World News: 00:37 GMT Tuesday 12th February 2019. [Flow Capital Corp. via Globe Newswire via SPi World News]
TORONTO, Feb. 11, 2019 (GLOBE NEWSWIRE) -- Flow Capital Corp. (TSXV: FW) (“Flow Capital”) today announced its financial and operating results for the three-month and twelve-month periods ended December 31, 2018. Financial references are in Canadian dollars unless otherwise specified.
“The refocused investment strategy in place since the end of 2016 continues to generate positive returns for shareholders,” said Alex Baluta, Chief Executive Officer of Flow Capital. “Three of the twelve new investments since 2016 have been bought-out, returning 1.74X cash-on-cash. We expect our portfolio to continue generating net positive cash flows from growing, recurring royalty and interest payments, royalty buyouts, and realizations of equity positions.”
Revenues in the quarterly period were impacted by IFRS 9 net non-cash items of $(2,525,000) compared to $(4,024,000) for the same period in 2017. The non-cash amount of $(2,525,000) was made up of $6,653,000 for adjustments to fair value, $(9,827,000) realized loss on investments written-off that were previously written-down to zero, and $650,000 for foreign exchange gains. Included in the adjustments to fair value were: 1) $(1,459,000) for the decrease in the market value of shares held in investee companies, 2) $9,944,000 for a reversal of the fair value adjustment of three legacy investments written-off where Flow Capital is now pursing legal measures in order to recover shareholder value and 3) $(2,040,000) for the write-down charge on the Solar Brokers investment.
Revenues in the annual period were negatively impacted by net non-cash items of $3,126,000 compared to $17,390,000 in 2017. This non-cash amount relates to $14,017,000 adjustments to fair value, $(17,932,000) for investments written-off and $788,000 for unrealized foreign exchange gain.
The increase in operating expenses in the annual period is due to $706,000 restructuring costs and $1,114,000 in operating costs incurred by the LOGiQ business since the acquisition in Q2 2018.
As of today, Flow Capital has $8.3 million held in cash and cash equivalents.
An audio recording of the conference call will be also available on the investors’ page of Flow Capital’s website at .
Based in Toronto, Flow Capital Corp. is a diversified alternative asset investor and advisor, operating two divisions: an investment operation providing revenue-linked capital to emerging growth businesses, and an institutional advisory sales platform providing pension funds, charities and endowment clients with access to leading institutional money managers from around the world. Learn more at .
Globe Newswire: 00:37 GMT Tuesday 12th February 2019
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