Flow Capital (FW) Q2 2024 earnings summary

Executive summary

• Achieved record recurring loan interest income of CAD 1.9 million in Q2 2024, up 28.5% year-over-year and 5.7% sequentially.

• Book value per share reached CAD 1.255, up 2.4% sequentially and 37% over two years.

• Total assets grew to CAD 65.8 million, a 12% increase year-over-year.

• New capital deployments hit CAD 29 million over the past twelve months, a company record.

• Profitable for 17 consecutive quarters, with strong portfolio IRR and robust pipeline activity.

Financial highlights

• Recurring loan interest income was CAD 1,858,194 in Q2 2024, up from CAD 1,446,156 in Q2 2023.

• IFRS total reported revenue was CAD 2.1 million for the quarter and CAD 4.11 million for the year.

• Net income for Q2 2024 was CAD 189,971, up from CAD 88,110 in Q2 2023.

• Adjusted recurring free cash flow was CAD 283,036 in Q2 2024, with CAD 1.4 million over the last four quarters.

• Book value per share at CAD 1.2548 in Q2 2024, up from CAD 1.1786 in Q2 2023.

Outlook and guidance

• On track to exceed CAD 10 million recurring revenue run rate for the year, currently over CAD 9 million.

• Confident in hitting revenue targets before year-end due to a strong pipeline.

• Targeting asset growth to CAD 100 million, then CAD 250 million, and CAD 500 million over the next several years.

• Focus remains on accelerating capital deployment into new loans while maintaining a 6-year portfolio IRR over 26%.

• Portfolio growth may be tempered by access to capital.