Kingsway Financial Services (KFS, Financial) revealed that its subsidiary, Systems Products International, has purchased @Work International, also known as "ViewPoint." This Australian company, based in Mount Waverley, specializes in cloud-native timeshare software and was previously owned by RCI Pacific.
This strategic acquisition bolsters SPI Software’s position as a leader in the vacation ownership software sector and enhances its capability to deliver innovative, cloud-based solutions to a wider global clientele. The deal is expected to immediately improve Kingsway’s Adjusted EBITDA, although the financial specifics of the transaction remain undisclosed.
KFS Key Business Developments
Release Date: March 18, 2025
- Consolidated Revenue: $109.4 million, up 6% from 2023.
- Consolidated Adjusted EBITDA: $10.6 million, up 17% from 2023.
- Extended Warranty Revenue: $68.9 million, up 1% from 2023.
- Extended Warranty Adjusted EBITDA: $7.6 million, down from $8.4 million in 2023.
- KSX Revenue: $40.5 million, up 16% from $35 million in 2023.
- KSX Adjusted EBITDA: $6.6 million, up 15% from $5.7 million in 2023.
- Cash and Cash Equivalents: $5.5 million as of December 31, 2024, down from $9.1 million at the end of 2023.
- Total Debt Outstanding: $57.5 million, up from $44.4 million at the end of 2023.
- Net Operating Losses (NOLs): Approximately $622 million as of December 31, 2024.
- Shares Repurchased: 355,750 shares for $2.8 million, including fees and commissions.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Kingsway Financial Services Inc (KFS, Financial) reported a 6% increase in consolidated revenue for 2024, reaching $109.4 million.
- The company's consolidated adjusted EBITDA rose by 17% compared to 2023, indicating improved profitability.
- The KSX segment saw a 16% increase in revenue, driven by strategic acquisitions and strong performance.
- Kingsway successfully completed the acquisition of Image Solutions and divested its VA Lafayette subsidiary, aligning with its strategic goals.
- The company has a strong pipeline of acquisition opportunities, with plans to expand its KSX business through 2 to 3 deals per year.
Negative Points
- The Extended Warranty segment experienced a decline in adjusted EBITDA due to increased claims costs from inflation in parts and labor expenses.
- Ravix, a subsidiary, saw a slight decline in EBITDA despite improvements in gross margin.
- C-suite's EBITDA decreased due to lower sales from reduced deal volume in the capital markets.
- The company faced challenges in talent acquisition, with some new hires not meeting expectations.
- Kingsway only completed one acquisition in 2024, falling short of its goal of two to three acquisitions per year.
