SWK Holdings Corporation Announces Financial Results for Second Quarter 2024
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) ha riportato i risultati finanziari del secondo trimestre del 2024. Principali evidenze includono:
- Utile netto GAAP di $4,4 milioni, in aumento rispetto ai $3,9 milioni del secondo trimestre del 2023
- Utile netto adjusted non-GAAP del segmento crediti finanziari di $6,5 milioni, in calo rispetto ai $7,6 milioni del secondo trimestre del 2023
- I crediti finanziari netti sono aumentati del 19,0% a $265,5 milioni
- Rendimento effettivo del 14,6%, un incremento di 10 punti base rispetto al secondo trimestre del 2023
- Valore contabile tangibile del libro finanziario non-GAAP per azione aumentato del 6,3% a $20,17
L'azienda ha registrato un aumento del 21,1% del fatturato totale a $11,5 milioni. Tuttavia, ha anche registrato un accantonamento per perdite su crediti di $4,1 milioni a causa di svalutazioni su due prestiti non cumulativi. SWK ha concluso un finanziamento in royalties di $11 milioni con Relief Therapeutics nell'agosto del 2024.
SWK Holdings (NASDAQ:SWKH) informó sus resultados financieros del segundo trimestre de 2024. Los puntos clave incluyen:
- Ingreso neto GAAP de $4.4 millones, un aumento desde $3.9 millones en el segundo trimestre de 2023
- Ingreso neto ajustado no GAAP del segmento de cuentas por cobrar financieras de $6.5 millones, en descenso desde $7.6 millones en el segundo trimestre de 2023
- Las cuentas por cobrar financieras netas aumentaron un 19.0% a $265.5 millones
- Rendimiento efectivo del 14.6%, un aumento de 10 puntos básicos desde el segundo trimestre de 2023
- Valor contable tangible no GAAP por acción aumentó un 6.3% a $20.17
La compañía vio un aumento del 21.1% en los ingresos totales a $11.5 millones. Sin embargo, también registró una provisión de $4.1 millones para pérdidas crediticias debido a deterioros en dos préstamos no acumulativos. SWK cerró un financiamiento por regalías de $11 millones con Relief Therapeutics en agosto de 2024.
SWK Holdings (NASDAQ:SWKH)는 2024년 2분기 재무 결과를 발표했습니다. 주요 하이라이트는 다음과 같습니다:
- GAAP 순익 $4.4백만, 2023년 2분기 $3.9백만 대비 증가
- 재무 채권 부문 조정된 비GAAP 순익 $6.5백만, 2023년 2분기 $7.6백만 대비 감소
- 순재무 채권이 19.0% 증가하여 $265.5백만
- 유효 수익률이 14.6%로, 2023년 2분기 대비 10bp 증가
- 비GAAP 유무형 자산 책정한 주당 장부 가치가 6.3% 증가하여 $20.17
회사는 총 수익이 $11.5백만으로 21.1% 증가했습니다. 그러나 두 개의 비유예 대출에 대한 손실액을 고려하여 $4.1백만의 대손충당금을 기록했습니다. SWK는 2024년 8월 Relief Therapeutics와 $11백만의 로열티 자금을 마감했습니다.
SWK Holdings (NASDAQ:SWKH) a publié ses résultats financiers pour le deuxième trimestre de 2024. Les points forts incluent:
- Revenu net GAAP de 4,4 millions de dollars, en hausse par rapport à 3,9 millions de dollars au deuxième trimestre de 2023
- Revenu net ajusté non-GAAP du segment des créances financières de 6,5 millions de dollars, en baisse par rapport à 7,6 millions de dollars au deuxième trimestre de 2023
- Les créances financières nettes ont augmenté de 19,0 % à 265,5 millions de dollars
- Rendement effectif de 14,6 %, une augmentation de 10 points de base par rapport au deuxième trimestre de 2023
- Valeur comptable tangible non-GAAP par action augmentée de 6,3 % à 20,17 dollars
L'entreprise a enregistré une augmentation de 21,1 % de son chiffre d'affaires total pour atteindre 11,5 millions de dollars. Cependant, elle a également enregistré une provision de 4,1 millions de dollars pour pertes sur créances en raison de dépréciations sur deux prêts non produits. SWK a conclu un financement de redevances de 11 millions de dollars avec Relief Therapeutics en août 2024.
SWK Holdings (NASDAQ:SWKH) hat seine Finanzzahlen für das 2. Quartal 2024 veröffentlicht. Die wichtigsten Highlights sind:
- GAAP-Reingewinn von 4,4 Millionen US-Dollar, ein Anstieg von 3,9 Millionen US-Dollar im 2. Quartal 2023
- Angepasster Non-GAAP-Reingewinn des Finanzforderungsegments von 6,5 Millionen US-Dollar, ein Rückgang von 7,6 Millionen US-Dollar im 2. Quartal 2023
- Die Netto-Finanzforderungen stiegen um 19,0 % auf 265,5 Millionen US-Dollar
- Effektive Rendite von 14,6 %, ein Anstieg um 10 Basispunkte seit dem 2. Quartal 2023
- Non-GAAP-bewerteter materieller Buchwert pro Aktie stieg um 6,3 % auf 20,17 US-Dollar
Das Unternehmen verzeichnete einen Anstieg des Gesamtumsatzes um 21,1 % auf 11,5 Millionen US-Dollar. Es wurde jedoch auch eine Rückstellung für Kreditverluste von 4,1 Millionen US-Dollar aufgrund von Wertminderungen auf zwei nicht fällige Darlehen gebildet. SWK schloss im August 2024 eine Lizenzfinanzierung über 11 Millionen US-Dollar mit Relief Therapeutics ab.
- GAAP net income increased to $4.4 million from $3.9 million year-over-year
- Total revenue increased by 21.1% to $11.5 million
- Net finance receivables grew by 19.0% to $265.5 million
- Non-GAAP tangible financing book value per share increased by 6.3% to $20.17
- Closed an $11 million royalty financing deal with Relief Therapeutics in August 2024
- Finance receivables segment adjusted non-GAAP net income decreased to $6.5 million from $7.6 million year-over-year
- $4.1 million provision for credit losses due to impairments on two non-accrual loans
- Non-accrual finance receivables totaled $22.4 million as of June 30, 2024
Insights
SWK Holdings' Q2 2024 results show mixed performance. GAAP net income increased to
However, the
Investors should monitor the
SWK's Q2 results highlight several risk factors. The
The company's concentration in life sciences adds sector-specific risks, such as regulatory challenges and clinical trial outcomes. The
On the positive side, SWK's diverse portfolio and custom financing solutions provide some risk mitigation. The recent
Investors should closely monitor SWK's ability to manage credit risks and maintain portfolio quality as it pursues growth in the competitive specialty finance sector.
SWK's Q2 results reflect its niche position in life science specialty finance. The
The company's focus on small- and mid-sized commercial-stage life science companies provides a competitive advantage in an underserved market segment. The custom
However, the life science sector's volatility, as evidenced by the Cara License impairment, presents ongoing challenges. SWK's strategy of diversifying across loans and royalties helps mitigate some of this risk.
Looking ahead, SWK's ability to maintain deal flow, manage credit quality and navigate sector-specific risks will be important for sustained growth and shareholder value creation in this specialized market.
Conference Call Scheduled for Friday, August 16, 2024, at 09:00 a.m. CST
Corporate Highlights
Second quarter 2024 GAAP net income was
$4.4 million , compared with net income of$3.9 million for the second quarter 2023Second quarter 2024 finance receivables segment adjusted non-GAAP net income was
$6.5 million , compared with adjusted non-GAAP net income of$7.6 million for the second quarter 2023As of June 30, 2024, net finance receivables were
$265.5 million , a19.0% increase from June 30, 2023The second quarter 2024 effective yield was
14.6% , a 10 bps increase from second quarter 2023As of June 30, 2024, non-GAAP tangible financing book value per share was
$20.17 , a6.3% increase from$18.95 at June 30, 2023
DALLAS, TX / ACCESSWIRE / August 15, 2024 / SWK Holdings Corporation (NASDAQ:SWKH) ("SWK" or the "Company"), a life science-focused specialty finance company catering to small- and mid-sized commercial-stage companies, today provided a business update and announced its financial and operating results for the second quarter ended June 30, 2024.
"For the second quarter 2024, our core Finance Receivables segment reported a
Mr. Staggs concluded: "In August we closed an up to
Second Quarter 2024 Financial Results
For the second quarter 2024, SWK reported total revenue of
Income before income tax expense for the quarter was
GAAP net income for the quarter ended June 30, 2024, increased to
For the second quarter 2024 and 2023, non-GAAP adjusted net income was
Total investment assets (defined as finance receivables, marketable investments, and warrant assets less the allowance for credit losses) totaled
GAAP book value per share was
Portfolio Status
SWK did not close any new financings during the quarter ended June 30, 2024 and advanced
The second quarter 2024 realized yield was
As of June 30, 2024, non-accrual finance receivables totaled
As of June 30, 2024, SWK had
Total portfolio investment activity for the three months ended June 30, 2024, and 2023 was as follows (in thousands):
| Three Months Ended June 30, |
| ||||||
| 2024 |
|
| 2023 |
| |||
Beginning Portfolio |
| $ | 262,288 |
|
| $ | 237,787 |
|
(Provision) benefit for credit losses and impairments |
|
| (4,074 | ) |
|
| 682 |
|
Interest paid-in-kind |
|
| 904 |
|
|
| 606 |
|
Investment in finance receivables |
|
| 7,000 |
|
|
| 111 |
|
Loan discount and fee accretion |
|
| 1,354 |
|
|
| 454 |
|
Net unrealized gain on marketable investments and warrant assets |
|
| 226 |
|
|
| 399 |
|
Warrant and equity investments, net of sales and cancellations |
|
| 44 |
|
|
| 377 |
|
Fair value remeasurement of finance receivable |
|
| (1,339 | ) |
|
| (864 | ) |
Principal payments received on investments |
|
| (1,703 | ) |
|
| (154 | ) |
Royalty paydowns |
|
| (815 | ) |
|
| (988 | ) |
Gain on revaluation of investment receivable |
|
| 2,495 |
|
|
| - |
|
Sale of finance receivables |
|
| - |
|
|
| (13,942 | ) |
Net realized gain on exercise of warrants |
|
| 656 |
|
|
| - |
|
Ending Portfolio |
| $ | 267,036 |
|
| $ | 224,468 |
|
Adjusted Non-GAAP Net Income
The following table provides a reconciliation of SWK's reported (GAAP) consolidated net income to SWK's adjusted consolidated net income (Non-GAAP) for the three-month periods ended June 30, 2024 and 2023. The table eliminates provisions for income taxes, non-cash mark-to-market changes on warrant assets and equity securities, amortization of Enteris intangible assets, foreign currency transaction losses, and any non-cash impact on the remeasurement of contingent consideration.
| Three Months Ended June 30, |
| ||||||
| 2024 |
|
| 2023 |
| |||
Net income |
| $ | 4,395 |
|
| $ | 3,934 |
|
Add: Income tax expense |
|
| 1,035 |
|
|
| 1,454 |
|
Add: Enteris amortization expense |
|
| 196 |
|
|
| 426 |
|
Subtract: Unrealized net gain on warrants assets |
|
| (226 | ) |
|
| (399 | ) |
Add: Foreign currency transaction gain |
|
| (437 | ) |
|
| (316 | ) |
Add: Intangible asset impairment expense (Cara License) |
|
| 5,771 |
|
|
| - |
|
Add: Change in fair value of acquisition related contingent consideration (Cara License) |
|
| (4,900 | ) |
|
| - |
|
Adjusted income before income tax (benefit) expense |
|
| 5,834 |
|
|
| 5,099 |
|
Adjusted income tax (benefit) expense |
|
| - |
|
|
| - |
|
Non-GAAP net income |
| $ | 5,834 |
|
| $ | 5,099 |
|
In the table above, management has deducted the following non-cash items: (i) change in the fair-market value of equities and warrants, as mark-to-market changes are non-cash, (ii) income taxes, as the Company has substantial net operating losses to offset against future income, (iii) amortization expense associated with Enteris intangible assets, and (iv) impairment/write off of Cara license and associated change in fair value of contingent considerable payable, and (v) foreign currency gain.
Finance Receivables Adjusted Non-GAAP Net Income
The following table provides a reconciliation of SWK's consolidated adjusted income before provision for income tax expense, listed in the table above, to the non-GAAP adjusted net income for the Finance Receivable segment for the three-month periods ended June 30, 2024 and 2023. The table eliminates Enteris operating loss. The adjusted income before income tax expense is derived in the table above and eliminates income tax expense, non-cash mark-to-market changes on equity securities, amortization of Enteris intangible assets, intangible asset impairment expense, foreign currency transaction gains, and any non-cash impact on the remeasurement of contingent consideration.
| Three Months Ended June 30, |
| ||||||
| 2024 |
|
| 2023 |
| |||
Non-GAAP net income |
| $ | 5,834 |
|
| $ | 5,099 |
|
Add: Enteris operating loss, excluding amortization expense and change in fair value of contingent consideration |
|
| 670 |
|
|
| 2,515 |
|
Adjusted Finance Receivable segment income before income expense |
| $ | 6,504 |
|
| $ | 7,614 |
|
Adjusted income tax (benefit) expense |
|
| - |
|
|
| - |
|
Finance Receivables segment adjusted non-GAAP net income |
| $ | 6,504 |
|
| $ | 7,614 |
|
Non-GAAP Tangible Finance Book Value Per Share
The following table provides a reconciliation of SWK's GAAP book value per share to its non-GAAP tangible finance book value per share as of June 30, 2024 and 2023. The table eliminates the deferred tax assets, intangible assets, goodwill, Enteris property and equipment and acquisition-related contingent consideration (in thousands, except per share data):
| Three Months Ended June 30, |
| ||||||
| 2024 |
|
| 2023 |
| |||
GAAP stockholder's equity |
| $ | 283,204 |
|
| $ | 273,884 |
|
Shares outstanding |
|
| 12,447 |
|
|
| 12,567 |
|
GAAP book value per share |
| $ | 22.75 |
|
| $ | 21.79 |
|
|
|
|
|
|
|
|
| |
Less: Deferred tax assets, net |
|
| (27,052 | ) |
|
| (25,689 | ) |
Less: Intangible assets, net |
|
| (232 | ) |
|
| (7,339 | ) |
Less: Goodwill |
|
| - |
|
|
| (8,404 | ) |
Less: Enteris Property and equipment, net |
|
| (4,921 | ) |
|
| (5,492 | ) |
Plus: Contingent consideration payable |
|
| - |
|
|
| 11,200 |
|
Non-GAAP tangible finance book value |
|
| 250,999 |
|
|
| 238,160 |
|
Shares outstanding |
|
| 12,447 |
|
|
| 12,567 |
|
Non-GAAP Tangible book value per share |
| $ | 20.17 |
|
| $ | 18.95 |
|
Non-GAAP Financial Measures
This release includes non-GAAP adjusted net income, non-GAAP finance receivable segment net income, and non-GAAP tangible financing book value per share, which are metrics that are not compliant with generally accepted accounting principles in the United States (GAAP).
Non-GAAP adjusted net income is adjusted for certain items (including (i) changes in the fair-market value of public equity-related assets and SWK's warrant assets as mark-to-market changes are non-cash, (ii) income taxes as the Company has substantial net operating losses to offset against future income, (iii) changes in the fair-market value of contingent consideration associated with the Enteris acquisition as these changes are non-cash, (iv) intangible asset impairment expense, and (v) depreciation and amortization expenses, primarily associated with the Enteris acquisition.
In addition to the adjustments noted above, non-GAAP finance receivable segment net income also excludes Enteris operating losses.
Non-GAAP tangible financing book value per share excludes the deferred tax asset, intangible assets, goodwill, Enteris PP&E, and contingent consideration associated with the Enteris transaction.
These non-GAAP measures may not be directly comparable to similar measures used by other companies in the Company's industry, as other companies may define such measures differently. Management believes that these measures are useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends and provides useful additional information relating to our operations and financial condition. The Company encourages investors to carefully consider its results under GAAP, as well as its supplemental non-GAAP information and the reconciliation between these presentations, to better understand its business. Non-GAAP financial results are reported in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. Further, non-GAAP financial measures, even if similarly titled, may not be calculated in the same manner by all companies, and therefore should not be compared.
Conference Call Information
SWK Holdings will host a conference call on Friday, August 16, 2024, at 9:00 a.m. CST, to discuss its corporate and financial results for the second quarter 2024.
Interested participants and investors may access the conference call telephonically by dialing either:
888-506-0062 (U.S.)
973-528-0011 (International)
Participant Access Code: 282310
An archive of the webcast will remain available on SWK Holdings' website for 12 months beginning at approximately 11:00 a.m. CT, on August 16, 2024.
About SWK Holdings Corporation
SWK Holdings Corporation is a life science focused specialty finance company partnering with small- and mid-sized commercial-stage healthcare companies. SWK provides non-dilutive financing to fuel the development and commercialization of lifesaving and life-enhancing medical technologies and products. SWK's unique financing structures provide flexible financing solutions at an attractive cost of capital to create long-term value for all SWK stakeholders. SWK's solutions include structured debt, traditional royalty monetization, synthetic royalty transactions, and asset purchases typically ranging in size from
Safe Harbor For Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements including words such as "believes," "expects," "anticipates," "intends," "estimates," "plan," "will," "may," "look forward," "intend," "guidance," "future" or similar expressions are forward-looking statements. Because these statements reflect SWK's current views, expectations and beliefs concerning future events, these forward-looking statements involve risks and uncertainties. Investors should note that many factors, as more fully described under the caption "Risk Factors" and elsewhere in SWK's Form 10-K, Form 10-Q and Form 8-K filings with the Securities and Exchange Commission and as otherwise enumerated herein, could affect the Company's future financial results and could cause actual results to differ materially from those expressed in such forward-looking statements. The forward-looking statements in this press release are qualified by these risk factors. These are factors that, individually or in the aggregate, could cause the Company's actual results to differ materially from expected and historical results. You should not place undue reliance on any forward-looking statements, which speak only as of the date they are made. We assume no obligation to publicly update any forward-looking statements, whether as a result of new information, future developments or otherwise .
For more information, please contact:
Investor Relations and Media
Ira M. Gostin
investorrelations@swkhold.com
SWK HOLDINGS CORPORATION
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
| June 30, |
|
| December 31, |
| |||
Assets: |
|
|
|
|
|
| ||
Current assets: |
|
|
|
|
|
| ||
Cash and cash equivalents |
| $ | 5,549 |
|
| $ | 4,503 |
|
Restricted cash |
|
| - |
|
|
| 733 |
|
Interest, accounts receivable and other receivables, net |
|
| 7,384 |
|
|
| 4,729 |
|
Other current assets |
|
| 1,859 |
|
|
| 1,904 |
|
Total current assets |
|
| 14,792 |
|
|
| 11,869 |
|
|
|
|
|
|
|
|
| |
Finance receivables, net of allowance for credit losses of |
|
| 265,470 |
|
|
| 274,504 |
|
Collateral on foreign currency forward contract |
|
| 2,750 |
|
|
| 2,750 |
|
Marketable investments |
|
| 731 |
|
|
| 48 |
|
Deferred tax assets, net |
|
| 27,052 |
|
|
| 28,290 |
|
Warrant assets |
|
| 835 |
|
|
| 1,759 |
|
Intangible assets, net |
|
| 232 |
|
|
| 6,487 |
|
Property and equipment, net |
|
| 5,008 |
|
|
| 5,438 |
|
Other non-current assets |
|
| 4,504 |
|
|
| 3,109 |
|
Total assets |
| $ | 321,374 |
|
| $ | 334,254 |
|
|
|
|
|
|
|
|
| |
Liabilities and Stockholders' Equity: |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities |
| $ | 3,310 |
|
| $ | 3,935 |
|
Total current liabilities |
|
| 5,526 |
|
|
| 3,944 |
|
|
|
|
|
|
|
|
| |
Contingent consideration payable |
|
| - |
|
|
| 4,900 |
|
Unsecured senior notes, net |
|
| 31,078 |
|
|
| 30,781 |
|
Revolving credit facility |
|
| - |
|
|
| 12,350 |
|
Other non-current liabilities |
|
| 1,566 |
|
|
| 1,964 |
|
Total liabilities |
|
| 38,170 |
|
|
| 53,939 |
|
|
|
|
|
|
|
|
| |
Commitments and contingencies (Note 6) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Stockholders' equity: |
|
|
|
|
|
|
|
|
Preferred stock, |
|
| - |
|
|
| - |
|
Common stock, |
|
| 12 |
|
|
| 12 |
|
Additional paid-in capital |
|
| 4,423,472 |
|
|
| 4,425,104 |
|
Accumulated deficit |
|
| (4,140,280 | ) |
|
| (4,144,801 | ) |
Total stockholders' equity |
|
| 283,204 |
|
|
| 280,315 |
|
Total liabilities and stockholders' equity |
| $ | 321,374 |
|
| $ | 334,254 |
|
SWK HOLDINGS CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
| Three Months Ended June 30, |
|
| Six Months Ended June 30, |
| |||||||||||
| 2024 |
|
| 2023 |
|
| 2024 |
|
| 2023 |
| |||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Finance receivable interest income, including fees |
| $ | 10,680 |
|
| $ | 9,278 |
|
| $ | 21,399 |
|
| $ | 18,538 |
|
Pharmaceutical development |
|
| 804 |
|
|
| 183 |
|
|
| 1,083 |
|
|
| 301 |
|
Other |
|
| 57 |
|
|
| 36 |
|
|
| 103 |
|
|
| 69 |
|
Total revenues |
|
| 11,541 |
|
|
| 9,497 |
|
|
| 22,585 |
|
|
| 18,908 |
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit) for credit losses |
|
| 4,074 |
|
|
| (682 | ) |
|
| 9,397 |
|
|
| (682 | ) |
Loss on impairment of intangibles assets |
|
| 5,771 |
|
|
| - |
|
|
| 5,771 |
|
|
| - |
|
Interest expense |
|
| 1,119 |
|
|
| 363 |
|
|
| 2,375 |
|
|
| 545 |
|
Pharmaceutical manufacturing, research and development expense |
|
| 520 |
|
|
| 1,509 |
|
|
| 1,050 |
|
|
| 2,228 |
|
Change in fair value of acquisition-related contingent consideration |
|
| (4,900 | ) |
|
| - |
|
|
| (4,900 | ) |
|
| - |
|
Depreciation and amortization expense |
|
| 421 |
|
|
| 637 |
|
|
| 935 |
|
|
| 1,285 |
|
General and administrative expense |
|
| 2,923 |
|
|
| 2,997 |
|
|
| 5,607 |
|
|
| 5,537 |
|
Income from operations |
|
| 1,613 |
|
|
| 4,673 |
|
|
| 2,350 |
|
|
| 9,995 |
|
Other income (expense), net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized net gain (loss) on warrants |
|
| 226 |
|
|
| 399 |
|
|
| 131 |
|
|
| (583 | ) |
Net realized gain on sale of marketable investments |
|
| 656 |
|
|
| - |
|
|
| 513 |
|
|
| - |
|
Realized gain (loss) on sale of assets |
|
| 3 |
|
|
| - |
|
|
| (228 | ) |
|
| - |
|
Gain on revaluation of finance receivable |
|
| 2,495 |
|
|
| - |
|
|
| 2,495 |
|
|
| - |
|
Realized and unrealized foreign currency transaction gains |
|
| 437 |
|
|
| 316 |
|
|
| 524 |
|
|
| 502 |
|
Income before income tax expense |
|
| 5,430 |
|
|
| 5,388 |
|
|
| 5,785 |
|
|
| 9,914 |
|
Income tax expense |
|
| 1,035 |
|
|
| 1,454 |
|
|
| 1,264 |
|
|
| 1,345 |
|
Net income |
| $ | 4,395 |
|
| $ | 3,934 |
|
| $ | 4,521 |
|
| $ | 8,569 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net income per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
| $ | 0.35 |
|
| $ | 0.31 |
|
| $ | 0.36 |
|
| $ | 0.67 |
|
Diluted |
| $ | 0.35 |
|
| $ | 0.31 |
|
| $ | 0.36 |
|
| $ | 0.67 |
|
Weighted average shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
| 12,457 |
|
|
| 12,741 |
|
|
| 12,466 |
|
|
| 12,787 |
|
Diluted |
|
| 12,528 |
|
|
| 12,785 |
|
|
| 12,534 |
|
|
| 12,830 |
|
SWK HOLDINGS CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
| Six Months Ended June 30, |
| ||||||
| 2024 |
|
| 2023 |
| |||
Cash flows from operating activities: |
|
|
|
|
|
| ||
Net income |
| $ | 4,521 |
|
| $ | 8,569 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
Provision (benefit) for credit losses |
|
| 9,397 |
|
|
| (682 | ) |
Loss on impairment of intangible assets |
|
| 5,771 |
|
|
| - |
|
Right-of-use amortization and cease use costs |
|
| 261 |
|
|
| 156 |
|
Amortization of debt issuance costs |
|
| 491 |
|
|
| 168 |
|
Deferred income taxes, net |
|
| 1,239 |
|
|
| 1,316 |
|
Net change in fair value of warrant assets |
|
| (131 | ) |
|
| 583 |
|
Net realized gain on exercise of warrants |
|
| (513 | ) |
|
| - |
|
Realized loss from sale of assets |
|
| 228 |
|
|
| - |
|
Change in fair value of acquisition-related contingent consideration |
|
| (4,900 | ) |
|
| - |
|
Gain on revaluation of finance receivable |
|
| (2,495 | ) |
|
| - |
|
Foreign currency transaction gain |
|
| (327 | ) |
|
| (516 | ) |
Loan discount amortization and fee accretion |
|
| (2,592 | ) |
|
| (2,297 | ) |
Interest paid-in-kind |
|
| (904 | ) |
|
| (957 | ) |
Stock-based compensation |
|
| 360 |
|
|
| 199 |
|
Depreciation and amortization expense |
|
| 935 |
|
|
| 1,285 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Interest, accounts receivable and other receivables |
|
| (2,655 | ) |
|
| (1,287 | ) |
Other assets |
|
| (150 | ) |
|
| (792 | ) |
Accounts payable, accrued expenses, and other non-current liabilities |
|
| (900 | ) |
|
| (354 | ) |
Deferred income |
|
| 2,207 |
|
|
| (3 | ) |
Net cash provided by operating activities |
|
| 9,843 |
|
|
| 5,388 |
|
|
|
|
|
|
|
|
| |
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
Sale of finance receivables |
|
| - |
|
|
| 13,942 |
|
Sale of marketable investments |
|
| 574 |
|
|
|
|
|
Investment in finance receivables |
|
| (7,446 | ) |
|
| (13,101 | ) |
Repayment of finance receivables |
|
| 11,693 |
|
|
| 3,041 |
|
Corporate debt securities principal payments |
|
| 13 |
|
|
| 17 |
|
Purchases of property and equipment |
|
| (21 | ) |
|
| (191 | ) |
Net cash provided by investing activities |
|
| 4,813 |
|
|
| 3,708 |
|
|
|
|
|
|
|
|
| |
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
Net settlement for employee taxes on stock options |
|
| (43 | ) |
|
| - |
|
Net payments on credit facility |
|
| (12,350 | ) |
|
| (2,445 | ) |
Payments for financing costs |
|
| - |
|
|
| (872 | ) |
Repurchases of common stock, including fees and expenses |
|
| (1,950 | ) |
|
| (5,130 | ) |
Net cash used in financing activities |
|
| (14,343 | ) |
|
| (8,447 | ) |
Net increase in cash, cash equivalents, and restricted cash |
|
| 313 |
|
|
| 649 |
|
Cash, cash equivalents, and restricted cash at beginning of period |
|
| 5,236 |
|
|
| 6,156 |
|
Cash, cash equivalents, and restricted cash at end of period |
| $ | 5,549 |
|
| $ | 6,805 |
|
|
|
|
|
|
|
|
| |
Supplemental non-cash activity: |
|
|
|
|
|
|
|
|
Derecognition of ROU assets to operating lease liabilities upon termination of lease |
| $ | 82 |
|
| $ | - |
|
SOURCE: SWK Holdings Corp.
View the original press release on accesswire.com
FAQ
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