TORONTO, ON, Nov. 19, 2024 (GLOBE NEWSWIRE) -- Flow Capital Corp. (TSXV:FW), a leading provider of growth venture debt to high-growth companies, announces its unaudited financial and operating results for the third quarter ended September 30, 2024.
Performance Highlights
- Loan Interest Revenue up 46% year-over-year, and 18% from Q2 2024, to a record $2.5 million. Our 5th consecutive quarter of Loan Interest Revenue growth.
- 169% year-over-year increase in Recurring Free Cash Flow1 to $638K in Q3 2024 from $237K in Q3 2023.
- $1.225 book value per share, down slightly from $1.255 on June 30, 2023, and up 29% over the past two years.
- $71.4 million in total assets, up 12% since December 31, 2023.
- $10.3 million in new investments during the quarter and $29 million over the past 12 months.
"This was a strong quarter and an indication of the growth and profitability our business model can support." said Alex Baluta, CEO of Flow Capital. "We are pleased with the ongoing growth of our business and its continued strong free cash flows. Loan Interest Revenue of $2.5 million was a quarterly record, while Recurring Free Cash Flow¹ was up materially at $638K for the quarter,"
"In addition, we continue to maintain a solid long-term portfolio-level internal rate of return (IRR), driven by the interest we earn on our loans and the returns on the warrant or equity positions we hold. Since March 2018 through September 30, 2024, we have achieved a portfolio-level IRR of 24.8% from our senior secured loan book," said Mr. Baluta.
"Looking forward, we remain focused on being a flexible and supportive partner to our investee companies. When they succeed, we succeed," added Mr. Baluta.
Detailed Financial Results are available on our website at www.flowcap.com or on www.sedar.com
Results of Operations
Three months ended September 30, 2024 | Three months ended September 30, 2023 | ||||
| Loan Interest Revenue | 2,484,110 | 1,697,147 | |||
| Total Revenues per IFRS | 1,248,405 | 1,003,477 | |||
| Net income/(loss) | (752,121 | ) | 20,229 | ||
| Recurring Free Cash Flow (1) | 637,515 | 236,941 | |||
| Basic Earnings per share | (0.0246 | ) | 0.0006 | ||
| Diluted Earnings per share | (0.0246 | ) | 0.0006 | ||
| Book Value per outstanding share (2) | $ | 1.225 | $ | 1.198 | |
| Weighted basic average number of shares outstanding | 30,606,053 | 32,462,803 | |||
| Weighted diluted average number of shares outstanding | 30,636,203 | 32,608,230 | |||
(1) Recurring Free Cash Flow is an internally defined, non-IFRS measure calculated as loan interest revenue less loan amortization income, one-time payments, salaries, professional fees, office and general administrative expenses, and financing expenses. See the section "Use of Non-IFRS Financial Measures".
(2) Calculated by taking Total Shareholders' Equity as reported on the Statements of Financial Position over the number of outstanding shares at period end. 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 Wednesday, November 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 85629. 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 85629#. The replay recording will be available until 11:59 p.m. Eastern Time, December 04, 2025.
An audio recording of the conference call will be also available on the investors' page of Flow Capital's website at www.flowcap.com/financials.
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 $2 to $10 million in capital to drive their continued expansion. Learn more at www.flowcap.com
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 the non-IFRS financial measure "Recurring Free Cash Flow." This financial measure is employed by the Company to measure its operating and economic performance, to assist in business decision-making, and to provide 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. This financial measure is not defined under IFRS nor does it replace or supersede any standardized measure under IFRS. Other companies in our industry may calculate this measure differently than we do, limiting its usefulness as a comparative measure. 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 table below reconciles Recurring Free Cash Flow for the periods indicated.
Recurring Free Cash Flow is an internally defined, non-IFRS measure calculated as loan interest and royalty income less loan amortization income, one-time payments, salaries, professional fees, office and general administrative expenses, and financing expenses.
| Three-months ended September 30, 2024 | Three-months ended June 30, 2024 | Three-months ended March 31, 2024 | Three-months ended December 31, 2023 | Three-months ended September 30, 2023 | |
| Loan Interest and Royalty Income | $ 2,484,110 | $ 2,112,885 | $ 2,005,586 | $ 1,882,908 | $ 1,697,147 |
| Less: Loan Amortization Income | (246,358) | (254,691) | (248,033) | (236,251) | (195,054) |
| Less: One-time payments | - | - | - | - | - |
| Less: Salaries | (510,126) | (510,233) | (427,280) | (463,971) | (426,714) |
| Less: Professional fees | (132,015) | (188,451) | (99,100) | (18,167) | (132,767) |
| Less: One-time non-cash expense | - | - | - | (538,640) | - |
| Less: Office and general administrative | (146,295) | (193,431) | (171,202) | (336,873) | (180,284) |
| Less: Financing Expense | (811,800) | (683,043) | (644,120) | (624,869) | (525,387) |
| Total Adjustments | (1,846,594) | (1,575,158) | (1,341,702) | (1,308,774) | (1,265,152) |
| Recurring Free Cash Flow | $ 637,515 | $ 283,036 | $ 415,851 | $ 337,883 | $ 236,941 |
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.
