Earnings release
Page 1
Crown Capital Partners Announces Q1 2025 Financial Results CALGARY, AB , May 7, 2025 /CNW/ - Crown Capital Partners Inc. ("Crown" or the "Corporation") (TSX: CRWN) today announced its financial results for the three months ended March 31, 2025 . Crown's complete financial statements and management's discussion and analysis are available on SEDAR at www.sedarplus.ca . Q1 2025 Financial & Operating Overview Crown recognized a net loss of $(1.8) million ( $0.32 loss per basic share) in Q1 2025 compared to a net loss of $(0.6) million ( $0.11 loss per basic share) in Q1 2024. Adjusted EBITDA 1 was $1.7 million in Q1 2025 compared to $1.3 million in Q1 2024 due primarily to improved earnings from the Distribution Services and Network Services segments and reductions in expenses of the Corporate and Other segment, partially offset by decreased earnings from the Real Estate and Distributed Power segments. Distribution services revenue was $10.8 million in Q1 2025 compared to $8.2 million in Q1 2024, an increase of 31.4%. This segment reported net income before income taxes of $0.4 million (2024 – net loss before income taxes $(0.5) million ) and Adjusted EBITDA of $1.0 million (2024 - $0.2 million ), with the year-over-year improvement attributable to the impact of operational efficiencies implemented throughout 2023 and 2024 and to increased capacity utilization across the warehouses. Capacity utilization was 62% at March 31, 2025 , compared with 62% at December 31, 2024 , 62% at September 30, 2024 , 58% at June 30, 2024 , 52% at March 31, 2024 . Network services revenue was $8.7 million in Q1 2025 compared to $6.7 million in Q1 2024, an increase of 29.9% attributable to a year-over-year increase in revenues from Galaxy (40.9%) due to additional hardware sales and modest increases from Community Network Partners in respect of revenues from the high speed internet infrastructure project in Brooks, Alberta and the Ontario Connects: Accelerated High-Speed Internet Program (the "Ontario Connects Program") and earnings from Inuknet, partially offset by a decrease in revenues from the continued runoff of customer contracts in WireIE. This segment reported a net income before income taxes of $0.2 million (2024 – net loss before income taxes of $(0.03) million ) and Adjusted EBITDA of $1.1 million (2024 - $0.9 million ) with the increase attributable to lower margin sales from a government sector contract in Galaxy. Real Estate segment revenue was $1.0 million in Q1 2025 compared to $1.6 million in Q1 2024, a decrease of 36.3% year-over-year due to the timing of fees from construction and development fees. This segment recorded a net loss before income taxes of $(0.03) million (2024 – net income before income taxes of $0.7 million ) and Adjusted EBITDA of $0.09 million (2024 - $0.9 million ). Distributed Power revenue was $0.3 million in Q1 2025 compared to $0.8 million in Q1 2024, a decrease of 68.2% due to softer power prices in the Alberta market. This segment reported a net loss before income taxes of $(0.2) million (2024 – net income before income taxes of $0.003 million ) and Adjusted EBITDA of $(0.09) million (2024 - $0.1 million ). The Specialty Finance segment recorded net income before income taxes of $0.1 million in Q1 2025 (Q1 2024 - $1.7 million ), representing Crown's share of earnings of Crown Partners Fund, and Adjusted EBITDA of $0.003 million (2024 - $0.004 million ), representing income distributions received from Crown Partners Fund. Total equity at quarter-end decreased to $6.9 million from $8.6 million at the end of 2024 due to a net loss attributable to shareholders of $(1.8) million . Total equity per share decreased to $1.22 per basic share from $1.53 per basic share as at December 31, 2024 . Q1 2025 Financial Results Summary
Page 2
AS AT AND FOR THE THREE MONTHS ENDED MAR. 31 (THOUSANDS, EXCEPT PER SHARE AND NUMBER OF COMMON SHARES) 2025 2024 Revenue: Distribution services revenue $ 10,786 $ 8,209 Network services revenue 8,725 6,719 Fees and other income 1,366 2,011 Distributed power interest revenue 100 183 Merchant power revenue 142 604 Total revenue 21,119 17,726 Share of earnings from investments in associates 179 2,227 Net loss attributable to Shareholders (1,796) (604) Comprehensive loss attributable to Shareholders (1,793) (684) Adjusted EBITDA 1 1,679 1,291 Total assets 145,535 174,619 Total equity 6,898 37,544 Per share: - Net loss to Shareholders - basic $ (0.32) $ (0.11) - Net loss to Shareholders - diluted (0.32) (0.11) - Adjusted EBITDA per share - basic 1 0.30 0.23 - Total equity per share - basic 1.22 6.72 Number of common shares: - Outstanding at end of period 5,672,646 5,588,646 - Weighted average outstanding - basic 5,627,846 5,588,646 - Weighted average outstanding - diluted 5,627,846 5,588,646 Quarterly reconciliations of loss before income taxes to Adjusted EBITDA 2025 2024 2023 FOR THE PERIODS ENDED (THOUSANDS) Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Loss before income taxes (1,536) (10,883) (2,632) (14,885) (306) (5,414) (2,154) (1,185) Adjustments for amounts attributable to shareholders in relation to: 1 Depreciation and amortization 3,036 3,125 2,826 2,804 2,718 3,122 2,314 2,275 Finance costs 1,990 2,533 2,413 1,975 2,057 Payments of lease obligations (1,453) (1,381) (1,350) (1,325) (1,299) (1,306) (1,273) (1,296) Share-based compensation (recovery) expense (101) 121 (358) (340) (138) Impairments of assets held for sale, inventory, property and equipment, and property and equipment under development and related deposits - 8,162 - - - 2,618 - - Loss on disposal of assets held for sale - 13 - 22 - - - - Remeasurement of financial instruments (80) (1,088) - - - - - (Recovery of) provision for expected credit losses (1) (115) 140 2 4 98 (123) - Share of (earnings) losses from investments in associates (179) 516 (235) 17,594 (2,227) Income distributions received from Crown Partners Fund 3 4 - 157 - 231 90 2,069 Performance bonus (recovery) expense - - - (4,015) 482 73 3 170 Adjusted EBITDA 1,679 1,007 804 1,989 1,291 503 403 2,589 Notes: 1. Adjustments exclude any amounts attributable to non-controlling interests Reconciliations of (loss) income before income taxes to Adjusted EBITDA by operating segment Reportable Segments FOR THE THREE MONTHS ENDED MAR. 31, 2025 (THOUSANDS) Distribution Services Network Services Specialty Finance Distributed Power Real Estate Corporate and Other Total Income (loss) before income taxes 414 177 103 (209) (30) (1,991) (1,536) Adjustments for amounts attributable to shareholders in relation to: 1 Depreciation and amortization 1,675 1,044 - 122 118 77 3,036 Finance costs 356 21 - - - 1,613 1,990 Payments of lease obligations (1,389) (64) - - - - (1,453) Share-based compensation recovery - - - - - (101) (101) Remeasurement of financial instruments (80) - - - - - (80) Recovery of expected credit losses - - - (1) - - (1) Share of earnings from investments in associates - (76) (103) - - - (179) Income distributions received from Crown Partners Fund - - 3 - - - 3 Adjusted EBITDA 976 1,102 3 (88) 88 (402) 1,679 Notes: 1. Adjustments exclude any amounts attributable to non-controlling interests Reportable Segments FOR THE THREE MONTHS ENDED MAR. 31, 2024 (THOUSANDS) Distribution Services Network Services Specialty Finance Distributed Power Real Estate Corporate and Other Total (Loss) income before income taxes attributable to Shareholders (528) (32) 1,749 3 744 (2,242) (306) Adjustments for amounts attributable to shareholders in relation to: 1 Depreciation and amortization 1,496 916 - 124 118 64 2,718 Finance costs 451 26 - - - 1,580 2,057 Payments of lease obligations (1,240) (59) - - - - (1,299) Share-based compensation recovery - - - - - (138) (138)
Page 3
Provision for expected credit losses - - - 4 - - 4 Share of earnings from investments in associates - - (2,227) - - - (2,227) Performance bonus expense - - 482 - - - 482 Adjusted EBITDA 179 851 4 131 862 (736) 1,291 Notes: 1. Adjustments exclude any amounts attributable to non-controlling interests 1 Adjusted EBITDA 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 these measures might differ among companies and analysts. The Corporation has provided a reconciliation of loss before income taxes attributable to Shareholders to Adjusted EBITDA in this news release. Amounts in respect of non-controlling interests are excluded in the calculation of Adjusted EBITDA. We believe that Adjusted EBITDA is a useful supplemental measure in the context of Crown's operations to assist investors in assessing the performance of our business as it provides a more relevant picture of operating results by facilitating a comparison of our performance on a consistent basis from period-to-period and provides a more complete understanding of factors and trends affecting our business. Adjusted EBITDA 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. About Crown Capital Partners (TSX:CRWN) Founded in 2000 within Crown Life Insurance Company, Crown Capital Partners is a capital partner to entrepreneurs and growth businesses mainly operating in the telecommunications infrastructure, distribution services, and distributed power markets. We focus on growth industries that require a specialized capital partner, and we aim to create long-term value by acting as both a direct investor in operating businesses serving these markets and as a manager of investment funds for institutional partners. For additional information, please visit crowncapital.ca. 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 distribution services market, the network services market and the general economy, Crown's business plans and strategy, including anticipated investment dispositions and capital deployments and the timing thereof, anticipated refinancing activity and Crown's future earnings. 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. 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. SOURCE Crown Capital Partners Inc. View original content: http://www.newswire.ca/en/releases/archive/May2025/07/c7980.html %SEDAR: 00037206E For further information: For further information, please contact: Michael Overvelde, Chief Financial Officer, investor.relations@crowncapital.ca, (416) 640-6887 CO: Crown Capital Partners Inc.
Page 4
CNW 18:00e 07-MAY-25