SWK Holdings Corporation Announces Financial Results for Third Quarter 2024
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 (SWKH) ha riportato i risultati finanziari del terzo trimestre 2024, con un utile netto GAAP di 3,5 milioni di dollari, in calo rispetto ai 4,5 milioni di dollari del terzo trimestre 2023. I ricavi totali sono aumentati del 15,6% raggiungendo i 10,4 milioni di dollari. I crediti finanziari netti sono cresciuti del 14,4% a 255,9 milioni di dollari rispetto all'anno precedente. Il rendimento effettivo dell'azienda è stato del 14,6%, in aumento di 60 punti base rispetto al terzo trimestre 2023. Il valore contabile per azione è aumentato del 3,7% a 22,94 dollari. L'azienda ha riacquistato circa 340.000 azioni per 5,8 milioni di dollari dall'inizio dell'anno fino all'8 novembre 2024. SWK ha concluso nuovi accordi di finanziamento, tra cui un finanziamento in royalties di 11,0 milioni di dollari con Relief Therapeutics e un impegno di 25,7 milioni di dollari con Eton Pharmaceuticals.
SWK Holdings (SWKH) reportó los resultados financieros del tercer trimestre de 2024, con un ingreso neto GAAP de 3,5 millones de dólares, por debajo de los 4,5 millones de dólares del tercer trimestre de 2023. Los ingresos totales aumentaron un 15,6%, alcanzando los 10,4 millones de dólares. Las cuentas por cobrar netas aumentaron un 14,4% a 255,9 millones de dólares en comparación con el año anterior. El rendimiento efectivo de la compañía fue del 14,6%, un aumento de 60 puntos básicos respecto al tercer trimestre de 2023. El valor contable por acción aumentó un 3,7% a 22,94 dólares. La compañía recompró aproximadamente 340.000 acciones por 5,8 millones de dólares en lo que va del año hasta el 8 de noviembre de 2024. SWK cerró nuevos acuerdos de financiamiento, incluyendo un financiamiento de regalías de 11,0 millones de dólares con Relief Therapeutics y un compromiso de 25,7 millones de dólares con Eton Pharmaceuticals.
SWK Holdings (SWKH)는 2024년 3분기 재무 결과를 보고했으며, GAAP 순이익 350만 달러로, 2023년 3분기의 450만 달러에서 감소했습니다. 총 수익은 15.6% 증가하여 1040만 달러에 도달했습니다. 순 금융 채권은 전년 대비 14.4% 증가하여 2억 5590만 달러가 되었습니다. 회사의 유효 수익률은 14.6%로, 2023년 3분기보다 60bp 상승했습니다. 주당 장부가치는 3.7% 상승하여 22.94달러에 도달했습니다. 회사는 2024년 11월 8일까지 연간 580만 달러에 약 34만 주를 재매입했습니다. SWK는 Relief Therapeutics와 1,100만 달러 규모의 로열티 재정 지원 및 Eton Pharmaceuticals에 대한 2,570만 달러의 약정을 포함한 새로운 자금 조달 계약을 체결했습니다.
SWK Holdings (SWKH) a annoncé les résultats financiers du troisième trimestre 2024, avec un revenu net GAAP de 3,5 millions de dollars, en baisse par rapport à 4,5 millions de dollars au troisième trimestre 2023. Le chiffre d'affaires total a augmenté de 15,6% pour atteindre 10,4 millions de dollars. Les créances nettes ont crû de 14,4% pour atteindre 255,9 millions de dollars par rapport à l'année précédente. Le rendement efficace de l'entreprise était de 14,6%, soit une augmentation de 60 points de base par rapport au troisième trimestre 2023. La valeur comptable par action a augmenté de 3,7% pour atteindre 22,94 dollars. L'entreprise a racheté environ 340 000 actions pour 5,8 millions de dollars depuis le début de l'année jusqu'au 8 novembre 2024. SWK a conclu de nouveaux accords de financement, comprenant un financement en redevance de 11,0 millions de dollars avec Relief Therapeutics et un engagement de 25,7 millions de dollars envers Eton Pharmaceuticals.
SWK Holdings (SWKH) hat die finanziellen Ergebnisse für das dritte Quartal 2024 veröffentlicht, mit einem GAAP-Nettoeinkommen von 3,5 Millionen US-Dollar, ein Rückgang von 4,5 Millionen US-Dollar im dritten Quartal 2023. Der Gesamterlös stieg um 15,6% auf 10,4 Millionen US-Dollar. Die Nettokreditforderungen wuchsen um 14,4% auf 255,9 Millionen US-Dollar im Vergleich zum Vorjahr. Die effektive Rendite des Unternehmens betrug 14,6%, ein Anstieg von 60 Basispunkten im Vergleich zum dritten Quartal 2023. Buchwert pro Aktie stieg um 3,7% auf 22,94 US-Dollar. Das Unternehmen hat bis zum 8. November 2024 rund 340.000 Aktien für 5,8 Millionen US-Dollar zurückgekauft. SWK hat neue Finanzierungsvereinbarungen abgeschlossen, darunter eine 11,0 Millionen US-Dollar umfassende Lizenzfinanzierung mit Relief Therapeutics und ein Engagement von 25,7 Millionen US-Dollar für Eton Pharmaceuticals.
- Revenue increased 15.6% YoY to $10.4 million
- Net finance receivables grew 14.4% to $255.9 million
- Effective yield improved by 60 basis points to 14.6%
- Book value per share increased 3.7% to $22.94
- New financing deals secured worth $36.7 million combined
- GAAP net income decreased 22.2% to $3.5 million from $4.5 million YoY
- Non-accrual finance receivables totaled $38.2 million
- Provision for credit losses increased by $1.2 million
- Interest expense increased by $0.9 million
Insights
The Q3 2024 results show mixed performance with some concerning trends. Revenue increased
Notable developments include new financing deals with Relief Therapeutics and Eton Pharmaceuticals, but these are partially offset by increased credit loss provisions of
The credit quality metrics reveal some red flags. The
While management expects resolution of three non-performing loans within 90 days, the concentration of troubled assets in the life sciences sector poses sector-specific risks. The
Conference Call Scheduled for Friday, November 15, 2024, at 09:00 a.m. CST
Third quarter 2024 GAAP net income was
$3.5 million , compared with GAAP net income of$4.5 million for the third quarter 2023.Third quarter 2024 finance receivables segment adjusted non-GAAP net income was
$5.0 million , compared with adjusted non-GAAP net income of$5.8 million for the third quarter 2023.As of September 30, 2024, net finance receivables were
$255.9 million , a14.4% increase from September 30, 2023.The third quarter 2024 effective yield was
14.6% , a 60 basis points increase from third quarter 2023.As of September 30, 2024, GAAP book value per share was
$22.94 , a3.7% increase from$22.11 on September 30, 2023.As of September 30, 2024, non-GAAP tangible financing book value per share was
$20.42 , a5.9% increase from$19.28 on September 30, 2023.Year-to-date through November 8, 2024, SWK has repurchased approximately 340,000 shares of stock for a total cost of
$5.8 million .
DALLAS, TX / ACCESSWIRE / November 14, 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 third quarter ended September 30, 2024.
"For the third quarter 2024, SWK's core Finance Receivables segment reported a
SWK CEO Jody Staggs said "During the quarter, we closed an up to
Mr. Staggs added, "In conjunction with our borrower partners we have made progress working through three non-accrual loans and anticipate resolution by year end. We believe the resolution of these non-accrual loans combined with the new financings and reduction in our diluted share count positions SWK for a strong 2025."
Third Quarter 2024 Financial Results
For the third quarter 2024, SWK reported total revenue of
Income before income tax expense for the quarter was
GAAP net income for the quarter ended September 30, 2024, decreased to
For the third quarter 2024, 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
During the third quarter, SWK closed a royalty monetization with Relief Therapeutics totaling
During the third quarter Epica made an
The third quarter 2024 realized yield was
As of September 30, 2024, non-accrual finance receivables totaled
As of September 30, 2024, SWK had
Total portfolio investment activity for the three months ended September 30, 2024, and 2023 was as follows (in thousands):
|
| Three Months Ended September 30, |
| |||||
|
| 2024 |
|
| 2023 |
| ||
Beginning Portfolio |
| $ | 267,036 |
|
| $ | 224,468 |
|
Provision for credit losses |
|
| (1,264 | ) |
|
| (223 | ) |
Interest paid-in-kind |
|
| 455 |
|
|
| 293 |
|
Investment in finance receivables |
|
| 10,290 |
|
|
| 5,000 |
|
Loan discount and fee accretion |
|
| (131 | ) |
|
| 663 |
|
|
|
|
|
|
|
|
|
|
Change in marketable investments and warrant assets |
|
| 146 |
|
|
| (162 | ) |
Foreign currency remeasurement of finance receivable |
|
| 1,042 |
|
|
| (690 | ) |
Paydowns received on investments |
|
| (17,510 | ) |
|
| (3,915 | ) |
Paydowns received on royalties |
|
| (1,379 | ) |
|
| (483 | ) |
Ending Portfolio |
| $ | 258,685 |
|
| $ | 224,951 |
|
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 September 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, and foreign currency transaction gains and losses.
|
| Three Months Ended September 30, |
| |||||
|
| 2024 |
|
| 2023 |
| ||
Net income |
| $ | 3,468 |
|
| $ | 4,474 |
|
Add: Income tax expense (benefit) |
|
| 906 |
|
|
| (386 | ) |
Add: Enteris amortization expense |
|
| 11 |
|
|
| 426 |
|
Subtract: Unrealized net (gain) loss on warrants assets |
|
| (47 | ) |
|
| 162 |
|
Subtract: Unrealized net gain on marketable investments |
|
| (6 | ) |
|
| - |
|
Add: Foreign currency transaction (gains) losses |
|
| (251 | ) |
|
| 76 |
|
Adjusted income before income tax (benefit) expense |
|
| 4,081 |
|
|
| 4,752 |
|
Adjusted income tax (benefit) expense |
|
| - |
|
|
| - |
|
Non-GAAP net income |
| $ | 4,081 |
|
| $ | 4,752 |
|
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, (iv) (gain) loss on remeasurement of contingent considerable, and (v) foreign currency (gains) losses
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 September 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, foreign currency transaction (gains) losses and any non-cash impact on the remeasurement of contingent consideration.
|
| Three Months Ended September 30, |
| |||||
|
| 2024 |
|
| 2023 |
| ||
Non-GAAP net income |
| $ | 4,081 |
|
| $ | 4,752 |
|
Add: Enteris operating loss, excluding amortization expense and change in fair value of contingent consideration |
|
| 885 |
|
|
| 1,070 |
|
Adjusted Finance Receivable segment income before income tax expense |
| $ | 4,966 |
|
| $ | 5,822 |
|
Adjusted income tax (benefit) expense |
|
| - |
|
|
| - |
|
Finance Receivables segment adjusted non-GAAP net income |
| $ | 4,966 |
|
| $ | 5,822 |
|
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 September 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 September 30, |
| |||||
|
| 2024 |
|
| 2023 |
| ||
GAAP stockholder's equity |
| $ | 283,431 |
|
| $ | 277,565 |
|
Diluted shares (1) |
|
| 12,355 |
|
|
| 12,553 |
|
GAAP book value per share |
| $ | 22.94 |
|
| $ | 22.11 |
|
|
|
|
|
|
|
|
|
|
Less: Deferred tax assets, net |
|
| (26,190 | ) |
|
| (26,090 | ) |
Less: Intangible assets, net |
|
| (220 | ) |
|
| (6,913 | ) |
Less: Goodwill |
|
| - |
|
|
| (8,404 | ) |
Less: Enteris property and equipment, net |
|
| (4,749 | ) |
|
| (5,325 | ) |
Plus: Contingent consideration payable |
|
| - |
|
|
| 11,200 |
|
Non-GAAP tangible finance book value |
|
| 252,272 |
|
|
| 242,033 |
|
Diluted shares (1) |
|
| 12,355 |
|
|
| 12,553 |
|
Non-GAAP Tangible book value per share |
| $ | 20.42 |
|
| $ | 19.28 |
|
(1) Diluted shares computed as of quarter end. |
|
|
|
|
|
|
|
|
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, and (iv) 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, Nov.15, 2024, at 9:00 a.m. CST, to discuss its corporate and financial results for the third quarter 2024.
Interested participants and investors may access the call via the numbers below:
888-506-0062 (U.S.)
973-528-0011 (International)
The participant Access Code is 282310 or ask for the SWK Holdings call
An archive of the webcast will remain available on the SWK Holdings' website for 12 months, starting later that day. https://investors.swkhold.com/events
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
775-391-0213
investorrelations@swkhold.com
SWK HOLDINGS CORPORATION
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
|
| September 30, |
|
| December 31, |
| ||
Assets: |
|
|
|
|
|
| ||
Current assets: |
|
|
|
|
|
| ||
Cash and cash equivalents |
| $ | 17,178 |
|
| $ | 4,503 |
|
Restricted cash |
|
| - |
|
|
| 733 |
|
Interest, accounts receivable and other receivables, net |
|
| 6,420 |
|
|
| 4,729 |
|
Other current assets |
|
| 1,610 |
|
|
| 1,904 |
|
Total current assets |
|
| 25,208 |
|
|
| 11,869 |
|
|
|
|
|
|
|
|
|
|
Finance receivables, net of allowance for credit losses of |
|
| 255,904 |
|
|
| 274,504 |
|
Collateral on foreign currency forward contract |
|
| 2,750 |
|
|
| 2,750 |
|
Marketable investments |
|
| 755 |
|
|
| 48 |
|
Deferred tax assets, net |
|
| 26,190 |
|
|
| 28,290 |
|
Warrant assets |
|
| 2,026 |
|
|
| 1,759 |
|
Intangible assets, net |
|
| 220 |
|
|
| 6,487 |
|
Property and equipment, net |
|
| 4,816 |
|
|
| 5,438 |
|
Other non-current assets |
|
| 3,410 |
|
|
| 3,109 |
|
Total assets |
| $ | 321,279 |
|
| $ | 334,254 |
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities |
| $ | 2,874 |
|
| $ | 3,935 |
|
Deferred income |
|
| 2,109 |
|
|
| 9 |
|
Total current liabilities |
|
| 4,983 |
|
|
| 3,944 |
|
|
|
|
|
|
|
|
|
|
Contingent consideration payable |
|
| - |
|
|
| 4,900 |
|
Unsecured senior notes, net |
|
| 31,243 |
|
|
| 30,781 |
|
Revolving credit facility |
|
| - |
|
|
| 12,350 |
|
Other non-current liabilities |
|
| 1,622 |
|
|
| 1,964 |
|
Total liabilities |
|
| 37,848 |
|
|
| 53,939 |
|
|
|
|
|
|
|
|
|
|
Stockholders' equity: |
|
|
|
|
|
|
|
|
Preferred stock, |
|
| - |
|
|
| - |
|
Common stock, |
|
| 12 |
|
|
| 12 |
|
Additional paid-in capital |
|
| 4,420,604 |
|
|
| 4,425,104 |
|
Accumulated deficit |
|
| (4,137,185 | ) |
|
| (4,144,801 | ) |
Total stockholders' equity |
|
| 283,431 |
|
|
| 280,315 |
|
Total liabilities and stockholders' equity |
| $ | 321,279 |
|
| $ | 334,254 |
|
SWK HOLDINGS CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
|
| Three Months Ended September 30, |
|
| Nine Months Ended September 30, |
| ||||||||||
|
| 2024 |
|
| 2023 |
|
| 2024 |
|
| 2023 |
| ||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Finance receivable interest income, including fees |
| $ | 9,498 |
|
| $ | 8,608 |
|
| $ | 30,519 |
|
| $ | 27,146 |
|
Pharmaceutical development |
|
| 628 |
|
|
| 315 |
|
|
| 1,711 |
|
|
| 616 |
|
Other |
|
| 292 |
|
|
| 39 |
|
|
| 395 |
|
|
| 108 |
|
Total revenues |
|
| 10,418 |
|
|
| 8,962 |
|
|
| 32,625 |
|
|
| 27,870 |
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit) for credit losses |
|
| 1,385 |
|
|
| 223 |
|
|
| 10,777 |
|
|
| (459 | ) |
Loss on impairment of intangibles assets |
|
| - |
|
|
| - |
|
|
| 5,771 |
|
|
| - |
|
Interest expense |
|
| 1,139 |
|
|
| 176 |
|
|
| 3,514 |
|
|
| 721 |
|
Pharmaceutical manufacturing, research and development expense |
|
| 585 |
|
|
| 606 |
|
|
| 1,635 |
|
|
| 2,834 |
|
Change in fair value of acquisition-related contingent consideration |
|
| - |
|
|
| - |
|
|
| (4,900 | ) |
|
| - |
|
Depreciation and amortization expense |
|
| 234 |
|
|
| 652 |
|
|
| 1,169 |
|
|
| 1,937 |
|
General and administrative expense |
|
| 2,993 |
|
|
| 2,979 |
|
|
| 8,600 |
|
|
| 8,516 |
|
Income from operations |
|
| 4,082 |
|
|
| 4,326 |
|
|
| 6,059 |
|
|
| 14,321 |
|
Other income (expense), net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized net gain (loss) on warrants |
|
| 47 |
|
|
| (162 | ) |
|
| 178 |
|
|
| (745 | ) |
Unrealized net (loss) gain on marketable investments |
|
| (6 | ) |
|
| - |
|
|
| 12 |
|
|
|
|
|
Net realized gain on sale of marketable investments |
|
| - |
|
|
| - |
|
|
| 495 |
|
|
| - |
|
Realized loss on sale of assets |
|
| - |
|
|
| - |
|
|
| (228 | ) |
|
| - |
|
Gain on revaluation of finance receivable |
|
| - |
|
|
| - |
|
|
| 2,495 |
|
|
| - |
|
Realized and unrealized foreign currency transaction gains (losses) |
|
| 251 |
|
|
| (76 | ) |
|
| 775 |
|
|
| 426 |
|
Income before income tax expense |
|
| 4,374 |
|
|
| 4,088 |
|
|
| 9,786 |
|
|
| 14,002 |
|
Income tax expense (benefit) |
|
| 906 |
|
|
| (386 | ) |
|
| 2,170 |
|
|
| 959 |
|
Net income |
| $ | 3,468 |
|
| $ | 4,474 |
|
| $ | 7,616 |
|
| $ | 13,043 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
| $ | 0.28 |
|
| $ | 0.36 |
|
| $ | 0.61 |
|
| $ | 1.03 |
|
Diluted |
| $ | 0.28 |
|
| $ | 0.36 |
|
| $ | 0.61 |
|
| $ | 1.02 |
|
Weighted average shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
| 12,318 |
|
|
| 12,539 |
|
|
| 12,417 |
|
|
| 12,703 |
|
Diluted |
|
| 12,408 |
|
|
| 12,582 |
|
|
| 12,492 |
|
|
| 12,746 |
|
SWK HOLDINGS CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
|
| Nine Months Ended September 30, |
| |||||
|
| 2024 |
|
| 2023 |
| ||
Cash flows from operating activities: |
|
|
|
|
|
| ||
Net income |
| $ | 7,616 |
|
| $ | 13,043 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
Provision (benefit) for credit losses |
|
| 10,777 |
|
|
| (459 | ) |
Loss on impairment of intangible assets |
|
| 5,771 |
|
|
| - |
|
Right-of-use amortization and cease use costs |
|
| 339 |
|
|
| 244 |
|
Amortization of debt issuance costs |
|
| 775 |
|
|
| 243 |
|
Deferred income taxes, net |
|
| 2,100 |
|
|
| 915 |
|
Unrealized net gain (loss) of warrants |
|
| (178 | ) |
|
| 745 |
|
Net realized gain on exercise of warrants |
|
| (495 | ) |
|
| - |
|
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 |
|
| (459 | ) |
|
| (375 | ) |
Unrealized gain on marketable investments |
|
| (12 | ) |
|
| - |
|
Loan discount amortization and fee accretion |
|
| (2,461 | ) |
|
| (2,959 | ) |
Interest paid-in-kind |
|
| (1,359 | ) |
|
| (1,826 | ) |
Stock-based compensation |
|
| 708 |
|
|
| 369 |
|
Depreciation and amortization expense |
|
| 1,169 |
|
|
| 1,937 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Interest, accounts receivable and other receivables |
|
| (1,691 | ) |
|
| (1,317 | ) |
Other assets |
|
| 30 |
|
|
| (738 | ) |
Accounts payable, accrued expenses, and other non-current liabilities |
|
| (1,403 | ) |
|
| (632 | ) |
Deferred income |
|
| 2,100 |
|
|
| (3 | ) |
Net cash provided by operating activities |
|
| 16,160 |
|
|
| 9,187 |
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
Sale of finance receivables |
|
| - |
|
|
| 13,942 |
|
Sale of marketable investments |
|
| 574 |
|
|
| - |
|
Investment in finance receivables |
|
| (17,736 | ) |
|
| (17,525 | ) |
Repayment of finance receivables |
|
| 30,582 |
|
|
| 7,430 |
|
Corporate debt securities principal payments |
|
| 20 |
|
|
| 26 |
|
Purchases of property and equipment |
|
| (50 | ) |
|
| (299 | ) |
Net cash provided by investing activities |
|
| 13,390 |
|
|
| 3,574 |
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
Net settlement for employee taxes on stock options |
|
| (43 | ) |
|
| - |
|
Net (payments on) proceeds credit facility |
|
| (12,350 | ) |
|
| 19,555 |
|
Payments for financing costs |
|
| (50 | ) |
|
| (1,345 | ) |
Repurchases of common stock, including fees and expenses |
|
| (5,165 | ) |
|
| (6,093 | ) |
Net cash (used in) provided by financing activities |
|
| (17,608 | ) |
|
| 12,117 |
|
Net increase in cash, cash equivalents, and restricted cash |
|
| 11,942 |
|
|
| 24,878 |
|
Cash, cash equivalents, and restricted cash at beginning of period |
|
| 5,236 |
|
|
| 6,156 |
|
Cash, cash equivalents, and restricted cash at end of period |
| $ | 17,178 |
|
| $ | 31,034 |
|
|
|
|
|
|
|
|
|
|
Supplemental non-cash investing and financing activities: |
|
|
|
|
|
|
|
|
Derecognition of right-of-use assets and operating lease liabilities upon termination of lease |
| $ | 82 |
|
| $ | - |
|
Fair value of warrants received with finance receivables |
| $ | 1,073 |
|
| $ | 822 |
|
SOURCE: SWK Holdings Corp.
View the original press release on accesswire.com
FAQ
What was SWKH's revenue growth in Q3 2024?
How much did SWKH's net finance receivables increase in Q3 2024?
What was SWKH's book value per share as of September 30, 2024?
How many shares did SWKH repurchase in 2024?
