Kingsway(US:KFS)2024-11-06 21:34Financial Performance - The Company's revenue for the year ended December 31, 2023, was more than $100 million[281]. - In Q3 2024, Kingsway Financial Services reported segment operating income of $2.8 million, an increase of $0.1 million from Q3 2023, with year-to-date income at $8.0 million, down $0.8 million compared to the prior year[300]. - The company reported a loss from continuing operations of $2.2 million in Q3 2024, compared to a loss of $0.8 million in Q3 2023, with a year-to-date loss of $6.6 million compared to income of $25.2 million in the same period last year[301]. - Kingsway Financial Services experienced a net loss of $2.3 million in Q3 2024, compared to a net loss of $0.7 million in Q3 2023, with a year-to-date net loss of $6.8 million compared to net income of $25.5 million in the prior year[302]. - Extended Warranty service fee and commission revenue was $17.8 million for Q3 2024, up from $17.3 million in Q3 2023, with year-to-date revenue at $51.6 million, compared to $51.0 million in the prior year[303]. - Kingsway Search Xcelerator revenue increased to $9.3 million in Q3 2024 from $7.5 million in Q3 2023, with year-to-date revenue at $28.1 million compared to $26.4 million in the prior year[306]. Segment Information - Kingsway operates through two reportable segments: Extended Warranty and Kingsway Search Xcelerator[282]. - Extended Warranty includes subsidiaries such as IWS, Geminus, PWI, and Trinity, providing various vehicle service agreements and warranty products[283][284][285][286][287]. - Kingsway Search Xcelerator comprises subsidiaries like CSuite, Ravix, and DDI, offering professional services and outsourced financial services[288][289][290][291]. - The operating income for Kingsway Search Xcelerator was $1.1 million in Q3 2024, compared to $1.0 million in Q3 2023, with year-to-date operating income at $3.9 million, down from $4.2 million[306]. - Operating income for the Extended Warranty segment was $1.7 million in Q3 2024, down from $1.8 million in Q3 2023, with year-to-date operating income at $4.0 million compared to $4.6 million in the prior year[304]. Investment and Cash Flow - As of September 30, 2024, the company held cash and cash equivalents, restricted cash, and investments with a carrying value of $56.2 million[334]. - The total carrying value of investments is $56.2 million, a decrease from $59.4 million on December 31, 2023[335]. - The company reported $0.7 million of net cash provided by operating activities from continuing operations for the nine months ended September 30, 2024, a significant improvement from $25.7 million of net cash used in the same period in 2023[355]. - During the nine months ended September 30, 2024, net cash used in investing activities was $16.4 million, primarily due to the acquisition of Image Solutions and purchases of fixed maturities[356]. - Net cash provided by financing activities for the nine months ended September 30, 2024, was $13.3 million, driven by bank loan proceeds of $33.7 million and Class B preferred stock issuance of $8.3 million[357]. Debt and Liabilities - The total bank loans increased to $60.3 million at September 30, 2024, from $46.3 million at December 31, 2023[340]. - The company borrowed $5.5 million under the 2024 KWH DDTL and $1.0 million under the KWH Revolver during the third quarter of 2024[344]. - The carrying value of subordinated debt is $13.7 million as of September 30, 2024, with a principal value of $15.0 million[349]. - The company recorded a loss on extinguishment of debt of $0.2 million for the nine months ended September 30, 2024, related to the 2020 KWH Loan modification[328]. Market and Compliance - The aggregate market value of the Company's shares held by non-affiliate stockholders was between $75 million and $250 million as of the last business day of Q2 2023[281]. - The Company is now deemed an accelerated filer, which requires compliance with auditor attestation requirements under Section 404(b) of the Sarbanes-Oxley Act[281]. - The Company disclaims any intention to update or revise forward-looking statements unless required by applicable securities law[280]. - The company is classified as a smaller reporting company and is not required to make certain market risk disclosures[364].