Welcome to our dedicated page for Kingsway Financial Services news (Ticker: KFS), a resource for investors and traders seeking the latest updates and insights on Kingsway Financial Services stock.
Kingsway Financial Services, Inc. (NYSE: KFS) is a holding company that operates in the insurance and business services sectors in the United States. Through its subsidiaries, Kingsway focuses on creating long-term value by acting as an advisor, investor, and financier in the extended warranty and business services markets.
Kingsway's core business operations are divided into two main segments:
- Extended Warranty: This segment offers after-market vehicle protection services primarily distributed by credit unions. The company's extended warranty operations generate revenue through service fees and commission income and include subsidiaries such as IWS, Penn Warranty, Preferred Warranties, and Trinity Warranty Solutions.
- Kingsway Search Xcelerator (KSX): This segment focuses on the acquisition and growth of small to medium-sized businesses. Recent acquisitions under KSX include Systems Products International (SPI), which provides software solutions for the shared-ownership property management industry, and Digital Diagnostics, Inc. (DDI), specializing in medical imaging technology. The KSX segment aims to acquire businesses with recurring revenue, strong margins, low capital demands, and growth potential.
Recent developments include Kingsway's inclusion in the Russell 3000® Index and the small-cap Russell 2000® Index, which brings increased exposure to a broader audience of potential investors. Additionally, Kingsway has launched Vertical Market Solutions, LLC (VMS) to focus on vertical market software companies, starting with the acquisition of SPI.
Financially, Kingsway continues to show growth with an 11% increase in revenue in 2023, primarily driven by its KSX segment. Despite challenges in the extended warranty segment due to rising claim costs, the company remains focused on disciplined cost management and strategic acquisitions to drive long-term growth.
For more detailed financial information, including annual reports and investor presentations, visit the company's website at www.kingsway-financial.com.
Kingsway Financial Services Inc. (KFS) announced the appointment of Charles Frischer to its Board of Directors and Audit Committee on May 20, 2022. Frischer, who owns approximately 7% of the company's stock, will also join the newly created Real Estate Committee. Chairman Terence M. Kavanagh expressed confidence that Frischer's expertise in financial services and real estate will benefit the company and its shareholders. Frischer anticipates that Kingsway will experience significant growth in the upcoming years, particularly through its search accelerator program.
Kingsway Financial Services Inc. (KFS) reported operating results for Q1 2022, showing improved cash flow of $3.8 million, compared to a cash deficit of $1.9 million a year prior. However, the company incurred a net loss of $2.5 million, a decline from a net profit of $0.9 million in Q1 2021. The Extended Warranty segment saw operating income drop to $1.7 million from $5.3 million. Adjusted EBITDA for this segment also decreased. The company paid down $1.7 million in debt during the quarter, with total debt payments reaching $2.6 million since the end of 2021.
Kingsway Financial Services Inc. (KFS) announced the formation of a Strategic Advisory Board for its new Kingsway Search Xcelerator (KSX) segment. This initiative aims to enhance strategic thinking, acquisition analysis, and operational execution within KSX. Notable members include Thomas P. Joyce, Jr., former CEO of Danaher Corporation, and William N. Thorndike, Jr., Managing Partner of The Cromwell Harbor Partnership. Their extensive experience is expected to provide a significant competitive advantage and contribute positively to the strategic direction of KSX.
Kingsway Financial Services Inc. (KFS) reported a net income of $1.9 million for the twelve months ending December 31, 2021, a significant recovery from a net loss of $5.4 million in 2020. Non-GAAP adjusted income rose to $11.7 million, up from a loss of $0.6 million. The Extended Warranty segment operating income increased to $12.6 million, compared to $6.6 million in 2020. Despite non-cash revenue adjustments, Kingsway acquired Ravix Financial Inc. in October 2021 and continued to focus on strategic investments, including the acquisition of RoeCo Lafayette, LLC.
Professional Warranty Service Corporation (PWSC) has unveiled a new logo and website to reflect its expansion into comprehensive risk management solutions beyond just new home warranties. The rebranding aims to showcase PWSC's evolution from a warranty provider to a holistic risk management partner for homeowners and property managers. PWSC offers warranties covering various aspects of home structures, including resale and rental properties. With over 1.7 million homes protected, the company emphasizes its commitment to servicing diverse needs in the residential construction and real estate industries.
Kingsway Financial Services Inc. (KFS) reported an improved net loss of $0.2 million for Q3 2021, down from $1.1 million in Q3 2020. Non-GAAP adjusted income surged to $2.1 million, compared to a loss of $0.4 million the previous year. The Extended Warranty segment's operating income rose to $1.4 million, reflecting a 46.7% increase in service fee and commission revenue to $17.6 million, primarily due to the PWI acquisition. Cash provided by operations was $3.5 million, up from $1.4 million in Q3 2020. The company also plans to adopt new accounting standards in Q4 2021.
Kingsway Financial Services Inc. (NYSE: KFS) has announced its acquisition of Ravix Financial Inc., a provider of outsourced financial services based in San Jose, California. This marks the first acquisition under Kingsway's CEO Accelerator Program. Ravix reported unaudited revenue of $12.5 million and $1.9 million in income before taxes for the year ending June 30, 2021. The acquisition cost $11 million, with potential additional payments of up to $4.5 million based on financial performance. Kingsway expects the deal to be immediately accretive.
Kingsway Financial Services (NYSE: KFS) is set to host an Investor Day on October 6, 2021, at the New York Stock Exchange, with virtual attendance options available. Management will present on the Company’s operations, financial structure, and long-term growth strategy starting at 10:00 a.m. Eastern Time. Participants can join the Q&A session following the presentation. Interested parties can register by contacting Adam Prior at aprior@equityny.com.
Kingsway Financial Services Inc. (KFS) reported improved operating results for Q2 2021, with a net loss of $0.3 million, down from $1.4 million in Q2 2020. Non-GAAP adjusted income rose to $1 million, reversing a loss of $0.5 million from the previous year. The Extended Warranty segment saw operating income increase to $2.6 million, bolstered by PWI's contribution following its acquisition. However, cash used in operating activities surged to $11.5 million due to litigation settlements and increased rental income monetization.
Cove Programs has selected Professional Warranty Service Corporation (PWSC) as its sole endorsed warranty provider for builders. PWSC meets Cove’s warranty and claims tracking needs, enhancing risk management for builders and improving the home buyer experience. The collaboration includes PWSC's ClearView Risk Services, which expedites legitimate claims resolution and protects builders from illegitimate claims. The service offers insurance claims management and property title tracking, ensuring ongoing warranty coverage for subsequent homeowners. PWSC is recognized for its A+ rated insured warranty option.
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