Helios Fairfax Partners Corporation: Financial Results for the Second Quarter of 2024

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TORONTO, Aug. 09, 2024 (GLOBE NEWSWIRE) — Helios Fairfax Partners Corporation (TSX: HFPC.U) today announced its financial results for the three and six months ended June 30, 2024. All amounts in dollars in this issue the news is presented. in US dollars unless otherwise stated. The financial results are derived from the interim consolidated financial statements prepared using the recognition and measurement requirements of the International Financial Reporting Standards as issued by the International Financial Standards Board (“IFRS Accounting Standards”) in force preparing interim financial statements, including International Accounting Standards. Standard 34 Interim Financial Reporting, unless otherwise stated.

System Description

“The second quarter of 2024 marked the continued strong performance of our positions in Helios Managed Investments,” said Tope Lawani and Babatunde Soyoye, Co-CEO’s of Helios Fairfax Partners. “These investments have increased in real terms by 15.5% over the same period last year, and now stand at $223 million. In accordance with our strategy to spread investments in the sports and entertainment sector, we spent 13 million dollars at Helios Sports & Entertainment Group, which invests in brands, companies and assets in the African sports and entertainment environment.Completing the exit sequence of our Legacy Investment remains a key issue this year. These funds will add to our $65 million cash position that we intend to use primarily in investments that will contribute to long-term capital appreciation for HFP through growth in cash flow from management fees. excessive and profitable.

Highlights During the Second Quarter of 2024

• Total book value for the second quarter was $4.19 compared to $4.35 in the first quarter of 2024.

• HFP reported a net loss in the second quarter of 2024 of $16.5 million compared to a net income of $4.0 million in the second quarter of 2023.

• Book price per share for the six months ended June 30, 2024, was $4.19 compared to $4.39 at the end of 2023.

• The company reported a net loss of $21.2 million for the six months ended June 30, 2024, compared to net income of $11.0 million for the six months ended June 30, 2023.

• A reduction in book value per share compared to previous quarters, an increase in losses compared to the first quarter and a change from net income in the second quarter of 2023 to a loss in the second quarter of 2023 2024 due to unexpected losses. from the company’s investment in TopCo LP which was driven by lower cash flow expectations and lower expected profits. These unrealized losses were covered by unexpected gains related to Helios Operating Investments as well as foreign currency gains.

• Invested $13 million in Helios Sports & Entertainment Group.

Financial Condition and Results of Operations

HFP reported a net loss of $16.5 million in the second quarter of 2024 compared to a net income of $4.0 million in the comparable period of 2023. The net loss was mainly driven by an unexpected loss on an investment of k company in TopCo, particularly TopCo Class B. The unrealized losses on the company’s investment in TopCo Class B were mainly driven by the impact of lower forecast management fees for Helios Strategies which reduces fees of excess control in TopCo Class B. Unrealized losses were covered by unexpected gains related to Helios Managed Investments. which increased, due to the strong performance of downstream investments. The operating results also include $4.3 million in expenses reduced by profit and a dividend of $2.1 million.

The company reported a net loss of $21 million for the first six months of 2024 compared to net income of $11 million for the first six months of 2023. The conversion from gross earnings to net loss is driven largely by an unexpected loss on the company’s investment in TopCo. . These unrealized losses were mainly driven by the impact of lower forecasted management fees for Helios Strategies, which reduced excess management fees in TopCo Group B. Also contributing to the unexpected loss is the decrease in the expected interest received from TopCo Group A. which is influenced by the combination of the reduced expectations of the value that will be realized from different investments and the expected delay in the time of certain exits for the investment. Unrealized losses were offset by unrealized gains related to Helios Managed Investments, which increased due to strong investment performance under Helios Fund IV. Also included in the net loss are expenses of $8.9 million less interest and dividends of $4 million.

The reduction in book value per share to $4.19 as of June 30, 2024, compared to $4.35 in the prior quarter was largely from an unexpected loss on the company’s investment in TopCo.

Included in each book value is $65.1 million in cash and cash equivalents as of June 30, 2024, available to fund future investments. As of June 30, 2024, HFP had 108,179,127 common shares outstanding, compared to 108,169,817 common shares outstanding as of December 31, 2023.

HFP’s detailed second quarter report can be found on its website www.heliosinvestment.com/helios-fairfax-partners.

About Helios Fairfax Partners Corporation

Helios Fairfax Partners Corporation is an investment holding company whose investment objective is to achieve long-term appreciation, while maintaining capital, by investing in public and private equity investments and facilities. of loans in Africa and to African businesses or other businesses that have customers, suppliers or business in large part. made in, or dependent on, Africa.

Contact information

Neil Weber
LodeRock Consultants
neil.weber@loderockadvisors.com
(647) 222-0574

This press release may contain forward-looking statements within the meaning of applicable securities laws. Forward-looking statements may relate to the company’s or Portfolio Investment’s future outlook and expected events or results, and may include statements about financial condition, business strategy, growth strategy, values, etc. operations, financial results, taxes, dividends, plans and objectives of the company. In particular, statements about the future results, performance, performance, prospects or prospects of the company, the Investment Portfolio, or the African market are forward-looking statements. In some cases, forward-looking statements can be identified by the use of forward-looking words such as “plans”, “expect” or “does not expect”, “expected”, “estimate”, “schedule”, “estimates” . “, “predicts”, “intends”, “expects” or “does not expect” or “believes”, or variations of such words and phrases or imply that certain actions, events or results “may”, “could”, “can”, “might”, “will” or “will be taken”, “happen” or “happen”.

Forward-looking statements are based on our opinions and estimates as of the date of this press release and are subject to known and unknown risks, uncertainties, assumptions and other factors that could cause actual results, situation of work, performance or success. material differences from those expressed or implied by such forward-looking statements, including but not limited to the following factors described in detail in the company’s annual report: geopolitical risks; inflation and rising interest rates; changes in the financial market; speed of completion of investment; limited investment; reliance on key personnel and risks associated with the Investment Advisory Agreement; the risk of concentration in the Treasury, including geographic concentration and with respect to minority interests of Class A and Class B partnerships in the Portfolio Adviser; operational and financial risks of Portfolio Investments; qualitative methods involve subjective judgments; cases; energy consumption; foreign currency fluctuations; investments may be made in foreign private enterprises where information is unreliable or unavailable; significant shareholders of Fairfax Financial Holdings Limited and HFP Investments Holdings SARL may adversely affect the market price of the subordinated voting shares; emerging markets; Black economic empowerment in South Africa; South Africa’s gray list; economic risk; climate change, natural disasters, and weather hazards; tax risks; MILI; and the trading price of the subordinated voting shares based on book value per share. Additional risks and uncertainties are described in the company’s annual information form dated April 2, 2024, which is available on SEDAR+ at www.sedarplus.ca and on the company’s website at www.heliosinvestment.com/helios-fairfax- partners. These facts and opinions are not intended to represent a complete list of facts and opinions that may affect the company. However, these facts and thoughts should be taken with caution.

Although the company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking statements, there may be other factors that could cause results to be unexpected, estimated or what is planned. There can be no assurance that such statements will prove to be correct, as actual results and future events may differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements contained herein, except as required by applicable securities laws.

GENERAL GAAP AND OTHER FINANCIAL MEASURES

Management analyzes and evaluates the financial position of the joint venture in various ways. The measure included in this news release, which has been used and disclosed regularly in the company’s Annual Reports and interim financial report, does not have the meaning prescribed under IFRS Accounting Standards and may not be comparable and similar measures introduced by other companies. This measure is explained below.

Book value per share – The company considers book value per share as a key performance measure to assess its long-term capital appreciation objective, while maintaining cash flow. Book value in part is an important measure of a company’s performance and is closely watched. This ratio is calculated by the company as common shareholders’ equity divided by the number of common shares outstanding.