Stack Capital Group Inc. Reports Q1-2023 Financial Results

TORONTO, May 10, 2023 (GLOBE NEWSWIRE) -- Stack Capital Group Inc., (“Stack Capital” or the “Company”) (TSX: STCK and STCK.WT) today announced its financial results for the first quarter ended March 31, 2023. Stack Capital reports all amounts in Canadian Dollars unless otherwise stated.

Company Commentary:

  • As at March 31, 2023, Book Value per Share of the Company was $11.22, compared with $11.28 as at December 31, 2022.

  • The Company’s cash position as at March 31, 2023, was $30.2 million or $3.33 per share.

  • To date, the Company has completed eight investments with fair value totalling $70.2 million or $7.74 per share as at March 31, 2023, into the following:

    • Prove Identity, Inc. (cyber-security)
    • Newfront Insurance, Inc. (insurance & benefits)
    • Locus Robotics, Inc. (robotics)
    • Omio, Inc. (travel & leisure)
    • SpaceX (space exploration & communications)
    • Bolt Financial, Inc. (e-commerce)
    • Hopper, Inc. (travel & leisure)
    • Varo Money, Inc. (neo-banking)

  • On November 15, 2022, the Company announced a normal course issuer bid to buy back its outstanding common shares which it believes to be undervalued. During Q1-2023, 83,200 shares were repurchased at an average price of $5.88 per share. Since the initiation of the normal course issuer bid, 174,700 shares have been repurchased at an average price of $5.89.

“It’s extremely encouraging to see our existing portfolio companies continue to grow and flourish in the current economic environment,” said Jeff Parks, CEO of Stack Capital. “The investing landscape for growth to late-stage private businesses also continues to become more attractive by the day for Stack Capital, which has a significant amount of cash available to deploy across quality, high-growth companies, at reasonable valuations. In addition to targeting preferred shares which provide added downside protection, we’ll seek to benefit from of other investor-friendly terms such as IPO ratchets and liquidation preferences with future investment opportunities.”

Q1-2023 Highlights

  • As at March 31, 2023, the Book Value of the Company was $101.7 million, and the Book Value per Share was $11.22. A detailed summary of Book Value per Share is as follows:

Breakdown of Book Value per Share as at March 31, 2023: 
Cash$        3.33
Investment – Prove Identity Inc.1 1.28
Investment – Newfront Insurance, Inc. 1.20
Investment – Locus Robotics, Inc. 1.19
Investment – Omio, Inc. 1.05
Investment – SpaceX (FNEX Ventures LLC – Series 103) 1.03
Investment – Bolt Financial, Inc. 0.90
Investment – Hopper Inc. 0.90
Investment – Varo Money, Inc.                     0.33
Net other assets                   0.01
Book Value per Share$        11.22

        1 This includes a deferred gain of $1.1 million for Prove Identity Inc. This was due to an immediate gain in valuation which per IFRS 9 Financial Instruments requires the gain to be deferred and netted against the carrying value.

  • Space Exploration Technology Corp. (“SpaceX”) has launched 31 rockets to date during 2023, including 28 Falcon 9 (15 of which were for Starlink), two Falcon Heavy, and the inaugural Starship launch. Although the Starship test launch ended with an explosion after roughly three minutes of flight, it did achieve a number of significant milestones which several prominent space industry professionals and SpaceX itself deemed valuable. In our opinion, the Starship test launch has moved SpaceX one step closer to the commercialization of the largest, fully reusable rocket system in the world.

  • During Q1-2023, Locus Robotics, Inc (“Locus”) announced a new partnership with Berkshire Grey to further provide interoperability among robotics solutions. Locus also introduced LocusONE to allow clients to orchestrate large fleets of multiple robotics in large warehouses. In addition, Locus successfully won new business from several large customers worldwide, including Concordance Healthcare Solutions, ABB Optical Group, and Optoro.

About Stack Capital

Stack Capital is an investment holding company and its business objective is to invest in equity, debt and/or other securities of growth-to-late-stage private businesses. Through Stack Capital, shareholders have the opportunity to gain exposure to a diversified private investment portfolio; participate in the private market; and have liquidity due to the listing of the Common Shares and Warrants on the TSX. At the same time, the public structure also allows the Company to focus its efforts on maximizing long-term performance through a portfolio of high growth businesses, which are not widely available to most Canadian investors. SC Partners Ltd. (the “Manager”) has taken the initiative in creating the Company and acts as the Company's administrator and is responsible to source and advise with respect to all investments for the Company.

For more information, please visit our website at or contact:

Brian Viveiros
VP, Corporate Development, and Investor Relations

Non-IFRS Financial Measures

This press release may make reference to the following financial measures which are not recognized under International Financial Reporting Standards (“IFRS”), and which do not have a standard meaning prescribed by IFRS:

  • Book Value - the aggregate fair value of the assets of the Company on the referenced date, less the aggregate carrying value of the liabilities, excluding any deferred taxes or unrealized deferred gains or losses if applicable, of the Company; and

  • Book Value per Share (BVPS) - the Book Value on the referenced day divided by the aggregate number of Common Shares that are outstanding on such day.

The Company’s Book Value and Book Value per Share is a measure of the performance of the Company as a whole. The Company’s method of determining this financial measure may differ from other issuers’ methods and, accordingly, this amount may not be comparable to measures used by other issuers. 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 per share prepared in accordance with IFRS.

Cautionary Note Regarding Forward-Looking Information

This press release contains forward-looking information. Such forward-looking statements or information 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 forward-looking information may be identified by words such as “proposed”, “expects”, “intends”, “may”, “will”, and similar expressions. Forward-looking information contained or referred to in this press release includes but may not be limited to the business of Stack Capital and the risks associated therewith, including those identified in the Annual Information Filing under the heading “Risk Factors”.

Forward-looking statements or information are based on a number of factors and assumptions which have been used to develop such statements and information, but which may prove to be incorrect. Although Stack Capital believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because Stack Capital can give no assurance that such expectations will prove to be correct. Factors that could cause actual results to differ materially from those described in such forward-looking information include, but are not limited to, the ability to capitalize on investment opportunities. The forward-looking information in this press release reflects the current expectations, assumptions and/or beliefs of Stack Capital based on information currently available to Stack Capital.

Any forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, Stack Capital disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events, or results or otherwise. The forward-looking statements or information contained in this press release are expressly qualified by this cautionary statement.