XS Financial Reports First Quarter 2024 Results
XS Financial, a specialty finance company catering to U.S. cannabis businesses, announced its Q1 2024 financial results. The company reported a net distributable earnings increase of 1,331% YoY to $275,000, despite a 6% decline in revenue to $2.7 million and a 9% drop in gross lease receivables to $96.2 million. Operating expenses fell by 61% to $913,457, while net income reached $217,349, up from a loss of $1.99 million in Q1 2023. Key developments included four new lease schedules with Ayr Wellness valued at $1.2 million. XS Financial aims to expand its customer base and optimize operations, with $26 million available from its $54 million credit line.
- 1,331% YoY increase in net distributable earnings to $275,000.
- 61% decrease in operating expenses to $913,457.
- Net income of $217,349 compared to a loss of $1.99 million in Q1 2023.
- Four new lease schedules with Ayr Wellness totaling $1.2 million.
- $26 million available for draw on a $54 million line of credit.
- 6% YoY decrease in revenue to $2.7 million.
- 9% YoY decrease in gross lease receivables to $96.2 million.
- Decrease in volume of new leases contributed to lower revenue.
Company Generates Net Distributable Earnings of
LOS ANGELES, CA / ACCESSWIRE / May 29, 2024 / XS Financial Inc. ("XS Financial", "XSF" or the "Company") (CSE:XSF)(OTCQB:XSHLF), a specialty finance company providing CAPEX and equipment financing solutions to cannabis companies in the United States, reports its financial results today for the first quarter ended March 31st, 2024. All amounts are expressed in U.S. dollars unless indicated otherwise.
Q1/24 Financial Highlights:
6% YoY decrease in Q1 revenue to$2.7 million in Q1/24 from$2.8 million in Q1/23;9% YoY decrease in gross lease receivables to$96.2 million in Q1/24 from$105.8 million in Q1/23;- 1,
331% YoY improvement in net distributable earnings to$275 k in Q1/24 from$19 k in Q1/23; - 4 new lease schedules with Ayr Wellness resulting in closed lease transactions totaling approximately
$1.2 million .
Post-Quarter-End Portfolio and Corporate Highlights:
| Q2/23 | Q3/23 | Q4/23 | Q1/24 | As of 05/24/2024 | ||||||||||||||||
# of Customers | 16 | 16 | 16 | 16 | 16 | |||||||||||||||
# of Active Leases | 206 | 222 | 228 | 232 | 234 | |||||||||||||||
Active Leases Since Inception | $ | 117.3mm | $ | 127.0mm | $ | 127.9mm | $ | 129.1mm | $ | 129.4mm | ||||||||||
Average Lease Size by Customer | $ | 7.3mm | $ | 7.9mm | $ | 8.0mm | $ | 8.0mm | $ | 8.1mm | ||||||||||
Monthly Recurring Payments | $ | 3.0mm | $ | 3.2mm | $ | 3.2mm | $ | 3.3mm | $ | 3.3mm | ||||||||||
Gross Lease Receivables | $ | 111.5mm | $ | 113.1mm | $ | 104.6mm | $ | 96.2mm | $ | 90.0mm | ||||||||||
David Kivitz, CEO of XS Financial commented: "During the first quarter, we generated net distributable earnings of
Summary Financial Results - Three Months Ending March 31st, 2024.
The following table sets forth selected financial information for the periods indicated that was derived from our financial statements.
| For the three months ended | ||||||||
| March 31st | ||||||||
| 2024 | 2023 | |||||||
Financing income and operating lease revenue | $ | 2,686,224 | $ | 2,842,969 | ||||
Operating expenses | $ | 913,457 | $ | 2,380,335 | ||||
Other expenses (income) | $ | 1,555,418 | $ | 2,450,443 | ||||
Net (loss) income | $ | 217,349 | $ | (1,987,809 | ) | |||
Income (loss) per share - basic | $ | 0.00 | $ | (0.02 | ) | |||
Weighted average shares outstanding - basic | 103,885,041 | 103,885,041 | ||||||
Revenues for the quarter decreased
Operating expenses for the quarter decreased
Other expenses for the quarter decreased to
Net Income for the quarter was
Net Distributable Earnings
After adjusting for non-cash items, including the unrealized loss in the fair value change of investments, accretion expense, and stock-based compensation, including gain (loss) from lease terminations, the Company reported net distributable earnings of
Summary of Net Distributable Earnings - First Quarter 2024 compared to First Quarter 2023
| Q1 2024 | Q1 2023 | |||||||
Operating Income | $ | 1,772,767 | $ | 462,634 | ||||
Add: Noncash Equity Compensation | $ | 148,499 | $ | 1,302,987 | ||||
Add: Depreciation Expense | $ | 944 | $ | 4,816 | ||||
Add: Gain on Lease Termination | $ | 6,665 | $ | 65,091 | ||||
Less: Interest Expense | $ | 1,653,564 | $ | 1,816,298 | ||||
Net Distributable Earnings | $ | 275,311 | $ | 19,230 |
XS Financials' complete annual financial statements and management's discussion and analysis for the first quarter ended March 31st 2024, will be filed under the Company's profile on www.sedar.com, and will also be available on XS Financial's corporate website at www.xsfinancial.com/investors.
About XS Financial
Founded in 2017, XS Financial specializes in providing CAPEX financing solutions to cannabis companies in the United States, including cultivators, processors, manufacturers, and testing laboratories. In addition, XSF has partnered with over 250 original equipment manufacturers (OEM) through its network of Preferred Vendor partnerships. This powerful dynamic provides an end-to-end solution for customers which results in recurring revenues, strong profit margins, and a proven business model for XSF stakeholders. The Company's subordinate voting shares are traded on the Canadian Securities Exchange under the symbol "XSF". For more information, visit: www.xsfinancial.com.
For inquiries please contact:
| David Kivitz Chief Executive Officer | Antony Radbod Chief Operating Officer |
| Tel: 1-310-683-2336 | |
| Email: ir@xsfinancial.com | |
Non-IFRS Financial Measures
This press release includes references to certain non-IFRS financial measures. These non-IFRS measures do not have any standardized meanings prescribed by International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) and are therefore unlikely to be comparable to similar measures presented by other companies. Accordingly, they should not be considered in isolation, in addition to, not as a substitute for or superior to, measures of financial performance prepared in accordance with IFRS.
Forward-Looking Information
This press release contains "forward-looking information" and may also contain statements that may constitute "forward-looking statements", collectively "forward-looking information", within the meaning of applicable Canadian securities legislation. Such forward-looking information is not representative of historical facts or information or current condition, but instead represent the beliefs and expectations regarding future events about the business and the industry and markets in which XS Financial operates, as well as plans or objectives of management, many of which, by their nature, are inherently uncertain. Generally, such forward-looking information can be identified by the use of terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or may contain statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "will continue", "will occur" or "will be achieved". Forward-looking information contained herein may include but is not limited to, any additional leasing opportunities and the ability to capitalize on such and the timing thereof. Forward-looking information is not a guarantee of future performance and involve risks, uncertainties and assumptions which are difficult to predict. Accordingly, readers should not place undue reliance on forward-looking information, which are qualified in their entirety by this cautionary statement. XS Financial Inc., does not undertake any obligation to release publicly any revisions for updating any voluntary forward-looking information, except as required by applicable securities law.
Neither the Canadian Securities Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
SOURCE: XS Financial Inc.
View the original press release on accesswire.com
FAQ
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