~TIMIA delivers significant Q1 revenue
growth with further growth planned~
VANCOUVER, BC,
May 26, 2022 /CNW/
- TIMIA Capital Corporation ("TIMIA" or the
"Company") (TSXV: TCA) (OTCQB: TIMCF), a leading innovator
in specialty private credit, is pleased to report consolidated
interim financial results for the first quarter ended March 31, 2022. All figures are reported in
Canadian dollars unless otherwise noted.
First Quarter 2022 Highlights
For the three months ended March 31,
2022, the Company had the following highlights:
- Total revenue of $4.2 million, an
increase of $2.9 million or 233% from
$1.3 million in the three months
ended February 28, 2021,
- Interest income from investments was $3.5 million, an increase of $2.3 million or 195% from $1.2 million in the three months ended
February 28, 2021,
- Net income increased 581% to $0.8
million from $0.1 million in
the prior year period,
- Income from transaction and other fees increased from
$0.1 million in the prior year period
to $0.6 million,
- Total assets of $125.9 million as
at March 31, 2022 compared to
$125.1 million at December 31, 2021. Cash balance, as part of
assets, was $3.8 million compared to
$9.3 million as at December 31, 2022, and
- TIMIA's loan investment portfolio (loans receivable) increased
to $112.9 million in the first
quarter 2022 compared to $106.1
million as of December 31,
2021.
On a comprehensive basis:
- Reported consolidated net comprehensive income of $0.8 million for the three months ended
March 31, 2022, compared to
consolidated net comprehensive income of $0.1 million for the three months ending
February 28, 2021.
"We expanded our family of specialty private credit
companies with the acquisition of Pivot Financial in September,
2021 bringing TIMIA another strong quarter for revenue," said
Mike Walkinshaw, CEO of TIMIA
Capital Corporation. "With our proposed acquisitions representing
even more growth, we're at a key position to leverage our platform
to expand into new vertical markets. Furthermore, the world of
private credit represents a great opportunity for growth with the
backdrop of current macroeconomic conditions and related
volatility. We believe we'll see continued demand for creative,
alternative financing solutions given the backdrop in these
macroeconomic market conditions."
"Subsequent to the quarter end we announced our intent to
acquire 2 more specialty private credit firms. The outlook for
private credit is extremely positive and we will continue to seek
out accretive opportunities in this growing sector."
Detailed Financial Review
The Company utilizes a proprietary loan origination platform to
originate, underwrite and service private-market, high-yield loan
opportunities through two operating divisions: TIMIA Capital
technology lending which offers revenue-based investment to fast
growing, business-to-business Software-as-a-Service (or SaaS)
businesses in North America, and
Pivot Financial which specializes in asset-backed private credit
targeting mid-market borrowers in Canada.
TIMIA technology loan portfolio includes 31 unique deals with
current disbursements extended under those facilities totaling
$42.6 million. During the first
quarter 2022 TIMIA continued to expand its loan portfolio
completing 3 new and 3 follow-on loan transactions, disbursing
funds of $8.1 million.
Pivot's term loan portfolio has 20 unique deals with loans
receivable of $70.9 million,
including factoring facilities. The most significant investment is
a loan due from a related party in the amount of $47.4 million.
Total consolidated revenue for the three months ended
March 31, 2022 increased $2.9 million or 233% to $4.2 million from $1.3
million in the three months ended February 28, 2021.
Interest income for the 3 months ended March 31, 2022, was $4.2 million compared to $1.9 million in the three months ended
February 28, 2021; income from
transaction and other fees was $0.6
million in the first quarter 2022 compared to $0.1 million in the prior fiscal quarter;
income from the settlement of loans and performance fee income was
$0.1 million versus a loss of
$0.1 million in the prior period,
resulting in total revenue of $4.2
million.
During the first quarter ended March 31,
2022, TIMIA benefited from increased payments (combined
principal and interest) as a result of the continued revenue growth
of its underlying portfolio and the acquisition of Pivot in the
third quarter of 2021.
Total expenses for the 3 months ended March 31, 2022, were $3.4
million compared with
$1.0 million for the prior
year. The majority of the increase in expenses reflect TIMIA's
acquisition of Pivot.
During the three months ended March 31,
2022, the Company posted net income of $0.8 million compared with $0.1 million for the three months ended
February 28, 2021.
As posted in the Company's MD&A, please see the table below
reflecting the progression of the attribution of income (loss)
between the shareholders of the Company and non-controlling
interests over the last eight quarters.
As at March 31, 2022, the
Company's cash balance was $3.8
million and working capital was
negative $0.3 million compared to
$9.3 million and $1.8 million respectively as at December 31, 2021.
This news release is qualified in its entirety by the Company's
financial statements for the three months ended March 31, 2022 and for the three months ended
February 28, 2021, 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
The Company democratizes private credit for investors by
offering a broad range of specialty private credit opportunities
with transparency and efficiency, facilitated by the Company's
proprietary technology platform. These high-yield loan
opportunities are delivered through operating divisions: TIMIA
Capital which offers revenue-based investment to fast growing,
business-to-business Software-as-a-Service (or SaaS) businesses in
North America, and Pivot Financial
which specializes in asset-based private credit targeting
mid-market borrowers in Canada.
The Corporation deploys funds on behalf of limited partnerships,
institutions, retail investors, high net worth individuals, its
management team and shareholders. For more information about TIMIA
and SaaS lending, please visit www.timiacapital.com. For more
information about specialized private credit and Pivot please
visit: www.pivotfinancial.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 Company's shareholders standing to benefit over the
long term, the interest rate environment, expected growth trends,
greater anticipated funding opportunities, and expectations as to
payment amounts increasing over time as both new and follow-on
investments are made and as payments increase from the underlying
portfolio, completion of and benefits from the Company's proposed
acquisitions.
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 and the absence of
unforeseen changes in the legislative and regulatory framework for
the Company; and the completion of the Company's proposed
acquisitions. 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, the Company having insufficient
financial resources to achieve its objectives; 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; risks that the Company's proposed acquisitions may not
complete on the terms announced or at all; reliance on limited
management resources; general economic risks; new laws and
regulations and risk of litigation. 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.