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TIMIA Capital Announces First Quarter 2022 Financial Results

·8 min read

~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.

Net Income (Loss) Attributable to Common Shareholders and Non-Controlling interests (CNW Group/TIMIA Capital Corp.)
Net Income (Loss) Attributable to Common Shareholders and Non-Controlling interests (CNW Group/TIMIA Capital Corp.)

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.

TIMIA Capital Corp. Logo (CNW Group/TIMIA Capital Corp.)
TIMIA Capital Corp. Logo (CNW Group/TIMIA Capital Corp.)

SOURCE TIMIA Capital Corp.

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