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Mar 31, 2021
LMFA Q1 2021 Earnings Report
Reported net income and increased cash position through strategic financial maneuvers.
Key Takeaways
LM Funding reported a net income of $4.4 million, or $0.87 per basic common share, for the first quarter of 2021. The company's cash position increased to $17.8 million. This growth was supported by a $5.7 million realized gain from a transaction with BORQS Technologies Inc. and a net unrealized gain on securities of $0.6 million from sponsor interest in LMF Acquisition Opportunities, Inc.
Net income totaled $4.4 million, or $0.87 per basic common share.
Cash increased to $17.8 million from $11.5 million at the end of the previous year.
Realized a $5.7 million gain from a transaction with BORQS Technologies Inc.
Recognized a $0.6 million net unrealized gain on securities from sponsor interest in LMF Acquisition Opportunities, Inc.
LMFA
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LMFA Revenue by Segment
Revenue by Segment
Rental Revenue
CapyFin.com Forward Guidance
LM Funding will continue to seek technology-enabled specialty finance business opportunities and expects its SPAC sponsorship and digital asset strategy to contribute to earnings.
Positive Outlook
- Continue to look for other technology enabled specialty finance business opportunities that can leverage our existing platform and expertise.
- Expect our SPAC sponsorship to contribute to earnings in the foreseeable future.
- Expect our digital asset strategy to contribute to earnings in the foreseeable future.
- Expanding 'We Buy Problems' mission.
- Developing a digital asset technology strategy to grow its community association receivables business both organically and through acquisitions.
Challenges Ahead
- Revenues from our community association receivables business declined.
- Core business navigates through the economy’s re-emergence from Covid restrictions.
- Uncertainty created by the COVID-19 pandemic.
- Our ability to acquire new accounts in our specialty finance business at appropriate prices.
- The need for capital.