TORONTO — April 29, 2024 — Flow Capital Corp. (TSXV:FW) (“Flow Capital” and “Company”), a leading provider of flexible growth capital and alternative debt solutions, announces its audited financial and operating results for the three-months (Q4 2023) and year ended December 31, 2023.
Q4 2023 Performance Highlights
“Q4 2023 wrapped up what was a strong second half of 2023 in terms of deployment of capital. During the second half of 2023, we closed $12.8 million in new investments into 5 companies. The recurring interest revenue generated from these new investments contributed to the record recurring revenue of $1.65 million that we reported in the quarter”, said Alex Baluta, CEO of Flow Capital.
“The deployment strength we saw in the second half of 2023 has continued into 2024, with an additional $9.5 million deployed into three investments so far this year. We also had two loans mature in 2023 and early 2024 returning approximately $10 million in cash. Notably, the IRR on one of the loans was 21.6% and on the second was 36.2%”, continued Mr. Baluta.
“As an additional highlight during the year, we were excited about the introduction of the new debenture structure in July. By providing investors with a floating rate of interest (currently at 10.5%), redeemability, and seniority to almost $38M in equity, we expect we can use it to raise additional capital over time”, said Mr. Baluta. “We expect this structure will help us grow our asset base for the foreseeable future”.
Flow Capital continues to focus its efforts on originating and investing in high growth companies looking to fuel expansion without the excessive and expensive dilution of equity, or restrictive covenants of conventional debt.
Detailed Financial results are available on our website at www.flowcap.com or on www.sedar.com.
Results of Operations
Conference Call Details
Flow Capital will host a conference call to discuss these results at 9:00 a.m. Eastern Time, on Tuesday, April 30, 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 65275. 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 65275 #.
An audio recording of the conference call will be also available on the investors’ page of Flow Capital’s website at www.flowcap.com/investor-relations/2023.
About Flow Capital
Flow Capital Corp. is a diversified alternative asset investor and advisor, specializing in providing minimally dilutive capital to emerging growth businesses. To apply for financing, visit 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 certain non-IFRS financial measures such as recurring Loan Interest and Royalty income and recurring free cash flow. These financial measures are employed by the Company to measure its operating and economic performance and to assist in business decision-making, as well as providing 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. These financial measures are not defined under IFRS nor do they replace or supersede any standardized measure under IFRS. Other companies in our industry may calculate these measures differently than we do, limiting their usefulness as comparative measures. 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 tables below reconcile Loan Interest and Royalty Income to recurring Loan Interest and Royalty income and recurring free cash flow for the periods indicated.
Recurring Loan Interest and Royalty Income is an internally defined, non-IFRS measure calculated as Loan Interest and Royalty Income less Loan Amortization Income and one-time payments (e.g. prepayment fees).
Recurring Free Cash Flow is an internally defined, non-IFRS measure calculated as Recurring Loan Interest and Royalty Income less Salaries, Professional fees, Office and general administrative and Financing expense.
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 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.
