VANCOUVER, BC – TIMIA Capital Corporation (“TIMIA” or the “Company”) (TSX-V:TCA) is pleased to announce its Q1 results for 2017 show continued strong revenue growth in comparison to 2016. Total revenue for Q1, 2017 was $208,879 vs. $105,542 in the same quarter last year, an increase of 98%. The increase is due to the substantial growth of TIMIA’s portfolio over the period.
Q1 2016’s revenue included $20,000 of advisory income in addition to $85,542 of interest income, while Q1, 2017 was comprised solely of interest income. The Company had a cash balance of $967,391 at the end of Q1, 2017, and expects to utilize those cash resources in the near term via investment into new portfolio companies. As these investments are completed, both interest income and advisory income will be earned.
Total payments received from portfolio companies is another key measure of the Company’s progress. These payments comprise both interest and principal repayments, and for Q1 2017 these payments totalled $234,968 vs $86,328 in Q1, 2016. Chart 1 below summarizes TIMIA’s annualized cash payments received from our revenue finance investments.
All portfolio companies are current in their payments.
TIMIA’s non-GAAP measure Adjusted EBITDA* improved as well, seeing an increase to $4,138 in Q1, 2017 from ($15,963) in Q1, 2016. The Company expects to see continued improvement in this measure as the portfolio and related interest revenue scale up at a greater rate than operational costs.
Cash-based operating expenditures, not including interest expense and non-cash items such as loan loss provision and share-based compensation increased to $204,727 in Q1, 2017, vs. $121,505 in Q1, 2016. This increase of 68% same quarter, year over year, reflects the addition of a 3rd senior team member, the opening of an office in Waterloo, Ontario, the installation of back office systems, and increased expenditures on brand building and investor relations.
TIMIA’s net loss increased in Q1, 2017 was ($133,108) vs. ($86,945) in Q1, 2016. This increased loss reflects increased interest expense and operating expenses, offset by the increase in interest revenue earned.
As TIMIA Capital’s portfolio matures, the Company looks forward to having a portion of its portfolio companies exercise their buyout options from their revenue finance facilities due either an acquisition or other refinancing. Management expects, that while difficult to forecast, these events will result in an accretive cash event for TIMIA and its shareholders.
The Company also looks forward to continuing to grow its portfolio with new investments. These new investments will allow for both an increase in interest income as well as intermittent advisory income, both of which are expected to move the Company closer to cashflow breakeven.
Annual General Meeting – The Company’s Annual General Meeting is scheduled for May 10th at 10am at the University of British Columbia Robson Square Facility, Room C150. The Company will also be broadcasting the AGM on Facebook Live through the TIMIA Capital Facebook page. Management will provide a full update on the business at that meeting.
About TIMIA Capital Corporation
TIMIA Capital Corporation is a specialty finance company that provides revenue financing to technology companies in exchange for a royalty stream on revenue. The alternative financing option complements both debt and equity financing, while allowing entrepreneurs to retain control of their business. TIMIA’s target market is the fast-growing business-to-business software-as-a-service (SaaS) segment. TIMIA is managed by a seasoned investment team with a track record of originating and managing debt and equity investments, as well as monitoring, compliance and workouts. 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.
*Adjusted EBITDA is a non-GAAP measure comprising EBITDA – non-cash items such as Share Based Compensation and Loan Loss Provision +/- equity related realized and unrealized gains/losses.
For more information, please contact:
Chief Executive Officer
TIMIA Capital Corporation
Disclaimer for Forward-Looking Information
Certain statements in this release are forward-looking statements. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. The Company disclaims any obligation to update the forward-looking statements except as required by law.