Stack Capital Group Inc. Reports Q3-2023 Financial Results

TORONTO, Nov. 02, 2023 (GLOBE NEWSWIRE) -- Stack Capital Group Inc., (“Stack Capital” or the “Company”) (TSX: STCK and STCK.WT) today announced its financial results for the three and nine months ended September 30, 2023. Stack Capital reports all amounts in Canadian Dollars unless otherwise stated.

Company Commentary:

• As at September 30, 2023, Book Value per Share of the Company was $11.30, compared with $11.17 as at June 30, 2023.

• The Company’s cash position as at September 30, 2023, was $25.8 million or $2.87 per share.

• To date, the Company has completed eight investments contributing $8.46 to the Book Value per Share, as at September 30, 2023, into the following:
  
  
  • Prove Identity, Inc. (cyber-security)
  • Newfront Insurance, Inc. (insurance & benefits)
  • Locus Robotics, Inc. (robotics)
  • Omio, Inc. (travel & leisure)
  • SpaceX (space exploration & communications)
  • Bolt Financial, Inc. (e-commerce)
  • Hopper, Inc. (travel & leisure)
  • Varo Money, Inc. (neo-banking)
    
    
• The Company announced a normal course issuer bid on November 15, 2022, to buy back its outstanding common shares which it believes to be undervalued. For the nine months ended September 30, 2023, 150,400 common shares were repurchased at a weighted average price of $6.19 per share. Since the initiation of the normal course issuer bid to September 30, 2023, 245,900 shares have been repurchased at an average price of $6.14.
  

Portfolio Companies - Quarterly Update:

• Locus Robotics - during the quarter, Locus Robotics surpassed the 2 billion units picked in customer warehouses, coming just 11 months after reaching 1 billion units picked in 2022. The first billion took more than 6 years, therefore, there has been a significant increase in pace between the first and second billion picks. UPS also issued a press release outlining its strengthened network capabilities through automation - highlighting its partnership with Locus Robotics to drive network efficiency and create a safer working environment for employees.

• Hopper - Hopper has continued to significantly grow with a recent partnership with Air Canada to offer travelers more freedom and flexibility using Hopper’s “Cancel for Any Reason” feature. Hopper also entered into strategic partnerships with Turo for their auto inventory and Hotelbeds and WebBeds, to expand their global hotel inventory by adding 700,000+ hotel properties.

• SpaceX - during the quarter, SpaceX had a tender offer for secondary shares at a reported valuation of US$150 billion, or $81 per share, which resulted in a fair value increase of $0.4 million for Stack Capital. Starlink, a wholly owned subsidiary of SpaceX, reached over 2 million global subscribers during the quarter as well as signed key contracts with the US Space Force to provide customized satellite communication for the US military and Qatar Airways to offer in-flight WiFi on their fleet. SpaceX also signed a landmark deal with the European Space Agency to launch satellites into orbit.

• Omio – Stack Capital invested an additional $1 million in Omio, increasing the Company’s overall investment to $10.4 million. Omio has been progressing well with its strategy in both its B2B and B2C business units. In an interview with Skift at the end of September 2023, the CEO of Uber discussed the success of their pilot in the UK saying that 60% of users who have booked a bus or train are repeat customers. Omio also recently introduced a plugin for ChatGPT in their app, allowing travelers to utilize AI to plan seamless travel.

• Prove Identity – subsequent to the quarter, it was announced that Prove had completed a US$40 million raise led by MassMutual and Capital One Venture to continue their global expansion and continue building its technology to face threats by public and private institutions. This includes innovations like the Prove Pre-Fill identity verification solution which provides customers with seamless, secure onboarding and authentication processes, driving results such as up to 79% faster onboarding, a 35% reduction in abandonment, and a 75% reduction in fraud (relative to attack rate).