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KFS NYSE· Kingsway Financial Services Inc.
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KFS NYSE· Kingsway Financial Services Inc.
Earnings report Q3 2023

Kingsway Financial Services Inc. Reports Decrease in Income from Continuing Operations in Latest Quarter

Segments of Revenue

  • Service fee and commission revenue for the three months ended September 30, 2023, was $24.79 million, compared to $22.40 million in the same period last year.
  • Total revenues for the nine months ended September 30, 2023, amounted to $77.38 million, an increase from $68.44 million in the prior year.

Strengths

  • Kingsway Financial Services Inc. experienced organic growth at Ravix, with gross margin and operating income increasing by $0.1 million for the three months ended September 30, 2023, and $0.3 million year to date.
  • The inclusion of CSuite and SNS following their acquisitions in November 2022 contributed to the increase in revenue for the three and nine months of 2023.

Challenges

  • The company reported a decrease in income from continuing operations for the nine months ended September 30, 2023, compared to the same period in the prior year.
  • Other revenue and expenses not allocated to segments, net, including a management fee expense of $1.8 million, impacted the income from continuing operations.

Noteworthy

  • Kingsway Financial Services Inc. reported a gain on extinguishment debt of $31.6 million related to the repurchase of trust preferred debt.
  • The company also recorded a gain on equity investments, primarily related to its investment in Limbach Holdings, Inc., resulting in a gain of $3.3 million for the nine months ended September 30, 2023.

Summary

Kingsway Financial Services Inc. faced challenges in its income from continuing operations for the nine months ended September 30, 2023, primarily due to other revenue and expenses not allocated to segments, net. However, the company showed strengths in organic growth at Ravix and the inclusion of CSuite and SNS following their acquisitions. The gain on extinguishment debt and gain on equity investments, particularly in Limbach Holdings, Inc., contributed positively to the company's financial performance. Overall, Kingsway Financial Services Inc. reported a decrease in income from continuing operations but demonstrated growth in its segment revenues.

Source documents

Form 10-Q  filed on Nov 07, 2023
49 pages scanned

Reference data

Company financials Q3 revenue 26.4M
Analyst estimates Q3 EPS missed by NaN%
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