~Record annual revenue, net income and asset growth top previous years’ results~
VANCOUVER, BC – March 11, 2021 – TIMIA Capital Corporation (“TIMIA” or the “Company”) (TSXV:TCA / OTCQB: TIMCF) today announced financial results for the fourth quarter and year ended November 30, 2020.
Fourth Quarter 2020 Highlights Include:
- Record consolidated revenue of $1.8 million, up 76% compared to the same period last year,
- Record consolidated net income of $645,182 compared to a net loss of $287,071 for the same period last year. The improvement of $932,253 in net income was due to the growth in size of the portfolio and relative increase in revenue,
- Interest income from investments, included in total revenue, increased 1% to $1.0 million compared to last year,
- TIMIA recorded four exits during the quarter representing an income from settlement of loans, included in Q4 revenue, of $673,681,
- During Q4 TIMIA announced $10.2 million of investments, including $6.75 million in total disbursements to three companies and $6.3 million in loan exits,
- On a comprehensive basis, net income was $506,440 for the quarter ending November 30, 2020 compared to a net loss of $287,071 in the same period last year.
2020 Annual Highlights include:
- Record consolidated revenue of $6.1 million, up 85% over prior year revenue of $3.3 million,
- Record consolidated net income was $1.9 million, an increase of $3.0 million, from a net loss of $1.1 in the prior year. The improvement in net income was due to growth in size of the portfolio and relative increase in revenue and $1.7 million income from settlement of loans resulting from seven successful exits of its loan portfolio investments as compared to $nil in the prior year,
- Interest income from investments, included in total revenue, increased 34% to $4.1 million compared to last year,
- Income from settlement of loans, included in total revenue, was $1.7 million versus nil in 2019,
- Total assets grew over 54% to $41.9 million compared with the prior year. Cash balance, as part of assets, increased to $12.9 million versus $4.7 million as at November 30, 2019,
- TIMIA’s loan investment portfolio (Loans receivable) increased 28% to $27.6 million compared to $21.6 million in the prior year,
Completed US$14.8 million financing in launching Limited Partnership II,
On a comprehensive basis, net income was $1.4 million for the year ending November 30, 2020 compared to a net loss of $1.1 million in the same period last year
“We delivered record revenue and grew our assets under management for the fourth consecutive year,” said Mike Walkinshaw, CEO of TIMIA. “The early investments we made developing our origination platform have allowed us to demonstrate both the effectiveness and scalability of our origination platform which, in turn, has attracted a larger pool of capital. As we increase both the quantum and frequency of our funding, both TIMIA and its shareholders stand to benefit in the long term.”
“Our track record of funding SaaS companies has shown that we can generate significant returns for our stakeholders, “added Walkinshaw. “This coupled with the improved efficiency of our platform enables us to expand into a larger addressable market to include Software Enabled Service companies creating greater anticipated funding opportunities.”
Detailed Financial Review
During the year ended November 30, 2020, the Company continued to leverage its origination platform to grow its revenue-financing business by completing 9 investments, 5 follow-on investments as well as successfully exiting 7 investments from its loan portfolio. The Company’s revenue is primarily interest income generated under the Company’s RF model. Interest income in the year ended November 30, 2020 was a record $4.1 million compared to $3.0 million in the prior fiscal year.
The 34% increase in interest income is impacted from three sources:
- As the Company loan portfolio grows, interest revenue increases.
- Under the RF structure, as the revenue of the underlying portfolio grows, the investees make larger blended interest and principal payments to the Company.
- Interest revenue also includes changes in amortized cost of loan values included in the loan portfolio.
Income from transaction and other fees was $301,132 in the year ended November 30, 2020 compared to $241,655 in the prior fiscal year, resulting in a record total revenue of $6.1 million.
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 in their growth plans. Furthermore, management expects the payment amounts to increase over time as both new and follow-on investments are made and as payments increase from the underlying portfolio. During the year ended November 30, 2020, TIMIA benefited from increased payments (combined principal and interest) as a result of the strong revenue growth of its underlying portfolio. At the same time, the Company increased its investments in infrastructure, including key staff and brand awareness.
Total expenses for the year ended November 30, 2020 were $4.1 million compared with $3.9 million for the prior year. The small increase in expenses reflect TIMIA’s investment in infrastructure, increase in interest expense resulting from the issuance of debentures with warrants, marketing and related deal origination expenses and brand awareness.
During the year ended November 30, 2020, the Company posted a net and comprehensive income of $1.4 million compared with a net and comprehensive loss of $1.1 million for the last fiscal year. The year over year change is primarily due to the 29% increase in interest income, foreign currency translation adjustment, and recognizing intermittent investment gains from loan buyouts of $1.7 million in 2020, versus nil in 2019.
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 the non-controlling interest over the last eight quarters.
As at November 30, 2020, the Company’s cash balance was $12.9 million and working capital was $11.1 million compared to $4.7 million and $4.6 million respectively as at November 30, 2019.
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
For more information, please contact:
Vice President, Capital Markets & Communications
Mike Walkinshaw, CEO
TIMIA Capital Corporation
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.
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, 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. 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. 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; 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.