Flow Capital Reports Q2 2024 Financial Results
Flow Capital Corp. (TSXV:FW), a leading provider of venture debt to rapidly growing companies, has published its unaudited financial and operational results for the three-month period ending June 30, 2024. All financial figures are reported in Canadian dollars unless stated otherwise.
Highlights from Q2 2024
Flow Capital has shared several important performance metrics that demonstrate significant growth compared to earlier periods:
- Recurring loan interest income reached $1.9 million, marking a 5.7% increase from Q1 2024 and a 28.5% rise from Q2 2023.
- The book value per share rose to $1.255, which is a 2.43% increase from the previous quarter and a 37% increase over the past two years.
- Recurring free cash flow hit $283K in Q2 2024, totaling $1.4 million over the last four quarters.
- Total assets grew to $65.8 million, reflecting a 12% increase from the previous year.
- New capital deployments reached a record $29 million over the past 12 months.
Comments from the Executive Team
“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,” said Alex Baluta, CEO of Flow Capital. “Our portfolio continues to perform well,” he added.
Mr. Baluta also mentioned, “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 Strategies and Opportunities
Flow Capital's efforts in lead generation and business development have consistently produced excellent investment opportunities. In Q2, the firm completed a $5.4 million investment in GetTattle Inc., a global platform focused on Customer Experience Improvement, and announced a follow-on investment in MiniLuxe, an existing portfolio company. After the quarter concluded, Flow secured an additional $6.8 million in funding 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 experiencing strong pipeline activity and expects that its portfolio growth will largely depend on access to capital resources.
Plans for Future Growth and Capital Strategies
To further enhance 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 Canadian dollar investors, 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 dedicated to supporting high-growth companies. Since its inception, the company has provided crucial financing to businesses across various sectors in North America, enabling them to grow without the dilutive effects of equity financing or the complexities of 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 fuel their growth trajectories.
Conference Call Details
Flow Capital will host a conference call to discuss these results at 9:00 a.m. Eastern Time on an upcoming Tuesday. Participants can join the call by dialing +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 it concludes.
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.
