TORONTO, May 15, 2018 (GLOBE NEWSWIRE) -- Difference Capital Financial Inc. (“DCF” or the “Company”) (TSX:DCF) (TSX:DCF.DB) today reports its financial results for the first quarter ended March 31, 2018.
Q1 2018 Highlights
- The portfolio produced a gross loss of $2.4 million during the quarter, primarily driven by mark-to-market losses on publicly traded positions of $3.4 million, offset in part by unrealized gain on foreign exchange of $0.7 million.
- Net asset value1 per share as at March 31, 2018 decreased to $7.07, compared to $7.74 at December 31, 2017, and $7.77 at March 31, 2017.
- Net loss for the quarter was $4.0 million or $0.68 per share, compared to a net income of $4.0 million or $0.69 per share for the fourth quarter of 2017 and a loss of $0.8 million or $0.13 per share for the first quarter of 2017.
- In March 2018, the Company sold its indirect stake in the 618 acre undeveloped land known as the Eagle in Rancho Mirage, California for initial gross proceeds of approximately $14.4 million.
- The Company also sold its common and preferred shares in Thunderbird Entertainment Inc. (“Thunderbird”) in March 2018, generating net proceeds of $5.75 million.
- Consolidated cash, cash equivalents, and distributions receivable at March 31, 2018 – including cash at subsidiaries – was $23.8 million. This compares to the outstanding maturity value of the Company’s 8% July 31, 2018 unsecured convertible debentures (the “Debentures”) of $29.2 million.
| (figures are in $000 except per share amounts and shares outstanding) | Q1 2018 | Q4 2017 | Q1 2017 | ||||||
| Net gain (loss) on investments and marketable securities | (2,607 | ) | 5,201 | 432 | |||||
| Other income | 180 | 298 | 316 | ||||||
| Total Portfolio Contribution | (2,427 | ) | 5,499 | 748 | |||||
| Total expenses | (1,534 | ) | (1,472 | ) | (1,533 | ) | |||
| Net income (loss) | (3,961 | ) | 4,027 | (785 | ) | ||||
| Earnings (loss) per share | $ | (0.68 | ) | $ | 0.69 | $ | (0.13 | ) | |
| Total assets | 72,496 | 77,033 | 74,355 | ||||||
| Total liabilities | 31,362 | 31,995 | 28,819 | ||||||
| Net asset value | 41,134 | 45,038 | 45,536 | ||||||
| Shares outstanding | 5,816,721 | 5,816,721 | 5,858,637 | ||||||
| Net asset value per share | $ | 7.07 | $ | 7.74 | $ | 7.77 | |||
| Share price | $ | 2.85 | $ | 3.75 | $ | 4.05 | |||
First Quarter Financial Results
Net loss for the quarter ended March 31, 2018 was $4.0 million, or $0.68 per share compared to a net loss of $0.8 million, or $0.13 per share for the quarter ended March 31, 2017 and a net income of $4.0 million, or $0.69 per share for the quarter ended December 31, 2017.
For the three months ended March 31, 2018, the Company had a net realized loss on disposition of investments and marketable securities of $0.2 million, compared to a realized gain on disposition of $0.3 million during the same period last year and a realized gain of $0.4 million during the fourth quarter of 2017. The net realized loss during the recent quarter was primarily due to the sale of Thunderbird.
For the three months ended March 31, 2018, the Company recorded $2.4 million of unrealized loss on investments and marketable securities, compared to a net unrealized gain of $0.2 million during the same period last year and a net unrealized gain of $4.8 million during the fourth quarter of 2017. The significant changes in unrealized loss of the Company’s investments and marketable securities during the quarter were as follows:
- Marked-to-market losses of publicly listed investments and marketable securities including Mogo Finance Technology Inc. of $3.4 million; offset by
- a reversal of unrealized losses of $0.3 million upon disposal of Thunderbird, and
- unrealized gains on foreign exchange of $0.7 million on the Company’s U.S. investments.
Other income included interest and dividend income of $0.2 million during the three months ended March 31, 2018, compared to $0.3 million in the same period of 2017 and $0.3 million in the previous quarter.
Total expenses, including interest on Debentures, for the quarter ended March 31, 2018 were $1.5 million, compared to $1.5 million for the same quarter in 2017 and $1.5 million in the previous quarter.
Following the recent sales of our U.S. real estate investment and Thunderbird securities, our consolidated cash, cash equivalents and distributions receivable was approximately $23.8 million at quarter end. We continue to work to be in a position to fully pay for all maturing Debentures at or prior to maturity. For more details, please see disclosures in our financial statements and MD&A.
Please refer to the section regarding forward-looking statements which form an integral part of this release. These results, along with the audited financial statements and the company's MD&A, are available on the company's website at www.differencecapital.com and on SEDAR at www.sedar.com.
About Difference Capital Financial Inc.
Difference Capital Financial Inc. invests in and advises growth companies. We leverage our capital market expertise to help unlock value in technology, media and healthcare companies as they approach important milestones in their business lifecycle.
Caution Regarding Forward-Looking Statements
Certain statements contained in this press release may be deemed “forward-looking statements.” Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects,” “plans,” “anticipates,” “believes,” “intends,” “estimates,” “projects,” “potential,” “scheduled,” “will seek,” and similar expressions, or that events or conditions “will,” “would,” “may,” “could” or “should” occur. Although DCF believes that the expectations reflected in those forward-looking statements are reasonable, no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this press release should not be unduly relied upon. These statements speak only as of the date of this press release. DCF undertakes no obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise, other than as required by applicable law.
1 Net asset value (“NAV”) is a non-IFRS financial measure and is calculated by subtracting the aggregate fair value of the liabilities of the Company from the aggregate fair value of its assets. Net asset value per share is calculated by dividing NAV by the number of common shares outstanding as at the measurement date. The term net asset value per share does not have any standardized meaning according to IFRS and therefore may not be comparable to similar measures presented by other companies.
Contact Information
Henry Kneis
Chief Executive Officer
(416) 649-5090
www.differencecapital.com