TORONTO, May 09, 2018 (GLOBE NEWSWIRE) -- Crosswinds Holdings Inc. (“Crosswinds” or the “Company”) (TSX: CWI ) today announced its financial results as at and for the three months ended March 31, 2018.
Business Highlights
- During Q1 of 2018, the Company completed the sale of its interests in Monarch, receiving the equivalent of CAD $13.3 million (USD$10.5 million) in proceeds (the “Monarch Sale”).
- The Company ceased equity accounting for its investment in Monarch during Q4 2017 when it reclassified the investment as “held for sale”. Prior to completion of the Monarch Sale, Monarch was presented as a discontinued operation in the Company’s financial results.
- The Company’s original investment in Monarch was equivalent to CAD$15.3 million (USD$12 million) in March 2015. The carrying value of Monarch was written down in Q4 2017 as a result of Monarch’s operating performance. As the proceeds from the Monarch Sale were in excess of the carrying value of the investment at Q4 2017, the Company recorded its share of a gain on the Monarch Sale of $1.1 million in Q1 2018.
- As previously announced, as the majority of the Company’s assets are now in cash, the Company’s Board of Directors continues to explore next steps which include assessing available investment opportunities against other strategic alternatives including, without limitation, a return of capital or other monetization event.
Financial Highlights
For the three months ended March 31, 2018, the Company reported:
- Net loss from continuing operations of $(210,283) or $(0.02) per common share (“Share”) compared to net loss from continuing operations of $(452,847) or $(0.06) per Share for the three months ended March 31, 2017; and
- Shareholders’ equity attributable to Crosswinds’ shareholders (or net book value1) of $20.7 million or $2.26 per Share1 compared to $19.4 million or $2.12 per Share1 at December 31, 2017.
| Statement of Operations Highlights | |||||||||
| Three months ended Mar. 31 | |||||||||
| In CAD thousands, except per Share amounts | 2018 | 2017 | |||||||
| Revenue | $ | 151 | $ | 124 | |||||
| Net results of investments | 251 | (15 | ) | ||||||
| Expenses | (612 | ) | (562 | ) | |||||
| Net income (loss) from continuing operations | $ | (210 | ) | $ | (453 | ) | |||
| Income from discontinued operations | 26 | ||||||||
| Gain on sale from discontinued operations | 1,325 | ||||||||
| Net income (loss) | 1,115 | (427 | ) | ||||||
| Non-controlling interest (income) loss | (203 | ) | (3 | ) | |||||
| Net income (loss) attributable to the shareholders of Crosswinds | $ | 912 | $ | (430 | ) | ||||
| Net income (loss) per Share from continuing and discontinued operations | $ | 0.10 | $ | (0.06 | ) | ||||
| Balance Sheet Highlights | ||||||
| In CAD thousands, except per Share amounts | March 31, 2018 | December 31, 2017 | ||||
| Cash and marketable securities | $ | 20,891 | $ | 7,507 | ||
| Asset classified as held for sale | - | 13,986 | ||||
| Other assets | 193 | 203 | ||||
| Total Assets | $ | 21,084 | $ | 21,696 | ||
| Total Liabilities | (404 | ) | (256 | ) | ||
| Total Shareholders’ Equity | $ | 20,680 | $ | 21,440 | ||
| Non-controlling interests | - | (1,998 | ) | |||
| Shareholders’ Equity attributable to the shareholders of Crosswinds | $ | 20,680 | $ | 19,442 | ||
| Number of Shares outstanding (millions) | 9.2 | 9.2 | ||||
| Net book value per Share attributable to the shareholders of Crosswinds | $ | 2.26 | $ | 2.12 | ||
Financial Information
For a comprehensive review of the Company’s results, shareholders are encouraged to read the Company’s unaudited interim consolidated financial statements and accompanying Management’s Discussion and Analysis as at and for the three months ended March 31, 2018, copies of which will be available on the Company’s website at www.crosswindsinc.com and on SEDAR at www.sedar.com .
Crosswinds Holdings Inc.
Crosswinds is a publicly traded private equity firm and asset manager targeting strategic and opportunistic investments in the financial services sector with a particular focus on the insurance industry.
More information
Colin King Tel: 1-800-439-5136 info@crosswindsinc.com www.crosswindsinc.com
Caution Regarding Forward-Looking Information All amounts in this release are shown in Canadian dollars unless otherwise indicated. This release includes certain forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “should”, “plans” or “continue” or the negative thereof or variations thereon or similar terminology. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. These forward-looking statements are subject to a number of risks and uncertainties. Actual results could differ materially from those anticipated in these forward-looking statements. Reference should be made to the risk factors in the Company’s 2017 Annual Information Form, in the Management’s Discussion and Analysis for the year ended December 31, 2017 and in our other filings with Canadian securities regulators. Additional important factors that could cause actual results to differ materially from expectations include, among other things, sourcing and timing for completing any new investments, outcome of assessment of alternatives available to the Company, general economic and market factors, competition, interest rates, tax related matters, loss of personnel, reliance on key personnel, ability of the Company to generate positive future returns for investors, ability of the Company to execute its strategies from time to time; the receipt of any regulatory approvals or consents required from time to time. This news release makes reference to the net book value per share which is a non-IFRS financial measure. The Company calculates the net book value per share as it believes it to be an important metric that shareholders use and frequently request and refer to because shareholders often view the Company as an holding company of investments in private entities. Net book value is a non-IFRS financial measure that does not have any standardized meaning prescribed by International Financial Reporting Standards and therefore it is unlikely to be comparable to similar measures presented by other issuers. This classification is not an IFRS measure and should not be considered either in isolation of, or as a substitute for, measures prepared in accordance with IFRS.
