Monthly Archives: May 2016

Crown Capital Completes $15 Million Term Loan with Bill Gosling Outsourcing

CALGARY, May 25, 2016 – Crown Capital Partners Inc. (“Crown”) (TSX: CRN), which provides growth capital to successful mid-market companies, today announced the closing of a $15 million, five-year term loan agreement (the “Agreement”) with Bill Gosling Outsourcing Holding Corp. (“BGO”), formerly Allied Global Holdings Inc., a global provider of call center solutions to blue-chip clients.

Headquartered in Newmarket, Ontario, BGO offers a full suite of customer contact solution services, including accounts receivable management, customer care, and customer sales & acquisition, and operates nine call centers in Canada, the U.S., the U.K. and Philippines. Founded in 1955, BGO’s key customers include Fortune 100 and Fortune 1000 companies in the financial, communications, utility and government sectors. BGO maintains strong relationships with its customers, with average tenure of more than 10 years for its top 10 customers.

“Bill Gosling Outsourcing is a successful, well-managed company and is a leader in its niche,” said Chris Johnson, Crown’s President & CEO. “Building on its successes, BGO will continue to benefit from the ongoing shift to business process outsourcing. Driven by growth from key customers and its Philippines expansion, BGO expects to increase revenue and EBITDA significantly over the next three years. We are pleased to partner with them as they continue to grow the business.”

“The Crown team clearly understands how to work with entrepreneurs and growth companies, and they provided a financial solution that is aligned with our business requirements and plans,” said Dave Rae, CEO of BGO.

The Agreement provides for a $15 million term loan to BGO by Crown Capital Fund IV, LP, an investment fund managed by Crown and in which Crown holds a 50% interest. The term loan bears a fixed interest rate of 12% per annum, compounded and payable monthly, and matures in 60 months.

ABOUT CROWN 

Crown (TSX: CRN) is a specialty finance company focused on providing capital to successful Canadian and select U.S. companies that are unwilling or unable to obtain suitable financing from traditional capital providers such as banks and private equity funds. Crown also manages capital pools, including some in which Crown has a direct ownership interest. Crown originates, structures and provides tailored special situation and long-term financing solutions to a diversified group of private and public mid-market companies in the form of loans, royalties and other structures with minimal or no ownership dilution.

FORWARD-LOOKING STATEMENTS 

This news release contains certain “forward looking statements” and certain “forward looking information” as defined under applicable Canadian and U.S. securities laws. Forward-looking statements can generally be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “continue”, “plans” or similar terminology. Forward-looking statements in this news release include, but are not limited to, statements, management’s beliefs, expectations or intentions regarding the business process outsourcing industry; BGO’s expansion and growth plans; and Crown’s business plans and strategy. Forward-looking statements are based on forecasts of future results, estimates of amounts not yet determinable and assumptions that while believed by management to be reasonable, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Forward-looking statements are subject to various risks and uncertainties concerning the specific factors identified in the Crown’s periodic filings with Canadian securities regulators. See Crown’s most recent Annual Information Form for a detailed discussion of the risk factors affecting Crown. Crown undertakes no obligation to update forward-looking information except as required by applicable law. Such forward-looking information represents management’s best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information.

 For further information, please contact:

Craig Armitage
Investor Relations
[email protected]al.ca

(416) 347-8954

 

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Crown Capital Completes $15 Million Term Loan with Bill Gosling Outsourcing2020-05-12T18:06:44+00:00

Crown Capital Partners Announces Q1 2016 Financial Results

CALGARY, May 11, 2016 – Crown Capital Partners Inc. (“Crown” or the “Corporation”) (TSX: CRN), which provides growth capital to successful mid-market companies, today announced its financial results for the three months ended March 31, 2016 (“Q1 2016”). Crown’s complete financial statements and management’s discussion and analysis for Q1 2016 are available on SEDAR at www.sedar.com.

Q1 2016 Financial & Operating Highlights

  • Revenue of $5.1 million, including fees and other income of $0.6 million, interest revenue of $2.4 million, net realized gain on sale of investments of $1.7 million, and net change in unrealized gains in fair value of investments of $0.4 million.
  • Adjusted EBIT1 of $2.7 million.
  • Total comprehensive income, net of non-controlling interest, of $1.6 million, or $0.17 per common share (basic).
  • Total equity per common share (basic) of $10.56 at March 31, 2016.
  • Total assets of $131.8 million at March 31, 2016, up from 130.1 million at December 31, 2015.
  • Cash and cash equivalents increased to $46.9 million, compared with $43.6 million at
    December 31, 2015.
  • Established a dividend policy and, on January 29, 2016, paid a first quarterly dividend of $0.11 per common share.
  • Sold all the common shares of Claude Resources Inc. held by the Norrep Credit Opportunities Fund II, LP (“NCOF II”) and Norrep Credit Opportunities Fund II (Parallel), LP for a realized gain to the Corporation of $1.7 million.
  • Subsequent to quarter end, on April 22, 2016, Crown declared a quarterly dividend of $0.11 per common share.

“In the first quarter of 2016, we implemented a dividend, which was an important milestone for the company, and generated a strong increase in interest revenue, reflecting the impact of the loans we announced in 2015,” said Chris Johnson, President and CEO of Crown. “We also increased cash in the quarter, and continue to carry a significant cash balance, which we expect to deploy in the near-term, both in our special situations and long-term products, to generate growing earnings for shareholders. Our transaction pipeline remains strong, supported by the team members we added last year and a very positive market environment for Crown. With 34 transactions completed over our history, we are one of the most experienced and active participants in the mid-market, positioning us well to benefit from these market conditions.”

Q1 2016 Financial Results Summary
Crown’s financial position at March 31, 2016 and its financial results for the quarter ended March 31, 2016 are not comparable to the same period in the prior year due mostly to the initial public offering of Crown’s common shares and the acquisition of a 69.75% interest in NCOF II, both in July 2015, and the establishment of Crown Capital Fund IV LP in September 2015 and Crown Capital Private Credit LP in December 2015.

Selected Quarterly Info - May 11-16

Reco Earnings - May 11-16

¹Adjusted EBIT is not a measure of financial performance (nor does it have a standardized meaning) under IFRS. In evaluating this measure, investors should consider that the methodology applied in calculating this measure may differ among companies and analysts. Adjusted EBIT is calculated by Crown as earnings before non-cash share-based compensation, finance costs and income taxes less net income and comprehensive income attributable to non-controlling interests. The Corporation has provided a reconciliation of earnings before income taxes to Adjusted EBIT in this news release. The Corporation believes Adjusted EBIT is a useful supplemental measure that may assist investors in assessing the financial performance and the cash anticipated to be generated by Crown’s business. Adjusted EBIT should not be considered as the sole measure of Crown’s performance and should not be considered in isolation from, or as a substitute for, analysis of the Corporation’s financial statements.

Conference Call & Webcast
Crown will host a conference call to discuss its Q1 2016 financial results at 2:00 p.m. EDT on May 11, 2016. The call will be hosted by Chris Johnson, President & CEO, and Lyle Bolen, CFO. To participate in the call, dial 647-427-7450 or 1-888-231-8191 using the conference ID  94982204. The audio webcast can be accessed at www.crowncapital.ca under Investor Relations or at http://bit.ly/1UeXhA6. Listeners should access the webcast or call 10-15 minutes before the start time to ensure they are connected.

ABOUT CROWN
Crown (TSX: CRN) is a specialty finance company focused on providing capital to successful Canadian and select U.S. companies that are unwilling or unable to obtain suitable financing from traditional capital providers such as banks and private equity funds. Crown also manages capital pools, including some in which Crown has a direct ownership interest. Crown originates, structures and provides tailored special situation and long-term financing solutions to a diversified group of private and public mid-market companies in the form of loans, royalties and other structures with minimal or no ownership dilution.

FORWARD-LOOKING STATEMENTS
This news release contains certain “forward looking statements” and certain “forward looking information” as defined under applicable Canadian and U.S. securities laws. Forward-looking statements can generally be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “continue”, “plans” or similar terminology. Forward-looking statements in this news release include, but are not limited to, statements, management’s beliefs, expectations or intentions regarding the alternative financial market and the general economy, transaction pipeline, Crown’s business plans and strategy, including anticipated capital deployments, and Crown’s future cash flow and shareholder value. Forward-looking statements are based on forecasts of future results, estimates of amounts not yet determinable and assumptions that while believed by management to be reasonable, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Forward-looking statements are subject to various risks and uncertainties concerning the specific factors identified in the Crown’s periodic filings with Canadian securities regulators. See the AIF for a detailed discussion of the risk factors affecting Crown. In addition, Crown’s dividend policy will be reviewed from time to time in the context of the Corporation’s earnings, financial requirements for its operations, and other relevant factors and the declaration of a dividend will always be at the discretion of the board of directors of the Corporation. Crown undertakes no obligation to update forward-looking information except as required by applicable law. Such forward-looking information represents management’s best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information.

For further information, please contact:

Christopher A. Johnson, CFA
President & CEO
[email protected]
(416) 640-6715

Craig Armitage
Investor Relations
[email protected]
(416) 347-8954

Additional information relating to Crown is available on SEDAR at www.sedar.com

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Crown Capital Partners Announces Q1 2016 Financial Results2020-05-12T18:06:44+00:00