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FG Financial (FGF) - 2023 Q4 - Annual Results
FG Financial FG Financial (US:FGF)2024-03-13 16:00

Overview Fundamental Global Inc. reported Q4 and full-year 2023 results, reflecting the pre-merger entity, focused on consolidating operations and high ROIC growth - FG Financial Group, Inc. completed its merger with FG Group Holdings Inc. on February 29, 2024, and was renamed Fundamental Global Inc.1 - The financial results presented are for the legacy FG Financial Group, Inc. for periods ending December 31, 2023, prior to the merger's completion13 - The company's strategic goals include consolidating operations, reducing public company costs, and accelerating growth in scalable, high ROIC businesses2 Financial Highlights The company achieved a significant financial turnaround in 2023, reporting $2.1 million net income from strong reinsurance and investment growth Full Year 2023 Performance For full year 2023, Fundamental Global Inc. reported $2.1 million net income, or $0.21 per diluted share, reversing a prior-year loss Full Year Performance (2023 vs. 2022) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Net Income/(Loss) Attributable to Common Shareholders (Millions USD) | $2.1 | $(0.7) | | Diluted EPS (USD) | $0.21 | $(0.09) | Key Operational Metrics Operational performance in 2023 showed strong growth in net reinsurance premiums and investment income, with increased G&A expenses from stock compensation Net Reinsurance Premiums Earned (Millions USD) | Period | 2023 | 2022 | | :--- | :--- | :--- | | Q4 | $5.1 | $3.2 | | Full Year | $16.6 | $13.0 | Net Investment Income (Millions USD) | Period | 2023 | 2022 | | :--- | :--- | :--- | | Q4 | $1.5 | $1.7 | | Full Year | $9.8 | $6.8 | - General and administrative expenses for full year 2023 increased to $9.7 million from $8.4 million, primarily due to higher non-cash stock compensation expense5 Balance Sheet and Equity Highlights As of December 31, 2023, total shareholders' equity increased to $42.5 million, driven by profitable activities and new stock issuance Shareholders' Equity Growth (Millions USD) | Date | Total Shareholders' Equity | | :--- | :--- | | Dec 31, 2023 | $42.5 | | Dec 31, 2022 | $37.3 | - Investment holdings totaled $30.9 million as of December 31, 2023, including investments in OppFi and iCoreConnect Inc.6 - The company paid $1.8 million in dividends, or $2.00 per share, on its 8% Series A Preferred Stock for the year ended December 31, 20235 Consolidated Financial Statements Consolidated financial statements reveal significant growth in total assets to $65.7 million and a full-year net income of $3.8 million in 2023 Consolidated Balance Sheets Total assets increased to $65.7 million by December 31, 2023, driven by reinsurance balances, with liabilities rising to $23.2 million and equity to $42.5 million Balance Sheet Summary (as of Dec 31) | ($ in thousands) | 2023 | 2022 | | :--- | :--- | :--- | | Total Assets | $65,736 | $49,475 | | Total Liabilities | $23,244 | $12,180 | | Total Shareholders' Equity | $42,492 | $37,295 | Consolidated Statements of Operations Full year 2023 total revenue increased to $26.8 million, resulting in $3.8 million net income, a significant improvement over 2022, despite a Q4 net loss Full Year Statement of Operations Summary | ($ in thousands) | 2023 | 2022 | | :--- | :--- | :--- | | Total Revenue | $26,842 | $20,095 | | Total Expenses | $22,997 | $19,007 | | Net Income | $3,845 | $1,088 | Q4 Statement of Operations Summary | ($ in thousands) | Q4 2023 | Q4 2022 | | :--- | :--- | :--- | | Total Revenue | $6,952 | $4,907 | | Total Expenses | $7,162 | $4,773 | | Net (Loss) Income | $(210) | $134 | Company Information and Forward-Looking Statements The company operates diverse businesses including reinsurance and asset management, with forward-looking statements subject to risks and uncertainties - The company engages in diverse business activities, including reinsurance, asset management, merchant banking, manufacturing, and managed services7 - The report contains forward-looking statements protected by safe harbor provisions, subject to numerous risks and uncertainties that could cause actual results to differ materially9