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SWK Holdings Corporation (Nasdaq: SWKH) is a specialized finance company providing capital solutions primarily to the life sciences sector. The core focus of SWK is to monetize cash flow streams derived from commercial-stage products and intellectual properties. Through royalty purchases, financings, and synthetic revenue interests, SWK offers innovative financial structures aimed at minimizing equity dilution for its partners.
The company operates under two main segments: Finance Receivables and Pharmaceutical Development Services. The Finance Receivables segment generates the majority of the revenue, primarily through interest, fees, and royalties from various financing activities. SWK's financing solutions are designed to support the growth and commercialization efforts of small to mid-sized healthcare companies while maintaining low risk.
Recent achievements include the generation of $7.6 million in adjusted non-GAAP net income from the finance segment in Q2 2023, representing a 12% annualized return on tangible book value. The portfolio yield stands at an effective 14.5% and a realized 15.4%. The company expects continued growth in finance receivables, driven by multiple loan closings anticipated in the second half of 2023.
SWK also owns Enteris BioPharma, a clinical development and manufacturing organization. Enteris provides development services to pharmaceutical partners and offers innovative formulation solutions via its Peptelligence® platform. Enteris has booked $2.0 million in CDMO projects and is bidding on an additional $9.0 million worth of work projected to drive revenue growth in the latter half of 2023.
Financially, SWK's total revenue for Q2 2023 reached $9.5 million, marking a 36.8% increase year-over-year. The GAAP net income surged to $3.9 million, a 596.3% increase from the previous year. Additionally, the company reported a book value per share of $21.79 as of June 30, 2023, with an 8% year-over-year increase in non-GAAP tangible financing book value per share.
SWK continues to expand its financial capacity with a new $30 million offering of 9.00% Senior Notes due in 2027 and an expanded $60 million revolving credit facility. This capital will support further acquisitions, investments, and other general corporate purposes, enabling SWK to maintain its leadership in healthcare finance.
SWK Holdings (SWKH) reported Q3 2024 financial results with GAAP net income of $3.5 million, down from $4.5 million in Q3 2023. Total revenue increased 15.6% to $10.4 million. Net finance receivables grew 14.4% to $255.9 million compared to the previous year. The company's effective yield was 14.6%, up 60 basis points from Q3 2023. Book value per share increased 3.7% to $22.94. The company repurchased approximately 340,000 shares for $5.8 million year-to-date through November 8, 2024. SWK closed new financing deals, including an $11.0 million royalty financing with Relief Therapeutics and a $25.7 million commitment to Eton Pharmaceuticals.
SWK Holdings (NASDAQ:SWKH) reported its Q2 2024 financial results. Key highlights include:
- GAAP net income of $4.4 million, up from $3.9 million in Q2 2023
- Finance receivables segment adjusted non-GAAP net income of $6.5 million, down from $7.6 million in Q2 2023
- Net finance receivables increased 19.0% to $265.5 million
- Effective yield of 14.6%, a 10 bps increase from Q2 2023
- Non-GAAP tangible financing book value per share rose 6.3% to $20.17
The company saw a 21.1% increase in total revenue to $11.5 million. However, it also recorded a $4.1 million provision for credit losses due to impairments on two non-accrual loans. SWK closed an $11 million royalty financing with Relief Therapeutics in August 2024.
SWK Holdings (Nasdaq: SWKH) has appointed Adam C. Rice, CPA, as Chief Financial Officer and promoted Courtney Baker, CPA, to Controller. Rice has over 18 years of experience in finance and accounting, previously serving as CFO of Park Cities Asset Management. His background includes roles in financial operations management, corporate financial planning, and strategic planning. Baker, who joined SWK Holdings in July 2023, has expertise in revenue recognition, SEC reporting, and M&A activity. Both executives are CPAs registered in Texas, strengthening SWK's leadership team in finance and accounting.
SWK Holdings (NASDAQ: SWKH) announced its financial results for Q1 2024. The company reported a GAAP net income of $0.9 million, down from $4.6 million in Q1 2023. Adjusted non-GAAP net income for the finance receivables segment was $2.7 million, compared to $7.3 million in the same quarter last year.
As of March 31, 2024, gross finance receivables were $274.5 million, a 10.3% increase year-over-year, with an effective yield of 14.2%. Despite a $6.0 million impairment to its loan book, the company saw a 23.7% revenue increase in its finance segment to $11.5 million.
The book value per share stood at $22.46, while the non-GAAP tangible financing book value per share was $19.69. During the quarter, SWK repurchased 58,298 shares of common stock for approximately $1 million.
SWK's Enteris division signed an Option and Asset Purchase Agreement and received a low-single-digit million-dollar option fee in April 2024. The company remains focused on high-margin, strategic opportunities in the life sciences finance market.
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