SWK Holdings(US:SWKH)2025-03-20 17:45Financial Data and Key Metrics Changes - The company reported a GAAP pretax net income of $8.6 million, or $0.70 per diluted share for Q4 2024 [17] - The net income after tax was $5.9 million, which included a $1.1 million increase in Finance Receivables segment revenue and a $1.3 million increase in Pharmaceutical Development segment revenue [18] - The non-GAAP tangible finance book value per share increased by 8.3% year-over-year to $21.15 as of December 31, 2024 [19] - Overall operating expenses decreased to $6.6 million in Q4 2024 from $6.8 million in Q4 2023 [19][20] Business Line Data and Key Metrics Changes - The Finance Receivables segment revenue increased by $1.1 million year-over-year, primarily due to a $2.3 million increase in interest and fees earned on newly funded loans and royalties [18] - The Enteris CDMO division, now rebranded as MOD3 Pharma, reported revenue of $3.6 million, tripling from $1.2 million in 2023 [15] Market Data and Key Metrics Changes - The effective yield of the portfolio for Q4 2024 was reported at 15.5% [13] - The company had $13.8 million of gross finance receivables on non-accrual, with a 15% CECL reserve, resulting in a net non-accrual total of $11.7 million [10] Company Strategy and Development Direction - The company plans to declare a dividend following the closing of the final royalty transaction, with an initial expectation of a one-time special dividend rather than a recurring one [30] - The MOD3 CDMO division is focused on achieving unsubsidized profitability by year-end 2025 [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in entering 2025 on solid footing, with a healthy loan portfolio and significant cash reserves [24] - The company anticipates continued growth in the MOD3 division and is in regular contact with its strategic partner [15] Other Important Information - The company has repurchased approximately 100,000 shares for $1.6 million since September 30, 2024, and continues to view share repurchase as an attractive use of capital [7][33] - The company expects to close a transaction to sell its remaining performing royalty portfolio for $34 million, which is expected to close in approximately two weeks [11] Q&A Session Summary Question: Regarding the dividend, is it a one-time special dividend or an ongoing dividend? - Management anticipates initially a one-time special dividend, with the possibility of additional special dividends in the future, but does not foresee a recurring dividend at this time [30] Question: What is the status of the current buyback program? - Management confirmed that there is room for continued buybacks and expects to reauthorize the program for another year, viewing it as an attractive use of capital [33]