TORONTO, Aug. 14, 2018 (GLOBE NEWSWIRE) -- Difference Capital Financial Inc. (“DCF” or the “Company”) (TSX:DCF) (TSX:DCF.DB), today reported its financial results for second quarter ended June 30, 2018.
Q2 2018 Highlights
- The portfolio produced a gross loss of $0.5 million during the quarter, primarily due to the write-down of private investments totalling $1.9 million, offset in part by net realized gain on sale of investments of $0.5 million and unrealized gain on foreign exchange of $0.5 million.
- Net asset value1 per share as at June 30, 2018 decreased to $6.72, compared to $7.07 at March 31, 2018, and $7.73 at June 30, 2017.
- Net loss for the quarter was $1.9 million or $0.33 per share, compared to a net loss of $4.0 million or $0.68 per share for the first quarter of 2018 and a loss of $0.3 million or $0.06 per share for the second quarter of 2017.
- On June 15, 2018 the Company redeemed $15.0 million of its outstanding principal amount 8% convertible unsecured subordinated debentures (the “Convertible Debentures”).
- On June 21, 2018 the Company issued a non-brokered private placement of senior debentures (Private Debentures) for aggregate gross proceeds of $6.7 million. The Private Debentures pay 12% interest and mature June 30, 2020.
- The remaining Convertible Debentures of $14.2 million were repaid on July 31, 2018, leaving the Company with only $6.7 million in debt.
| (figures are in $000 except per share amounts and shares outstanding) | Q2 2018 | Q1 2018 | Q2 2017 | ||||
| Net gain (loss) on investments and marketable securities | (812 | ) | (2,607 | ) | 471 | ||
| Other income | 280 | 180 | 631 | ||||
| Total Portfolio Contribution | (532 | ) | (2,427 | ) | 1,102 | ||
| Total expenses | (1,393 | ) | (1,534 | ) | (1,437 | ) | |
| Net income (loss) | (1,925 | ) | (3,961 | ) | (335 | ) | |
| Earnings (loss) per share | (0.33 | ) | (0.68 | ) | (0.06 | ) | |
| Total assets | 67,641 | 72,496 | 74,321 | ||||
| Total liabilities | 28,524 | 31,362 | 29,224 | ||||
| Net asset value | 39,117 | 41,134 | 45,097 | ||||
| Shares outstanding | 5,817 | 5,817 | 5,835 | ||||
| Net asset value(1) per share | 6.72 | 7.07 | 7.73 | ||||
| Share price | 3.10 | 2.85 | 4.15 | ||||
Second Quarter Financial Results
Net loss for the quarter ended June 30, 2018 was $1.9 million, or $0.33 per share compared to a net loss of $0.3 million, or $0.06 per share for the quarter ended June 30, 2017 and a net loss of $4.0 million, or $0.68 per share for the quarter ended March 31, 2018.
During the three months ended June 30, 2018, the Company recorded a total portfolio loss of $0.5 million consisting of $0.8 million of portfolio loss, offset by $0.3 million of portfolio income. The portfolio loss was primarily due to the write-down of investments in ScribbleLive Technologies Inc. and Waterloo Innovation Network LP totaling $1.9 million. The portfolio loss was partially offset by net realized gain on the sale of TouchBistro Inc. of $0.5 million and unrealized foreign exchange gains of $0.5 million.
Total expenses for the quarter ended June 30, 2018 were $1.4 million, compared to $1.4 million for the same quarter in 2017 and $1.5 million in the previous quarter.
Please refer to the section regarding forward-looking statements which form an integral part of this release. These results, along with the audited financial statements and the Company’s MD&A, are available on the Company’s website at www.differencecapital.com and on SEDAR at www.sedar.com.
About Difference Capital Financial Inc.
Difference Capital Financial Inc. invests in and advises growth companies. We leverage our capital market expertise to help unlock value in technology, media and healthcare companies as they approach important milestones in their business lifecycle.
Caution Regarding Forward-Looking Statements
Certain statements contained in this press release may be deemed “forward-looking statements.” Forward- looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects,” “plans,” “anticipates,” “believes,” “intends,” “estimates,” “projects,” “potential,” “scheduled,” “will seek,” and similar expressions, or that events or conditions “will,” “would,” “may,” “could” or “should” occur. Although DCF believes that the expectations reflected in those forward- looking statements are reasonable, no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this press release should not be unduly relied upon. These statements speak only as of the date of this press release. DCF undertakes no obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise, other than as required by applicable law.
1 Net asset value (“NAV”) is a non-IFRS financial measure and is calculated by subtracting the aggregate fair value of the liabilities of the Company from the aggregate fair value of its assets. Net asset value per share is calculated by dividing NAV by the number of common shares outstanding as at the measurement date. The term net asset value per share does not have any standardized meaning according to IFRS and therefore may not be comparable to similar measures presented by other companies.
| Contact Information Henry Kneis Chief Executive Officer (416) 649-5090 www.differencecapital.com | |