Note: All amounts in Canadian dollars unless otherwise
indicated.
Second Quarter 2015 Highlights
- Earnings per share (diluted) of $0.36, an increase of 16% from $0.31 last quarter.
- ROE was 15.2%, an increase from 13.6% in the previous
quarter.
- Gross loans receivable before derecognition of $1,044 million at June 30,
2015, up $138 million, or 15%,
from previous quarter and up $507
million, or 94% from same quarter last year.
- Average loan portfolio outstanding was $928 million, an increase of $64 million or 7% from the previous quarter and
up $426 million or 85% from the same
quarter last year.
- Gross yield for the quarter was 18.8%, an increase from 17.9%
in the previous quarter.
- Total revenue of $39 million for
the quarter, up $4 million, or 12%
from previous quarter and up $16
million, or 71% from same quarter last year.
- Net income was $18.4 million for
the quarter, up $2.4 million, or 15%
from $16.0 million in previous
quarter.
- Credit quality continues to be very strong as evidenced by an
annualized provision rate of 1.2% for the second quarter.
- As at June 30, 2015, the
estimated collateral value coverage on net loans receivable was
approximately 145% with a range between 100% and 776% on an
individual loan basis. Furthermore, watchlist loans had an
estimated collateral value coverage of 119% and non-watchlist loans
had an estimated collateral value coverage of 153%.
Dividend Policy
- The board of directors today adopted a dividend policy pursuant
to which the Company intends to declare and pay quarterly cash
dividends to holders of its outstanding common shares of record as
of the close of business on the last business day of each calendar
quarter. The quarterly dividend is initially set at $0.175 per common share ($0.70 per annum). The first dividend to be paid
is for the quarter ending September 30,
2015.
- The board of directors has also approved the implementation of
a dividend reinvestment plan pursuant to which eligible
shareholders may elect to automatically reinvest their cash
dividends payable in respect of the common shares to acquire
additional common shares. Precise terms of the dividend
reinvestment plan will be announced once the plan is
finalized.
TORONTO, Aug. 6, 2015 /CNW/ - Callidus Capital
Corporation ("Callidus" or the "Company") (TSX: CBL),
reported strong loan portfolio and revenue growth and improved
earnings in the second quarter of 2015. Callidus, which
provides flexible and innovative asset-based loans, primarily to
growth and distressed or troubled companies, today reported its
financial results for the second quarter ended June 30, 2015,
and provided an update on the current state of its business.
Newton Glassman, Executive
Chairman and Chief Executive Officer of Callidus said, "Management
believes that the Company has matured to its next stage –
generating enough cash to support both continued loan portfolio
growth and a dividend. The Company has been growing faster than
estimated at the time of the Initial Public Offering exceeding our
initial projections allowing us to initiate a dividend which the
company expects will grow over time. With the introduction of the
dividend, we remain committed to growth and intend to get back to
the original rate of doubling the book every 2-3 years. This is
particularly valuable at this time given the robustness of the deal
pipeline."
"The introduction of a dividend, our continued focus on growth,
Callidus' ability to deal with both formal (i.e. court) and
informal (i.e. out of court) restructurings as a normal part of its
business model combined with a targeted 1.5% - 2.0% provisioning is
a strong vote of confidence by both Management and the Board in the
performance of the business" added David
Reese, President and COO of Callidus.
Current state of the business, as at August 5,
2015:
- Gross loans receivable before derecognition stood at
$1.11 billion.
- The pipeline of potential new loans stands at approximately
$932 million.
- Signed back term sheets of approximately $400 million, up $192
million, or approximately 93%, from what was reported last
quarter.
- Catalyst Fund V now has US$889
million of capital commitments and expects to close on
another US$400 million in the coming
weeks, all of which have received the necessary approvals, and
ultimately reach its "hard cap" of US$1.5
billion. Fund V availability would increase to approximately
$390 million, of which $300 million could be used to acquire loan
participation interests. In addition, we continue to work to expand
our credit facilities in order to meet anticipated funding
requirements for future loan growth.
- Total debt (net of cash and cash equivalents) of $549 million, or 50% of gross loans
receivable.
- The Company realized on one of its watchlist loans in line with
its $9 million provision.
- Approximately 1.5 million shares (approximately 60% of the 2.6
million shares under the program) were acquired into treasury and
cancelled under the normal course issuer bid.
- Our headcount now stands at 31, an increase of 6 to support our
continued growth.
Financial
Highlights
|
|
|
|
Three Months
Ended
|
Three Months
Ended
|
|
|
|
|
Y/Y
|
Q/Q
|
($ 000s)
|
Jun 30,
2015
|
Jun 30,
2014
|
Mar 31,
2015
|
Change
|
Change
|
Average loan
portfolio outstanding (1)
|
$928,172
|
501,849
|
864,324
|
85%
|
7%
|
Total revenue (after
derecognition)
|
39,329
|
22,974
|
35,091
|
71%
|
12%
|
Gross yield
(1)
|
18.8%
|
20.8%
|
17.9%
|
|
|
Net interest
margin(1)
|
13.5%
|
13.3%
|
12.7%
|
|
|
Net income
|
18,390
|
7,646
|
15,989
|
141%
|
15%
|
Earnings per share
(diluted)
|
$0.36
|
$0.18
|
$0.31
|
100%
|
16%
|
ROE
|
15.2%
|
8.1%
|
13.6%
|
|
|
Notes:
|
|
(1)
|
Refer to "Description
of Non-IFRS Measures" in the MD&A. These financial measures are
not
recognized measures under IFRS and do not have a standardized
meaning prescribed by IFRS.
Therefore, they may not be comparable to similar measures used by
other issuers.
|
Highlights of the second quarter, relative to the last
quarter:
- In April 2015, the Company
increased the amount of its existing Revolving Credit Facility by
US$37.5 million to US$300 million in
the aggregate. All other terms remain substantially unchanged.
- During the second quarter, 981,016 shares were acquired into
treasury and cancelled under the normal course issuer bid.
- Provision for loan losses for the current quarter was
$3.2 million of which a $3.0 million recovery was recognized related to
the Catalyst guarantee. The provision of $3.2 million for the current quarter amounts to
an annualized rate of approximately 1.2% on a gross loans
receivable balance of $1,044
million.
- In the quarter, four new loans representing $113 million in total credit facilities were
extended. In addition to these new loans, $115 million in net funding was provided to
existing borrowers.
- Our gross yield was 20.2% on our core product and 14.1% on
Callidus Lite.
About Callidus Capital Corporation
Established in 2003, Callidus Capital Corporation is a
Canadian company that specializes in innovative and creative
financing solutions for companies that are unable to obtain
adequate financing from conventional lending institutions. Unlike
conventional lending institutions who demand a long list of
covenants and make credit decisions based on cash flow and
projections, Callidus credit facilities have few, if any, covenants
and are based on the value of the company's assets, its enterprise
value and borrowing needs. Callidus employs a proprietary system of
monitoring collateral and exercising control over the cash inflow
and outflows of each borrower, enabling Callidus to very
effectively manage any risk of loss.
Forward-Looking Statements
Certain statements made herein contain forward-looking
information. Although Callidus believes these statements to be
reasonable, the assumptions upon which they are based may prove to
be incorrect. Furthermore, the forward-looking statements contained
in this press release are made as at the date of this press release
and Callidus does not undertake any obligation to update publicly
or to revise any of the included forward-looking statements,
whether as a result of new information, future events or otherwise,
except as may be required by applicable securities laws.
Conference call
Callidus will host a conference call to discuss Q2 2015 results
on August 7th, 2015 at 8:00 a.m. Eastern
Time. The dial in number for the call is (647) 427-7450 or
(888) 231-8191 (reference number: 91960960). A taped replay of
the call will be available until August 14,
2015 at (416) 849-0833 or (855) 859-2056 (reference
number: 91960960).
SOURCE Callidus Capital Corporation