Kingsway(US:KFS)2025-11-06 21:15Revenue Growth - Consolidated revenue increased by 37% to $37.2 million for Q3 2025, compared to $27.1 million in Q3 2024[4] - KSX revenue grew by 104.2% to $19.0 million in Q3 2025, up from $9.3 million in Q3 2024[4] - Extended Warranty revenue increased by 2.0% to $18.2 million in Q3 2025, compared to $17.8 million in Q3 2024[4] - The Company acquired Roundhouse Electric & Equipment Co. for $22.4 million, expected to add $16.0 million in annual revenue[5] - The acquisition of AAA Flexible Pipe Cleaning Corp. for $3.5 million is anticipated to contribute $7.0 million in annual revenue[5] - Extended Warranty cash sales increased by 14.2% year-over-year in Q3 2025[4] Profitability and Loss - Consolidated net loss was $2.4 million for Q3 2025, slightly higher than the net loss of $2.3 million in Q3 2024[4] - For the twelve months ended September 30, 2025, GAAP Operating Income for the KSX segment was $7,711,000, an increase from $4,984,000 for the same period in 2024, representing a 55% growth[16] - The Extended Warranty segment reported a GAAP Operating Income of $2,771,000 for the twelve months ended September 30, 2025, down from $6,405,000 in 2024, indicating a decline of 57%[19] EBITDA Performance - Twelve-month run-rate adjusted EBITDA for operating companies is projected between $20.5 million and $22.5 million[4] - KSX operating companies delivered twelve-month run-rate adjusted EBITDA of $15.5 million to $16.5 million, up from $9.0 million to $10.0 million in the prior year[4] - Non-GAAP adjusted EBITDA for the KSX segment for the three months ended September 30, 2025, was $2,660,000, compared to $1,401,000 for the same period in 2024, reflecting an increase of 90%[16] - Non-GAAP adjusted EBITDA for the Extended Warranty segment for the three months ended September 30, 2025, was $762,000, compared to $2,072,000 for the same period in 2024, a decrease of 63%[19] Debt and Financial Position - Total net debt increased to $61.4 million as of September 30, 2025, compared to $52.0 million as of December 31, 2024[4] Adjustments and Costs - Total Non-GAAP adjustments for the KSX segment amounted to $1,194,000 for the twelve months ended September 30, 2025, with acquisition and employee costs contributing $499,000[16] - The Extended Warranty segment's total Non-GAAP adjustments for the twelve months ended September 30, 2025, were $1,811,000, with investment income accounting for a significant portion[19] - Employee costs for the Extended Warranty segment were $352,000 for the three months ended September 30, 2025, compared to no costs reported for the same period in 2024[19] Investment Income - Investment income for the Extended Warranty segment was $1,306,000 for the three months ended September 30, 2025, compared to $1,282,000 for the same period in 2024, showing a slight increase of 2%[19] - The KSX segment's investment income for the twelve months ended September 30, 2025, was $117,000, consistent with the previous year's performance[16] Depreciation - Depreciation for the KSX segment was $578,000 for the twelve months ended September 30, 2025, compared to $378,000 in 2024, representing a 53% increase[16]