Q1 2023 Financial & Operating Highlights
- Network Services revenue was
$7.3 million , an increase of 10% compared with$6.6 million in Q4 2022, largely due to the commencement of new projects atCommunity Network Partners , offset by a decline in the revenues of WireIE. The Network Services segment contributed net income before income taxes of$0.8 million , inclusive of depreciation expense totaling$0.7 million . This compares with net income before income taxes, excluding$0.6 million of accrued decommissioning costs, of$0.2 million in Q4 2022. The suppressed level of profitability in this segment in recent quarters has been consistent with expectations as the WireIE business is contracting and the growth initiatives inCommunity Network Partners and Galaxy's recently announced expansion of low Earth orbit connectivity solutions are in the early stages. - Distribution Services revenue was
$8.4 million , an increase of 28% compared with Q4 2022, due primarily to increased capacity utilization and customer activity levels at facilities that commenced operations in 2022 and to contractual price increases that came into effect onJanuary 1, 2023 . This segment contributed a net loss before income taxes of$0.9 million , inclusive of depreciation expense totaling$1.3 million and a$0.6 million non-recurring gain resulting from the remeasurement of certain long-term debt. Overall capacity utilization was 53% compared to 39% in Q4 2022. Crown expects capacity utilization to increase significantly in 2023 leading to a material increase in the revenues and profitability of this segment. - In Q1 2023, Crown's share of earnings of
Crown Partners Fund totaled$1.4 million (Q4 2022 – loss of$(0.7) million ), including$0.4 million in respect of Crown's general partnership interest as a result of an increase in the accrued performance bonus payable to Crown by the fund and$1.0 million in respect of Crown's limited partnership interest. The carrying value of Crown's investment inCrown Partners Fund decreased by$7.5 million in Q1 2023 as a result of the declaration of$8.9 million (i.e., Crown's share) of distributions in respect of loan repayments within the Fund. - Crown reported a net loss of
$0.7 million ($0.13 loss per basic share) in Q1 2023, compared with a net loss of$2.6 million ($0.38 loss per basic share) in Q1 2022. - Total equity at quarter-end was
$49.9 million , down from$50.7 million at the end of 2022, reflecting the net loss attributable to shareholders in Q1 2023. Total equity per share decreased to$8.85 per basic share from$8.98 as atDecember 31, 2022 . - Crown entered an agreement for a new senior secured corporate credit facility of up to
$43.5 million with Canadian Western Bank. - Subsequent to quarter end, Crown announced it is seeking the approval of the holders of its 6% convertible unsecured subordinated debentures to amend certain terms of such debentures, as set out in its press release dated
April 11, 2023 and in the management information circular relating to the special meeting of debentureholders, which is available at www.sedar.com. The board of directors of Crown believe that these amendments would be beneficial to debentureholders and to the Corporation. www.sedar.com.
"We continue to make progress with our two main platforms – Network Services and Distribution Services – with both divisions securing new contracts and customers" said
Q1 2023 Financial Results Summary
Selected Quarterly Information | ||||||||
AS AT AND FOR THE THREE MONTHS ENDED MAR. 31 | 2023 | 2022 | ||||||
Revenue: | ||||||||
Distribution services revenue | $ 8,357 | $ - | ||||||
Network services revenue | 7,273 | 6,739 | ||||||
Fees and other income | 883 | 451 | ||||||
Interest revenue | 542 | 319 | ||||||
Net loss on investments | - | -300 | ||||||
Total revenue | 17,055 | 7,209 | ||||||
Share of earnings (losses) of | 1,350 | -4,446 | ||||||
Net loss attributable to Shareholders | -712 | -2,550 | ||||||
Comprehensive loss attributable to Shareholders | -712 | -2,550 | ||||||
Total assets | 172,763 | 130,260 | ||||||
Total equity | 49,943 | 55,557 | ||||||
Per share: | ||||||||
- Net income (loss) to Shareholders - basic | $ (0.13) | $ (0.38) | ||||||
- Net income (loss) to Shareholders - diluted | -0.13 | -0.38 | ||||||
- Total equity per share - basic | 8.85 | 9.85 | ||||||
Number of common shares: | ||||||||
- Outstanding at end of period | 5,640,546 | 5,642,546 | ||||||
- Weighted average outstanding - basic | 5,642,524 | 6,735,756 | ||||||
- Weighted average outstanding - diluted | 5,642,524 | 6,735,756 |
Conference Call & Webcast
Crown will host a conference call and webcast to discuss its Q1 2023 financial results at
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FORWARD-LOOKING STATEMENTS
This news release contains certain "forward looking statements" and certain "forward looking information" as defined under applicable Canadian and
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