Kingsway Financial Announces Q1 2024 Results with Moderate Earnings and Revenue Declines

Kingsway Financial Services Inc. reported a decrease in consolidated revenue and a shift from net income to a net loss in the first quarter of 2024. The revenue saw a slight drop of 0.9% to $26.2 million compared to $26.4 million in the same period last year. This decline was primarily noticed in the KSX revenue, which decreased by 2.5% to $9.5 million. The company reported a consolidated net loss of $2.3 million, a significant change from the net income of $27.9 million reported in the first quarter of 2023, which included a $31.6 million non-recurring gain on debt extinguishment.

Adjusted EBITDA for the quarter stood at $2.1 million, down from $2.4 million in the prior year, with the Extended Warranty and KSX segments contributing a combined total of $3.0 million, compared to $3.5 million last year. The decrease in EBITDA for the Extended Warranty segment was attributed to higher claims expenses despite stringent expense management. Similarly, the KSX segment experienced a decline primarily due to ongoing challenges in the nurse staffing business.

In addition to financial results, Kingsway announced the extension of its share repurchase program until March 2025, with 8,000 shares already repurchased as of May 8, 2024. The company also highlighted maintaining total net debt at $34.9 million, slightly reduced from $35.3 million at the end of 2023.