~Company reports 106% increase in total
revenue on a year over year basis~
VANCOUVER, BC, July 22, 2021 /CNW/ - TIMIA Capital
Corporation ("TIMIA" or the "Company") (TSXV:
TCA) (OTC: TIMCF) today announced financial results for
the second quarter ended May 31,
2021.
Second Quarter 2021 Highlights include:
- Total revenue increased 106% to $1.8
million from $891,186 in the
same period last year. Total revenue includes income from
settlements of $516,009 in the
current period;
- Interest income from investments increased 33% to $1.2 million compared to $869,793 in the same period last year;
- Net income increased $123,423 to
$602,034 compared to $478,611 in the same period last year;
- Net and comprehensive loss was $407,229 compared to a comprehensive income of
$478,611 for the same period last
year due to the unrealized foreign currency translation loss on its
consolidated US $ Limited Partnership;
- TIMIA's loan portfolio (loan receivable) decreased from
$27.3 million to $25.5 million in the last three months due to two
successful exits in the quarter ended May
31, 2021;
- Reported total assets of $39.5
million as at May 31, 2021
compared to $41.9 million as at
November 30, 2020. Cash balance, as
part of assets, was $11.4 million
compared to $12.9 million as at
November 30, 2020; and
- Through the Company's normal course issuer bid, the Company
purchased 443,500 shares during the second quarter.
"The Company continues to deliver good results, posting near
record revenue for the second quarter," said Mike Walkinshaw, CEO of TIMIA Capital
Corporation. "Our origination platform continues to show its value
of originating successful software companies as we distribute
growth capital into new and follow-on investments. Our
interest income is growing plus we recorded two exits during
the second quarter adding to the revenue from settlement of loans.
Our marketing team is actively pursuing Canadian and U.S.
opportunities through our fintech platform to expand our influence
with leading recurring revenue software companies."
Detailed Financial Review
During the quarter ended
May 31, 2021, the Company continued
to grow its revenue by distributing growth capital of $4.3 million in new and follow-on investments and
exiting from loans totalling $5.1
million.
The Company's revenue is primarily interest income. As the
Company makes new investments, the amount of monthly payments
derived from the portfolio grows. Interest income in the
three months ended May 31, 2021 was
$1.2 million compared to $869,793 in the same period last year, a 33%
increase. Combined income from the settlement of loans
and transaction and other fees was $682,514 in the three months ended May 31, 2021 compared to $21,393 in the same period last year. The
increase in transaction and other fees reflects an increase in
total number of new transactions and income from successful exits
made during the quarter. Total revenue for the three months
ended May 31, 2021 increased 106% to
$1.8 million compared to $891,186 for the three months ended May 31, 2020.
TIMIA continues to build the value and size of its portfolio by
making new investments and follow-on investments in existing
portfolio companies, and actively assisting portfolio companies
with their growth plans. At the same time, the Company is
investing to support its future growth and the continued
development of its fintech platform. Total expenses, including
interest expense, for the quarter ended May
31, 2021 were $929,907
compared with $813,794 for the same
period last year. The change reflects a decrease in interest
expense, share-based payments, and expected credit loss provision,
offset by increases in accounting and legal, administrative,
management, and director fees, regulatory, investor relations and
communications costs, office, travel, systems, and miscellaneous
expenses, year over year.
US dollar denominated investments and subsidiaries are required
to be converted to Canadian dollars quarterly at the then
prevailing quarter end exchange rates. At the start of the
Company's fiscal year, December 1,
2020, the US dollar was trading at 1.30 Canadian Dollars, by the end of the second
quarter the US dollar had fallen to 1.21
Canadian dollars. This drop in foreign currency adversely
impacts income in several ways including the recognition of
unrealised losses on US denominated assets owned directly by TIMIA,
and also through the reduction in carried interest income earned by
the Company in its capacity as manager of the limited
partnerships.
During the quarter ended May 31,
2021, the Company posted net income of $602,034 compared with net income of $478,611 in the same period last year. The
year-over-year improvement of $123,423 is primarily due to the continued growth
in size of the portfolio and the resulting interest income increase
plus the impact of loan exits, offset by the negative impact of a
$441,073 foreign exchange loss in
quarter ended May 31, 2021 compared
with a $354,219 foreign exchange gain
reported in 2020.
As at May 31, 2021, the Company's
cash balance was $11.4 million and
working capital was $12.1 million, compared with $12.9 million and $11.1 million, respectively, as of
November 30, 2020.
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, 2021 and
May 31, 2020 and the associated
Management's Discussion & Analysis respecting the same periods,
which can be downloaded from the Company's profile on SEDAR at
http://www.sedar.com.
About TIMIA Capital Corporation
TIMIA Capital
Corporation has developed a proprietary loan origination platform
that services private market, high-yield loan opportunities,
thereby earning recurring fees and a share of the profit.
While focusing on the fast growing, global, business-to-business
Software-as-a-Service (or SaaS) segment, TIMIA's automated loan
origination system is applicable to multiple technology sectors, it
creates scalable and profitable growth for TIMIA's stakeholders.
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.
Forward-Looking Information
Certain information and
statements in this news release contain and constitute
forward-looking information or forward-looking statements as
defined under applicable securities laws (collectively,
"forward-looking statements"). Forward-looking statements normally
contain words like 'believe', 'expect', 'anticipate', 'plan',
'intend', 'continue', 'estimate', 'may', 'will', 'should',
'ongoing' and similar expressions, and within this news release
include any statements (express or implied) respecting the growth
of the Company's interest income and profitability and other
statements about growing the Company's business. Forward-looking
statements are not guarantees of future performance, actions, or
developments and are based on expectations, assumptions and other
factors that management currently believes are relevant, reasonable
and appropriate in the circumstances, including, without
limitation, the following assumptions: that the Company and its
investee companies are able to meet their respective future
objectives and priorities, assumptions concerning general economic
growth, the Company being able to obtain financing on acceptable
terms, the Company's ability to attract and retain skilled staff,
the absence of unforeseen changes in the legislative and regulatory
framework for the Company, the COVID-19 pandemic not having a
material impact on the Company's operations, the products and
technology offered by the Company's competitors and the Company's
ability to protect intellectual proprietary rights . Although
management believes that the forward-looking statements are
reasonable, actual results could be substantially different due to
the risks and uncertainties associated with and inherent to Timia's
business. Material risks and uncertainties applicable to the
forward-looking statements set out herein include, but are not
limited to, worldwide pandemics, such as the recent outbreak of the
novel coronavirus COVID-19, may adversely impact multiple aspects
of the Company's business; the Company having insufficient
financial resources to achieve its objectives; uncertainty as to
the Company's ability to raise additional funding; availability of
further investments that are appropriate for the Company on terms
that it finds acceptable or at all; successful completion of exits
from investments on terms that constitute a gain when no such exits
are currently anticipated; intense competition in all aspects of
business; reliance on limited management resources; the Company's
dependence upon certain key personnel and their loss could
adversely affect the Company's ability to achieve its business
objectives; general economic risks; new laws and regulations, risk
of litigation, the Company may not achieve its publicly announced
business objectives according to schedule, or at all; the Company's
success depending upon its ability to protect its intellectual
property and its proprietary technology; the price of the Company's
shares may be subject to fluctuation in the future based on market
conditions; the Company's success depends on its ability to
effectively manage growth; and significant disruptions of
information technology systems or security breaches could adversely
affect the Company's business. Although Timia has attempted to
identify factors that may cause actual actions, events or results
to differ materially from those disclosed in the forward-looking
statements, there may be other factors that cause actions, events
or results not to be as anticipated, predicted, estimated or
intended. Also, many of the factors are beyond the control of
Timia. Accordingly, readers should not place undue reliance on
forward-looking statements. Timia undertakes no obligation to
reissue or update any forward-looking statements as a result of new
information or events after the date hereof except as may be
required by law. All forward-looking statements contained in this
news release are qualified by this cautionary statement.
SOURCE TIMIA Capital Corp.