Kingsway Financial Services, Inc. - KFS STOCK NEWS

Kingsway Financial Services Inc. (KFS) has released a letter to its shareholders from President and CEO John T. Fitzgerald, available on the company's website. Kingsway operates in the extended warranty, asset management, and real estate sectors. The letter includes forward-looking statements about the company's performance and potential risks. Investors are encouraged to read the company's 2020 Annual Report for a comprehensive overview of its financial status and future projections.

Kingsway Financial Services (KFS) reported significant growth in its Extended Warranty segment for the year ended December 31, 2020, with operating income up by 35% and non-GAAP adjusted EBITDA increasing 27%. The acquisition of PWI Holdings contributed to these improvements, leading to a cash flow of $1.7 million. Despite a GAAP net loss of ($5.4 million), the company showed a positive trend in adjusted income. However, the ongoing impact of COVID-19 has affected sales and could lead to future financial uncertainties.

Kingsway Financial Services Inc. (KFS) announced the completion of its acquisition of PWI Holdings, Inc. This strategic move enhances Kingsway's position in the vehicle service contract and extended warranty market. For the year ending September 30, 2020, PWI reported $4.2 million in GAAP income before taxes and $6.6 million in Non-GAAP EBITDA. The acquisition is expected to be accretive, despite anticipated expense increases. The acquisition was financed through a $25.7 million loan from CIBC Bank and cash reserves.

Kingsway Financial Services Inc. (KFS) reported improved operating results for the nine months ended September 30, 2020, with net cash from operations rising to $0.4 million from near zero in 2019. The GAAP net loss for Q3 2020 was $1.1 million, a reduction from $4.0 million a year prior. The company signed a definitive agreement to acquire PWI Holdings for $24.5 million, expected to close by year-end pending regulatory approvals. Extended Warranty revenues fell 7.0% to $12.0 million, influenced by COVID-19 impacts. The pandemic posed challenges, including reduced consumer spending and potential impairment risks.

Kingsway Financial Services Inc. (KFS) announced an agreement to acquire PWI Holdings, Inc. for $24.5 million, pending regulatory approvals. PWI is a leader in vehicle service contracts and extended warranties, operating nationwide through automobile dealers. Kingsway President J.T. Fitzgerald expressed optimism about PWI's potential to enhance their portfolio of warranty holdings. The acquisition is to be funded via a mix of cash and third-party financing, with expected closure by the end of the year, subject to customary conditions.

Kingsway Financial Services Inc. (KFS) announced its quarterly results for Q2 2020, reporting an operating income near breakeven compared to a loss of $0.8 million in Q2 2019. The GAAP net loss widened to $1.4 million from $0.4 million year-over-year. However, the non-GAAP adjusted loss improved to $0.5 million from $1.8 million, aided by better performance in the Extended Warranty segment and cost-cutting measures. Extended Warranty service fee income fell by 11.9% to $10.4 million, primarily due to the loss of a major customer amid COVID-19's impact on operations.

On July 22, 2020, Kingsway Financial Services Inc. (NYSE: KFS) announced the availability of its annual letter to shareholders from CEO John T. Fitzgerald. The letter provides insights into the company's activities and financial performance over the last year. Kingsway, primarily involved in extended warranties, asset management, and real estate, emphasizes its commitment to transparency with shareholders. The letter and additional reports are accessible through the company’s website and regulatory filings.

Kingsway Financial Services Inc. (NYSE: KFS) announced that it received a notice from the NYSE on July 20, 2020, indicating its removal from the late filers' list. This follows the filing of its Annual Report on Form 10-K for the year ended December 31, 2019, on July 10, 2020, and the Quarterly Report on Form 10-Q for the period ended March 31, 2020, on July 17, 2020. The company's compliance with financial reporting obligations enables it to improve its standing on the NYSE.

Kingsway Financial Services Inc. (KFS) announced on July 16, 2020, that the New York Stock Exchange has accepted its business plan to regain compliance with listing standards due to previous non-compliance regarding market capitalization and stockholders' equity, both below $50 million. The NYSE granted Kingsway until December 26, 2021, to meet compliance requirements. The company's stock will remain listed during this period, subject to ongoing monitoring. CEO John T. Fitzgerald expressed optimism about their organizational strategy aimed at delivering shareholder value.