NYSE: KFS Investor Presentation December 2022 Efficient Operations, Thoughtful Capital Allocation Forward-Looking Statements | 2 This presentation includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that are not historical facts, and involve risks and uncertainties that could cause actual results to differ materially from those expected and projected. Words such as "expects," "believes," "anticipates," " ...

Summary of Kingsway Financial Services Inc (KFS) 2025 Investor Day Company Overview - **Company**: Kingsway Financial Services Inc (KFS) - **Event**: 2025 Investor Day held on May 19, 2025 - **Location**: New York Stock Exchange Core Industry and Business Model - Kingsway operates as a publicly traded U.S. firm leveraging the search fund model to acquire and build businesses, focusing on quality services companies that generate recurring revenue and have strong margins [6][7][45] - The search fund model, also known as entrepreneurship through acquisition (ETA), has historically delivered annual returns in the mid-30% range, with a reported 35% internal rate of return (IRR) [8][9] - The company targets small businesses with EBITDA between $1 million to $3 million, acquiring them at 4.5 to 6.5 times EBITDA [13] Strategic Focus and Growth Opportunities - Kingsway is positioned to capitalize on the "silver tsunami" of retiring business owners, with nearly $4.8 trillion of wealth expected to change hands over the next two decades [14][16] - The company aims to fill the gap left by lower middle market private equity firms that often avoid deals where the owner wants to step away, creating favorable dynamics for search fund entrepreneurs [16] - Kingsway's strategy includes a self-funding growth flywheel: acquiring businesses, investing in growth, and reinvesting cash flow to fund further acquisitions [33][35] Recent Acquisitions and Performance - Recent acquisitions include Image Solutions, Bud's Plumbing, and SPI, with a focus on enhancing operational performance and expanding market reach [50][52][54] - Revenue for KSX was up 23% in Q1 2025 compared to Q1 2024, primarily due to the acquisition of Image Solutions [53] - Adjusted EBITDA also increased by 23%, indicating strong performance across acquired businesses [54] Financial Metrics and Valuation - Kingsway's current run rate adjusted EBITDA is approximately $18 million to $19 million [40] - The company maintains a disciplined approach to acquisitions, typically targeting mid-single-digit EBITDA multiples, ensuring a margin of safety through business quality rather than price paid [42] Kingsway Business System (KBS) - KBS is a framework designed to support newly acquired companies in achieving operational excellence and sustainable growth [63][66] - The system focuses on four pillars: talent acquisition, strategic planning, enterprise excellence, and growth [66][70] - KBS provides tools and resources for CEOs to improve performance, including talent mapping, KPI management, and structured problem-solving methodologies [71][73] Advisory Board and Leadership - Kingsway boasts a world-class advisory board, including seasoned experts like Tom Joyce, former CEO of Danaher Corporation, who provides strategic guidance and mentorship [28][22] - The company emphasizes the importance of attracting top-quality entrepreneurial talent and providing robust support to ensure successful leadership transitions [21][24] Tax Advantages and Financial Structure - Kingsway has accumulated approximately $622 million in net operating loss carryforwards, providing significant tax advantages that enhance cash flow and returns [31][32] - As a public company, Kingsway benefits from permanent equity capital, allowing for long-term investments without the pressure of a fund timetable [23][47] Conclusion - Kingsway Financial Services Inc is uniquely positioned to leverage the search fund model for growth, with a strong track record, disciplined investment criteria, and a comprehensive support system for its operators [46][48] - The company is well-prepared to capitalize on the upcoming wave of business transitions and continues to seek new acquisition opportunities to drive long-term shareholder value [45][39]

NYSE: KFS Investor Day May 19, 2025 Building through Search Forward-Looking Statements This presentation includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that are not historical facts and involve risks and uncertainties that could cause actual results to differ materially from those expected and projected. Words such as "expects," "believes," "anticipates," "intends," "estimates," "seeks" and variatio ...

Shares of Kingsway Financial Services Inc. (KFS) have gained 0.6% since the company reported its earnings for the quarter ended March 31, 2025. This compares to the S&P 500 Index’s 3.8% gain over the same time frame. Over the past month, the stock has gained 13.8%, outperforming the S&P 500’s 7.7% growth.Revenue Growth and Segment PerformanceKingsway Financial reported an 8.4% year-over-year increase in consolidated revenues to $28.3 million in the first quarter of 2025 from $26.2 million in the year-ago qu ...

Financial Data and Key Metrics Changes - Consolidated revenue for Q1 2025 was $28.3 million, an increase of 8.4% compared to $26.2 million in Q1 2024 [16] - Consolidated adjusted EBITDA declined by $800,000 year-over-year, reflecting lower profitability in the extended warranty segment and higher holdcoat costs [16] - Trailing twelve month adjusted run rate EBITDA for the businesses, including recent acquisitions, stands at approximately $18 million to $19 million [15] Business Line Data and Key Metrics Changes - In the Kingsway Search Accelerator (KSX) segment, revenue was $11.7 million, up 23.3% year-over-year, with adjusted EBITDA also increasing by 23.3% [18] - Extended warranty segment revenue was flat at $16.7 million compared to Q1 2024, but cash sales increased by 3.7% year-over-year [21] - Adjusted EBITDA for the extended warranty segment was $800,000, down from $1.4 million in the prior year [22] Market Data and Key Metrics Changes - Cash sales in the extended warranty segment showed a sequential increase of 9.3% from year-end [21] - Trailing twelve month modified cash EBITDA for the extended warranty segment was up 11.7% year-over-year [22] Company Strategy and Development Direction - The company aims to compound long-term shareholder value through a decentralized management model and acquisitions of high-quality service companies [5] - Recent acquisitions, including Bud's Plumbing and Viewpoint, are expected to enhance the KSX platform and provide additional growth levers [10][9] - The company is focused on expanding its deal pipeline, which is currently the most active it has ever been [29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth trajectory of the KSX segment, indicating that many businesses are nearing an inflection point for accelerated growth [13] - The extended warranty segment is entering a more favorable phase of recovery, with positive signs of cash sales growth [14] - Management highlighted the importance of patience in realizing value creation from investments in growth [40] Other Important Information - The company appointed two new independent directors to strengthen corporate governance [11] - A $6 million private placement was completed to fund the Bud's Plumbing acquisition, increasing total debt to $59.5 million [28] Q&A Session Summary Question: Can you provide any color on the Viewpoint acquisition and its strategic fit? - The acquisition was sourced by Drew at SPI and strategically fits by providing a cloud-native software solution for smaller resort operators in North America while expanding geographic reach [33] Question: Can you explain the J curve with search acquisitions? - The J curve represents the initial negative impact on profitability due to investments in talent and technology, followed by a period of growth as these investments pay off [37] Question: Can you share more about the robust deal pipeline? - The company has experienced operators building their M&A pipelines and is excited about potential acquisitions in fragmented markets [41] Question: Why is the owner of Bud's staying on for a one-year transition? - This is typical and desirable in search acquisitions to ensure a smooth transition of customer relationships and institutional knowledge [43] Question: Are there other industries targeted for platforms? - The company evaluates industries based on growth potential and operator fit, considering sectors like insurance brokerage and wealth management for future platforms [46]

Kingsway Financial Services Inc (KFS) Q1 2025 Earnings Call May 08, 2025 05:00 PM ET Speaker0 Good day, and welcome to the Kingsway First Quarter twenty twenty five Earnings Call. At this time, participants are in a listen only mode. A question and answer session will follow the formal presentation. Please note this conference is being recorded. With me on the call are J. T. Fitzgerald, Chief Executive Officer and Kent Hansen, Chief Financial Officer. Before we begin, I want to remind everybody that today's ...

Exhibit 99.1 KINGSWAY REPORTS FIRST QUARTER 2025 FINANCIAL RESULTS Management to Host Conference Call Today at 5 p.m. ET Chicago - May 8, 2025 - (NYSE: KFS) Kingsway Financial Services Inc. ("Kingsway" or the "Company"), the only publicly- traded US company employing the Search Fund model to acquire and build great businesses, today announced its operating results for the three months ended March 31, 2025. First Quarter 2025 Consolidated Financial Highlights Recent Business Highlights Management Commentary ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For Quarterly Period Ended March 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from _____ to _____ Commission File Number: 001-15204 Kingsway Financial Services Inc. (Exact name of registrant as specified in its charter) Delaware (State or other ...

Core Insights - Kingsway Financial Services Inc. (KFS) reported a net loss of $8.3 million for the year ended December 31, 2024, compared to a net income of $24 million in 2023, despite a revenue increase of 5.9% to $109.4 million [2][4] - The company's stock performance showed a 1.7% gain post-earnings report, contrasting with a 5.6% decline over the past month, aligning with the S&P 500's performance [1] Revenue and Profitability Metrics - Consolidated revenues for 2024 were $109.4 million, up from $103.2 million in 2023, marking a 5.9% increase [2] - Adjusted consolidated EBITDA increased by 16.9% to $10.6 million in 2024 from $9.1 million in 2023 [2] Segment Performance and Operational Trends - Extended Warranty revenues grew slightly to $68.9 million, a 0.9% increase from $68.2 million [3] - KSX revenues rose 15.7% to $40.5 million from $35 million [3] - Combined adjusted EBITDA for both segments remained flat at $14.1 million [3] Extended Warranty Segment Insights - Adjusted EBITDA in the Extended Warranty segment decreased by 10.2% to $7.6 million due to higher claims costs driven by inflation [4] - Claims expense increases moderated in the second half of the year, with a 4.1% rise in Q4 compared to 13% in Q1 [4] - Cash sales increased by 3.6% for the year, indicating underlying demand strength [4] KSX Segment Insights - Adjusted EBITDA for the KSX segment rose 14.9% to $6.6 million, primarily due to acquisitions [5] - DDI revenues grew nearly 20% compared to 2023, while total nurse staffing shifts increased by 8.5% in Q4 [5] Management Commentary - CEO John Fitzgerald emphasized 2024 as a year of progress, highlighting sequential EBITDA growth and diversification through acquisitions [6] - Management expressed confidence in the KSX model and noted that recent acquisitions were immediately accretive [6] Capital Allocation and Debt Management - CFO Kent Hansen highlighted prudent capital allocation strategies, including debt management and the use of preferred equity for acquisitions [7] - Total net debt rose to $52 million at year-end from $35.3 million in 2023, mainly due to the Image Solutions acquisition [12] Guidance and Future Outlook - Management cited a trailing 12-month adjusted EBITDA run rate of $19 million to $20 million for its operating businesses [10] - Leadership expressed optimism about executing two to three acquisitions per year, supported by a growing pipeline of opportunities [10] Acquisition Strategy - Kingsway Financial continued its acquisition strategy, completing the purchase of Image Solutions and acquiring Bud's Plumbing [11] - The Bud's Plumbing deal is valued at $5 million plus adjustments, adding $6 million in annual revenues and $0.8 million in EBITDA [11] - The company also sold its VA Lafayette subsidiary, generating $1.1 million in net cash proceeds [11]

Financial Data and Key Metrics Changes - For the full year 2024, consolidated revenue was $109.4 million, up 6% from the previous year, and consolidated adjusted EBITDA was $10.6 million, up 17% compared to 2023 [7] - Consolidated adjusted EBITDA improved sequentially in each of the four quarters of the year [8] - The trailing 12-month adjusted EBITDA run rate for operating businesses, including pro forma results for recent acquisitions, is estimated at $19 million to $20 million [34] Business Line Data and Key Metrics Changes - In the Extended Warranty segment, revenue grew by 1% to $68.9 million, with a 3.6% increase in cash sales [9] - KSX reported revenue of $40.5 million, an increase of 16% compared to $35 million in 2023, with adjusted EBITDA rising to $6.6 million from $5.7 million [15] - Extended Warranty adjusted EBITDA decreased to $7.6 million from $8.4 million in the prior year due to increased claims costs [10] Market Data and Key Metrics Changes - Claims costs increased by 6.6% in 2024, down from a 10% increase in 2023, indicating moderation in claims expense [50] - The travel nurse market showed signs of recovery, with total shifts increasing by 8.5% and travel shifts up 42% in the fourth quarter [21] Company Strategy and Development Direction - The company aims to grow its skilled trades platform through organic growth and acquisitions, targeting two to three deals per year [32] - The strategy includes focusing on businesses in growing markets that are asset-light and deliver high returns on invested capital [32] - The company is committed to continuous improvement and enhancing operational efficiency across its segments [66] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the easing of margin pressures in the Extended Warranty segment and the overall stability of the business [12] - The company is focused on executing its strategy and creating long-term value for shareholders, entering 2025 with momentum and optimism [75] Other Important Information - The company completed the acquisition of Image Solutions and Buds Plumbing, enhancing its portfolio and operational capabilities [28][31] - Total debt outstanding increased to $57.5 million, up from $44.4 million at the end of 2023, primarily due to the acquisition of Image Solutions [43] Q&A Session Summary Question: Could you provide more color on the claims expense moderation in the Extended Warranty segment? - Claims increased by 6.6% in 2024, down from 10% in 2023, with moderation observed in the second half of the year [50] Question: What's the vision for growing the skilled trade services platform? - The focus is on organic growth and potential acquisitions in plumbing and HVAC, leveraging existing market opportunities [52][56] Question: Are you targeting specific verticals within your existing segments for acquisition opportunities? - The pipeline includes both existing segments and new industries, focusing on B2B services, healthcare services, and skilled trades [58][60] Question: How long have existing OIRs been searching for acquisitions? - Current OIRs have been with the company for varying lengths, with a need to backfill positions to maintain acquisition pacing [62] Question: Were there areas Kingsway did not perform well in 2024? - Management acknowledged areas for improvement, particularly in pricing strategies and talent acquisition, while emphasizing a culture of continuous improvement [66][70]