CCUR Holdings Reports $8.3 Million Net Loss in 2Q FY 2021
CCUR Holdings reported a net loss of $8.3 million, or $0.95 per diluted share, for Q2 FY2021, marking its first loss after seven consecutive profitable quarters.
Revenue fell to $1.2 million from $1.8 million year-over-year, primarily due to a 27% decrease in merchant cash advance revenue and a 56% decline in loan interest income. A significant provision for credit losses of $13.76 million on aviation advances contributed to an operating loss of $13.9 million. Despite these challenges, the company's balance sheet is strong, with $16.2 million in cash.
- Strong balance sheet with $16.2 million in cash and cash equivalents.
- Total working capital remains relatively high at $43.1 million.
- First reported net loss of $8.3 million, ending seven quarters of profitability.
- Revenue decreased by 33% compared to the same quarter last year.
- Significant provision for credit losses of $13.76 million on aviation advances.
- Operating loss of $13.9 million compared to an operating income of $591,000 last year.
DULUTH, GA / ACCESSWIRE / February 18, 2021 / CCUR Holdings, Inc. (OTCQB:CCUR) ("CCUR" or the "Company") on February 16 reported a net loss attributable to its stockholders of
Revenue for the quarter decreased to
"Our performance for the quarter was materially and significantly impacted by a full write-down of our aviation deposits," commented Igor Volshteyn, President and Chief Operating Officer. "On January 12, 2021, the date a large deposit was due to be returned, the Company learned that in mid-December, the principal of Wright Brothers Aircraft Title, Inc., the escrow agent for its aviation deposits, had been arrested by law enforcement and that all the assets of Wright Brothers had been frozen. While the Company is aggressively pursuing all remedies for recovery, the amounts and timing of such recovery remain highly uncertain. As a result, the Board of Directors and management determined that the appropriate action is a full write-down of the aviation deposits."
Selling, general, and administrative expenses for the second quarter of fiscal year 2021 were
Total working capital as of December 31, 2020 was
About CCUR Holdings, Inc.
CCUR Holdings, Inc. operates MCA and other financial services and real estate business segments through its subsidiaries LM Capital Solutions, LLC, Recur Holdings LLC and CCUR Aviation Finance LLC, respectively, and actively pursues other business opportunities to maximize the value of its assets through evaluation of additional operating businesses or assets for acquisition. More information on the Company is available at www.ccurholdings.com.
Forward Looking Statements
Certain statements made or incorporated by reference herein which do not constitute statements of historical fact are "forward-looking statements" subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. When used or incorporated by reference in this report, the words "believes," "expects," "estimates," "anticipates," and similar expressions are intended to identify forward-looking statements. Statements regarding future events and developments such as future financial performance or returns, as well as expectations, beliefs, plans, estimates or projections relating to the future and current assessments of business opportunities, are forward-looking statements within the meaning of these laws. These statements are based on beliefs and assumptions of CCUR's management, which are based on currently available information. Except for the historical information contained herein, the matters discussed in this communication may contain forward-looking statements that involve risks and uncertainties that may cause CCUR's actual results to be materially different from such forward-looking statements and could materially adversely affect its business, financial condition, operating results and cash flows. These risks and uncertainties include, but are not limited to, the duration and impact of illness caused by COVID-19 on CCUR's business plans and expected operating results, CCUR's ability to successfully negotiate, perform due diligence and consummate any additional acquisitions, expected cash and liquidity positions, expected financial performance and revenue streams, market fluctuations in or material financial or regulatory changes impacting the MCA and real estate industry and general business conditions, as well as other risks listed in the Company's most recently filed Form 10-K filed on September 15, 2020 and subsequent quarterly reports filed with the Securities and Exchange Commission and risk and uncertainties not presently known to CCUR or that CCUR currently deems immaterial.
CCUR wishes to caution against placing undue reliance on any forward-looking statements, which speak only as of the date on which they were made. CCUR does not undertake any obligation to update forward-looking statements, whether as a result of future events, new information or otherwise, except as required by applicable law.
Contact:
IR@ccurholdings.com
(770)305-6434
CCUR HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share and per share data)
| December 31, 2020 | June 30, 2020 | ||||||||||||||
| (Unaudited) | |||||||||||||||
| ASSETS | |||||||||||||||
Current assets: | |||||||||||||||
Cash and cash equivalents | $ | 16,223 | $ | 9,336 | |||||||||||
Equity securities, fair value | 13,269 | 7,372 | |||||||||||||
Fixed maturity securities, available-for-sale, fair value | 12,893 | 21,429 | |||||||||||||
Current maturities of mortgage and commercial loans receivable | 3,634 | 3,878 | |||||||||||||
Advances receivable, net | 111 | 11,436 | |||||||||||||
Prepaid expenses and other current assets | 599 | 1,204 | |||||||||||||
Total current assets | 46,729 | 54,655 | |||||||||||||
Land investment | 3,596 | 3,568 | |||||||||||||
Deferred income taxes, net | 7,691 | 6,632 | |||||||||||||
Mortgage and commercial loans receivable, net of current maturities | 104 | 1,695 | |||||||||||||
Definite-lived intangibles, net | 1,677 | 1,870 | |||||||||||||
Goodwill | 480 | 480 | |||||||||||||
Equity method investment | 3,850 | - | |||||||||||||
Other long-term assets, net | 762 | 950 | |||||||||||||
Total assets | $ | 64,889 | $ | 69,850 | |||||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||||
Current liabilities: | |||||||||||||||
Accounts payable and accrued expenses | $ | 690 | $ | 803 | |||||||||||
| Management fee payable | 2,915 | 2,841 | |||||||||||||
Total current liabilities | 3,605 | 3,644 | |||||||||||||
Long-term liabilities: | |||||||||||||||
Pension liability | 4,396 | 4,005 | |||||||||||||
Other long-term liabilities | 628 | 912 | |||||||||||||
Total liabilities | 8,629 | 8,561 | |||||||||||||
Stockholders' equity: | |||||||||||||||
Shares of common stock, par value 14,000,000 authorized; 8,839,344 and 8,797,671 issued and outstanding at December 31, 2020 and June 30, 2020, respectively | 88 | 88 | |||||||||||||
Capital in excess of par value | 209,276 | 209,223 | |||||||||||||
Non-controlling interest | 1,179 | 1,261 | |||||||||||||
Accumulated deficit | (150,978 | ) | (143,077 | ) | |||||||||||
Accumulated other comprehensive loss | (3,305 | ) | (6,206 | ) | |||||||||||
Total stockholders' equity | 56,260 | 61,289 | |||||||||||||
Total liabilities, non-controlling interest, and stockholders' equity | $ | 64,889 | $ | 69,850 | |||||||||||
CCUR HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(Amounts in thousands, except share and per share data)
| Three Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
Revenues: | ||||||||||||||||
Merchant cash advance fees and other revenue | $ | 1,046 | $ | 1,440 | $ | 1,714 | $ | 2,888 | ||||||||
Interest on mortgage and commercial loans | 151 | 347 | 393 | 630 | ||||||||||||
Total revenues | 1,197 | 1,787 | 2,107 | 3,518 | ||||||||||||
Operating expenses: | ||||||||||||||||
Selling, general, and administrative | 1,202 | 1,307 | 2,287 | 2,641 | ||||||||||||
Amortization of purchased intangibles | 96 | 119 | 193 | 239 | ||||||||||||
Change in fair value of contingent consideration | - | (410 | ) | - | (400 | ) | ||||||||||
Provision for credit losses on advances | 13,775 | 180 | 13,827 | 396 | ||||||||||||
Total operating expenses | 15,073 | 1,196 | 16,307 | 2,876 | ||||||||||||
Operating (loss) income | (13,876 | ) | 591 | (14,200 | ) | 642 | ||||||||||
Other interest income | 679 | 2,145 | 2,039 | 4,282 | ||||||||||||
Realized gain on investments, net | 876 | 843 | 1,408 | 1,919 | ||||||||||||
Unrealized gain (loss) on equity securities, net | 2,285 | (627 | ) | 1,240 | (158 | ) | ||||||||||
Other income, net | 30 | 65 | 105 | 66 | ||||||||||||
(Loss) income before income taxes and equity in net loss from equity method investment | (10,006 | ) | 3,017 | (9,408 | ) | 6,751 | ||||||||||
Equity in net loss from equity method investment | 53 | - | 53 | - | ||||||||||||
(Benefit) provision for income taxes | (1,725 | ) | (17 | ) | (1,494 | ) | 156 | |||||||||
Net (loss) income | (8,334 | ) | 3,034 | (7,967 | ) | 6,595 | ||||||||||
Less: Net loss (income) attributable to non-controlling interest | 1 | (297 | ) | 23 | (452 | ) | ||||||||||
Net (loss) income attributable to CCUR Holdings, Inc. stockholders | $ | (8,333 | ) | $ | 2,737 | $ | (7,944 | ) | $ | 6,143 | ||||||
(Loss) earnings per share attributable to CCUR Holdings, Inc. stockholders: | ||||||||||||||||
Basic | $ | (0.95 | ) | $ | 0.31 | $ | (0.90 | ) | $ | 0.70 | ||||||
Diluted | $ | (0.95 | ) | $ | 0.31 | $ | (0.90 | ) | $ | 0.70 | ||||||
Weighted average shares outstanding - basic | 8,800,171 | 8,758,710 | 8,798,928 | 8,757,433 | ||||||||||||
Weighted average shares outstanding - diluted | 8,800,171 | 8,840,870 | 8,798,928 | 8,825,583 | ||||||||||||
CCUR HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(Amounts in thousands, except share and per share data)
| Three Months Ended | ||||||||
| December 31, 2020 | September 30, 2020 | |||||||
Revenues: | ||||||||
FAQ
What was CCUR's net loss for Q2 FY2021?
How did CCUR's revenue change in Q2 FY2021?
What led to CCUR's operating loss in Q2 FY2021?
What are CCUR's cash reserves as of December 31, 2020?
What impact did the aviation deposits have on CCUR's financial results?
