NYSE$SACH

Sachem Capital Corp · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Sachem Capital reported a 41% increase in revenue and a 98% increase in net income.

Sachem Capital Corp. announced its financial results for the second quarter ended June 30, 2020, revealing a 41% increase in revenue and a 98% increase in net income compared to the same period in 2019. Despite the COVID-19 pandemic, the company generated strong financial performance by focusing on capital preservation and portfolio maintenance.

  • Total revenue increased by 41% to approximately $4.3 million compared to $3.1 million in Q2 2019.
  • Net income increased by 98% to approximately $2.3 million, or $0.10 per share, compared to $1.1 million, or $0.06 per share in Q2 2019.
  • Interest income and net origination fees were approximately $3.3 million and $647,000, respectively.
  • The company restricted lending and conserved cash in response to the COVID-19 pandemic.

Headline financials

Total Revenue

$4.31M

Previous: $3.07M+40.6%
EPS (adj)

$0.10

Previous: $0.10+0.0%
Capital Expenditures

-$62.6K

Previous: -$165K+62.1%
Free Cash Flow

$3.91M

Previous: $3.56M+9.8%
Net Income

$2.27M

Previous: $1.14M+98.3%
Operating Income

$3.94M

Previous: $2.95M+33.5%
Gross Profit

$4.31M

Previous: $3.07M+40.6%
Cash & Equivalents

$4.65M

Previous: $3.1M+50.1%
Total Assets

$143M

Previous: $95.9M+49.5%
Stock-Based Comp

$4.11K

Previous: $4.11K-0.1%

Revenue & EPS history

Sachem Capital · Revenue · Quarterly

$4.31M

Q2 2020+40.6%vs Q2 2019
Beat estimate in 5 of 7 quarters(71%)
ActualEstimate

Forward guidance

Sachem Capital will continue to prudently deploy capital and pursue opportunistic expansion and diversification of its loan portfolio, while remaining cautiously optimistic heading into the second half of the year.

Tailwinds

  • Forbearance requests decreased from 42 at the end of Q1 2020 to 23 at the end of Q2 2020.
  • The company is pursuing opportunistic expansion.
  • The company is pursuing diversification of its loan portfolio.
  • Loan pipeline is robust.
  • The company is cautiously optimistic heading into the second half of the year.

Headwinds

  • COVID-19 pandemic's potential impact on the overall business environment.
  • Strategic decision to restrict lending.
  • Strategic decision to conserve cash.
  • Growth strategy was put on hold temporarily.
  • Focus shifted to preservation of capital and careful maintenance of existing portfolio.

Historical earnings impact

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

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

+0.2%

Avg return

Earnings day

-1.4%

Avg return

5 days after

-0.1%

Avg return

30 days after

46%

17 / 37 earnings

Positive

+37.6%

Q1 2026

Best reaction

-18.8%

Q4 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+37.6%+19.8%-7.6%
Q4 2025+1.5%-11.5%-3.7%
Q3 2025+1.0%+0.9%+2.8%
Q2 2025-1.8%-2.6%+6.9%
Q1 2025-3.9%-6.5%-4.2%
Q4 2024-9.6%+0.9%-10.4%
Q3 2024-8.2%-15.4%-32.8%
Q2 2024-1.7%-1.3%+9.0%
Q1 2024+0.3%+1.6%-6.6%
Q4 2023-18.8%-19.1%-29.4%
Q3 2023+2.6%+3.5%+12.5%
Q2 2023-3.5%-3.7%+4.0%
Q1 2023-7.5%-6.3%-0.6%
Q4 2022+1.4%-1.1%-5.2%
Q3 2022+11.7%+7.5%+4.5%
Q2 2022-1.0%+0.6%-14.2%
Q1 2022+1.9%+1.9%+7.3%
Q4 2021+1.2%-1.7%-6.8%
Q3 2021+2.1%+1.6%+1.2%
Q2 2021-0.6%-5.5%+2.4%
Q1 2021+0.0%-2.3%+0.0%
Q4 2020+3.3%+4.8%-0.6%
Q3 2020+5.0%-0.2%+3.9%
Q2 2020+4.2%+2.3%-3.4%
Q1 2020+24.5%+6.1%+39.3%
Q4 2019-16.7%-19.6%+17.7%
Q3 2019-1.6%-1.2%+5.4%
Q2 2019-2.2%-2.8%-7.2%
Q1 2019+3.1%+4.9%+17.7%
Q4 2018-1.8%+2.7%+0.9%
Q3 2018-5.4%-4.4%-5.6%
Q2 2018+2.9%+0.5%+2.0%
Q1 2018-2.7%-0.5%+10.9%
Q4 2017-3.5%+2.6%+4.2%
Q3 2017-6.7%-10.3%-6.7%
Q2 2017+0.0%+2.1%-7.4%
Q1 2017+1.9%+0.8%-3.3%

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