NYSE$KFS

Kingsway Financial Services · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Reported solid financial results for the first quarter of 2023, marked by revenue growth and strategic debt repurchase.

Kingsway Financial Services Inc. reported a 17% increase in consolidated revenue to $26.4 million for Q1 2023, driven by a 131% increase in KSX revenue. The company achieved a net income of $27.8 million, a significant improvement from the prior year's net loss of $2.5 million. Adjusted consolidated EBITDA was $2.4 million, compared to $1.0 million in the prior year period.

  • Consolidated revenue increased by 17% to $26.4 million.
  • KSX revenue increased by 131% to $9.7 million, benefiting from recent acquisitions.
  • Consolidated net income was $27.8 million, a substantial turnaround from the previous year's net loss.
  • Adjusted consolidated EBITDA was $2.4 million, up from $1.0 million in the prior year period.

Headline financials

Total Revenue

$26.4M

Previous: $26.1M+1.0%
EPS (adj)

$1.05

Previous: $0.07+1400.0%
Free Cash Flow

$27.8M

Previous: -$2.62M+1164.2%
Net Income

$27.8M

Previous: -$2.5M+1211.8%
Operating Income

$514K

Previous: $799K-35.7%
Gross Profit

$18.6M

Previous: $21.6M-13.5%
Cash & Equivalents

$8.29M

Previous: $13.1M-36.5%
Total Assets

$201M

Previous: $475M-57.6%
Stock-Based Comp

$283K

Previous: $378K-25.1%

Revenue & EPS history

Kingsway Financial · Revenue · Quarterly

$26.4M

Q1 2023+1%vs Q1 2022

Revenue by segment

Kingsway Financial · $16.7M total across 1 segment · Q1 2023

  • Extended Warranty
    $16.7M

Forward guidance

Kingsway is focused on growing its portfolio of businesses organically and through acquisitions, with a thoughtful approach to capital allocation to increase per share value.

Tailwinds

  • The company is well-equipped to expand its portfolio of operating businesses with cash on hand.
  • Kingsway has a defined set of strategies in place to continue to grow the per share value of its business over time.
  • The company repurchased the majority of its outstanding TruPs debt and associated accrued interest.
  • The company simplified its capital structure.
  • The company is better positioned for executing its strategy and increasing its cash flows.

Headwinds

  • Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expected.
  • A number of factors could cause actual events, performance or results to differ materially from the forward-looking statements.
  • The Extended Warranty revenue was $16.7 million in the first quarter of 2023 compared to $18.3 million in the first quarter of 2022.
  • The company's future performance is subject to risks detailed in its SEC filings.
  • The company disclaims any obligation to update or revise any forward-looking statements.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-0.2%

Avg return

Earnings day

+0.2%

Avg return

5 days after

-0.7%

Avg return

30 days after

56%

32 / 57 earnings

Positive

+16.3%

Q2 2022

Best reaction

-11.0%

Q1 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.7%+6.3%-5.7%
Q3 2025+0.1%-11.8%-13.3%
Q1 2025-1.2%+3.8%+48.1%
Q3 2024-0.2%-4.2%-9.0%
Q1 2024-11.0%-12.1%-12.8%
Q4 2023+0.8%-4.9%-9.5%
Q3 2023+2.6%-4.9%+1.9%
Q2 2023-2.6%-0.7%+5.0%
Q1 2023-5.1%-3.9%+0.8%
Q4 2022+0.9%-11.2%-13.0%
Q3 2022+0.0%+1.6%+1.4%
Q2 2022+16.3%+19.6%+8.7%
Q1 2022-2.1%-3.6%-3.6%
Q4 2021+9.8%+7.8%+8.0%
Q3 2021-0.2%-1.1%-9.2%
Q2 2021+0.2%-1.4%+0.9%
Q1 2021-2.2%-2.2%-1.0%
Q4 2020+0.7%+4.5%+1.1%
Q3 2020-0.0%-0.3%+33.8%
Q2 2020-2.1%-2.1%+1.7%
Q1 2020+7.6%+10.5%+17.6%
Q4 2019+4.5%+9.0%+26.7%
Q3 2019+0.5%+3.6%-9.8%
Q2 2019+0.5%+3.6%-9.8%
Q1 2019+0.5%+0.5%-9.8%
Q4 2018-4.0%-1.3%+12.6%
Q3 2018+4.2%+5.0%-9.6%
Q2 2018+1.6%+3.3%-21.3%
Q1 2018+7.5%+12.3%-16.5%
Q4 2017-10.5%-13.5%-33.3%
Q3 2017+0.4%+0.5%-0.5%
Q2 2017-0.8%-2.5%-10.7%
Q1 2017-6.1%+0.0%+9.6%
Q4 2016-1.7%-5.0%-4.2%
Q3 2016-0.9%-1.0%-4.9%
Q2 2016+3.6%+4.0%+5.3%
Q1 2016-2.8%
Q4 2015+0.9%
Q3 2015-0.7%
Q2 2015+4.4%
Q1 2015+1.2%
Q4 2014+0.9%
Q3 2014+1.4%
Q2 2014+0.4%
Q4 2013+4.6%
Q4 2012+4.6%
Q3 2013+0.3%
Q2 2013-7.8%
Q1 2013-4.8%
Q3 2012-8.9%
Q3 2011-8.9%
Q2 2012+0.2%
Q2 2011+0.2%
Q4 2011+4.1%
Q1 2012+4.1%
Q4 2010
Q3 2010-10.2%
Q2 2010-4.5%

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