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Kingsway(KFS) - 2023 Q3 - Earnings Call Transcript
2023-11-11 22:04
Financial Data and Key Metrics Changes - Consolidated revenue for Q3 2023 was $24.8 million, an increase of 11% from the previous year, while consolidated adjusted EBITDA decreased to $2.3 million from $3.6 million in the prior year [22][31] - Loss from continuing operations was $797,000 for Q3 2023 compared to income of $38.9 million in the same quarter last year, which included a one-time net gain of $37.9 million from the sale of PWSC [11] - Trailing 12-month adjusted EBITDA run rate increased to a range of $19 million to $20 million, up from the previous range of $18 million to $19 million [10][36] Business Line Data and Key Metrics Changes - Extended Warranty segment revenue was $17.3 million in Q3 2023, down from pro forma revenue of $17.9 million a year ago, with adjusted EBITDA declining to $2.1 million from $3.8 million [24][12] - KSX segment revenue increased to $7.5 million in the current quarter from $3.8 million a year ago, with adjusted EBITDA rising to $1.1 million from $0.8 million [6][52] - CSuite delivered a gross margin of 35.6% but faced lower-than-expected revenues due to a disrupted pipeline during the acquisition process [14][82] Market Data and Key Metrics Changes - VSA revenues were down only 1.1% from the prior year, attributed to payment pressures on consumers from higher interest rates and used car prices [50] - Claims in the VSA segment increased by $600,000 compared to the prior year, driven by rising labor and parts costs [51] - SNS experienced a shift from higher-margin travel assignments to per diem assignments, with a 20% decrease in total shifts compared to the previous year [53] Company Strategy and Development Direction - The company aims to target 2 to 3 new acquisitions per year that fit its acquisition criteria and generate annualized EBITDA of $1.5 million to $3 million each [29] - The company is focused on operational excellence while strategically deploying capital for sustainable long-term growth and positive cash flow [29] - The company continues to believe in the long-term health of the Extended Warranty business despite current challenges [13] Management's Comments on Operating Environment and Future Outlook - Management acknowledged persistent macro-level revenue headwinds impacting consumers, including tighter credit conditions and high used car prices [4] - The management expressed confidence in the long-term demand for nurse staffing despite current challenges in the SNS segment [26] - Management highlighted the importance of maintaining a disciplined approach to acquisitions and ensuring adequate covenant headroom in the current interest rate environment [85] Other Important Information - The company completed the acquisition of SPI in September and DDI in October, with plans to acquire 95% of NICR [7][8][23] - The company repurchased a significant amount of its securities, with $16.7 million received from warrant exercises and $3.3 million from the sale of Limbach stock [35][55] - Total outstanding debt decreased to $40.9 million at the end of Q3 2023, down from $102.1 million at the end of the previous year [16] Q&A Session Summary Question: What is the run rate EBITDA pro forma for the recent acquisitions? - The run rate EBITDA pro forma for recent acquisitions is now in the range of $19 million to $20 million [60] Question: What is the pro forma debt at KFS? - Pro forma debt, including new acquisitions, is estimated at $29.5 million [61] Question: How does management feel about levered acquisitions given the current interest rate environment? - Management indicated a conservative approach to leverage, maintaining a senior funded debt-to-EBITDA ratio of 3x or less at closing [85] Question: Does management have a lower bound for interest coverage? - Management would pull back on acquisitions if interest coverage fell below 1x, emphasizing the importance of maintaining adequate coverage ratios [86]
Kingsway(KFS) - 2023 Q3 - Quarterly Report
2023-11-07 21:01
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 September 30, 2023 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 ot ...
Kingsway(KFS) - 2023 Q2 - Earnings Call Transcript
2023-08-12 18:55
Kingsway Financial Services Inc. (NYSE:KFS) Q2 2023 Results Conference Call August 8, 2023 5:00 PM ET Company Participants J.T. Fitzgerald - Chief Executive Officer Kent Hansen - Chief Financial Officer Conference Call Participants Adam Patinkin - David Capital Douglas Ott - Andvari Associates Operator Good day, and welcome to the Kingsway's Second Quarter 2023 Earnings Call. At this time, all participants have been placed on a listen-only mode and the floor will be open for your questions and comments afte ...
Kingsway(KFS) - 2023 Q2 - Quarterly Report
2023-08-08 20:01
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, 2023 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(KFS) - 2023 Q1 - Earnings Call Transcript
2023-05-13 02:10
Kingsway Financial Services Inc. (NYSE:KFS) Q1 2023 Results Conference Call May 9, 2023 5:00 PM ET Company Participants J.T. Fitzgerald - Chief Executive Officer Kent Hansen - Chief Financial Officer James Carbonara - Investor Relations Conference Call Participants Adam Patinkin - David Capital Operator Good day and welcome to Kingsway First Quarter 2023 Earnings Call. At this time, all participants have been placed in a listen-only mode and the floor will be open for question and comments after the present ...
Kingsway(KFS) - 2023 Q1 - Quarterly Report
2023-05-09 20:01
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, 2023 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 ...
Kingsway(KFS) - 2022 Q4 - Earnings Call Transcript
2023-03-10 23:27
Kingsway Financial Services Inc. (NYSE:KFS) Q4 2022 Results Conference Call March 8, 2023 5:00 PM ET Company Participants J.T. Fitzgerald - CEO Kent Hansen - CFO Conference Call Participants Adam Patinkin - David Capital Operator Good day and welcome to Kingsway Full Year 2022 Earnings Call. At this time, all participants have been placed in a listen-only mode and the floor will be open for question and comments after the presentation. [Operator Instructions] With me on the call are J.T. Fitzgerald, Chief ...
Kingsway(KFS) - 2022 Q4 - Annual Report
2023-03-08 21:02
UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 For the Transition Period from _____ to _____ OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 1-312-766-2138 (Registrant's telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: Kingsway Financial Services Inc ...
Kingsway(KFS) - 2022 Q3 - Earnings Call Transcript
2022-11-13 11:20
Kingsway Financial Services Inc. (NYSE:KFS) Q3 2022 Earnings Conference Call November 10, 2022 5:00 PM ET Company Participants John Fitzgerald - Chief Executive officer Kent Hansen - Chief Financial Officer Conference Call Participants Adam Patinkin - David Capital Partners, LLC Richard Gatward - Freedom Capital Markets Christian Solberg - Sun Mountain Partners Operator Good day and welcome to Kingsway Third Quarter 2022 Earnings Call. At this time, all participants have been placed in a listen-only mode an ...
Kingsway(KFS) - 2022 Q3 - Quarterly Report
2022-11-10 21:14
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q 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 jurisdiction of incorporation or organization) (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF ...