Queen's Road Capital Investment (QRC) Q1 2025 earnings summary

Executive summary

• Net income for the three months ended November 30, 2024, was $60.5 million, up from $31.1 million year-over-year.

• Total investments increased to $341.8 million from $279.3 million as of August 31, 2024.

• Shareholders' equity rose to $320.4 million from $250.0 million at the prior quarter-end.

• 21.4 million shares were issued via private placement, with significant participation from related parties.

• Dividend of C$0.021 per share declared and paid, partially in cash and partially via DRIP.

Financial highlights

• Revenue from investments totaled $61.8 million, driven by $56.1 million in unrealized gains and $1.2 million in realized gains.

• Operating expenses increased to $963,140 from $539,861 year-over-year.

• EPS was $0.13 basic and $0.12 diluted, compared to $0.07 and $0.06, respectively, year-over-year.

• Cash and cash equivalents rose to $4.2 million from $1.1 million sequentially.

• Borrowings decreased to $28.4 million from $31.6 million sequentially.

Outlook and guidance

• Committed to purchase an additional $10 million in Moxico convertible debentures by January 31, 2025.

• Share consolidation (1-for-10) approved in January 2025 to streamline capital structure.