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Crown Capital Partners Inc

Crown Capital Partners Announces Q2 2025 Financial Results

CALGARY, AB , Aug. 8, 2025 /CNW/ - Crown Capital Partners Inc. ("Crown" or the "Corporation") (TSX: CRWN) today announced its financial results for the three and six months ended June 30, 2025. Crown's complete financial statements and management's discussion and analysis are available on SEDAR at www.sedarplus.ca.

Q2 2025 Financial & Operating Overview

  • Crown recognized a net loss of $(3.5) million ($0.62 loss per basic share) in Q2 2025 compared to a net loss of $(15.2) million ($2.71 loss per basic share) in Q2 2024.

  • Adjusted EBITDA1 was $1.3 million in Q2 2025 compared to $1.9 million in Q2 2024 due primarily to decreased earnings from the Distribution Services, Network Services, Real Estate and Distributed Power segments, partially offset by reduced expenses of the Corporate and Other segment.

  • Distribution services revenue was $10.8 million in Q2 2025 compared to $9.4 million in Q2 2024, an increase of 15.7%. This segment reported net loss before income taxes of $0.2 million (2024 – net income before income taxes $0.3 million) and Adjusted EBITDA of $0.8 million (2024 - $1.0 million), with the year-over-year decline primarily attributable to an increase in payments of lease obligations. Capacity utilization was 62% at June 30, 2025 (June 30, 2024 - 58%).

  • Network services revenue was $6.1 million in Q2 2025 compared to $5.9 million in Q2 2024, an increase of 3.4% attributable to a year-over-year increase in revenues due to additional hardware sales in Galaxy 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"), partially offset by a decrease in revenues from the continued runoff of customer contracts in WireIE. This segment reported a net loss before income taxes of $(0.7) million (2024 –$(0.4) million) and Adjusted EBITDA of $0.5 million (2024 - $0.5 million).

  • Real Estate segment revenue was $1.0 million in Q2 2025 compared to $1.2 million in Q2 2024, a decrease of 16.6% year-over-year due primarily to reduced leasing activity during the quarter. This segment recorded a net loss before income taxes of $(1.0) million (2024 – net income before income taxes of $0.3 million) and Adjusted EBITDA of $(0.05) million (2024 - $0.4 million).

  • Distributed Power revenue was $0.1 million in Q2 2025 compared to $0.4 million in Q2 2024, a decrease of 64.3% due to softer power prices in the Alberta market. This segment reported a net loss before income taxes of $(0.3) million (2024 –$0.2 million) and Adjusted EBITDA of $(0.1) million (2024 - $(0.1) million).

  • The Specialty Finance segment recorded a net loss before income taxes of $(0.01) million in Q2 2025 (Q2 2024 - $(13.6) million), representing Crown's share of earnings of Crown Partners Fund, and Adjusted EBITDA of $nil (2024 - $0.2 million), representing income distributions received from Crown Partners Fund.

  • Total equity at quarter-end decreased to $3.8 million from $8.6 million at the end of 2024 due primarily to a net loss attributable to shareholders of $(5.3) million. Total equity per share decreased to $0.64 per basic share from $1.53 per basic share as at December 31, 2024.

Q2 2025 Financial Results Summary  

 Three Months Ended


 Six Months Ended

FOR THE PERIODS ENDED JUN. 30
(THOUSANDS, EXCEPT PER SHARE AND NUMBER OF COMMON SHARES)


2025


2024


2025


2024

Revenue:









Distribution services revenue

$   10,839


$     9,368


$     21,625


$           17,577

Network services revenue

6,107


5,909


14,832


12,628

Fees and other income

1,397


1,709


2,763


3,720

Distributed power interest revenue

99


185


199


368

Merchant power revenue


19


195


161


799

Total revenue

18,461


17,366


39,580


35,092

Share of (losses) earnings from investments in associates

(70)


(17,594)


109


(15,367)

Loss attributable to Shareholders

(3,513)


(15,153)


(5,309)


(15,757)

Comprehensive loss attributable to Shareholders

(3,334)


(15,181)


(5,127)


(15,865)

Adjusted EBITDA1

1,312


1,885


2,995


2,986

Total assets

142,668


176,654


142,668


176,654

Total equity

3,838


38,228


3,838


38,228

Per share:









- Net loss to Shareholders - basic

$      (0.62)


$      (2.71)


$        (0.94)


$             (2.82)

- Net loss to Shareholders - diluted

(0.62)


(2.71)


(0.94)


(2.82)

- Adjusted EBITDA per share - basic1

0.23


0.34


0.53


0.53

- Total equity per share - basic

0.64


6.84


0.64


6.84

Number of common shares:









- Outstanding at end of period

5,977,832


5,588,646


5,977,832


5,588,646

- Weighted average outstanding - basic

5,676,000


5,588,646


5,652,056


5,588,646

- Weighted average outstanding - diluted

5,676,000


5,588,646


5,652,056


5,588,646

 

Quarterly reconciliations of loss before income taxes to Adjusted EBITDA



2025


2024


2023

FOR THE PERIODS ENDED 
(THOUSANDS)


 Q2


 Q1


 Q4


 Q3


 Q2


 Q1


 Q4


 Q3


















Loss before income taxes

(3,372)


(1,536)


(10,883)


(2,632)


(14,885)


(306)


(5,414)


(2,154)

Adjustments for amounts attributable to shareholders in relation to:1
















Depreciation and amortization

2,995


3,036


3,125


2,826


2,802


2,718


3,122


2,314

Finance costs

2,613


1,990


2,533


2,413


1,975


2,057


1,828


1,754

Payments of lease obligations

(1,463)


(1,453)


(1,381)


(1,350)


(1,324)


(1,299)


(1,306)


(1,273)

Share-based compensation (recovery) expense

(92)


(101)


121


(358)


(340)


(138)


(264)


2

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)


(1)


(115)


140


2


4


98


(123)

Share of losses (earnings) from investments in associates

70


(179)


516


(235)


17,594


(2,227)


(483)


(210)

Income distributions received from Crown Partners Fund

-


3


4


-


157


-


231


90

Performance bonus (recovery) expense

-


-


-


-


(4,015)


482


73


3

Foreign exchange loss (gain) on intercompany balances

562


4


(606)


129


(103)


(190)


250


(216)

Adjusted EBITDA

1,312


1,683


401


933


1,885


1,101


753


187

Notes:

1.

Adjustments exclude any amounts attributable to non-controlling interests.

 

Reconciliations of income (loss) before income taxes to Adjusted EBITDA by operating segment



 Reportable Segments



FOR THE SIX MONTHS ENDED JUN. 30, 2025
(THOUSANDS)


 Distribution
   Services


 Network
   Services


 Specialty
Finance


 Distributed
Power


 Real 
Estate


 Corporate
and Other


 Total
















Income (loss) before income taxes

229


(477)


94


(469)


(1,043)


(3,242)


(4,908)

Adjustments for amounts attributable to shareholders in 
relation to:1














Depreciation and amortization

3,236


2,148


-


244


251


152


6,031

Finance costs

663


40


-


-


835


3,065


4,603

Payments of lease obligations

(2,788)


(128)


-


-


-


-


(2,916)

Share-based compensation recovery

-


-


-


-


-


(193)


(193)

Remeasurement of financial instruments

(80)


-


-


-


-


-


(80)

Recovery of expected credit losses

-


-


-


(2)


-


-


(2)

Share of earnings from investments in associates

-


(15)


(94)


-


-


-


(109)

Income distributions received from Crown Partners Fund

-


-


3


-


-


-


3

Foreign exchange loss (gain) on intercompany balances

566


-


-


-


-


-


566

Adjusted EBITDA

1,826


1,568


3


(227)


43


(218)


2,995

Notes:

1.

Adjustments exclude any amounts attributable to non-controlling interests.

 

 Reportable Segments


FOR THE SIX MONTHS ENDED JUN. 30, 2024     
(THOUSANDS)

 Distribution
   Services


 Network
Services


 Specialty
Finance


 Distributed
Power


 Real
    Estate


 Corporate
and Other


 Total















(Loss) income before income taxes attributable to Shareholders

(198)


(412)


(11,825)


(237)


1,050


(3,569)


(15,191)

Adjustments for amounts attributable to shareholders in relation to:1













Depreciation and amortization

3,056


1,852


-


246


236


130


5,520

Finance costs

889


59


-


-


-


3,084


4,032

Payments of lease obligations

(2,505)


(118)


-


-


-


-


(2,623)

Share-based compensation recovery

-


-


-


-


-


(478)


(478)

Loss on disposal of assets held for sale

-


-


-


22


-


-


22

Provision for expected credit losses

-


-


-


6


-


-


6

Share of losses from investments in associates

-


-


15,367


-


-


-


15,367

Income distributions received from Crown Partners Fund

-


-


157


-


-


-


157

Performance bonus recovery

-


-


(3,533)


-


-


-


(3,533)

Foreign exchange loss (gain) on intercompany balances

(293)


-


-


-


-


-


(293)

Adjusted EBITDA

949


1,381


166


37


1,286


(833)


2,986

Notes:

1.

Adjustments exclude any amounts attributable to non-controlling interests.

 

 Reportable Segments



FOR THE THREE MONTHS ENDED JUN. 30, 2025 

(THOUSANDS)              


 Distribution
   Services


 Network
   Services


 Specialty
Finance


 Distributed
Power


 Real
   Estate


 Corporate
and Other


 Total
















Income (loss) income before income taxes

(185)


(654)


(9)


(260)


(1,013)


(1,251)


(3,372)

Adjustments for amounts attributable to shareholders in relation to:1













Depreciation and amortization

1,561


1,104


-


122


133


75


2,995

Finance costs

307


19


-


-


835


1,452


2,613

Payments of lease obligations

(1,399)


(64)


-


-


-


-


(1,463)

Share-based compensation recovery

-


-


-


-


-


(92)


(92)

Remeasurement of financial instruments

-


-


-


-


-


-


-

Recovery of expected credit losses

-


-


-


(1)


-


-


(1)

Share of losses from investments in associates

-


61


9


-


-


-


70

Income distributions received from Crown Partners Fund

-


-


-


-


-


-


-

Foreign exchange loss (gain) on intercompany balances

562


-


-


-


-


-


562

Adjusted EBITDA

846


466


-


(139)


(45)


184


1,312

Notes:

1.

Adjustments exclude any amounts attributable to non-controlling interests.

 

 Reportable Segments


FOR THE THREE MONTHS ENDED JUN. 30, 2024
(THOUSANDS)


 Distribution
   Services


 Network
Services


 Specialty
Finance


 Distributed
Power


 Real
    Estate


 Corporate
and Other


 Total
















Income (loss) before income taxes

330


(380)


(13,574)


(240)


306


(1,327)


(14,885)

Adjustments for amounts attributable to shareholders in relation to:1













Depreciation and amortization

1,560


936


-


122


118


66


2,802

Finance costs

438


33


-


-


-


1,504


1,975

Payments of lease obligations

(1,265)


(59)


-


-


-


-


(1,324)

Share-based compensation recovery

-


-


-


-


-


(340)


(340)

Loss on disposal of assets held for sale

-


-


-


22


-


-


22

Provision for expected credit losses

-


-


-


2


-


-


2

Share of losses from investments in associates

-


-


17,594


-


-


-


17,594

Income distributions received from Crown Partners Fund

-


-


157


-


-


-


157

Performance bonus recovery

-


-


(4,015)


-


-


-


(4,015)

Foreign exchange loss (gain) on intercompany balances

(103)


-




-


-


-


(103)

Adjusted EBITDA

960


530


162


(94)


424


(97)


1,885

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.