Recurring revenue up 28.5% year over year.
TORONTO, Aug. 19, 2024 (GLOBE NEWSWIRE) -- 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 June 30, 2024 ("Q2 2024"). Financial references are in Canadian dollars unless otherwise specified.
Q2 2024 Performance Highlights
- $1.9 million in recurring loan interest income1 up 5.7% from Q1 2024 and up 28.5% from Q2 2023.
- $1.255 book value per share up 2.43% over the prior quarter and up 37% over the past 2 years.
- $283K in recurring free cash flow2 in Q2 2024; and $1.4 million over the past 4 quarters.
- $65.8 million in total assets up 12% over the prior year.
- $29 million in new capital deployments over the past 12 month, a new 12-month 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 very pleased with our results this quarter. We achieved several milestones in the quarter including: record recurring revenue at $1.9M; record book value per share at $1.255/share; record total assets at $65.8M; and record trailing 12-month new deployments at over $29 million," said Alex Baluta, CEO of Flow Capital. "In addition, our portfolio continues to perform well," continued Mr. Baluta.
"As we continue to accelerate the deployment of capital into new loans, we continue to maintain a strong long-term IRR based on both the recurring cash contributions from our loans as well as the contributions of our equity positions. Specifically, as we disclosed in a press release on June 12, the 6-year portfolio level IRR generated from our senior secured loan portfolio of growth venture debt loans, stood at over 26%," said Mr. Baluta
Flow's lead generation and business development program continues to surface excellent investment opportunities. In Q2 we closed $5.4 into GetTattle Inc. a global Customer Experience Improvement SaaS platform. We also announced a follow-on investment into MiniLuxe, an existing portfolio company. After quarter end we also closed $6.8 million with a tech-enabled marketplace of co-living spaces and $5.4 million with a media measurement provider. We continue to see good pipeline activity and expect that portfolio growth should only be tempered by our access to capital.
In order to continue to grow our capital base, we continue to offer our redeemable floating rate debentures to institutional and accredited investors. The debenture sits senior to almost $40 million of subordinated equity and pays a floating rate of interest, currently set at 10.0% - 10.5% for Canadian dollar investors and as high as 11.83% for U.S. dollar investors holding over US$1 million.
In addition to supporting our growth the debenture also serves our investors and shareholders well by 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, "Looking forward, we continue to be laser focused on growing shareholder value and while providing a strong return to our fixed income stakeholders, all while being a flexible and supportive partner to our investee companies."
Detailed Financial Results are available on our website at or on
RESULTS OF OPERATIONS
| Three-months ended June 30, 2024 | Three-months ended June 30, 2023 | |||
| Recurring Loan Interest Income (1) | $ | 1,858,194 | $ | 1,446,156 |
| Total Loan Interest Income | 2,112,885 | 1,843,406 | ||
| Total Revenues per IFRS | 1,835,420 | 2,280,530 | ||
| Net income/(loss) | 189,971 | 88,110 | ||
| Adjusted Recurring Free Cash Flow (2) | 283,036 | 127,684 | ||
| Basic Earnings per share | 0.0062 | 0.0028 | ||
| Diluted Earnings per share | 0.0061 | 0.0028 | ||
| Book Value per outstanding share(3) | 1.2548 | 1.1786 | ||
| Weighted basic average number of shares outstanding | 30,831,242 | 31,055,434 | ||
| Weighted diluted average number of shares outstanding | 30,968,301 | 31,256,448 | ||
(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 Tuesday, August 20, 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 05811. 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 05811#. The replay recording will be available until 11:59 p.m. Eastern Time, September 03, 2024.
An audio recording of the conference call will be also available on the investors' page of Flow Capital's website at .
About Flow Capital
Flow Capital Corp. is a publicly listed growth venture debt lender dedicated to supporting high-growth companies. Since its inception in 2018, the company has provided financing to businesses in the US, the UK, and Canada, helping them achieve accelerated growth without the dilutive impact of equity financing or the complexities of traditional bank loans. Flow Capital focuses on revenue-generating, VC-backed, and founder-owned companies seeking $3 to $7 million in capital to drive their continued expansion. Learn more at
For further information, please contact:
Flow Capital Corp.
Alex Baluta
Chief Executive Officer
alex@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 June 30, 2024 | Three-months ended March 31, 2024 | Three-months ended December 31, 2023 | Three-months ended September 30, 2023 | Three-months ended June 30, 2023 | |||||||||||
| Loan Interest Income | $ | 2,112,885 | $ | 2,005,586 | $ | 1,882,908 | $ | 1,697,147 | $ | 1,843,406 | |||||
| Less: Loan Amortization Income | (254,691) | (248,033) | (236,251) | (195,054) | (235,357) | ||||||||||
| Less: One-time payments | - | - | - | - | (161,844) | ||||||||||
| Total Adjustments | (254,691) | (248,033) | (236,251) | (195,054) | (397,201) | ||||||||||
| Recurring Loan Interest Income | $ | 1,858,194 | $ | 1,757,553 | $ | 1,646,657 | $ | 1,502,093 | $ | 1,446,205 | |||||
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 June 30, 2024 | Three-months ended March 31, 2024 | Three-months ended December 31, 2023 | Three-months ended September 30, 2023 | Three-months ended June 30, 2023 | |||||||||||
| Recurring Loan Interest Income | $ | 1,858,194 | $ | 1,757,553 | $ | 1,646,657 | $ | 1,502,093 | $ | 1,446,205 | |||||
| Less: Salaries | (510,233) | (427,280) | (463,971) | (426,714) | (411,828) | ||||||||||
| Less: Professional fees | (188,451) | (99,100) | (18,167) | (132,767) | (276,601) | ||||||||||
| Less: One-time non-cash expense | - | - | (538,640) | - | - | ||||||||||
| Less: Office and general administrative | (193,431) | (171,202) | (336,873) | (180,284) | (187,408) | ||||||||||
| Less: Financing Expense | (683,043) | (644,120) | (624,869) | (525,387) | (443,472) | ||||||||||
| Total Adjustments | (1,575,158) | (1,341,702) | (1,308,774) | (1,265,152) | (1,319,309) | ||||||||||
| Recurring Free Cash Flow | $ | 283,036 | $ | 415,851 | $ | 337,883 | $ | 236,941 | $ | 126,896 | |||||
Forward-Looking Information and Statements
Certain 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.
