viewTimia Capital Corp.

TIMIA Capital doubles revenue year-over-year in fiscal 4Q on growing investment portfolio

It saw revenue of C$998,431 in the three months ended November 30, a 99% increase

$100 bills
TIMIA completed nine revenue-financing investments during the fiscal year and exited one investment from its loan portfolio

TIMIA Capital Corporation (CVE:TCA) (OTCMKTS:TIMCF) reported fiscal fourth quarter results on Friday that showed the company brought in nearly double the revenue it did during the same period a year earlier. 

The specialty finance company saw revenue of C$998,431 in the three months ended November 30, a 99% increase year-over-year. Its adjusted loss narrowed to C$50,196 from C$100,347. 

That revenue bump was driven primarily by monthly payments derived from its investment portfolio, both by an increase in investments and by growing revenue within the portfolio as a whole under its revenue-financing structure.

READ: TIMIA Capital expands portfolio as it provides US$3M facility to Zmags and its Creator platform

TIMIA completed nine revenue-financing investments during the fiscal year and exited one investment from its loan portfolio. Interest income for the full year was a record C$3.05 million, up from C$1.52 million in fiscal 2018.

“We’ve achieved record growth in revenue and assets under management for the third year in a row by leveraging our fintech platform and successful business model,” CEO Mike Walkinshaw said in a statement. “Our reputation, target markets and related deal flow are growing in the [Security-as-a-Service] industry, along with our non-dilutive growth capital for early stage technology companies.”

During the quarter, TIMIA dispersed US$2.3 million to a pair of US companies — US$900,000 of a US$3 million facility to San Francisco-based Resilio Inc and US$1.4 million of another US$3 million facility to a Connecticut-based software company. 

The Vancouver-based company also provided follow-on investments of US$1.5 million to a trio of US companies.

“We have seen a jump in referred business from our existing network of clients as we continue to broaden our marketing presence to attract new business,” Walkinshaw said. “Our portfolio of SaaS companies has never been stronger as our fintech platform improves with each potential client.”

On November 30, TIMIA had a cash balance of C$4.6 million and working capital of C$4.5 million, up from C$3.7 million and C$3.6 million, respectively, a year earlier.

TIMIA’s business model provides growth capital to technology companies in exchange for payments based on monthly revenue, what’s known as revenue-based financing, allowing SaaS and knowledge-based start-ups to “pay as they grow.”

Management News

Chief Investment Officer Greg Smith has left TIMIA for personal reasons, the company said. 

“Greg has been a driving force in the North American SaaS industry,” Walkinshaw said. “I can’t thank Greg enough for his passion, his commitment and his presence within TIMIA.” 

Smith will continue to advise the company on a needed basis.

“I am very proud of TIMIA’s success and my role in financing some of North America’s most exciting software companies,” Smith said. “I am taking on a much larger challenge with ALS, aka Lou Gehrig’s disease, and need to focus all my energy on my health and my family.”

Shares in Toronto were unchanged at C$0.20 each.

Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com 

Follow him on Twitter @andrew_kessel

Quick facts: Timia Capital Corp.

Price: 0.18 CAD

Market: TSX-V
Market Cap: $8.24 m

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