FAX Capital Corp. Reports Second Quarter 2021 Results
August 04 2021 - 5:00PM
FAX Capital Corp. (
FAX Capital or the
Company) (TSX: FXC and FXC.WT) today announced its
results for the quarter ended June 30, 2021. All currency figures
are Canadian dollars.
The Company performed well during the period,
and these results support the strategy of our focused business
model and disciplined approach to investing.
Operating Highlights:
- Book value of
$5.45 per subordinate voting share and multiple voting share
(collectively, the shares) at June 30, 2021, an
increase of 6.4% in the quarter and 28.2% year-over-year.
- Deployed $19.2
million of capital during the quarter into four investments: $6.8
million into BioSyent Inc. (TSXV: RX), $5 million into Quisitive
Technology Solutions, Inc. (Quisitive) (TSXV:
QUIS), $1.8 million into Hamilton Thorne Ltd. (TSXV: HTL) and $5.6
million into an undisclosed Canadian public company that we are in
the process of accumulating.
- The Company’s $5
million investment in Quisitive was via a private placement, which
followed our original $20 million private placement in the company
during the first quarter of 2021. In both transactions, the Company
earned a capital commitment fee of 3.5% on the aggregate $25
million subscription amount.
- Quisitive announced that Laurie
Goldberg, the Company’s nominee under the Investor Rights
Agreement, was elected to its board of directors.
- Bought back and cancelled
approximately 65,000 shares in the first six months of 2021 at an
average cost of $3.89 per share, pursuant to FAX Capital’s Normal
Course Issuer Bid.
- Held a cash
balance available to be invested of approximately $80 million, or
$1.87 per share at June 30, 2021.
"We are pleased with our continued execution in
the second quarter," said Blair Driscoll, CEO of FAX Capital. "Our
diligent investment process continues to result in consistent
growth in our book value per share, which grew more than 6% in the
quarter and 28% over the past year driven by strong returns on our
deployed capital."
"Armed with a healthy cash balance, we continue
to assess a robust pipeline of potential new investments and
acquisitions, including those to complement our recently formed
property technology and services platform, which we believe will
help us generate strong returns for our shareholders.”
Results for the Three and Six Months
Ended June 30, 2021
The Company’s book value per share increased
6.4% from $5.12 per share at March 31, 2021 to $5.45 per share as
at June 30, 2021. The 6.4% increase in the book value per share is
primarily attributed to the Company recording a net unrealized gain
on its public company investments of $15.6 million in the period.
Net income for the quarter ended June 30, 2021 was $14.1 million,
compared to $5.1 million in the comparative quarter last year.
The Company’s book value per share increased
12.8% from $4.83 per share at December 31, 2020 to $5.45 per share
as at June 30, 2021. The 12.8% increase in the book value per share
is primarily attributed to the Company recording realized and
unrealized gains on its investments of $30.2 million in the period.
Net income for the six months ended June 30, 2021 was $26.5
million, compared to a net loss of $4.1 million in the comparative
period last year.
Other Information
Further information about FAX Capital, including
FAX Capital’s Financial Statements and Management’s Discussion
& Analysis for the six months ended June 30, 2021 and the year
ended December 31, 2020, are available under the Company’s profile
at www.sedar.com and www.faxcapitalcorp.com. The Company’s updated
investor presentation and factsheet in respect of the second
quarter of 2021 contain further information on FAX Capital’s
strategy and operations and can be accessed on the Company’s
website. Shareholders are encouraged to read these documents.
About FAX Capital Corp.
The Company is an investment holding company
with a business objective to maximize its intrinsic value on a per
share basis over the long-term by seeking to achieve superior
investment performance commensurate with reasonable risk. The
Company intends to invest in equity, debt and/or hybrid securities
of high-quality businesses. The Company initially intends to invest
in approximately 10 to 15 high-quality small cap public and private
businesses located primarily in Canada and, to a lesser extent, the
United States.
For additional information
please contact:
Investor RelationsTim Foran
Email: IR@faxcapitalcorp.comWebsite: www.faxcapitalcorp.com
Media RelationsKieran Lawler
Telephone: (416) 303-0799 Email:
Kieran.lawler@loderockadvisors.com
Cautionary Statement Regarding Use of
Non-IFRS Accounting Measures
This press release makes reference to the
following financial measure which is not recognized under
International Financial Reporting Standards (IFRS)
and which does not have a standard meaning prescribed by IFRS:
“book value per share”. The Company’s book value per share is a
measure of the performance of the Company as a whole. Book value
per share is measured by dividing shareholders’ equity of the
Company at the date of the statement of financial position by the
number of subordinate voting shares and multiple voting shares
outstanding at that date. The Company’s method of determining this
financial measure may differ from other companies’ methods and,
accordingly, this amount may not be comparable to measures used by
other companies. This financial measure is not a performance
measure as defined under IFRS and should not be considered either
in isolation of, or as a substitute for, net earnings prepared in
accordance with IFRS.
Cautionary Note Regarding
Forward-Looking Information
This press release contains forward-looking
information. Such forward-looking information or statements
(FLS) are provided for the purpose of providing
information about management's current expectations and plans
relating to the future. Readers are cautioned that reliance on such
information may not be appropriate for other purposes. Any such FLS
may be identified by words such as “proposed”, “expects”,
“intends”, “may”, “will”, and similar expressions or variations
thereof. FLS contained or referred to in this press release
includes, but is not limited to, the future or expected performance
of the Company’s portfolio companies; the Company’s continuing
investment thesis in respect of such portfolio companies; the
Company’s investment approach, objectives and strategy, including
investment selection and pace of continued capital deployment; the
ability to realize on further potential investment opportunities;
the structuring of its future investments and its plans to manage
those investments; the Company’s ability to utilize its Normal
Course Issuer Bid; and the Company’s financial performance.
FLS involves known and unknown risks,
uncertainties and other factors that may cause actual results or
events to differ materially from those anticipated in such
forward-looking information. The Company believes that the
expectations reflected in the FLS are reasonable but no assurance
can be given that these expectations will prove to be correct. Some
of the risks and other factors which could cause results to differ
materially from those expressed in FLS contained in this press
release include, but are not limited to: the continued impact of
COVID-19 on targeted investments, the economy and markets
generally, as well as the identified risk factors included in the
Company’s public disclosure, including the Annual Information Form
dated March 25, 2021, which is available on SEDAR at www.sedar.com
and on the Company’s website at www.faxcapitalcorp.com. The FLS in
this press release reflect the current expectations, assumptions,
judgements and/or beliefs of the Company based on information
currently available to the Company, and are subject to change
without notice. Any FLS speaks only as of the date on which it is
made and, except as may be required by applicable securities laws,
the Company disclaims any intent or obligation to update any FLS,
whether as a result of new information, future events or results or
otherwise. The FLS contained in this press release are expressly
qualified by this cautionary statement. For more information on the
Company, please review the Company's continuous disclosure filings
that are available at www.sedar.com.
No securities regulatory authority has either
approved or disapproved of the contents of this press release. The
Toronto Stock Exchange accepts no responsibility for the adequacy
or accuracy of this release.
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