Cymbria (CYB) Q2 2024 earnings summary

Executive summary

• Shareholders' equity decreased 0.6% to $1,551 million for the six months ended June 30, 2024, mainly due to investment performance.

• Cymbria's portfolio includes 49 business ideas, with a 20.7% stake in EdgePoint Wealth Management Inc.

• The top 15 holdings represent a significant portion of equity, with EdgePoint valued at $255 million.

• Two new businesses were added and four exited during the quarter, reflecting active portfolio management.

Financial highlights

• Net income for the three months ended June 30, 2024, was a loss of $28.3 million, compared to a gain of $23.9 million in the same quarter last year.

• Total income for the quarter was a loss of $31.2 million, down from a gain of $31.6 million year-over-year.

• For the six months ended June 30, 2024, net income was $47.3 million, down from $89.0 million in the prior year period.

• Dividend income from EdgePoint rose 10% year-over-year to $5.7 million for the quarter.

• Management fees increased to $2.97 million for the quarter, reflecting higher aNAV.

Outlook and guidance

• Management remains focused on long-term value creation, emphasizing a disciplined investment approach despite current market momentum and concentration risks.

• The company continues to seek misunderstood growth businesses at reasonable prices and is prepared to repurchase shares if trading at a discount to aNAV.