TIMIA Capital Announces Year End and Fourth Quarter Financial Results

TIMIA Capital Corporation (“TIMIA” or the “Company”) (TSX-V:TCA) today announced financial results for the fourth quarter and year ended November 30, 2019.

2019 Annual Highlights include:

• Record revenue of $3,288,263, up 89% over prior year
• Interest income from investments, included in total revenue, doubled to $3,046,608 compared to last year
• Total assets grew over 90% to $27.1 million compared with the prior year. Cash balance, as part of assets, was $4,662,156 versus $3,749,949 as at November 30, 2018
• TIMIA’s loan investment portfolio (Loans receivable) increased 123% to $21,596,037 compared to $9,680,390 in the prior year period
• Adjusted EBITDA* of $247,431 compared with an Adjusted EBITDA of $1,342,749 for the prior year. The change in Adjusted EBITDA reflects the $1,582,906 intermittent gains from loan buyouts in the prior year
• The Company posted a net loss of $1,087,567 compared with a small gain of $18,838 in the prior year. The year over year change reflects the $1,582,906 intermittent gains from loan buyouts in the prior year
• Net loss per share was $0.03 compared with breaking even in the prior year
• A total of $15,895,000 in combined financing has been raised including $545,000 in debentures with warrants by way of a private placement of the Company and $15,350,000 in capital raised in TIMIA Capital 1 Limited Partnership funds

Fourth Quarter 2018 Highlights Include:

• Record quarterly revenue of $998,431, up 99% compared to the same period last year
• TIMIA dispersed US$2,300,000 to two US companies
  • TIMIA provided San Francisco-based Resilio, Inc. with a $3,000,000 facility with an initial advance of $900,00
  • TIMIA provided a Connecticut-based software company with a $3,000,000 facility with an initial disbursement of $1,400,000
• TIMIA provided follow on investments of US$1,500,000 to three US companies
• Adjusted EBITDA loss of $50,196 compared with an Adjusted EBITDA of $100,347 for the prior year period

“We’ve achieved record growth in revenue and assets under management for the third year in a row by leveraging our fintech platform and successful business model,” said Mike Walkinshaw, CEO of TIMIA. “Our reputation, target markets and related deal flow is growing in the SaaS industry, along with our non-dilutive growth capital for early stage technology companies. We have seen a jump in referred business from our existing network of clients as we continue to broaden our marketing presence to attract new business. Our portfolio of SaaS companies has never been stronger as our fintech platform improves with each potential client.”

Detailed Financial Review

During the year ended November 30, 2019, the Company continued to grow its revenue-financing (“RF”) business by completing 9 RF investments as well as successfully exiting 1 investment 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, 2019 was a record $3,046,608 compared to $1,521,999 in the prior fiscal year.

The 100% increase in interest income is driven from two sources:

1. As the Company makes new investments, the number of monthly payments derived from the portfolio grows.
2. Under the RF structure, as the revenue of the underlying portfolio grows, the investees make larger blended interest and principal payments to the Company.

Income from transaction and other fees was $241,655 in the year ended November 30, 2019 compared to $216,240 in the prior fiscal year, resulting in a record total revenue of $3,288,263.

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, 2019, 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, 2019 were $3,461,837 compared with $2,873,167 for the prior year. The 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, 2019, the Company posted net loss of $1,087,567 compared with net income of $18,838 for the last fiscal year. The year over year change is primarily due to the Company recognizing intermittent investment gains from loan buyouts of $1,582,906 in 2018 but no material gains in 2019.

As at November 30, 2019, the Company’s cash balance was $4,662,156 and working capital was $4,571,341 compared to $3,749,949 and $3,614,268 respectively as at November 30, 2018.

SOURCE TIMIA Capital Corp.