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Mar 31, 2024
Kingsway Financial Q1 2024 Earnings Report
Kingsway Financial reported financial results for Q1 2024.
Key Takeaways
Kingsway Financial Services reported a slight decrease in consolidated revenue and a net loss for the first quarter of 2024. Revenue was essentially flat, and EBITDA at the operating companies declined modestly. The company repurchased 8,000 shares of its common stock at a combined cost of $0.1 million.
Consolidated revenue decreased slightly by 0.9% to $26.2 million compared to the prior year period.
Consolidated net loss was $2.3 million, compared to net income of $27.9 million in the prior year, which included a $31.6 million non-recurring gain.
Adjusted consolidated EBITDA was $2.1 million, compared to $2.4 million in the prior year period.
The company expects positive momentum within its existing portfolio of businesses in 2024.
Kingsway Financial
Kingsway Financial
Kingsway Financial Revenue by Segment
Revenue by Segment
Extended Warranty Revenue
CapyFin.com Forward Guidance
Kingsway anticipates continued growth through strategic acquisitions and operational improvements in its existing portfolio.
Positive Outlook
- The company remains committed to growing its portfolio of businesses.
- The company aims to deliver sustainable long-term growth in cash from operations.
- The company is targeting two to three new acquisitions per year.
- The company expects each acquisition to generate annualized EBITDA in the range of $1 million to $3 million.
- Warranty businesses are improving and more favorable comparisons are expected in the quarters ahead.
Challenges Ahead
- Macro-economic trends have impacted the businesses for the past several quarters.
- EBITDA at the operating companies declined modestly.
- Ongoing softness at the nurse staffing business impacted KSX adjusted EBITDA.
- Higher claims expense impacted Extended Warranty adjusted EBITDA.
- CSuite and SNS are executing strategies aimed at igniting revenue growth and implementing improvements to business operations.