CALGARY, AB, May 7, 2025 /CNW/ - Crown Capital Partners Inc. ("Crown" or the "Corporation") (TSX: CRWN) today announced its financial results for the three months ended March 31, 2025. Crown's complete financial statements and management's discussion and analysis are available on SEDAR at www.sedarplus.ca.

Q1 2025 Financial & Operating Overview

• Crown recognized a net loss of $(1.8) million ($0.32 loss per basic share) in Q1 2025 compared to a net loss of $(0.6) million ($0.11 loss per basic share) in Q1 2024.
• Adjusted EBITDA¹ was $1.7 million in Q1 2025 compared to $1.3 million in Q1 2024 due primarily to improved earnings from the Distribution Services and Network Services segments and reductions in expenses of the Corporate and Other segment, partially offset by decreased earnings from the Real Estate and Distributed Power segments.
• Distribution services revenue was $10.8 million in Q1 2025 compared to $8.2 million in Q1 2024, an increase of 31.4%. This segment reported net income before income taxes of $0.4 million (2024 – net loss before income taxes $(0.5) million) and Adjusted EBITDA of $1.0 million (2024 - $0.2 million), with the year-over-year improvement attributable to the impact of operational efficiencies implemented throughout 2023 and 2024 and to increased capacity utilization across the warehouses. Capacity utilization was 62% at March 31, 2025, compared with 62% at December 31, 2024, 62% at September 30, 2024, 58% at June 30, 2024, 52% at March 31, 2024.
• Network services revenue was $8.7 million in Q1 2025 compared to $6.7 million in Q1 2024, an increase of 29.9% attributable to a year-over-year increase in revenues from Galaxy (40.9%) due to additional hardware sales 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") and earnings from Inuknet, partially offset by a decrease in revenues from the continued runoff of customer contracts in WireIE. This segment reported a net income before income taxes of $0.2 million (2024 – net loss before income taxes of $(0.03) million) and Adjusted EBITDA of $1.1 million (2024 - $0.9 million) with the increase attributable to lower margin sales from a government sector contract in Galaxy.
• Real Estate segment revenue was $1.0 million in Q1 2025 compared to $1.6 million in Q1 2024, a decrease of 36.3% year-over-year due to the timing of fees from construction and development fees. This segment recorded a net loss before income taxes of $(0.03) million (2024 – net income before income taxes of $0.7 million) and Adjusted EBITDA of $0.09 million (2024 - $0.9 million).
• Distributed Power revenue was $0.3 million in Q1 2025 compared to $0.8 million in Q1 2024, a decrease of 68.2% due to softer power prices in the Alberta market. This segment reported a net loss before income taxes of $(0.2) million (2024 – net income before income taxes of $0.003 million) and Adjusted EBITDA of $(0.09) million (2024 - $0.1 million).
• The Specialty Finance segment recorded net income before income taxes of $0.1 million in Q1 2025 (Q1 2024 - $1.7 million), representing Crown's share of earnings of Crown Partners Fund, and Adjusted EBITDA of $0.003 million (2024 - $0.004 million), representing income distributions received from Crown Partners Fund.
• Total equity at quarter-end decreased to $6.9 million from $8.6 million at the end of 2024 due to a net loss attributable to shareholders of $(1.8) million. Total equity per share decreased to $1.22 per basic share from $1.53 per basic share as at December 31, 2024.

Q1 2025 Financial Results Summary 

Quarterly reconciliations of loss before income taxes to Adjusted EBITDA

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

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