Jun 30, 2020

Kingsway Financial Q2 2020 Earnings Report

Reported breakeven operating income and improved non-GAAP adjusted loss due to Extended Warranty segment improvements and cost-cutting.

Key Takeaways

Kingsway Financial Services reported a breakeven operating income for the second quarter of 2020, a significant improvement compared to the operating loss in the same period of the previous year. The GAAP net loss was $1.4 million, while the non-GAAP adjusted loss improved to $0.5 million, benefiting from improvements in the Extended Warranty segment and cost-cutting measures. The Extended Warranty segment saw a decrease in service fee and commission income but an increase in operating income.

Operating income was essentially breakeven, compared to an operating loss of $0.8 million for the same period in 2019.

GAAP net loss was $1.4 million compared to a GAAP net loss of $0.4 million for the same period in 2019.

Non-GAAP adjusted loss improved to $0.5 million (inclusive of $0.3 million tax benefit) compared to a Non-GAAP adjusted loss of $1.8 million (inclusive of $0.2 million tax expense) for the same period in 2019.

Net cash used in operating activities improved to $1.0 million for the six months ended June 30, 2020 compared to $2.5 million for the same period in 2019.

Total Revenue
$13.9M
Previous year: $15.2M
-8.8%
EPS
-$0.02
Previous year: -$0.04
-50.0%
Extended Warranty Adj. EBITDA
$1.5M
Previous year: $1.3M
+15.4%
Extended Warranty Oper. Income
$1.3M
Previous year: $1M
+30.0%
Leased Real Estate Oper. Income
$800K
Previous year: $800K
+0.0%
Gross Profit
$13.8M
Previous year: $15.2M
-9.5%
Cash and Equivalents
$13.4M
Previous year: $10.9M
+22.5%
Free Cash Flow
-$1.73M
Total Assets
$395M
Previous year: $404M
-2.4%

Kingsway Financial

Kingsway Financial

Kingsway Financial Revenue by Segment