current investments continue to perform well overall, which was validated by the new limited partners we added to CCF IV LP during the quarter," said Chris Johnson, President and CEO of Crown. "Our financial results for the quarter reflect the higher-than-planned cash balance carried during the period. We completed one special situations transaction subsequent to quarter end and expect to deploy additional capital before year end. We continue to see strong demand for our financing solutions from successful companies in the mid-market. In addition to building the investment portfolio, we expect to finalize a credit facility in the near term, providing new leverage to drive higher returns on equity."

Q3 2016 Financial Results Summary








Selected Quarterly Information

Three Months
Ended
September 30
2015

Three Months
Ended
September 30
2016

Nine Months
Ended
September 30
2016

Revenue:








Fees and other income

$

874,217

$

159,804

$

1,528,116


Interest revenue


1,123,335


2,967,729


7,921,114


Net realized gain on sale of investments


71,387


-


1,741,260


Net change in unrealized gains in fair value of investments


(148,063)


(254,237)


1,758,669

Total Revenue

$

1,920,876

$

2,873,296

$

12,949,159

Total comprehensive income, net of non-controlling interests

$

395,220

$

832,573

$

4,219,904

Weighted average shares outstanding - basic


8,595,480


9,514,921


9,500,160

Total comprehensive income per share - basic

$

0.05

$

0.09

$

0.44

Weighted average shares outstanding - diluted


8,821,241


9,803,951


9,739,504

Total comprehensive income per share - diluted

$

0.04

$

0.08

$

0.43

Adjusted EBIT1


554,016

$

1,468,683

$

7,181,265

Investments, at fair value through profit or loss

$

36,401,906

$

99,410,054

$

99,410,054

Total assets

$

114,296,590

$

151,568,894

$

151,568,894

Total equity

$

97,257,858

$

101,344,596

$

101,344,596

Common Shares outstanding


9,488,094


9,519,071


9,519,071

Total equity per share - basic

$

10.25

$

10.65

$

10.65















Reconciliation of Earnings before Income Taxes to Adjusted EBIT1

Three Months
Ended
September 30
2015

Three Months
Ended
September 30
2016

Nine Months
Ended
September 30
2016

Earnings before income taxes


$500,489


1,915,057


$8,879,362

Add: financing costs


-


-


-

Add: non-cash share-based compensation


414,791


201,033


1,049,045

Deduct: net income and comprehensive income attributable to







non-controlling interests


(361,264)


(647,407)


(2,747,142)

Adjusted EBIT1


$554,016


$1,468,683


$7,181,265

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 Q3 2016 financial results at 8:30 a.m. EDT on November 9, 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 3945204. The audio webcast can be accessed at www.crowncapital.ca under Investor Relations or at http://bit.ly/2eqoAWi. 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 the timing thereof, 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 Crown's most recent annual information form 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.

Additional information relating to Crown is available on SEDAR at www.sedar.com

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

RELATED LINKS
http://www.crowncapital.ca

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