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SWK Holdings(SWKH) - 2024 Q4 - Annual Results
SWKHSWK Holdings(SWKH)2025-03-20 11:37

Financial Performance - For Q4 2024, SWK reported total revenue of 12.4million,a25.012.4 million, a 25.0% increase from 9.9 million in Q4 2023[6] - GAAP net income for Q4 2024 was 5.9million,upfrom5.9 million, up from 2.8 million in Q4 2023, representing a 110.7% increase[8] - SWK's adjusted non-GAAP net income for Q4 2024 was 6.6million,comparedto6.6 million, compared to 2.8 million for Q4 2023, reflecting a significant growth[9] - Total revenues for the year ended December 31, 2024, increased to 44,987,000,up1944,987,000, up 19% from 37,760,000 in 2023[34] - Net income for the year ended December 31, 2024, was 13,488,000,adecreaseof1513,488,000, a decrease of 15% from 15,887,000 in 2023[34] - Net income for 2024 was 13,488,000,adecreaseof15.113,488,000, a decrease of 15.1% from 15,887,000 in 2023[35] Assets and Liabilities - As of December 31, 2024, net finance receivables were 277.8million,a1.2277.8 million, a 1.2% increase from the previous year[8] - Total investment assets as of December 31, 2024, were 282.7 million, a 2.3% increase from 276.3millioninthepreviousyear[10]−Totalcurrentassetsincreasedsignificantlyto276.3 million in the previous year[10] - Total current assets increased significantly to 20,254,000 in 2024, compared to 11,869,000in2023,representingagrowthof7011,869,000 in 2023, representing a growth of 70%[32] - Total liabilities decreased to 43,545,000 as of December 31, 2024, down from 53,939,000in2023,areductionofapproximately1953,939,000 in 2023, a reduction of approximately 19%[32] - The company’s total stockholders' equity increased to 288,690,000 in 2024 from 280,315,000in2023,reflectingagrowthof3280,315,000 in 2023, reflecting a growth of 3%[32] Cash Flow and Financing - Net cash provided by operating activities rose to 23,049,000, up 54.5% from 14,888,000inthepreviousyear[35]−Netcashusedininvestingactivitiesimprovedto14,888,000 in the previous year[35] - Net cash used in investing activities improved to (10,134,000) from (48,948,000),reflectingbetterinvestmentmanagement[35]−Netcashusedinfinancingactivitieswas(48,948,000), reflecting better investment management[35] - Net cash used in financing activities was (12,224,000), a significant decrease from 33,140,000in2023,indicatingreducedfinancingcosts[35]−Thecompany’scashandcashequivalentsincreasedto33,140,000 in 2023, indicating reduced financing costs[35] - The company’s cash and cash equivalents increased to 5,927,000 in 2024 from 4,503,000in2023,markingagrowthof324,503,000 in 2023, marking a growth of 32%[32] - Cash, cash equivalents, and restricted cash at the end of the period increased to 5,927,000 from 5,236,000[35]CreditandProvisions−Thecompanyreportedaprovisionforcreditlossesof5,236,000[35] Credit and Provisions - The company reported a provision for credit losses of 12,756,000 for the year ended December 31, 2024, compared to 1,912,000in2023,indicatingasubstantialincreaseincreditlossprovisions[34]−Provisionforcreditlossesincreasedsignificantlyto1,912,000 in 2023, indicating a substantial increase in credit loss provisions[34] - Provision for credit losses increased significantly to 12,756,000 from 1,912,000,indicatingariseinexpectedcreditlosses[35]FinancingActivities−SWKclosedatermloanwithTripleRingtotaling1,912,000, indicating a rise in expected credit losses[35] Financing Activities - SWK closed a term loan with Triple Ring totaling 8.0 million and expanded its credit facility with Eton to 30.0millionduringQ42024[12]−TheeffectiveyieldforQ42024was15.530.0 million during Q4 2024[12] - The effective yield for Q4 2024 was 15.5%, a 150 basis points increase from 14.0% in Q4 2023[15] - Non-GAAP tangible financing book value per share increased by 8.3% to 21.15 from 19.53asofDecember31,2023[11]−Interestpaidincreasedto19.53 as of December 31, 2023[11] - Interest paid increased to 3,082,000 from 1,351,000,reflectinghigherborrowingcosts[35]−Theamortizationofdebtissuancecostsroseto1,351,000, reflecting higher borrowing costs[35] - The amortization of debt issuance costs rose to 1,054,000 from 493,000,indicatingincreasedfinancingactivities[35]OtherNotableEvents−ThecompanyanticipatesdeclaringadividendfollowingtheclosingofalargerroyaltymonetizationtransactionexpectedinMarch2025[5]−Thecompanyexperiencedaforeigncurrencytransactiongainof493,000, indicating increased financing activities[35] Other Notable Events - The company anticipates declaring a dividend following the closing of a larger royalty monetization transaction expected in March 2025[5] - The company experienced a foreign currency transaction gain of 1,414,000, compared to a loss of 1,876,000inthepreviousyear[35]−Thecompanyreportedalossonimpairmentofintangibleassetsamountingto1,876,000 in the previous year[35] - The company reported a loss on impairment of intangible assets amounting to 5,771,000, with no such loss reported in 2023[35] - SWK Holdings plans to continue providing non-dilutive financing solutions to healthcare companies, focusing on long-term value creation[28]