Connect with us
Prague Gaming & TECH Summit 2024

Fintech

Mosaic Capital Corporation Reports Q1 2020 Financial Results

Published

4 years ago

on

Calgary, Alberta–(Newsfile Corp. – May 6, 2020) – Mosaic Capital Corporation (TSXV: M) (TSXV: M.DB) (“Mosaic” or the “Company“) has released its unaudited consolidated financial results for the three months ended March 31, 2020. The Company’s financial statements and management’s discussion and analysis (“MD&A“) for the period ended March 31, 2020 can be accessed under Mosaic’s profile on SEDAR at www.sedar.com and on the Company’s website at www.mosaiccapitalcorp.com.

Selected Financial Highlights

  Three months ended March 31,
(in $000s, except as noted)   2020   2019   % Change
CONTINUING OPERATIONS          
Revenue $ 78,516 $ 84,732   -7%
Adjusted EBITDA (1) $ 5,677 $ 6,420   -12%
Net income (loss) and comprehensive income (loss) $ 3,649 $ (3,521 ) 204%
Free Cash Flow (1) $ 502 $ 1,370   -63%
DISCONTINUED OPERATIONS            
Revenue $ – $ 11,381   NA
Adjusted EBITDA (1) $ – $ 799   NA
Net income and comprehensive income $ – $ 429   NA
Free Cash Flow (1) $ – $ 360   NA
AGGREGATE            
Revenue $ 78,516 $ 96,113   -18%
Adjusted EBITDA (1) $ 5,677 $ 7,219   -21%
   per share $ 0.53 $ 0.68   -21%
   as a % of revenue   7.23%   7.51%    
Net income (loss) and comprehensive income (loss) $ 3,649 $ (3,092 ) 218%
Net income (loss) attributable to equity holders $ 1,257 $ (4,891 ) 126%
Free Cash Flow (1) $ 502 $ 1,731   -71%
   per share $ 0.05 $ 0.16   -71%
Preferred securities distributions declared $ 1,496 $ 1,479   1%
Common share dividends declared $ 1,116 $ 1,115   –
   per share $ 0.105 $ 0.105   –
TTM Preferred Distribution Payout Ratio (1)   42%   45%   -7%
TTM Combined Payout Ratio (1)   73%   78%   -7%
Weighted avg. common shares outstanding 10,621,420 10,608,058   –

 

Note:

(1) Adjusted EBITDA, Free Cash Flow, Trailing twelve-month (“TTM“) Preferred Distribution Payout Ratio and TTM Combined Payout Ratio are not a recognized measure under IFRS. Refer to “Non-GAAP Measures”.

For the three-month period ended and as at March 31, 2020, Mosaic:

  • generated $78.5 million in revenue from continuing operations which, while 7% below last year’s record setting level, represents the Company’s second highest first quarter performance;

  • generated Adjusted EBITDA from continuing operations of $5.7 million which, while 12% below last year’s record setting level, represents the Company’s second highest first quarter performance;

  • reduced corporate overhead costs by 11% over the same period in 2019;

  • provided dividends of $1.1 million to our shareholders;

  • posted a trailing twelve-month Combined Payout Ratio of 73%, which represents an improvement from 78% as at March 31, 2019; and

  • maintained a healthy balance sheet with $30.1 million in cash, $47.3 million in working capital and Total Debt to Gross EBITDA leverage of 1.13.

Subsequent to March 31, 2020, Mosaic:

  • provided an operational update on April 8, 2020 that outlined the Company’s two-pronged approach to manage liquidity amid the economic uncertainty caused by the on-going COVID-19 pandemic (the “Pandemic“). This approach incorporated the suspension of common share dividends and the engagement with the Company’s lenders and financial partners regarding options to enhance near term liquidity. Additionally, as part of this engagement, the Company is negotiating revised terms with its lenders so that it has the necessary headroom in its financial covenants to operate through the uncertain future business environment.

Segmented Financial Performance

  Three months ended March 31,
(in $000s, except as noted)   2020     2019   % Change
             
Revenue:              
   Infrastructure $ 47,968   $ 55,135   -13%
   Diversified   27,667     25,895   7%
   Energy   2,881     3,702   -22%
   Corporate   –     –   –
Total revenue $ 78,516   $ 84,732   -7%
               
Adjusted EBITDA: (1)              
   Infrastructure $ 3,340   $ 3,592   -7%
   Diversified   3,241     3,691   -12%
   Energy   301     498   -40%
   Corporate   (1,205 )   (1,361 ) 11%
Total adjusted EBITDA $ 5,677   $ 6,420   -12%
   as a % of revenue   7.23%     7.58%    

 

Note:

(1) Adjusted EBITDA is defined as earnings before finance costs, taxes, depreciation and amortization, and other non-cash items. Adjusted EBITDA is not a recognized measure under IFRS. Refer to “Non-GAAP Measures”.

Outlook

Management is pleased with the Company’s first quarter 2020 financial and operating results that met budgeted expectations despite being negatively impacted by the Pandemic related influences in the final weeks of the quarter. In reaction to this challenge, Mosaic acted swiftly to reduce cost structures in each of its operating subsidiaries and at the corporate level that resulted in only a modest decline in profitability levels over the same period last year.

Progressing through the second quarter of 2020, the negative impacts of the Pandemic have increased, including the deferral of some project-related business opportunities, coordinated supply chain related production delays and a general moderation of activity-levels at certain of Mosaic’s operating subsidiaries. In addition, certain of the Company’s subsidiaries are also dealing with the significant decline in oil prices and flooding in Fort McMurray, Alberta, which may have a material impact on their operations. Partially offsetting these negative influences, Mosaic is experiencing areas of stability in certain subsidiary operations that operate in more rural, industrial-based settings. Management has acted swiftly to reduce cost structures, cut non-essential spending and maximize working capital efficiencies across the portfolio. Additionally, the Company believes it is eligible for certain of the Government’s financial assistance programs which are expected to offset some of the negative financial impacts of the Pandemic and is currently working through eligibility, timing and magnitude of the various programs.

Mark Gardhouse, President and CEO commented “Mosaic’s strong first quarter results, a healthy balance sheet and our focused operational approach has favourably positioned the Company as we enter a period of economic uncertainty. I am confident that we have instituted the appropriate strategies to successfully manage through this period of uncertainty. Additionally, with the support we expect to be provided by our lenders and financial partners, I believe Mosaic will be well positioned to capture incrementally attractive investment opportunities when conditions to transact are suitable.”

Mosaic’s growth strategy is centered on the acquisition of controlling equity interests in new portfolio companies with a specific focus on growing Free Cash Flow per share while maintaining a strong balance sheet. Supplementing this, Mosaic’s management team adds value with strong operational and strategic focus by actively engaging with its portfolio companies to improve results and capture growth opportunities.

Mosaic’s pipeline of high quality acquisition opportunities remains solid and the Company will continue to pursue its strategy to grow through acquisitions with a focus on building an increasingly diversified portfolio of private, mid-market companies that offer strong free cash flow while maintaining a healthy balance sheet. While the Pandemic has resulted in extended timelines for due diligence and negotiations, the Company remains active in its pursuit of new acquisition opportunities.

Conference Call

Management will hold a conference call to discuss first quarter 2020 results on Thursday, May 7th, 2020 at 10:00 AM ET. All interested parties are invited to join the conference call by dialing 1-800-952-5114 from within Canada or the U.S., then entering the participant Code 8147363#. Participants will need to provide the operator with the Service Confirmation number 4326428. A recording of the conference call will be made available on Mosaic’s website at www.mosaiccapitalcorp.com.

ABOUT MOSAIC CAPITAL CORPORATION

Mosaic is a Canadian investment company that owns a portfolio of established businesses which span a diverse range of industries and geographies. Mosaic’s strategy is to create long-term value for its shareholders through accretive acquisitions, long-term portfolio ownership, sustained cash flows and organic portfolio growth. Mosaic achieves its objectives by maintaining financial discipline, acquiring businesses at attractive valuations, performing extensive acquisition due diligence, utilizing optimal transaction structuring and working closely with subsidiary businesses after acquisition.

FOR FURTHER INFORMATION PLEASE CONTACT:

Cam Deller
Vice President, Corporate Development
Mosaic Capital Corporation
400, 2424 – 4th Street SW
Calgary, AB T2S 2T4

T: (403) 930-6576
E: [email protected]

Reader Advisory

Non-GAAP Measures

Selected financial information for the three-month period ended March 31, 2020 are set out above and includes the following measures that are not recognized under International Financial Reporting Standards (“IFRS“) and are non-generally accepted accounting principles (“Non-GAAP“) measures: Adjusted EBITDA, Free Cash Flow, Preferred Distribution Payout Ratio and Combined Payout Ratio. This information should be read in conjunction with the unaudited condensed interim consolidated financial statements for the three months ended March 31, 2020 and 2019 and Mosaic’s MD&A for the period ended March 31, 2020 available under Mosaic’s profile on SEDAR at www.sedar.com. Further information regarding these Non-GAAP measures is contained in Mosaic’s MD&A.

Forward-Looking Statements

This news release contains forward-looking information and statements within the meaning of applicable Canadian securities laws (herein referred to as “forward-looking statements“) that involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. All information and statements in this press release which are not statements of historical fact may be forward-looking statements. The words “believe”, “expect”, “intend”, “estimate”, “anticipate”, “project”, “scheduled”, and similar expressions, as well as future or conditional verbs such as “will”, “should”, “would”, and “could” often identify forward-looking statements. Forward-looking statements included in this news release include, but are not limited to:

  • the Company’s ability to manage the impact of COVID-19 and its impact on operations;
  • the Company’s lenders agreeing to revising terms of the loans & borrowings on a basis acceptable to the Company;
  • the Company’s eligibility for government financial assistance programs;
  • the overall business strategy and objectives of Mosaic;
  • the Company’s expectation to successfully manage the current business environment; and
  • the Company’s expectation to be positioned to capture attractive investment opportunities in the future.

Such statements or information, if any, are only predictions and reflect the current beliefs of management with respect to future events and are based on information currently available to management. Actual results and events may differ materially from those contemplated by these forward-looking statements due to these statements being subject to a number of risks and uncertainties. Undue reliance should not be placed on these forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are based will occur.

By their nature forward-looking statements involve assumptions and known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other things contemplated by the forward-looking statements will not occur. A number of factors could cause actual results to differ materially from the results stated in the forward-looking statements, including, but not limited to, risks related to: COVID-19 impact, general economic and business conditions; the failure to realize the anticipated benefits of Mosaic’s recent and future acquisitions; adverse fluctuations in commodity prices; competition for, among other things, capital, equipment and skilled personnel; the inability to generate sufficient cash flow from operations to meet current and future obligations; the inability to obtain required debt and/or equity capital on suitable terms; competition for acquisition targets; adverse weather conditions; seasonality and fluctuations in results; and limited diversification of Mosaic’s subsidiaries. Should any of the risks or uncertainties facing Mosaic and its subsidiaries materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results, performance, activities or achievements could vary materially from those expressed or implied by any forward-looking statements contained in this news release.

Although Mosaic believes that the expectations represented by any forward-looking-statements contained herein are reasonable based on the information available to them on the date of this news release, management cannot assure investors that actual results, performance or achievements will be consistent with these forward-looking statements. Any forward-looking statements herein contained are made as of the date of this press release and Mosaic does not assume any obligation to update or revise them to reflect new information, events or circumstances, except as required by law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/55471

Related Topics:
Continue Reading

Fintech

Mozrt’s Collaboration with BOK Financial: Revolutionizing Cross-Border Payments

Published

1 day ago

on

November 29, 2023

By

 

Mozrt, an award-winning payments technology platform, and BOKF, NA, one of the U.S.’s 25 largest banks, announce their plans to reshape cross-border payment services and elevate the capabilities of financial institutions.
At the heart of this collaboration lies Mozrt’s commitment to delivering advanced cross-border and FX payment capabilities to BOK Financial’s broad network of downstream or correspondent banks, magnifying efficiency and convenience for their clients. By combining the strengths of both entities, this collaboration empowers financial institutions of all sizes to seamlessly offer international payment capabilities to their customers.
The Mozrt MFX platform delivers real-time FX rates, allowing downstream correspondents to initiate and book cross-border payments. This all takes place within a highly secured platform, leveraging the latest in MFA and multi-level approval technology.
“The platform enables Mozrt and BOK Financial to introduce a suite of features designed to simplify processes, enhance security, and ultimately better serve downstream correspondents.
We’re excited to be providing a tech-forward solution that simplifies international payments, ensuring they are straightforward and hassle-free,” said Heath Hartley, BOK Financial. “The Mozrt platform offers robust beneficiary creation, validation, and management, facilitating accurate and efficient transactions.”
Furthermore, the collaboration facilitates a seamless transition for existing digital banking platforms, allowing single sign-on (SSO) or utilization of a custom, FI-branded portal. Mozrt’s modular design enables easy integration into various points across the front, middle, and back offices.
By delivering a user-centric online FX origination experience, this Mozrt – BOK Financial relationship equips financial institutions to meet the dynamic demands of the digital era.
Jeff Althaus, Founder & CEO of Mozrt, expressed his enthusiasm about the companies’ plans: “We are thrilled about the potential impact of Mozrt’s collaboration with BOK Financial in redefining cross-border payment services. Working alongside an innovative institution like BOK Financial enables us to provide a holistic solution that simplifies international transactions and accelerates our clients’ digital transformation.”

Continue Reading

Fintech

MapMetrics expands to peaq from Solana following addition of Solana compatibility to peaq’s Multi-Chain Machine IDs

Published

1 week ago

on

November 23, 2023

By

 

peaq, the blockchain for real-world applications, announces the expansion of its ecosystem and product offering. MapMetrics, a Web3 drive-to-earn navigation app, will leverage peaq as part of its decentralized physical infrastructure network (DePIN) powering a Google Maps-style service. The development comes as peaq adds Solana compatibility to its Multi-Chain Machine IDs.

A Solana-originating project, MapMetrics will leverage the now Solana-compatible peaq IDs to build functions of the MapMetrics DePIN on peaq. These will include assigning peaq IDs to the navigator devices on its DePIN, using these IDs to authenticate the data collected by these devices, and a community voting mechanism.

Free navigation apps have become trusty companions for countless people around the world, with Google Maps alone boasting over a billion users. But despite a lack of an upfront cost, they come with a price of their own. When something is free, you are the product; when navigation is free, your personal data is being monetized. From leveraging the user’s position data for valuable insights on specific locations to serving them targeted location-based ads, the companies behind such apps profit from our sensitive data, sometimes without giving much thought to its privacy and protection. And in the case of massive companies like Google, they combine this data with the data sourced from all other Google-related data points to create digital models of ourselves, able to predict our behavior than ourselves.

MapMetrics is changing the equation by putting navigation on Web3 rails. It uses location trackers that enable users to share their anonymized data with the network, earning cryptocurrency and NFTs as rewards. While featuring its own ad engine, it makes sure that no private user data is exposed to the advertisers and shares the ad revenue with the community. It boasts 3,500 devices in the network and 5,000 users across 73 countries.

As part of its integration with peaq, MapMetrics will use peaq’s Multi-Chain IDs to enable devices to connect with the peaq network. It will build and deploy some of the core functions powering its navigation DePIN on peaq, using peaq IDs to authenticate and sign the anonymized data that the devices collect. It will also tap peaq to build a community voting pallet — a building block that other projects will be able to use as well — which will enable the community to contribute to its Google Maps-style navigation service by adding the locations of speed cameras and other objects and validating it with votes.

This comes as peaq expands the compatibility of its peaq IDs to include Solana. Enabling this is an address map running as part of the peaq storage pallet, pallets being modules for building blockchains in the framework that peaq runs on. This map works like an address book, linking addresses of different standards used on various networks and thus enabling cross-chain communication and information exchanges.

For example, with this integration, a solar panel with an ID on Solana will be able to connect to an energy marketplace on peaq. The previous updates made peaq IDs compatible with Binance’s BNB Chain, Ethereum Virtual Machine, and Cosmos. peaq’s steps toward its Multi-Chain vision have already eased the transition for projects coming from Algorand and Polygon, and will now unlock new opportunities for MapMetrics and other projects in the Solana ecosystem.

The peaq ID compatibility expansion enables teams originating on Solana to expand and leverage peaq’s DePIN functions without friction or fragmentation. With peaq Multi-Chain IDs, Solana-originated projects can easily tap peaq for some of their crucial functions.

“With its DePIN-focused functions and economics, peaq is the perfect home for DePINs,” says Brent van der Heiden, CEO of MapMetrics. “We are excited to be joining this bustling ecosystem, and the newfound compatibility between peaq IDs and Solana addresses is making this process significantly more convenient.”

“We believe in an open, Multi-Chain Web3 with seamless communication and value exchange between a plethora of protocols,” says Till Wendler, co-founder of peaq. “By making peaq IDs compatible with Solana, we take another step toward bringing this vision to life — and it’s invigorating to see excellent projects such as MapMetrics use this technology to solve real business problems with the DePIN model.”

Continue Reading

Fintech

Spool hones in on bringing institutions into DeFi by launching its expansive V2 upgrade

Published

1 week ago

on

November 22, 2023

By

 

Spool DAO, or Spool, the platform allowing institutions and users to build customizable risk-managed DeFi products, launches its V2 upgrade. Spool’s new platform expands its original DeFi infrastructure and tools, with heightened decentralized access and new capabilities. Institutions of all sizes can now leverage its slate of new features and interface updates to build, manage, and explore DeFi products with unparalleled flexibility, risk reduction, and security.

Despite crypto’s whirlwind year, DeFi’s blue-chip protocols managed to largely withstand the industry-wide chaos. But that doesn’t mean the DeFi landscape hasn’t changed at all. Looming regulatory steps, such as the new bipartisan bill entering the U.S. Senate, aim to monitor DeFi apps similarly to banks, setting the stage to accommodate increasing interest from legacy financial institutions. Banks and institutions clearly see potential in crypto and DeFi’s financial possibilities, but they lack the proper tools to enter it easily, compliantly, and on their terms.

To meet this institutional need, Spool now provides a completely rebuilt platform for risk-managed and automated DeFi yield. Created from the ground up to be faster, more efficient, more composable, and easier to use than its predecessor, V2 represents a leap for Spool and institutions expanding their DeFi presence. The upgrade expands upon Spool’s core offering and introduces several key features to maximize the effectiveness of institutional DeFi investment. These features and enhancements include:

    • Multi-Asset Smart Vaults: Institutions creating Smart Vaults can now build them to contain a range of yield strategies using multiple assets. Multi-asset Smart Vaults enhance functionality in addition to Spool’s classic auto-swapping and auto-rebalancing capabilities. Investors can simply create or pick an existing Smart Vault that matches their investment preferences, and send the assets they have available. The assets are then automatically swapped and implemented in audited and battle-tested smart contracts to attain the best yields possible while allowing funds to be withdrawn at any time.
    • Smart Vault Guards: Institutions building Smart Vaults can now dictate which users can deposit or withdraw from the Vault based on specific criteria, mirroring traditional investment funds. This helps institutions tailor DeFi offerings not only to regulatory compliance but to their specific client needs as well. Institutions can create KYC and AML-compliant Smart Vaults, for example, and only allow access to vetted investors through whitelisted wallets. Other parameters include NFT or Token Gating (where a user must hold a specific NFT or token amount to access the vault), and Time Locks.
    • Actions: Spool builders can now implement customizable actions tied to user activities such as entering or exiting a Smart Vault that is configured during its creation. Actions help support institutions by creating a framework that feels familiar to traditional finance and includes features such as deposit or withdrawal fees, deposit insurance fees, and automated asset swaps that help streamline the once-manual process for yield farming.
    • Liquid Staking Derivatives (LSDs) Support: LSDs are tokens issued in return for staking cryptocurrency through a staking provider. This comes in handy for networks such as Ethereum, where validators must hold a minimum of 32 ETH to access staking and validator privileges. LSDs also allow users to withdraw staked ETH, which validators cannot do. As strategies using LSDs become more popular and prevalent, adding support in V2 enables greater convenience.
    • Advanced Automation: One of DeFi’s major obstacles lies in manual asset management within yield farms. V2 improves upon Spool’s original automation features while maintaining decentralization and self-custody. Once assets are within a Smart Vault portfolio, V2 automatically rebalances them between various strategies configured in the Vault. Spool also now offers automated collateral conversion, meaning clients investing in a Smart Vault can utilize any underlying asset they have available. Spool automatically converts the asset before investing, granting increased ease and choice.
    • Deposit NFTs (dNFTs): D-NFTs provide users with an immutable NFT receipt of their Smart Vault deposits, enabling the withdrawal of funds. ERC-20 Smart Vault Tokens (SVTs) are created by burning D-NFTs and act as yield-bearing stablecoins, which can be easily transferred or traded on a secondary market, creating a new liquid financial instrument.

Check out Spool’s video here: https://drive.google.com/file/d/150B6sSdX9gMAjdig-5675nLfftciWidJ/view

More detailed video with features overview can be found here: https://drive.google.com/file/d/1uIr_AJ_iHKErkHR5lFaUWk39A4-NUtEo/view?usp=drive_link

Among these new features, Spool V2’s completely redesigned interface allows institutions and asset managers to have a birds-eye view of their Smart Vault portfolio. The platform champions accessibility while providing the comprehensive tools and oversight that institutions require. This includes tools for easily white-labeling Smart Vaults for client access with their own branding and unique insights into Smart Vault performance based on customizable KPIs.

By enabling the codeless creation of financial services and products backed by audited financial primitives, institutions that don’t have DeFi-specific teams are now able to easily access DeFi. The upgrade’s capabilities set the stage for large-scale institutional partnerships in the pipeline for Spool, following a steady stream of integrations and collaborations leading up to its launch.

“We are incredibly proud to launch Spool V2 after countless months of our team developing, testing, and listening to the feedback and needs of our institutional partners,” says Philipp Zimmerer, Lead of Token Strategy of Spool. “This lands at a pivotal moment in crypto in a year that has been all about responsibly rebuilding the industry and forging a new path for DeFi. Improving access, flexibility, and security will not only garner further institutional support but set a new standard for what DeFi can make possible for any investor.”

Continue Reading

Trending