SOURCE: Difference Capital Financial Inc.

Difference Capital Financial Inc.

May 12, 2017 08:59 ET

Difference Capital Reports First Quarter 2017 Results

TORONTO, ON--(Marketwired - May 12, 2017) - Difference Capital Financial Inc. ("DCF" or the "Company") (TSX: DCF) (TSX: DCF.DB), today reported its financial results for first quarter ended March 31, 2017.

Q1 2017 Highlights

  • The portfolio produced a gross gain (before operating costs) of $0.75 million
  • Net gain on investments and marketable securities of $0.4 million during the quarter mainly due to our publically traded positions, offset in part by unrealized foreign exchange loss on U.S. investments.
  • Net asset value1 per share decreased to $7.77 from $7.89 at December 31, 2016.
  • Cash on hand as at March 31, 2017 was $9.7 million.
(figures are in $000 except per share amounts and shares outstanding) Q1 2017 Q4 2016 Q1 2016
Net realized gain (loss) on investments and marketable securities $260 ($2,544) (2,445)
Net change in unrealized gain (loss) on investments and marketable securities 172 (2,022) 310
Net gain (loss) on investments and marketable securities 432 (4,566) (2,135)
Other income 316 450 336
Total expenses (1,533) (2,128) (2,204)
Net income (loss) (785) (6,244) (4,003)
Basic and fully diluted earnings (loss) per share ($0.13) ($1.05) ($0.70)
Total assets 74,355 75,649 89,025
Total liabilities 28,819 29,421 33,844
Net asset value 45,536 46,228 55,181
Shares outstanding* 5,858,637 5,858,637 5,872,397
Net asset value per share* $7.77 $7.89 $9.40
Share price* $4.05 $4.15 $6.00
* Data prior to November 30, 2016 have been adjusted to reflect the five-for-one share consolidation

First Quarter Financial Results

Net loss for the quarter ended March 31, 2017 was $0.8 million, or $0.13 per share, compared to a net loss of $4.0 million, or $0.70 per share, for the quarter ended March 31, 2016 and a net loss of $6.2 million, or $1.05 per share, for the quarter ended December 31, 2016.

During the three months ended March 31, 2017, the Company recorded $0.3 million of net realized capital gains. The realized gains were attributed to the disposal of publicly traded investments.

During the quarter ended March 31, 2017, the Company recorded $0.2 million of net unrealized gain on investments and marketable securities. The unrealized gains were attributed to mark-to-market of investments offset by unrealized losses on foreign exchange on the Company's U.S. investments.

Other income was $0.3 million for the three months ended March 31, 2017 and 2016.

Total expenses during the quarter ended March 31, 2017 were $1.5 million compared to $2.2 million for the quarter ended March 31, 2016. The significant components of expenses were as follows:

  • Compensation expense for the three months ended March 31, 2017 was $0.4 million compared to $0.9 million during the same period in 2016.
  • Financing costs were $0.8 million compared to $0.9 million during the same period in 2016.

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," 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.

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