Fintech
Foremost Income Fund Reports Q1 2021 Results
Calgary, Alberta–(Newsfile Corp. – May 13, 2021) – Foremost Income Fund (“Foremost” or the “Fund“) announces the financial results for the three months ended March 31, 2021.
Overview
The Fund is an unincorporated open end mutual fund trust conducting its business through three operating segments, Foremost Energy Equipment (FEE), Foremost Mobile Equipment (FME), and Corporate. FEE, with its focus on the oil and gas industry in Western Canada, consists of three active manufacturing and service locations across Alberta. The locations manufacture oil-treating systems, shop tanks, field tanks, agriculture equipment, oil and gas process-treating equipment, and gas separators. FME manufactures and services hydrovac and vacuum trucks and equipment; off-highway, large-wheeled and tracked vehicles; and equipment for the custom drilling, construction, water well, and mining sectors. FME focuses on custom-built vehicles for its global clientele whom it serves through two manufacturing and service locations across Alberta.
Message to Unitholders
Foremost delivered cash positive results in Q1 despite ongoing challenging market conditions in the Western Canadian Energy markets. The results were driven by continued strength in Foremost Mobile Equipment revenue and gross margin.
Foremost Mobile Equipment (FME) produced revenues of $23.9 million versus $25.3 million in Q1 2020 and gross margin of $4.6 million versus $4.3 million in Q1 2020. Growing demand in the key markets of US, South America and Australia drove improved revenue in the Drills and Parts product lines as compared to both Q1 2020 and Q4 2020. The Drills product line delivered markedly better revenue and gross margin due to rebounds in capital investments in the mining and water well markets across the world.
Foremost Energy Equipment (FEE) revenue remained soft compared to historical averages, producing $5.2 million versus $12.3 million in Q1 2020 and gross margin of negative $1.2 million compared to $0.1 million in Q1 2020. FEE continues to battle tough conditions in the Western Canadian markets. FEE gross margins remain under severe competitive pressures. Sales in the Agriculture and Fuel tank product lines grew compared to Q1 2020 as product acceptance and market share growth continues.
The safety of everyone who works at Foremost remains the highest priority for management. Foremost remains fully compliant with all provincial and municipal mandates and laws related to workplace and public safety instituted due to the Covid-19 pandemic.
The overview: key measurements for Q1 2021
Revenue was $29.0 million, an increase from the previous quarter of 15.8% or $4.0 million and a 22.9% decrease from the Q1 2020 revenue of $37.7 million.
Gross margin increased 16.7% to $3.4 million, up from $2.9 million in Q4 2020 and a 23.9% decrease from Q1 2020.
SG&A expenses decreased from 11% of revenue in Q4 2020 to 10% of revenue in Q1 2021 and was consistent at 10% compared to Q1 2020. Total spend in Q1 2021 in this category was $3.0 million compared to $2.7 million in Q4 2020 and $3.7 million in Q1 2020.
Adjusted EBIDTA is $1.4 million, an increase from the Q4 2020 value of $1.1 million and a decrease from the Q1 2020 value of $1.8 million.
Re-classification – during the first quarter of 2021, certain costs were re-classified to better align with their function. This includes moving depreciation and amortization expense between cost of goods sold (for plant-level assets) and SG&A (for corporate-level assets) and moving office related occupancy costs out of cost of sales and into administrative expenses. This results in reporting lower gross margin and higher SG&A expenses, while removing the Fund-wide amortization and depreciation expense from the statement of net income. The total amortization and depreciation continues to be shown on the statement of cash flows. These changes have been reflected in all comparative data in this quarter’s reports and will be followed for future reporting periods. Refer to note 3 of the Financial Statements for more information.
2021 outlook
Markets remain unpredictable as the response to the novel Covid-19 virus continues to evolve. Foremost is actively monitoring the latest developments and assessing the impact of the outbreak and the unprecedented drop in global economic activity. Significant uncertainty remains around the spread of the COVID-19 virus and the impact it will have on the Fund’s operations, the demand for the Fund’s products, global supply chains, and economic activity in general.
Kevin Johnson
President
Q1 2021 Highlights
- The oil and gas industry continues to experience volatility in commodity prices due to deterioration in oil demand stemming from the global pandemic. For Foremost, this contributed to the decrease in revenue of $8.6 million when comparing Q1 2021 to Q1 2020. The FME segment recognized $1.4 million less revenue in 2021 over 2020, while the FEE segment recognized a $7.2 million decrease in revenue. More information is in the Segmented Results of Operations section of the MD&A.
- Gross profit for Q1 2021 was $3.4 million and 12% of revenue. More information is in the Segmented Results of Operations section of the MD&A.
- Administration costs decreased to $3.0 million or 10% of revenue, down from $3.7 million in Q1 2020. The majority of spend in this category is related to personnel costs. Reductions in headcount and reduced working hours resulted in a decrease of personnel costs. The COVID-19 pandemic also caused a decline in administrative costs related to travel and general office supplies.
- Adjusted EBITDA (defined on page 12 of the MD&A) was $1.4 million for Q1 2021 compared to $1.8 million in Q1 2020.
- During the first quarter of 2021, certain costs were re-classed resulting in a lower gross margin and higher SG&A expenses. Refer to note 3 of the Financial Statements for more information.
- The Trustees have determined that, as of May 12, 2021, the Fund will redeem tendered Trust Units at tangible book value of $6.20 per unit.
FORWARD-LOOKING STATEMENT
Certain statements in this news release may constitute “forward-looking” statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Fund to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. When used in this news release, such statements use words such as “may”, “will”, “expect”, “believe”, “plan” and other similar terminology. These statements include statements the Fund’s intention to proceed with a Unitholders’ meeting and information regarding the Trustees’ views of the future prospects and tax treatment of the Fund and tax treatment of the Special Redemption, the Fund’s expectations regarding the future availability of cash to meet redemption requests and the Trustee’s expectations for redemption prices in December 2011 and January 2012. These statements reflect management’s current expectations regarding future events and operating performance and speak only as of the date of this news release. These forward-looking statements involve a number of risks and uncertainties, including: the impact of general economic conditions, industry conditions, changes in laws and regulations, increased competition, fluctuations in commodity prices and foreign exchange, and interest rates and stock market volatility.
For further Investor Relations information please contact:
Jackie Schenn, CA
Tel: (403) 295-5800 or toll free 1-800-661-9190 (Canada/US) – Fax: (403) 295-5832 E-mail: [email protected] – Website: www.foremost.ca
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/83967
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Fintech
Fintech Pulse: Your Daily Industry Brief (Plaid, Warner Bros., TransUnion, Monevo, FinVolution, CreditTech, Glenbrook Partners)
Op-Ed: The Dawn of a Fintech Spring
As the financial technology sector continues to navigate the complex post-pandemic landscape, recent developments suggest a revitalized period of growth and innovation. Key players are making bold moves, partnerships are forming, and underserved markets are gaining attention. In this briefing, we explore the latest headlines and what they reveal about the industry’s trajectory.
Plaid Reports Growth in Revenue and Usage Rates
Plaid, the connective tissue of the fintech ecosystem, has shown remarkable resilience and growth. The company’s CEO recently highlighted a surge in both revenue and usage rates, describing the current period as a “fintech spring.” This growth comes as consumer demand for seamless financial solutions remains high, despite macroeconomic challenges.
Plaid’s ability to maintain relevance is tied to its strategic partnerships and continuous innovation. By enabling applications like Venmo and Robinhood to thrive, Plaid underscores the importance of integration in fostering user trust and utility.
Source: Bloomberg
Warner Bros. Discovery Strengthens Board with Fintech Leadership
Warner Bros. Discovery is diversifying its board by bringing in SoFi CEO Anthony Noto and outgoing IAC Chief Executive Joseph Levin. This move signals the increasing influence of fintech expertise beyond traditional financial sectors. With Noto’s leadership in digital banking and Levin’s extensive background in technology-driven enterprises, Warner Bros. Discovery is positioning itself for a future that seamlessly blends media and financial technology.
This cross-industry synergy could lead to innovative offerings, bridging gaps between entertainment platforms and fintech applications, such as micro-investing and personalized financial recommendations for content consumers.
Source: Reuters
TransUnion to Acquire Monevo
Credit reporting agency TransUnion has announced its plans to acquire Monevo, a leading credit prequalification and distribution platform. This acquisition aims to enhance TransUnion’s capabilities in the credit technology space, allowing it to offer more personalized and accessible financial solutions to consumers.
By integrating Monevo’s platform, TransUnion is expected to provide lenders with advanced tools to better assess creditworthiness while empowering consumers with prequalified loan offers. This development is particularly timely as consumers increasingly seek transparency and efficiency in credit processes.
Source: TransUnion Press Release
FinVolution Highlights CreditTech Opportunities in Southeast Asia
Ming Gu, Senior Vice President of FinVolution, emphasized the transformative potential of CreditTech in Southeast Asia during his address at the Asian Financial Forum. With a significant portion of the region’s population still underserved by traditional financial institutions, CreditTech presents a unique opportunity to bridge the gap.
Gu pointed out that leveraging AI and data analytics can help tailor credit solutions for diverse needs, ultimately fostering financial inclusion and economic growth in these emerging markets. FinVolution’s insights reaffirm the critical role of fintech in empowering underserved communities.
Source: PR Newswire
Glenbrook Partners Launches On-Demand Learning Program
Payments consultancy Glenbrook Partners has introduced an on-demand learning platform designed to educate professionals in the payments industry. This initiative is expected to address the growing need for skilled talent as digital payment ecosystems expand globally.
The program offers modular content covering foundational and advanced topics, catering to professionals at various stages of their careers. By equipping individuals with in-depth knowledge, Glenbrook is contributing to the industry’s sustainability and growth.
Source: PR Newswire
Analysis and Takeaways
These stories collectively highlight a few key trends shaping the fintech landscape:
- Resilient Growth: Plaid’s trajectory reaffirms that consumer-centric innovations drive sector resilience even during economic uncertainties.
- Cross-Industry Integration: Warner Bros. Discovery’s board appointments underline fintech’s permeation into traditionally non-financial domains.
- Strategic Acquisitions: TransUnion’s acquisition of Monevo showcases how established players are leveraging fintech to enhance service offerings.
- Global Inclusivity: Efforts by FinVolution and others highlight the role of fintech in addressing global financial disparities.
- Education and Skill Development: Initiatives like Glenbrook’s program reflect a proactive approach to fostering a knowledgeable workforce.
The post Fintech Pulse: Your Daily Industry Brief (Plaid, Warner Bros., TransUnion, Monevo, FinVolution, CreditTech, Glenbrook Partners) appeared first on News, Events, Advertising Options.
Fintech
io.finnet and Cede Labs Partner to Transform Multi-Exchange Portfolio Management for Institutions
io.finnet, a leader in digital asset infrastructure, has partnered with Cede Labs, to introduce a solution for centralized exchange (CEX) connectivity. This collaboration provides institutional clients with a streamlined, secure platform for comprehensive multi-exchange portfolio management. Through this integration, io.finnet clients can now access leading exchanges such as Binance, Coinbase, Bybit, OKX, Kraken and more with features tailored for institutional-grade governance and operational efficiency.
Institutional digital asset management faces increasing complexity as businesses demand more secure and efficient tools to oversee diverse portfolios. With 70% of institutional investors expecting a surge in digital asset-focused funds, the need for secure and efficient multi-exchange solutions has never been greater.
“Businesses require solutions that simplify the complexity of managing assets across exchanges while maintaining the highest standards of security.” said Jacob Plaster, CTO of io.finnet. “Through our partnership with Cede Labs, clients can seamlessly connect their exchange accounts and manage their entire portfolio within a unified, secure environment.”
Unlike traditional offerings, io.finnet’s integration with Cede Labs introduces secure account-linking capabilities, allowing clients to effortlessly connect and unlink their exchange accounts while adhering to strict governance protocols. Unified tracking capabilities further enhance this solution, enabling users to monitor their portfolios across all connected exchanges in real-time. This includes the ability to oversee spot and trading wallets, derivatives positions, and sub-accounts under a single pane of glass, a feature few competitors offer at this scale.
Pierre Ni, CEO of Cede Labs, highlighted the impact on institutional workflows: “We are proud to collaborate with io.finnet to redefine digital asset custody and management. By unlocking new use cases for corporates, market makers, liquid funds, foundations, and fintechs through CEX connectivity, we believe io.finnet can grow to become one of the top self-custody players.”
This partnership is particularly timely as market demand for interoperable solutions continues to rise. The integration will eliminate the need to navigate multiple platforms and provide institutions with real-time visibility across their digital asset holdings, enabling seamless exchange connectivity and enhanced risk management.
io.finnet is committed to enhancing its exchange connectivity capabilities with deposits, withdrawals, trades, and sub-account transfers to further streamline asset management workflows. Stay tuned for exciting updates as we expand the possibilities of our Exchange Connectivity feature.
The post io.finnet and Cede Labs Partner to Transform Multi-Exchange Portfolio Management for Institutions appeared first on News, Events, Advertising Options.
Welcome to Blocks & Headlines, your comprehensive daily briefing on the transformative world of blockchain. Today, we explore groundbreaking partnerships, economic innovations, and blockchain-powered initiatives redefining the future.
Sony Ventures Into Blockchain With New Identity Solutions
Sony has unveiled its latest blockchain-based digital identity solution designed to enhance privacy and security in the online space. This innovative system uses decentralized technology to manage digital credentials, making identity verification seamless and secure.
Sony’s venture reflects a broader trend among tech giants exploring blockchain’s potential to reshape data privacy and authentication systems.
Source: Sony Press Release
TRON’s Daily Revenue Skyrockets 119% in 2024
TRON has reported a staggering 119% increase in daily revenue, a testament to its innovative blockchain economic models. By leveraging smart contracts and a scalable infrastructure, TRON continues to attract developers and businesses seeking cost-efficient blockchain solutions.
This growth positions TRON as a leading player in the competitive blockchain ecosystem, setting benchmarks for others to follow.
Source: Bitcoin.com
MIGMIG Partners With XT.com to Bring Blockchain Rewards
MIGMIG, a blockchain gaming and rewards platform, has partnered with XT.com to expand its reach and user engagement. This collaboration aims to deliver unique blockchain-powered rewards while enhancing the gaming experience for users worldwide.
The partnership highlights the increasing intersection of blockchain technology and entertainment, opening new avenues for user interaction.
Source: Bitcoinist
Nano Labs Supports the Inaugural Presidential Crypto Ball
Nano Labs has announced a partnership with the Inaugural Presidential Crypto Ball, emphasizing its commitment to fostering blockchain awareness. This high-profile event aims to bridge the gap between blockchain innovators and policymakers, paving the way for broader adoption.
The initiative underscores the importance of collaboration between the blockchain community and governmental bodies to shape the future of digital assets.
Source: PR Newswire
Bybit Card Partners With EnTravel for Luxury Travel Perks
Bybit has teamed up with EnTravel to offer its cardholders exclusive discounts on luxury travel experiences. This partnership integrates blockchain-powered payment solutions with high-end travel services, providing users with unparalleled convenience and value.
The move exemplifies how blockchain technology can enhance traditional industries, offering innovative solutions tailored to modern consumer needs.
Source: PR Newswire
Key Insights and Industry Trends
- Decentralized Identity: Sony’s blockchain-based solution addresses growing concerns over online security and privacy.
- Economic Innovations: TRON’s revenue surge highlights the profitability of scalable blockchain networks.
- Gaming and Blockchain: Partnerships like MIGMIG and XT.com showcase the potential of blockchain in entertainment.
- Policy and Collaboration: Nano Labs’ involvement in the Crypto Ball underscores the importance of industry-government dialogue.
- Luxury Integration: Bybit and EnTravel demonstrate blockchain’s ability to enhance traditional services.
The post Blocks & Headlines: Today in Blockchain ( appeared first on News, Events, Advertising Options.
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