Welcome!

News Feed Item

Callidus Capital Corporation Reports Fiscal 2014 Second Quarter Results

TORONTO, Aug. 14, 2014 /CNW/ - Callidus Capital Corporation ("Callidus" or the "Company") (TSX: CBL), a provider of flexible and innovative asset-based loans, announced today an update on the current status of its business and provided its 2014 second quarter financial results, for the three and six-month period ended June 30, 20141.

We continue to see exciting growth and opportunities in each of our targeted strategic growth areas. Demand remains robust for our core products in our key markets of Canada and the US, as we continue to complete transactions in both of these important markets. This is evident in the sequential growth of our loan portfolio, which is discussed in further detail below. As previously disclosed, we hired two originators, Steve Parker, a seasoned ABL lender in Seattle Washington to cover the Pacific coast, British Columbia, and Alberta and Sylvain Raymond, a seasoned corporate finance professional, based in Montreal to cover the Quebec and Eastern Canadian markets. We anticipate Steve and Sylvain to accelerate growth in these markets in the coming quarters. Additionally, we are pleased to report growth in the deployment of Callidus Lite as an expansionary loan product. Year-to-date, we have successfully closed two Callidus Lite loans representing $16 million in commitments. We also continue to closely monitor the market for portfolio acquisitions and will pursue these acquisitions opportunistically. In the event that Catalyst Fund IV wishes to sell its $50 million participation interest in the loan portfolio, the participation agreement provides the Company the option to acquire all or part of the interest in the loan portfolio at par plus accrued interest and fees. Callidus expects to complete the acquisition of all of the participation interest before year-end which would eliminate accounting for derecognition.  

In addition to pursuing these strategic growth initiatives, in preparation for future growth, we have added capacity to the underwriting and portfolio management, finance, and collateral monitoring groups. We have also hired a senior IT professional to enhance the development and maintenance of our proprietary systems. Further, we are actively in discussions with certain field examination candidates to internalize this client service function. We will keep you appraised as we continue to make progress on these and other initiatives.

We note that the IPO was successfully completed during the quarter ended June 30, 2014 that is being reported today and consequently includes financial information on a capital structure that was replaced on the IPO. We will include additional non-GAAP financial measures that are customary for financial services companies in upcoming quarters as the financial results from the previous capital structure no longer impact the periods reported.

Current state of the business, as at August 13, 20142:

  • Gross loans receivable of $605 million, with an aggregate committed amount of $755 million
  • Pipeline of potential new loans totalling approximately $500 million, for which we have signed back term sheets that we are pursuing of approximately $175 million, recognizing that not all of these potential loans will close
  • Cash position of $55 million plus undrawn availability of approximately $73 million, which at 40% leverage would support an additional $213 million of loans outstanding
  • Total debt of $195 million, or 32% of gross loans receivable, which we could increase to approximately 44% based on the estimated undrawn availability noted previously
  • Management estimates net income of approximately $57 million after derecognition, had the consolidated weighted average Gross Loans Receivable of approximately $605 million been outstanding for a full year 3

From June 30, 2014 to August 13, 2014, one new loan representing US$72.5 million in commitments was extended and a $2 million loan was repaid. Additionally, $6 million in net repayments was received from existing borrowers.

As at August 13, 2014, there were 26 loan commitments, the largest of which was a US$75 million commitment, and the smallest of which was a $3.5 million commitment. The average loan amount funded was $23 million.

Additionally, on August 1, 2014, the Company filed a preliminary shelf prospectus with a number of the regulatory authorities in each of the provinces and territories of Canada for the issuance of up to $600 million in common shares. The Company continues to explore financing sources including but not limited to both the private and public capital markets to ensure adequate and diversified funding sources. These sources include seeking increased availability from Callidus' existing lenders and from Catalyst Funds. Catalyst Funds have approved making facilities available and the Callidus board has approved these Catalyst Fund facilities in principle, subject to complying with applicable related party regulatory requirements.

_______________________________________
1 Amounts expressed are before derecognition, unless otherwise indicated. For further information about derecognition as it relates to the Company's initial public offering, please refer to the final prospectus filed with the various securities regulatory authorities through Canada on April 15, 2014 ("Final Prospectus").
2 Pro-forma a transaction that closed and was funded August 14, 2014.
3 Calculated on a consistent basis as described in Management's Discussion and Analysis for the period ended June 30, 2014 ("MD&A").

Highlights from the second quarter, relative to the first quarter:

  • Gross loans receivable increased 29% to $537 million as at June 30, 2014
  • Average gross loans receivable of $502 million for the quarter, an increase of 24%
  • Gross yield of 20.8% up from 20.4%
  • Adjusted EBITDA margin maintained at 79.4%

During the current quarter, 7 new loans totalling $120 million in commitments were extended and one $15 million loan was fully repaid. Additionally, $36 million in net funding was advanced to existing borrowers.

Financial Highlights





Three months ended June 30

Six months ended June 30

($ 000s)

2014

2013

2014

2013






Average loan portfolio outstanding

$501,849

$236,218

$453,550

$214,729

Total revenue

$22,974

$12,002

$43,670

$21,521

Gross yield

20.8%

20.3%

20.6%

20.0%






Adjusted EBITDA (1)

$18,245

$9,021

$34,677

$15,940

Adjusted EBITDA margin

79.4%

75.2%

79.4%

74.1%

 

Notes:


(1)

Please see definition of Adjusted EBITDA under the heading "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.



Second quarter of 2014

During the current quarter, total revenue increased almost $11 million from the same period in the prior year, as a result of (i) a $266 million increase in the Average Loan Portfolio Outstanding to $502 million in the current quarter, and (ii) a 0.5% increase in the gross yield to 20.8% in the current quarter.

Adjusted EBITDA increased to $18 million from $9 million in the same period last year, and Adjusted EBITDA margin increased to 79.4% from 75.2% as the Company benefitted from operating leverage in the business as a result of growth in the loan portfolio.

Year-to-date June 30, 2014

Year-to-date, total revenue increased approximately $22 million from the same period in the prior year, as a result of (i) a $239 million increase in the Average Loan Portfolio Outstanding to $454 million year-to-date, and (ii) a 0.6% increase in the gross yield to 20.6% year-to-date.

Adjusted EBITDA increased to $35 million from $16 million in the same period last year, and Adjusted EBITDA margin increased to 79.4% from 74.1% as noted above, the Company benefitted from operating leverage in the business as a result of growth in the loan portfolio.

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.

SOURCE Callidus Capital Corporation

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Digital transformation is too big and important for our future success to not understand the rules that apply to it. The first three rules for winning in this age of hyper-digital transformation are: Advantages in speed, analytics and operational tempos must be captured by implementing an optimized information logistics system (OILS) Real-time operational tempos (IT, people and business processes) must be achieved Businesses that can "analyze data and act and with speed" will dominate those t...
The Jevons Paradox suggests that when technological advances increase efficiency of a resource, it results in an overall increase in consumption. Writing on the increased use of coal as a result of technological improvements, 19th-century economist William Stanley Jevons found that these improvements led to the development of new ways to utilize coal. In his session at 19th Cloud Expo, Mark Thiele, Chief Strategy Officer for Apcera, will compare the Jevons Paradox to modern-day enterprise IT, e...
There are several IoTs: the Industrial Internet, Consumer Wearables, Wearables and Healthcare, Supply Chains, and the movement toward Smart Grids, Cities, Regions, and Nations. There are competing communications standards every step of the way, a bewildering array of sensors and devices, and an entire world of competing data analytics platforms. To some this appears to be chaos. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, Bradley Holt, Developer Advocate a...
More and more companies are looking to microservices as an architectural pattern for breaking apart applications into more manageable pieces so that agile teams can deliver new features quicker and more effectively. What this pattern has done more than anything to date is spark organizational transformations, setting the foundation for future application development. In practice, however, there are a number of considerations to make that go beyond simply “build, ship, and run,” which changes ho...
SYS-CON Events announced today the Kubernetes and Google Container Engine Workshop, being held November 3, 2016, in conjunction with @DevOpsSummit at 19th Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA. This workshop led by Sebastian Scheele introduces participants to Kubernetes and Google Container Engine (GKE). Through a combination of instructor-led presentations, demonstrations, and hands-on labs, students learn the key concepts and practices for deploying and maintainin...
In his general session at 18th Cloud Expo, Lee Atchison, Principal Cloud Architect and Advocate at New Relic, discussed cloud as a ‘better data center’ and how it adds new capacity (faster) and improves application availability (redundancy). The cloud is a ‘Dynamic Tool for Dynamic Apps’ and resource allocation is an integral part of your application architecture, so use only the resources you need and allocate /de-allocate resources on the fly.
Without a clear strategy for cost control and an architecture designed with cloud services in mind, costs and operational performance can quickly get out of control. To avoid multiple architectural redesigns requires extensive thought and planning. Boundary (now part of BMC) launched a new public-facing multi-tenant high resolution monitoring service on Amazon AWS two years ago, facing challenges and learning best practices in the early days of the new service. In his session at 19th Cloud Exp...
SYS-CON Events announced today that Bsquare has been named “Silver Sponsor” of SYS-CON's @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. For more than two decades, Bsquare has helped its customers extract business value from a broad array of physical assets by making them intelligent, connecting them, and using the data they generate to optimize business processes.
SYS-CON Events announced today that ReadyTalk, a leading provider of online conferencing and webinar services, has been named Vendor Presentation Sponsor at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. ReadyTalk delivers audio and web conferencing services that inspire collaboration and enable the Future of Work for today’s increasingly digital and mobile workforce. By combining intuitive, innovative tec...
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...
While DevOps promises a better and tighter integration among an organization’s development and operation teams and transforms an application life cycle into a continual deployment, Chef and Azure together provides a speedy, cost-effective and highly scalable vehicle for realizing the business values of this transformation. In his session at @DevOpsSummit at 19th Cloud Expo, Yung Chou, a Technology Evangelist at Microsoft, will present a unique opportunity to witness how Chef and Azure work tog...
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
Fact is, enterprises have significant legacy voice infrastructure that’s costly to replace with pure IP solutions. How can we bring this analog infrastructure into our shiny new cloud applications? There are proven methods to bind both legacy voice applications and traditional PSTN audio into cloud-based applications and services at a carrier scale. Some of the most successful implementations leverage WebRTC, WebSockets, SIP and other open source technologies. In his session at @ThingsExpo, Da...
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, will discuss the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports. The session will include a working demo and a technical d...
Almost two-thirds of companies either have or soon will have IoT as the backbone of their business in 2016. However, IoT is far more complex than most firms expected. How can you not get trapped in the pitfalls? In his session at @ThingsExpo, Tony Shan, a renowned visionary and thought leader, will introduce a holistic method of IoTification, which is the process of IoTifying the existing technology and business models to adopt and leverage IoT. He will drill down to the components in this fra...