Fintech
Foremost Income Fund Reports Q3 2021 Results
Calgary, Alberta–(Newsfile Corp. – November 12, 2021) – Foremost Income Fund (“Foremost” or the “Fund“) announces the financial results for the three and nine-month period ended September 30, 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 grew revenues as it recovers from the effects of the pandemic-related business slowdown. Revenue and gross margin improved in both Foremost Mobile Equipment (FME) and Foremost Energy Equipment (FEE), driving positive EBITDA and Net income. Revenue for the Fund was at the highest level since the pandemic started in Q1 2020. Despite challenges in procurement of major components for all of its products, Foremost executed its production plans in line with expectations and maintained good product delivery flow to its customers across the world.
Foremost Mobile Equipment (FME) produced revenues of $25.8 million versus $20.5 million in Q3 2020, a 25% increase. Gross margin was $5.5 million vs $3.8 million in Q3 2020, a 45% increase. Continued strong demand in the key regions of Canada, USA, and South America drove revenue growth in the Vacuum Trucks, Drills, and Parts categories. This continued an upward trend for FME revenues and gross margin from the previous quarters.
Foremost Energy Equipment (FEE) revenue showed improvement over the previous quarters as stronger commodity prices drove more business activity in Western Canada. Agriculture bins provided revenue growth with $6.0 million in revenue year to date compared to $1.6 million in 2020, though drought conditions in Western Canada dampened demand. FEE revenue for the third quarter of 2021 was $9.5 million versus $5.1 million in Q3 2020, an increase of 85%, and gross margin was negative $0.1 million compared to negative $1.3 million in Q3 2020.
At the time of this release, the pandemic restrictions have been reinstated in the Province of Alberta. While Foremost is able to continue normal business operations, management is monitoring the situation and is prepared to take necessary steps to ensure the safety of our employees.
The overview: key measurements for Q3 2021
Revenue was $35.1 million, an increase from the previous quarter of 7.7% or $2.5 million and a 37.3% increase from the Q3 2020 revenue of $25.6 million.
Gross margin increased 13.6% to $5.4 million, up from $4.8 million in Q2 2021 and a 114.1% increase from the Q3 2020 value of $2.5 million.
SG&A expenses decreased from 11% of revenue in Q2 2021 to 9% of revenue in Q3 2021 and decreased 1% compared to Q3 2020. Total spend in Q3 2021 in this category was $3.2 million, compared to $3.5 million in Q2 2021 and $2.6 million in Q3 2020.
Adjusted EBIDTA was $3.2 million, an increase from the Q2 2021 value of $2.3 million and an increase from the Q3 2020 value of $0.9 million.
Re-classification-During the first quarter of 2021, certain costs were re-classified to better align with their function. This included moving (i) depreciation and amortization expense between cost of goods sold (for plant-level assets) and SG&A (for corporate-level assets) and (ii) 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
While many Foremost markets are showing recovery trends from the depths of the COVID-19 pandemic, there remains significant uncertainty around the spread of the virus and the ongoing economic impact it is having. In particular, the supply chain disruptions are expected to put pressure on the Fund’s ability to deliver its products on time over the next several months, slowing the growing revenue trend we have seen the last 3 quarters.
Kevin Johnson, President
Q3 2021 vs Q3 2020 Highlights
- The mining industry has seen a surge in demand with increases in commodity prices and the ability for companies to resume operations safely during the pandemic. However, while the oil and gas industry experienced increases in commodity prices, this has not yet been reflected in the return of capital spend by our customers. At Foremost, this contributed to an increase in revenue of $9.5 million when compared to 2020. The FME segment recognized $5.2 million more revenue in 2021 over 2020, while the FEE segment recognized a $4.4 million increase in revenue. More information is in the Segmented Results of Operations section of the MD&A.
- Gross profit for Q3 2021 was $5.4 million and 15% of revenue. More information is in the Segmented Results of Operations section of the MD&A.
- Administration costs increased to $3.2 million or 9% of revenue, up from $2.6 million in Q3 2020. The majority of spend in this category is related to personnel costs.
- Adjusted EBITDA (defined on page 12 of the MD&A) was $3.2 million for Q3 2021 compared to $0.9 million in Q3 2020.
- In the first quarter of 2021, certain costs were reclassified, which will result in a lower gross margin and higher SG&A expenses going forward. Refer to note 3 of the Financial Statements for more information.
- The Trustees have determined that, as of November 10, 2021, the Fund will redeem tendered Trust Units at tangible book value of $6.50 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
As we close out 2024, the fintech industry continues to deliver headlines that underscore its dynamism and innovation. From IPO aspirations to groundbreaking regulatory milestones, today’s updates highlight the transformative power of fintech partnerships, regulatory evolution, and disruptive technologies. Here’s what you need to know.
Chime’s Quiet Step Toward Public Markets
Chime, the U.S.-based financial technology startup best known for its digital banking services, has taken a significant step by filing confidential paperwork for an initial public offering (IPO). As one of the most valuable private fintechs in the U.S., Chime’s move could potentially signal a renewed appetite for fintech IPOs in a market that has been cautious following fluctuating valuations across the tech sector.
With a valuation that reportedly exceeded $25 billion in its last funding round, Chime’s IPO could set a new benchmark for the industry. Observers note that its strong customer base and revenue growth may make it an appealing choice for investors seeking to capitalize on the digital banking boom. However, the timing and success of the IPO will depend on broader market conditions and the regulatory landscape.
Source: Bloomberg
ZBD’s Pioneering Achievement: EU MiCA License Approval
ZBD, a fintech company specializing in Bitcoin Lightning network solutions, has made history by becoming the first to secure an EU MiCA (Markets in Crypto-Assets Regulation) license. This landmark approval by the Dutch regulator positions ZBD at the forefront of compliant crypto-fintech operations in Europe.
MiCA, which aims to harmonize the regulatory framework for crypto-assets across the EU, has been a focal point for industry players aiming to establish legitimacy and expand their offerings. ZBD’s achievement not only validates its operational rigor but also sets a precedent for other fintech firms navigating the evolving regulatory landscape.
Industry insiders view this as a strategic advantage for ZBD as it broadens its footprint in Europe. By leveraging its regulatory approval, the company can accelerate its product deployment and establish trust with institutional and retail users alike.
Source: Coindesk, PR Newswire
The Fintech-Credit Union Synergy: A Blueprint for Innovation
The convergence of fintechs and credit unions continues to reshape the financial services ecosystem. Collaborative initiatives, such as the one highlighted in the recent partnership between fintech innovators and credit unions, are proving to be a potent force in delivering tailored financial solutions.
This “dream team” approach allows credit unions to leverage fintech’s technological expertise while maintaining their community-focused ethos. Key areas of collaboration include digital payments, personalized financial management tools, and enhanced loan processing capabilities. These partnerships not only enhance member engagement but also enable credit unions to remain competitive in an increasingly digital-first financial environment.
Industry analysts emphasize that such collaborations underscore a broader trend of traditional financial institutions embracing fintech-driven solutions to bridge service gaps and foster innovation.
Source: PYMNTS
Tackling Student Loan Debt: A Fintech’s Mission
Student loan debt remains a pressing issue for millions of Americans, and a Rochester-based fintech aims to offer relief through its cloud-based platform. This innovative solution is designed to simplify loan management and provide borrowers with actionable insights to reduce their debt burden.
The platform’s features include repayment optimization tools, personalized financial education, and seamless integration with loan servicers. By addressing the complexities of student loan management, this fintech is empowering borrowers to make informed decisions and achieve financial stability.
As the student loan crisis continues to evolve, solutions like this highlight the critical role fintech can play in addressing systemic financial challenges while fostering financial literacy and inclusion.
Source: RBJ
Industry Implications and Takeaways
Today’s updates underscore several key themes shaping the fintech landscape:
- Regulatory Milestones: ZBD’s MiCA license approval exemplifies the importance of regulatory compliance in unlocking growth opportunities.
- Strategic Partnerships: The collaboration between fintechs and credit unions demonstrates the value of combining technological innovation with traditional financial models to drive customer-centric solutions.
- Market Opportunities: Chime’s IPO move reflects a potential revival in fintech public offerings, signaling confidence in the sector’s long-term prospects.
- Social Impact: Fintech’s ability to tackle systemic issues, such as student loan debt, showcases its role as a force for positive change.
The post Fintech Pulse: Your Daily Industry Brief (Chime, ZBD, MiCA) appeared first on News, Events, Advertising Options.
Leading global payments platform SPAYZ.io has confirmed it will be attending iFX EXPO Dubai 2025 on 14 to 16 January. Exhibiting at Stand 64 at Trade Centre Dubai, SPAYZ.io’s team of professionals will be on hand providing live demonstrations of its renowned payment services for payment providers. Attendees will also receive exclusive insight into SPAYZ.io’s plans for 2025 alongside early early access to its upcoming plans for the new year.
SPAYZ.io delivers a host of payment solutions that leverage the latest technological innovations and open access to the fastest growing emerging markets across Africa, Europe and Asia. Over the past year, there has been huge demand for its Open Banking and local payment method services, alongside bank transfers, mass payouts, online banking and e-wallets.
Yana Thakurta, Head of Business Development at SPAYZ.io commented: “We look forward to once again participating at iFX Dubai to expand our network of partners and clients. It’s a fantastic way to kick off the year, connecting with thousands of industry leaders from FOREX platforms to trading companies, and everything in between.
“Our key goal for iFX Dubai EXPO 2025 is to expand our portfolio of solutions and geographies. We’re using this as an opportunity to partner with like-minded entities who share our ambition to provide payment solutions that are truly global.”
Come meet SPAYZ.io’s team at the Trade Centre Dubai at Stand 64. You can also book a meeting slot with a member of a team.
The post SPAYZ.io prepares for iFX EXPO Dubai 2025 appeared first on News, Events, Advertising Options.
Airtm, the most connected digital dollar account in the world, is proud to announce the addition of two distinguished industry leaders to its Board of Directors: Rafael de la Vega, Global SVP of Partnerships at Auctane, and Shivani Siroya, CEO & Founder of Tala. These appointments reflect Airtm’s commitment to innovation and financial inclusion as the company enters its next phase of growth.
“We are thrilled to welcome Rafael and Shivani to Airtm’s Board of Directors,” said Ruben Galindo Steckel, Co-founder and CEO of Airtm. “Their unique perspectives and proven track records will be invaluable as we continue scaling our platform to empower individuals and businesses in emerging markets. Together, we’ll push the boundaries of financial inclusion and innovation to create a more connected and equitable global economy. Rafael and Shivani bring a wealth of experience and strategic insight that will strengthen Airtm’s mission to connect emerging economies with the global market.”
Rafael de la Vega, a seasoned leader in fintech global partnerships and technology innovation, is currently the Global SVP of Partnerships at Auctane. With a proven track record of delivering scalable, impactful solutions at the intersection of fintech, innovation, and commerce, Rafael’s expertise will be pivotal as Airtm continues to grow. “Airtm has built a platform that breaks down barriers and opens up opportunities for people in emerging economies to connect to global markets. I am excited to contribute to its growth and help further its mission of fostering financial inclusion on a global scale,” said Rafael.
Shivani Siroya, CEO and Founder of Tala, is a pioneer in financial technology, renowned for empowering underserved communities through access to credit and essential financial tools. Her leadership in leveraging data-driven innovation aligns seamlessly with Airtm’s vision of creating more equitable financial opportunities. “Empowering underserved communities has always been at the core of my work, and Airtm’s mission resonates deeply with me. I’m thrilled to join the Board and work alongside such a dynamic team to expand access to financial tools that truly make a difference in people’s lives,” said Shivani.
The post Airtm Enhances Its Board of Directors with Two Strategic Appointments appeared first on News, Events, Advertising Options.
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