Kingsway(KFS) - 2024 Q4 - Annual Results

Revenue Performance - Consolidated revenue increased by 5.9% to $109.4 million for the 12 months ended December 31, 2024, compared to $103.2 million in the prior year[4] - Extended Warranty revenue was $68.9 million in 2024, a slight increase from $68.2 million in 2023, driven by an increase in the number of contracts sold and average price per contract[4] - KSX revenue rose by 15.7% to $40.5 million in 2024, compared to $35.0 million in 2023, primarily due to acquisitions of SPI, DDI, and Image Solutions[4] Profitability and Loss - Consolidated net loss was $8.3 million for the 12 months ended December 31, 2024, compared to net income of $24.0 million in the prior year[4] - Adjusted consolidated EBITDA was $10.6 million for the 12 months ended December 31, 2024, up from $9.1 million in the prior year[4] - Extended Warranty adjusted EBITDA decreased to $7.6 million in 2024 from $8.4 million in the previous year due to higher claims expenses[4] - KSX adjusted EBITDA increased by 14.9% to $6.6 million in 2024, compared to $5.7 million for 2023, driven by the inclusion of recent acquisitions[4] Debt and Share Repurchase - The company repurchased 355,750 shares of its common stock for an aggregate purchase price of $2.8 million during 2024[11] - Total net debt increased to $52.0 million as of December 31, 2024, compared to $35.3 million as of December 31, 2023[11] Future Outlook - The company is encouraged by potential acquisition opportunities and remains confident in its ability to acquire cash flow generating businesses[5] GAAP and Non-GAAP Metrics - GAAP Net Income for the twelve months ended December 31, 2024, was $(8,295) million, compared to $24,012 million for the same period in 2023[19] - Non-GAAP Adjusted Consolidated EBITDA for the three months ended December 31, 2024, was $10,637 million, up from $9,098 million for the same period in 2023, reflecting a year-over-year increase of 17%[19] - Total Non-GAAP Adjustments for the twelve months ended December 31, 2024, amounted to $18,932 million, compared to $(14,914) million for the same period in 2023[19] Segment Performance - GAAP Operating Income for the Extended Warranty segment for the three months ended December 31, 2024, was $5,942 million, a decrease from $6,983 million in the same period of 2023[20] - Non-GAAP adjusted EBITDA for the KSX segment for the three months ended December 31, 2024, was $6,563 million, compared to $5,711 million for the same period in 2023, indicating a growth of 15%[22] - Investment income for the Extended Warranty segment for the three months ended December 31, 2024, was $1,276 million, compared to $1,061 million in the same period of 2023[20] - Non-GAAP adjusted EBITDA for the Extended Warranty segment for the three months ended December 31, 2024, was $7,569 million, up from $8,426 million in the same period of 2023[20] Employee Expenses and Other Items - Employee-related expenses for the twelve months ended December 31, 2024, were $2,259 million, compared to $1,985 million for the same period in 2023, reflecting a 14% increase[19] - The company recorded a total of $1,832 million in other items for the twelve months ended December 31, 2024, compared to $3,639 million in the same period of 2023[19]