Crown Capital Partners Announces Q2 2016 Financial Results
CALGARY, Aug. 10, 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 six months ended June 30, 2016. Crown's complete financial statements and management's discussion and analysis for the second quarter of 2016 are available on SEDAR at www.sedar.com.
Q2 2016 Financial & Operating Highlights
- Revenue of $5.0 million, including fees and other income of $0.8 million, interest revenue of $2.6 million, and net change in unrealized gains in fair value of investments of $1.6 million.
- Adjusted EBIT1 of $3.0 million.
- Total comprehensive income, net of non-controlling interest, of $1.7 million, or $0.18 per common share (basic).
- Total equity per common share (basic) of $10.68 at June 30, 2016.
- Total assets of $138.2 million at June 30, 2016, up from $130.1 million at December 31, 2015.
- Cash and cash equivalents of $36.3 million, compared with $43.6 million at December 31, 2015.
- On May 20, 2016, paid second quarterly dividend of $0.11 per common share.
- Crown Capital Fund IV, LP ("CCF IV LP" or the "Fund") completed a $15 million, five-year term loan with Bill Gosling Outsourcing Holding Corp., a global provider of call center solutions to blue-chip clients.
- Subsequent to quarter end, completed a $25 million closing for CCF IV LP, bringing the current total capital committed to the Fund to $125 million.
"It was a solid quarter for Crown as we made progress on a number of fronts. We completed a loan with Bill Gosling Outsourcing, bringing us to six investments in the portfolio," said Chris Johnson, President and CEO of Crown. "We were also pleased to achieve our milestone of upsizing CCF IV LP last month, adding two new limited partners, which provided a further endorsement of the quality of our portfolio. The conditions for our alternative financing solutions remain strong. Based on our robust transaction pipeline, we are confident we will achieve our annual capital deployment targets in 2016. As we put this available capital to work in growing mid-market companies, we expect to generate increasing earnings and cash flows for Crown shareholders."
Q2 2016 Financial Results Summary
Crown's financial position at June 30, 2016 and its financial results for the quarter and six months ended June 30, 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 Norrep Credit Opportunities Fund II, LP, both in July 2015, and the establishment of CCF IV LP in September 2015 and Crown Capital Private Credit LP in December 2015.
Selected Quarterly Information |
Three Months Ended June 30 |
Six Months |
|||
2016 |
2016 |
||||
Revenue: |
|||||
Fees and other income |
$ |
813,702 |
$ |
1,368,312 |
|
Interest revenue |
2,567,688 |
4,953,385 |
|||
Net realized gain on sale of investments |
1,741,260 |
||||
Net change in unrealized gains in fair value of investments |
1,602,591 |
2,012,906 |
|||
Total Revenue |
$ |
4,983,981 |
$ |
10,075,863 |
|
Total comprehensive income, net of non-controlling interests |
$ |
1,748,565 |
$ |
3,387,331 |
|
Weighted average shares outstanding - basic |
9,492,045 |
9,492,699 |
|||
Total comprehensive income per share - basic |
$ |
0.18 |
$ |
0.36 |
|
Weighted average shares outstanding - diluted |
9,744,369 |
9,743,724 |
|||
Total comprehensive income per share - diluted |
$ |
0.18 |
$ |
0.35 |
|
Adjusted EBIT1 |
$ |
2,968,082 |
$ |
5,712,582 |
|
Investments, at fair value through profit or loss |
$ |
99,414,291 |
|||
Total assets |
$ |
138,225,938 |
|||
Total non-current liabilities |
$ |
34,365,380 |
|||
Total equity |
$ |
101,368,403 |
|||
Common Shares outstanding at June 30, 2016 |
9,495,210 |
||||
Total equity per share - basic |
$ |
10.68 |
Reconciliation of Earnings before Income Taxes to Adjusted EBIT |
Three Months Ended June 30 |
Six Months Ended June 30 |
||
2016 |
2016 |
|||
Earnings before income taxes |
$ |
3,578,348 |
$ |
6,964,305 |
Add: financing costs |
- |
- |
||
Add: non-cash share-based compensation |
473,263 |
848,012 |
||
Deduct: net income and comprehensive income attributable to non-controlling interests |
||||
(1,083,529) |
(2,099,735) |
|||
Adjusted EBIT |
$ |
2,968,082 |
$ |
5,712,582 |
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 Q2 2016 financial results at 10:00 a.m. EDT on August 10, 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 57686877. The audio webcast can be accessed at www.crowncapital.ca under Investor Relations or at http://bit.ly/2axt0xE. 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.
Christopher A. Johnson, CFA, President & CEO, [email protected], (416) 640-6715; Craig Armitage, Investor Relations, [email protected], (416) 347-8954
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