Core Points - Kingsway Financial Services Inc. is conducting a conference call to discuss its acquisition of Image Solutions LLC [1][3] - Key participants in the call include the CEO of Kingsway, the CFO, and the incoming CEO of Image Solutions [3] Company Overview - The conference call is hosted by James Carbonara from Hayden IR [2] - The call includes forward-looking statements regarding expected revenue, operating margins, expenses, and future business outlook [4] - The company may use non-GAAP metrics to analyze performance, with reconciliations available in periodic SEC filings [5]

Summary of Kingsway Financial Services Inc. Conference Call on Acquisition of Image Solutions LLC Company and Industry Overview - **Company**: Kingsway Financial Services Inc. (NYSE: KFS) - **Acquisition Target**: Image Solutions LLC - **Industry**: IT Managed Services and Hardware as a Service Key Points from the Conference Call Acquisition Details - Kingsway acquired Image Solutions LLC for **$19.5 million** in cash, plus transaction expenses and a small working capital adjustment [7] - The acquisition is funded through **$11.4 million** in cash and a **$7.7 million** debt facility [12] - Image Solutions is the **sixth acquisition** in Kingsway's growing Kingsway Search Xcelerator (KSX) portfolio [8] Financial Performance of Image Solutions - For the 12 months ending June 30, 2024, Image Solutions reported **$9.8 million** in unaudited revenue and **$3.1 million** in unaudited adjusted EBITDA [11] - The acquisition valuation represents approximately **2.3 times revenue** and **6.3 times adjusted EBITDA** [11] - Image Solutions has maintained EBITDA margins exceeding **30%** over the last two years [11] Business Model and Growth Potential - Image Solutions operates in a **highly fragmented** and growing industry, with both managed service provider (MSP) and hardware as a service sectors expected to grow at **11% to 12% CAGR** over the next decade [33] - Approximately **30%** of Image Solutions' revenue comes from MSP services, which have grown at an average rate of **25% year-over-year** for the past three years [18] - The company has a **2% revenue churn rate** and **80%** of its revenue is contractually recurring, indicating strong client retention [19][20] Strategic Focus and Future Plans - The company plans to leverage the Kingsway Business System Playbook to establish processes and dedicated business development capabilities [25] - Future growth opportunities include expanding service lines such as **cybersecurity** and **cloud storage**, as well as geographic expansion beyond current markets [26][40] - The management emphasizes the importance of customer retention and new customer acquisition as key components of their growth strategy [25] Impact of Hurricane Helene - Image Solutions was minimally affected by Hurricane Helene, maintaining operations and power throughout the storm [23] - The company anticipates a full recovery by year-end, with only temporary deferrals in installations expected [24] Management Insights - The transition of Davide Zanchi from Operator-in-Residence to CEO of Image Solutions is seen as a positive move, with expectations for strong leadership and growth under his guidance [27] - Kingsway is actively seeking additional Operator-in-Residence candidates to support future acquisitions and growth goals [28] Market Dynamics - The IT managed services market is characterized by increasing outsourcing of IT management, making MSPs essential for operational efficiency [18] - Image Solutions is well-positioned to capitalize on this trend, integrating equipment sales and support into long-term contracts [18] Additional Important Insights - The acquisition is viewed as a milestone in Kingsway's Xcelerator program, with expectations for significant shareholder value creation [27] - The management team is focused on maintaining high margins while investing in business growth [35] This summary encapsulates the key points discussed during the conference call regarding the acquisition of Image Solutions LLC by Kingsway Financial Services Inc., highlighting the financial performance, strategic focus, and market dynamics of the IT managed services industry.

An eternal debate among the investment community is whether it is preferable to bet on the horse or the jockey of a particular company. In this case, the horse is a metaphor for the industry and business model of the company in question. The jockey refers to the senior management team, and in particular the CEO, who steers and directs the company. Can a business model or industry be so compelling or strong that any jockey could essentially lead it to victory? While there is no doubt that some combination of ...

Zacks Investment Research has recently initiated coverage of Kingsway Financial Services Inc. (KFS) , assigning a "Neutral" recommendation to the company's shares. This assessment comes amid a mixed outlook for the company, which has been making notable strides in the extended warranty and business services space despite industry challenges. KFS, currently operating from Chicago, IL, operates as a holding company with subsidiaries focused primarily on the extended warranty and business services sectors. It ...

Kingsway Financial Services Inc. (NYSE:KFS) Q2 2024 Earnings Conference Call August 6, 2024 5:00 PM ET Company Participants James Carbonara - Investor Relations John T. Fitzgerald - Chief Executive Officer Kent A. Hansen - Executive Vice President and Chief Financial Officer Conference Call Participants Adam Patinkin - David Capital Operator Good day, and welcome to the Kingsway Second Quarter 2024 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will fo ...

Exhibit 99.1 KINGSWAY REPORTS SECOND QUARTER 2024 FINANCIAL RESULTS Management to Host Conference Call Today at 5 p.m. ET Chicago - (August 6, 2024) - (NYSE: KFS) Kingsway Financial Services Inc. ("Kingsway" or the "Company") today announced its operating results for the three and six months ended June 30, 2024. Second Quarter 2024 Consolidated Financial Highlights ● Consolidated revenue increased 1.0% to $26.4 million for the three months ended June 30, 2024, compared to $26.2 million in the prior year per ...

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 June 30, 2024 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 j ...

Kingsway Financial Services Inc. (NYSE:KFS) Q1 2024 Earnings Conference Call May 8, 2024 5:00 PM ET Company Participants James Carbonara - Investor Relations JT Fitzgerald - Chief Executive Officer Kent Hansen - Chief Financial Officer Conference Call Participants Adam Patinkin - David Capital Partners Douglas Ott - Andvari Associates Operator Good day. And welcome to the Kingsway First Quarter 2024 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will f ...

Exhibit 99.1 KINGSWAY REPORTS FIRST QUARTER 2024 FINANCIAL RESULTS Management to Host Conference Call Today at 5 p.m. ET Management to Host Investor Day on Monday, May 20 in New York City Chicago - (May 8, 2024) - (NYSE: KFS) Kingsway Financial Services Inc. ("Kingsway" or the "Company") today announced its operating results for the three months ended March 31, 2024. First Quarter 2024 Consolidated Financial Highlights Recent Business Highlights ● On March 22, 2024, the Company entered into a one-year exten ...

FORM 10-Q (Mark One) UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For Quarterly Period Ended March 31, 2024 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 ...