SWK Holdings Company Declares Monetary Outcomes for Second Quarter 2024 By Investing.com

Convention Name Scheduled for Friday, August 16, 2024, at 09:00 a.m. CST

Company Highlights

• Second quarter 2024 GAAP internet revenue was $4.4 million, in contrast with internet revenue of $3.9 million for the second quarter 2023

• Second quarter 2024 finance receivables phase adjusted non-GAAP internet revenue was $6.5 million, in contrast with adjusted non-GAAP internet revenue of $7.6 million for the second quarter 2023

• As of June 30, 2024, internet finance receivables have been $265.5 million, a 19.0% improve from June 30, 2023

• The second quarter 2024 efficient yield was 14.6%, a ten bps improve from second quarter 2023

• As of June 30, 2024, non-GAAP tangible financing ebook worth per share was $20.17, a 6.3% improve from $18.95 at June 30, 2023

DALLAS, TX / ACCESSWIRE / August 15, 2024 / SWK Holdings Company (NASDAQ:SWKH) (“SWK” or the “Company”), a life science-focused specialty finance firm catering to small- and mid-sized commercial-stage corporations, at the moment offered a enterprise replace and introduced its monetary and working outcomes for the second quarter ended June 30, 2024.

“For the second quarter 2024, our core Finance Receivables segment reported a 15.3% increase in revenue to $10.7 million. Our finance segment generated $3.3 million of GAAP net income and $6.5 million of adjusted non-GAAP net income as strong performance from the majority of our portfolio was partially offset by a $4.1 million provision for credit losses driven by impairments on two non-accrual loans. Positive developments in the portfolio include a $2.5 million increase in the carrying value of Illuvien as a result of entering into an amendment with the marketer as well as a $0.7 million gain from the conversion of private warrants in AOTI, Inc. to common stock as the company completed an initial public offering during the quarter,” stated Jody Staggs, President and CEO of SWK.

Mr. Staggs concluded: “In August we closed an up to $11 million royalty financing to Relief Therapeutics. The custom solution monetized three discrete royalty streams, providing capital to Relief to advance its clinical pipeline while giving SWK a diversified stream of royalties. For the remainder of 2024 we are focused on closing similar loan and royalty financings to innovative life science partners, working with our non-accrual borrowers to achieve positive outcomes, supporting the team at Enteris as it collaborates with our strategic partner to build value.”

Second Quarter 2024 Monetary Outcomes

For the second quarter 2024, SWK reported complete income of $11.5 million, a 21.1% improve in comparison with $9.5 million for the second quarter 2023. The $2.0 million improve in income for the three months ended June 30, 2024 consisted of a $1.4 million improve in Finance Receivables phase income and a $0.6 million improve in Pharmaceutical Improvement phase income.

Earnings earlier than revenue tax expense for the quarter was $5.4 million for each the three months ended June 30, 2024 and 2023. Though constant, second quarter 2024 revenue earlier than revenue tax expense benefited from a $2.0 million improve in consolidated income from curiosity and costs earned attributable to funding new loans, a $4.9 million acquire from the write off of acquisition-related contingent consideration beforehand due below the Cara licensing settlement, and a $2.5 million acquire on revaluation of Iluvien royalty ensuing from an modification signed in 2Q24, offset by a $5.8 million impairment of the Cara License intangible asset attributable to cancellation of the associated medical trial, a $2.1 million impairment on our Trio mortgage, and a $2.2 million impairment on our Exeevo mortgage instantly recorded to the availability for credit score losses throughout 2Q24.

GAAP internet revenue for the quarter ended June 30, 2024, elevated to $4.4 million, or $0.35 per diluted share, from $3.9 million, or $0.31 per diluted share, for the second quarter 2023.

For the second quarter 2024 and 2023, non-GAAP adjusted internet revenue was $5.8 million, or $0.47 per share. Non-GAAP adjusted internet revenue for the Finance Receivables phase was $6.5 million, a lower from $7.6 million for the second quarter 2023.

Complete funding property (outlined as finance receivables, marketable investments, and warrant property much less the allowance for credit score losses) totaled $267.0 million as of June 30, 2024. A 19.0% improve in contrast with complete funding property of $224.5 million as of June 30, 2023. The allowance for credit score loss at quarter’s finish totaled $13.1 million, a rise from $11.1 million within the second quarter of 2023.

GAAP ebook worth per share was $22.75 as of June 30, 2024, a 4.4% improve in comparison with $21.79 as of June 30, 2023. Non-GAAP tangible financing ebook worth per share totaled $20.17, a 6.4% improve in comparison with $18.95 at June 30, 2023. Administration views non-GAAP tangible financing ebook worth per share as a related metric to worth the Firm’s core finance receivable enterprise. Non-GAAP tangible financing ebook worth per share removes the worth of the deferred tax property and Enteris internet asset worth.

Portfolio Standing

SWK didn’t shut any new financings throughout the quarter ended June 30, 2024 and superior $7.0 million to present debtors. Subsequent to June 30, 2024, SWK closed an as much as $11.0 million royalty monetization with $5.8 million superior at shut.

The second quarter 2024 realized yield was 15.4%, unchanged from the second quarter of 2023. The realized yield is inclusive of all charges, together with all realized unamortized charges, modification charges, and prepayment charges, and is calculated primarily based on the straightforward common of finance receivables in the beginning and finish of the interval. The realized yield could differ from the efficient yield attributable to precise money collections being larger or lesser than modeled.

As of June 30, 2024, non-accrual finance receivables totaled $22.4 million. Of the whole $22.4 million, $10.4 million consisted of a non-accrual financing initially to Flowonix Medical, $4.5 million consisted of a mortgage to Exeevo, $3.6 million consisted of a royalty buy initially to Best Implant, and $2.4 million consisted of a royalty to Finest ABT, Inc, and $1.5 million consisted of a mortgage to Trio Healthcare.

As of June 30, 2024, SWK had $5.0 million of unfunded commitments, and after quarter shut SWK added a further $10.3 million of unfunded commitments.

Complete portfolio funding exercise for the three months ended June 30, 2024, and 2023 was as follows (in hundreds):

Adjusted Non-GAAP Internet Earnings

The next desk gives a reconciliation of SWK’s reported (GAAP) consolidated internet revenue to SWK’s adjusted consolidated internet revenue (Non-GAAP) for the three-month intervals ended June 30, 2024 and 2023. The desk eliminates provisions for revenue taxes, non-cash mark-to-market modifications on warrant property and fairness securities, amortization of Enteris intangible property, overseas forex transaction losses, and any non-cash affect on the remeasurement of contingent consideration.

Within the desk above, administration has deducted the next non-cash gadgets: (i) change within the fair-market worth of equities and warrants, as mark-to-market modifications are non-cash, (ii) revenue taxes, because the Firm has substantial internet working losses to offset towards future revenue, (iii) amortization expense related to Enteris intangible property, and (iv) impairment/write off of Cara license and related change in truthful worth of contingent appreciable payable, and (v) overseas forex acquire.

Finance Receivables Adjusted Non-GAAP Internet Earnings

The next desk gives a reconciliation of SWK’s consolidated adjusted revenue earlier than provision for revenue tax expense, listed within the desk above, to the non-GAAP adjusted internet revenue for the Finance Receivable phase for the three-month intervals ended June 30, 2024 and 2023. The desk eliminates Enteris working loss. The adjusted revenue earlier than revenue tax expense is derived within the desk above and eliminates revenue tax expense, non-cash mark-to-market modifications on fairness securities, amortization of Enteris intangible property, intangible asset impairment expense, overseas forex transaction positive factors, and any non-cash affect on the remeasurement of contingent consideration.

Non-GAAP Tangible Finance E book Worth Per Share

The next desk gives a reconciliation of SWK’s GAAP ebook worth per share to its non-GAAP tangible finance ebook worth per share as of June 30, 2024 and 2023. The desk eliminates the deferred tax property, intangible property, goodwill, Enteris property and gear and acquisition-related contingent consideration (in hundreds, besides per share information):

Non-GAAP Monetary Measures

This launch consists of non-GAAP adjusted internet revenue, non-GAAP finance receivable phase internet revenue, and non-GAAP tangible financing ebook worth per share, that are metrics that aren’t compliant with typically accepted accounting rules in america (GAAP).

Non-GAAP adjusted internet revenue is adjusted for sure gadgets (together with (i) modifications within the fair-market worth of public equity-related property and SWK’s warrant property as mark-to-market modifications are non-cash, (ii) revenue taxes because the Firm has substantial internet working losses to offset towards future revenue, (iii) modifications within the fair-market worth of contingent consideration related to the Enteris acquisition as these modifications are non-cash, (iv) intangible asset impairment expense, and (v) depreciation and amortization bills, primarily related to the Enteris acquisition.

Along with the changes famous above, non-GAAP finance receivable phase internet revenue additionally excludes Enteris working losses.

Non-GAAP tangible financing ebook worth per share excludes the deferred tax asset, intangible property, goodwill, Enteris PP&E, and contingent consideration related to the Enteris transaction.

These non-GAAP measures might not be instantly akin to comparable measures utilized by different corporations within the Firm’s business, as different corporations could outline such measures otherwise. Administration believes that these measures are helpful to traders and administration in understanding our ongoing operations and in evaluation of ongoing working tendencies and gives helpful extra data referring to our operations and monetary situation. The Firm encourages traders to rigorously contemplate its outcomes below GAAP, in addition to its supplemental non-GAAP data and the reconciliation between these displays, to higher perceive its enterprise. Non-GAAP monetary outcomes are reported along with, and never as an alternative to, or superior to, monetary measures calculated in accordance with GAAP. Additional, non-GAAP monetary measures, even when equally titled, might not be calculated in the identical method by all corporations, and due to this fact shouldn’t be in contrast.

Convention Name Info

SWK Holdings will host a convention name on Friday, August 16, 2024, at 9:00 a.m. CST, to debate its company and monetary outcomes for the second quarter 2024.

members and traders could entry the convention name telephonically by dialing both:

1. 888-506-0062 (U.S.)

2. 973-528-0011 (Worldwide)

3. Participant Entry Code: 282310

An archive of the webcast will stay out there on SWK Holdings’ web site for 12 months starting at roughly 11:00 a.m. CT, on August 16, 2024.

About SWK Holdings Company

SWK Holdings Company is a life science targeted specialty finance firm partnering with small- and mid-sized commercial-stage healthcare corporations. SWK gives non-dilutive financing to gasoline the event and commercialization of lifesaving and life-enhancing medical applied sciences and merchandise. SWK’s distinctive financing constructions present versatile financing options at a horny value of capital to create long-term worth for all SWK stakeholders. SWK’s options embrace structured debt, conventional royalty monetization, artificial royalty transactions, and asset purchases usually ranging in dimension from $5.0 million to $25.0 million. SWK additionally owns Enteris BioPharma, a medical growth and manufacturing group offering growth companies to pharmaceutical companions in addition to progressive formulation options constructed round its proprietary oral drug supply applied sciences, the Peptelligence ® platform. Extra data on the life science finance market is offered on the Firm’s web site at www.swkhold.com.

Protected Harbor For Ahead-Trying Statements

This press launch accommodates forward-looking statements inside the that means of the Personal Securities Litigation Reform Act of 1995. Statements together with phrases equivalent to “believes,” “expects,” “anticipates,” “intends,” “estimates,” “plan,” “will,” “may,” “look forward,” “intend,” “guidance,” “future” or comparable expressions are forward-looking statements. As a result of these statements replicate SWK’s present views, expectations and beliefs regarding future occasions, these forward-looking statements contain dangers and uncertainties. Traders ought to word that many elements, as extra absolutely described below the caption “Risk Factors” and elsewhere in SWK’s Type 10-Okay, Type 10-Q and Type 8-Okay filings with the Securities and Trade Fee and as in any other case enumerated herein, might have an effect on the Firm’s future monetary outcomes and will trigger precise outcomes to vary materially from these expressed in such forward-looking statements. The forward-looking statements on this press launch are certified by these threat elements. These are elements that, individually or within the mixture, might trigger the Firm’s precise outcomes to vary materially from anticipated and historic outcomes. You shouldn’t place undue reliance on any forward-looking statements, which converse solely as of the date they’re made. We assume no obligation to publicly replace any forward-looking statements, whether or not because of new data, future developments or in any other case .

For extra data, please contact:

Investor Relations and Media
Ira M. Gostin
investorrelations@swkhold.com

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SOURCE: SWK Holdings Corp.

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