Flow Capital's Strong Q2 2024 Financial Results Overview
Flow Capital Announces Q2 2024 Financial Results
Flow Capital Corp. (TSXV:FW), a prominent provider of venture debt to high-growth companies, has released its unaudited financial and operational results for the three-month period ending June 30, 2024. Financial references are in Canadian dollars unless otherwise specified.
Q2 2024 Performance Highlights
Flow Capital has reported several key performance indicators showcasing strong growth compared to previous periods:
- $1.9 million in recurring loan interest income, representing a 5.7% increase from Q1 2024 and a 28.5% rise from Q2 2023.
- Book value per share increased to $1.255, up 2.43% from the prior quarter and 37% over the past two years.
- Recurring free cash flow reached $283K in Q2 2024, totaling $1.4 million over the last four quarters.
- Total assets amounted to $65.8 million, an increase of 12% over the previous year.
- New capital deployments reached $29 million over the past 12 months, setting a new record for the company.
Executive Commentary
“We are very pleased with our results this quarter. We achieved several milestones, including record recurring revenue of $1.9 million, record book value per share at $1.255, record total assets of $65.8 million, and record new deployments exceeding $29 million over the last 12 months,” stated Alex Baluta, CEO of Flow Capital. “Our portfolio continues to perform well,” he added.
Mr. Baluta further noted, “As we accelerate the deployment of capital into new loans, we maintain a strong long-term internal rate of return (IRR), driven by both recurring cash contributions from our loans and our equity positions. Our senior secured loan portfolio has generated a portfolio-level IRR of over 26%.”
Investment Opportunities and Strategies
Flow Capital’s lead generation and business development initiatives have consistently yielded excellent investment opportunities. In Q2, the firm closed a $5.4 million investment in GetTattle Inc., a global Customer Experience Improvement platform, and announced a follow-on investment into MiniLuxe, an existing portfolio company. After the quarter ended, Flow secured additional funding of $6.8 million with a tech-enabled marketplace for co-living spaces, along with another $5.4 million investment in a media measurement provider.
The company is currently witnessing robust pipeline activity and anticipates that portfolio growth will primarily be dictated by their access to capital resources.
Future Growth and Capital Strategies
To further expand its capital base, Flow Capital continues to offer redeemable floating rate debentures to institutional and accredited investors. These debentures are positioned senior to nearly $40 million of subordinated equity and currently yield a floating interest rate of 10.0% to 10.5% for investors in Canadian dollars and up to 11.83% for U.S. dollar investors holding over $1 million.
Mr. Baluta emphasized, “Looking ahead, we remain focused on enhancing shareholder value while ensuring substantial returns for our fixed-income stakeholders and being a flexible and supportive partner for our investee companies.”
About Flow Capital
Flow Capital Corp. is a publicly listed growth venture debt lender committed to aiding high-growth companies. Since its founding, the company has provided vital financing to businesses in various sectors across North America, enabling them to expand without the dilutive impacts of equity financing or the complexities associated with traditional bank loans. Flow Capital specifically targets revenue-generating, venture capital-backed, and founder-owned enterprises seeking between $3 to $7 million in financing to support their growth trajectories.
Conference Call Information
Flow Capital will hold a conference call to discuss these results at 9:00 a.m. Eastern Time on a forthcoming Tuesday. Participants can join the call by calling +1 800-717-1738 or +1 289-514-5100 and requesting the Flow Capital Earnings Call, Conference ID 05811. A replay of the call will be available shortly after its conclusion.
Contact Information
Flow Capital Corp.
Alex Baluta
Chief Executive Officer
alex@flowcap.com
47 Colborne St, Suite 303,
Toronto, Ontario M5E 1P8
Frequently Asked Questions
1. What were the key financial highlights for Flow Capital in Q2 2024?
Flow Capital reported a recurring loan interest income of $1.9 million, a book value per share of $1.255, and total assets of $65.8 million.
2. How much new capital did Flow Capital deploy in the last 12 months?
The company deployed a record $29 million in new capital over the last 12 months.
3. What is the internal rate of return generated from Flow Capital’s loan portfolio?
The senior secured loan portfolio has achieved a portfolio-level IRR of over 26%.
4. How does Flow Capital plan to grow its capital base further?
Flow Capital is offering redeemable floating rate debentures to institutional and accredited investors to enhance its capital base.
5. What strategic focus does Flow Capital have for the future?
Flow Capital aims to enhance shareholder value while providing strong returns to fixed-income stakeholders and supporting its investee companies.
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