Crossroads Impact Corp 2022 Fi
DALLAS, June 14, 2022 /PRNewswire/ — Crossroads Impact Corp (OTCQX: CRSS) (“Crossroads” or the “Company”), a holding company focused on investing in businesses that promote economic vitality and community development, has reported results financials for its second fiscal quarter ended April 30, 2022.
After a transformative year for the company in 2021, a thriving partnership with Enhanced Capital Group, the unwinding of the PPP at Capital Plus Financial and the growing acquisition of Rise Line Business Credit, the fiscal second quarter of 2022 has been quite eventful. Total operating revenue was $16.6 million for the quarter ended April 30, 2022compared to $476.5 million for the prior year quarter ended April 30, 2021. This decrease can be attributed to the reduction in one-time P3 royalty revenue of approximately $461.5 million.
Net operating income before tax and non-controlling interest for the second quarter of fiscal 2022 was $5.1 millioncompared to $150.3 million the previous year. Net operating earnings per share before tax and after non-controlling interests for the quarter were $0.83 and was $25.14 for the same period of 2021.
At a time of economic uncertainty and rampant inflation, now is not the time to forget our obligation to minority and women-owned businesses. At Carrefour, we know that these companies will move us forward as small businesses have always done. It is our privilege to support the businesses that are driving our economy this quarter and beyond.
During the second quarter of 2022, we further expanded our impact lending portfolio, adding $20 million during the quarter and bringing the total since the beginning of the year to $70 million, without any delay to date. We continue to see the importance of these loans on the impact of recipients within their communities and beyond. Among our impact loans that we are most proud of are bridge loans with Vertical Harvest and 64 Center Avenue in New Rochelle, NY. In partnership with Enhanced Capital, Crossroads provided Vertical Harvest with a bridge loan as the company’s Series A neared closing. A woman owned and managed, Wyoming, Vertical Harvest grows local produce in urban areas to combat food insecurity and climate change through vertical hydroponic greenhouses. In addition to impacting environmental sustainability, Vertical Harvest also employs historically underrepresented populations, namely those with physical and/or intellectual disabilities. Crossroads also provided a $8.9 million bridging loan for the environmental rehabilitation of the sites located at 64 Center Avenue and 8 Westchester Place in New Rochelle, NY. This project will eliminate environmental contamination of soil and water on the site. The project includes a 16-story tower with 144 affordable rental housing apartments in a middle-income area with 73.6% minority residents and a poverty rate of 19.5%.
We applaud the modernization of the RCAF. between our Texas CDFI and the National Environmental and Social Lending Program at Crossroads, we are well positioned to offer meaningful partnerships for banks to solve their community development, ESG and CRA initiatives while having a transformative impact on underserved communities.
Although rising interest rates cooled the housing market from hell to a constant inferno, inventories did not recover to match demand. While revenue from home sales fell below that of 2021, our mortgage portfolio remained at $133M with a constant 90-day delinquency performance of 0.94%.
Our PPP loan portfolio is currently approximately $1.5 billion. We continue to process loan forgiveness, which is currently at 76%. We are confident that the remaining loans will also be cancelled. The portfolio generates a net interest margin of 65 bps and saw a net contribution of $2 million for Q2, and $3.8M year to date. Outstanding loans will begin to mature in June 2022.
Second Quarter Fiscal 2022 Key Performance Indicators (KPIs)
Highlights of the quarter:
- PPP loan balance reduced to approx. $1.5 billionwith 76% of loans canceled
- In addition to $20 million in impact loans over the quarter ($70 million year to date)
- Impact loans generated $1.5M income for the quarter ($2.2M for the year)
- Book value per share is $8.69 as currently reported, $11.15 when recognizing deferred PPP revenue
About Crossroads Impact Corp.
Crossroads Impact Corp (OTCQX: CRSS) The mission of Crossroads Impact Corp is to promote economic vitality through community development and equitable access to capital; harness the power of good to address systemic issues within underserved communities. Building on our history of serving minority people and small businesses through responsible and environmental social lending, we seek to be the leader in providing innovative and sustainable lending solutions.
Important Cautions Regarding Forward-Looking Statements
This press release contains forward-looking statements relating to the business and expected future events or future performance of Crossroads Impact Corp and Capital Plus Financial involves known and unknown risks, uncertainties and other factors that may cause its actual results, its levels of activity, performance or achievements differ materially from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Words such as, but not limited to, “believe”, “expect”, “anticipate”, “estimate”, “intend”, “plan”, “targets”, “likely” , “will”, “would”, “could”, and similar expressions or phrases identify forward-looking statements. Forward-looking statements include, but are not limited to, statements about the ability of Crossroads Impact and Capital Plus Financial to implement their business strategy and their ability to achieve or maintain profitability The future performance of Crossroads Impact and Capital Plus Financial may be adversely affected by the following risks and uncertainties: economic changes affecting home ownership in the geographic areas where Capital Plus Financial operates, developments in the lending markets which may not meet Capital Plus Financial’s expectations and which may affect Capital Plus Financial’s plans vis ant to grow its portfolio, variations in quarterly results, developments in litigation to which we may be a party, technological changes in the industry, future capital requirements, regulatory actions or delays and other factors that may cause actual results to differ materially from those described or anticipated by such forward-looking statements. For a more detailed discussion of these factors and risks, investors should consult Crossroads Impact’s annual and quarterly reports. The forward-looking statements contained in this press release are based on the beliefs and opinions of management at the time the statements are made. All forward-looking statements are qualified in their entirety by this cautionary statement and Crossroads Impact undertakes no obligation to update such information to reflect future events, information or circumstances.
©2022 Crossroads Impact Corp.
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SOURCE Crossroads Impact Corp