~Company delivers record quarterly revenue total assets growing 87% and an increase in loan portfolio by 169%~
VANCOUVER, July 26, 2019 /CNW/ - TIMIA Capital Corporation ("TIMIA" or the "Company") (TSX-V:TCA) today announced financial results for the second quarter ended May 31, 2019.
Second Quarter 2019 Highlights include:
- Record revenue of $835,038, up 75% over the same period last year
- Total assets grew over 87% to $22,332,091 compared with the same period last year
- TIMIA's loan investment portfolio (loans receivable) increased 169% to $16,315,527 compared to $6,073,948 in the same period last year
- Provided US$5,000,000 in new revenue financing facilities and disbursed US$1,600,000 to two US companies
- Provided a $2,000,000 debt facility with a first disbursement of $1,000,000 to fund the growth of a Canadian company
- Completed a $10,500,000 financing with the launch of its first Limited Partnership ("LP"), in which the Company owns 20% of the LP units and acts as the LP's manager
- Net loss of $490,358 compared to a net income of $769,371 for the same period last year, reflecting an exit that occurred in the same period last year and costs incurred this quarter associated with the launch of the new LP
- Adjusted EBITDA* of $112,091 compared with an Adjusted EBITDA of $974,275 for the same period last year, reflecting an exit that occurred in the same period last year and costs incurred this quarter related to the launch of the new LP
"We continue to deliver record growth as we scale the Company through innovative and non-dilutive means," said Mike Walkinshaw, CEO of TIMIA. "We've been able to increase the pace of our investments as a direct result of investments made in our fintech platform. Adding to this growth, we successfully established our inaugural Limited Partnership fund, which enabled us to increase our assets under management by over 85%. This new structure has established a solid foundation from which we can continue to invest in quality SaaS companies looking to accelerate their growth, and ultimately increasing TIMIA shareholder value."
Detailed Financial Review
During the quarter ended May 31, 2019, the Company continued to grow its revenue financing business by completing three new investments. The majority of the Company's consolidated direct and LP revenue is interest income generated under its revenue financing business model. Interest income in the quarter ended May 31, 2019 was a record $680,260, an increase of 59%, compared with $428,940 in the same period last year. As TIMIA makes new investments, the number of monthly payments derived from the portfolio grows. Income from transaction and other fees was $154,778 in the three months ended May 31, 2019 compared to $48,000 in the same period last year. This increase is the result of a greater number of signed termed sheets and an increase in the associated upfront fees. The increase in total revenue, compared to the same period last year, is primarily due to the increase in scale and improved performance of TIMIA's portfolio of investments.
During the quarter ended May 31, 2019, the Company posted a net loss of $493,316 compared with a net income of $769,371 in the same period last year. As noted above, the difference reflects the exit in Quickmobile last year as well as costs incurred with the launch of the new LP. The Company reported an Adjusted EBITDA of $112,091 for the quarter ended May 31, 2019 compared with an Adjusted EBITDA of $974,275 for the same period last year, reflecting similar effects from the gain last year and expenses setting up the LP this year.
As at May 31, 2019, the Company's cash balance was approximately $5.1 million and working capital was approximately $4.8 million compared with $3.8 million and $3.6 million respectively, as of November 30, 2018.
This news release is qualified in its entirety by the Company's condensed interim financial statements for the three and six months ended May 31, 2019 and 2018 and the associated Management's Discussion & Analysis respecting the same period, which can be downloaded from the Company's profile on SEDAR at http://www.sedar.com.
*Non-GAAP Measures and Other Financial Measures
In managing the business and assessing the Company's financial performance, it supplements the information provided by the GAAP-based financial statements with metrics and non-GAAP financial measures which are utilized by management to evaluate performance. Although the Company believes these measures are widely used in the specialty finance industry, some may not be defined by the Company in precisely the same way as by other companies in the specialty finance industry, so there may not be reliable ways to compare TIMIA to other companies. Adjusted EBITDA represents a net loss and comprehensive loss from continuing operations (the most directly comparable GAAP measure) excluding amounts for: income tax expense; interest expense; depreciation and amortization; non-cash revenue; non-cash gains; equity-based compensation and, all other non-cash expenses, and costs relating to fund structuring that are periodic in nature. TIMIA believes Adjusted EBITDA is a helpful measure because it allows us to evaluate performance by removing from operating results items that do not relate to its core operating performance. Adjusted EBITDA is not a measure of financial performance under GAAP and should not be considered in isolation or as a substitute for net loss and comprehensive loss from continuing operations, the most directly comparable GAAP financial measure. Adjusted EBITDA is not defined in the same manner by all companies and may not be comparable to other similarly titled measures of other companies unless the definition is the same.
About TIMIA Capital Corporation
TIMIA Capital Corporation is a specialty finance company that provides revenue financing to technology companies in exchange for a stream of payments based on revenue. The alternative financing option complements both debt and equity financing, while allowing entrepreneurs to retain control of their business. TIMIA's target market is the fast-growing business-to-business software as a service (or SaaS) segment. TIMIA is managed by a seasoned investment team with a track record of originating and managing debt and equity investments, as well as monitoring and compliance.
For more information about TIMIA Capital Corporation, please visit www.timiacapital.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
SOURCE TIMIA Capital Corp.
For further information: Mike Walkinshaw, CEO; Darren Seed, Vice President, Capital Markets & Communications, TIMIA Capital Corporation, (604) 398-8839, [email protected]