NYSE$SACH

Sachem Capital Corp · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Sachem Capital achieved record revenue and generated net income for 2019.

Sachem Capital reported record revenue of $12.7 million and net income of $6.2 million for the year ended December 31, 2019. The company's balance sheet showed a solid position with cash and short-term marketable securities of approximately $34.8 million and stockholders’ equity of $82.6 million as of December 31, 2019.

  • Total revenue for 2019 was $12.7 million, an increase of 8.3% compared to 2018.
  • Net income for 2019 was approximately $6.2 million, compared to $7.8 million for 2018.
  • Net income per share for 2019 was $0.32, compared to $0.50 for 2018.
  • Total assets at December 31, 2019, were $141.2 million, compared to $82.0 million at December 31, 2018.

Headline financials

Total Revenue

$2.89M

Previous: $2.9M-0.5%
EPS (adj)

$0.02

Previous: $0.11-81.8%
Capital Expenditures

$45.3K

Previous: -$320K+114.2%
Free Cash Flow

$757K

Previous: $2.77M-72.7%
Net Income

$6.2M

Previous: $1.64M+278.7%
Gross Profit

$2.89M

Previous: $2.9M-0.5%
Cash & Equivalents

$34.6M

Previous: $99.3K+34740.4%
Total Assets

$141M

Previous: $86M+64.2%
Stock-Based Comp

$30.8K

Previous: $8.34K+269.6%

Revenue & EPS history

Sachem Capital · Revenue · Quarterly

$2.89M

Q4 2019-0.5%vs Q4 2018
Beat estimate in 4 of 6 quarters(67%)
ActualEstimate

Forward guidance

Due to the uncertain outlook for 2020 due to COVID-19, the company has decided to defer any decision regarding further 2020 dividends until after the end of the second quarter of 2020 and reoriented its focus from growth to preservation of capital.

Tailwinds

  • Company raised over $90 million of fresh capital in 2019.
  • The capital was used to pay off the entire outstanding balance on credit facility and to expand mortgage portfolio.
  • Started 2020 with tremendous enthusiasm and great expectations given the liquid assets available.
  • Company intends to tighten lending criteria.
  • Company will temporarily table expansion strategy to reduce risk.

Headwinds

  • Expenses relating to transactions had a material adverse impact on 2019 operating results.
  • Company was not prepared for the pervasive impact of the COVID-19.
  • COVID-19 is not only a health crisis, but which has also created an economic crisis.
  • Company reoriented its focus from growth to preservation of capital.
  • Company will table expansion strategy to reduce risk.

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 Q4 2019

Historical avgQ4 2019

+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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