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Kingsway Financial Services Inc. (KFS) is a Delaware-based holding company that operates through subsidiaries primarily in the United States. The company focuses on providing extended warranty services for vehicles and equipment, as well as business consulting and staffing solutions. Its diverse offerings cater to industries such as automotive, HVAC, healthcare, and financial services.
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Extended Warranty - Offers vehicle service agreements, GAP products, and maintenance support services through subsidiaries like IWS, Geminus, PWI, and Trinity. Provides warranty products for HVAC systems, standby generators, and refrigeration equipment, as well as acting as an agent for third-party insurers.
- IWS Acquisition Corporation (IWS) - Provides after-market vehicle protection services distributed by credit unions across the U.S..
- Geminus Holding Company, Inc. (Geminus) - Sells vehicle service agreements through subsidiaries Penn Warranty and Prime Auto Care to used car buyers via dealerships.
- PWI Holdings, Inc. (PWI) - Markets and administers vehicle service agreements and GAP products through dealerships nationwide.
- Trinity Warranty Solutions LLC (Trinity) - Sells HVAC and equipment warranty products and provides maintenance support services.
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Kingsway Search Xcelerator (KSX) - Provides business services consulting, including financial and HR consulting, healthcare staffing, and software solutions, through subsidiaries like CSuite, Ravix, SNS, and SPI.
- CSuite Financial Partners, LLC (CSuite) - Offers CFO and finance professional placements for interim or permanent roles.
- Ravix Group, Inc. (Ravix) - Delivers outsourced financial and HR consulting services for short- or long-term engagements.
- Secure Nursing Service LLC (SNS) - Provides healthcare staffing services to acute healthcare facilities in California.
- Systems Products International, Inc. (SPI) - Develops vertical market software for shared-ownership property management.
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Discontinued Operations - Previously operated a leased real estate segment, including properties like CMC Industries and VA Lafayette, which have been sold or classified as held for sale.
| KPIs - Metric (Unit, Scale) | FY 2013 | Q1 2014 | Q2 2014 | Q3 2014 | FY 2014 | Q1 2015 | Q2 2015 | Q3 2015 | FY 2015 | Q1 2016 | Q2 2016 | Q3 2016 | FY 2016 | Q1 2017 | Q2 2017 | Q3 2017 | FY 2017 | Q1 2018 | Q2 2018 | Q3 2018 | FY 2019 | Q1 2020 | Q2 2020 | Q3 2020 | FY 2020 | Q1 2021 | Q2 2021 | Q3 2021 | FY 2021 | Q1 2022 | Q2 2022 | Q3 2022 | FY 2022 | Q1 2023 | Q2 2023 | Q3 2023 | FY 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Number of states for IWS credit union distribution (states) | 25 | 25 | 25 | 25 | 24 | 25 | 24 | 25 | ||||||||||||||||||||||||||||||||
| Number of states for IWS customers (states) | 50 | 50 | 50 | 50 | 50 | 50 | 50 | 50 | ||||||||||||||||||||||||||||||||
| Number of states for Penn distribution (states) | 39 | 39 | 42 | 46 | 47 | 47 | 46 | 47 | ||||||||||||||||||||||||||||||||
| Number of states for Prime distribution (states) | 40 | 40 | 40 | 42 | 40 | 37 | 37 | 34 | ||||||||||||||||||||||||||||||||
| Number of states for PWI distribution (states) | 50 | 50 | 50 | 50 | 50 | 50 | 50 | 50 | ||||||||||||||||||||||||||||||||
| Number of states where DDI has presence (states) | - | - | - | - | 42 | 42 | 42 | 39 | ||||||||||||||||||||||||||||||||
| Percentage change in number of contracts sold for IWS (percentage) | - | - | - | - | - | - | - | 8.7 | ||||||||||||||||||||||||||||||||
| Percentage change in number of contracts sold for Geminus (percentage) | - | - | - | - | - | - | - | 16.2 | ||||||||||||||||||||||||||||||||
| Percentage change in number of contracts sold for PWI (percentage) | - | - | - | - | - | - | - | -7.5 |
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
John T. Fitzgerald Executive | President, CEO, and Principal Executive Officer | None | John T. Fitzgerald is the President, CEO, and Principal Executive Officer of KFS. No additional details about his tenure or achievements are provided in the documents. | View Report → |
Kent A. Hansen Executive | Chief Financial Officer (CFO) and Executive Vice President | None | Kent A. Hansen has been CFO of KFS since February 2020. He previously served as CFO of Kingsway America Inc. and held senior finance roles at LSC Communications, Baxalta, and Scientific Games Corporation. | |
Charles Frischer Board | Director | Director at Altisource Asset Management (NYSE: AAMC) and Crown Capital Partners (TSX: CRWN) | Charles Frischer joined the KFS Board in 2022. He is a general partner at LFF Partners and has significant experience in financial services and real estate investing. | |
Corissa B. Porcelli Board | Director | Director of Research at The Stilwell Group | Corissa B. Porcelli has been a director since 2020. She is a CFA\u00ae charterholder and has expertise in financial analysis and corporate governance. | |
Douglas Levine Board | Director | President of Levine Management | Douglas Levine has been a director since 2018. He is the Chair of the Investment Committee at KFS and has extensive experience in real estate development through his role at Levine Management. | |
Gregory P. Hannon Board | Director | Vice-President and Director of Oakmont Capital Inc. | Gregory P. Hannon has been a director since 2009. He is an audit committee financial expert and Chair of the Audit and Nominating Committees at KFS. He has a background in accounting, auditing, and financial reporting. | |
Joseph D. Stilwell Board | Director | Owner and Managing Member of Stilwell Value LLC; Board Member at Wheeler Real Estate Investment Trust, Inc. | Joseph D. Stilwell has been a director since 2009. He is the owner of Stilwell Value LLC and has extensive experience in capital allocation and maximizing shareholder value. | |
Terence M. Kavanagh Board | Chairman of the Board | President and Director of Oakmont Capital Inc. | Terence M. Kavanagh has been a director since 2009 and Chairman since 2013. He has extensive experience in investment banking and private equity and oversees corporate governance and strategy at KFS. |
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Given that adjusted EBITDA in your Extended Warranty segment was flat compared to the prior year despite increased revenue, largely due to a 7.5% rise in claims expense, what specific strategies are you implementing to mitigate claims inflation and improve profitability in this segment?
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At Ravix, adjusted EBITDA was down in the third quarter compared to last year despite slight improvements in gross margins; with the venture market remaining slow, how do you plan to drive profitability in the face of reduced deal volumes, and what are your contingency plans if market conditions do not improve as anticipated?
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DDI's adjusted EBITDA was down modestly in the quarter despite a 20% year-over-year revenue increase; can you explain the timeline for the investments in infrastructure and talent to translate into profitability, and how confident are you that the backlog will offset the current EBITDA decline?
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With SNS experiencing a revenue decline of roughly 1% despite an increase in total shifts due to competitive pricing pressures, how do you plan to address pricing pressures in the nurse staffing market to return to revenue growth, and what actions are you taking to improve margins in this business?
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Your net debt increased significantly to $52 million as of September 30, 2024, from $35.3 million at the end of 2023; given this increase in leverage, how do you intend to manage debt levels moving forward, and what is your strategy to balance debt repayment with funding for future acquisitions and share repurchases?
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Image Solutions LLC | 2024 | Completed on September 26, 2024, the IT Managed Services Provider was acquired for a total cash consideration of $19.5 million—with additional debt financing and convertible preferred stock—highlighting Kingsway’s focus on recurring revenue and low-capital-intensity businesses. |
Digital Diagnostics Imaging, Inc. (DDI) | 2023 | Completed on October 26, 2023, the acquisition was executed for approximately $11.0 million in cash, financed partly with a $5.6 million term loan and a $0.4 million revolver, to bolster Kingsway’s portfolio in fully managed outsourced cardiac telemetry services. |
Systems Products International, Inc. (SPI) | 2023 | Completed on September 7, 2023, for an aggregate cash consideration of $2.8 million (subject to adjustments), this vertical market software company with recurring revenue was integrated within Kingsway’s Vertical Market Solutions to drive immediate accretive earnings. |
CSuite Financial Partners | 2022 | Completed effective November 1, 2022, with an initial cash payment of $8.5 million (plus potential earnouts up to $3.55 million), this financial executive services firm acquisition fits Kingsway’s strategy of capital‐light, recurring revenue businesses. |
Secure Nursing Service, Inc. (SNS) | 2022 | Completed on November 18, 2022, the asset purchase for $10.9 million—financed with a mix of debt ($6.5 million term loan and a $1 million revolver) and cash—added a high-margin staffing service with recurring revenue to Kingsway’s Search Xcelerator Program |
Recent press releases and 8-K filings for KFS.
- CEO John Fitzgerald outlined the company's unique Search Fund model strategy to acquire and grow businesses with a decentralized management approach, also highlighting $622M in net operating loss carryforwards.
- CFO Kent Hansen updated on key M&A activities, including acquisitions like Image Solutions, Buds Plumbing, and SPI’s atWork International, driving revenue and adjusted EBITDA improvements.
- Introduced the Kingsway Business System (KBS) to support new operators in talent management, process improvement, and strategic growth.
- Set clear financial targets with a 12-month run-rate adjusted EBITDA of $18–19 million and a disciplined strategy of 2–3 acquisitions per year.
- Reaffirmed the high return potential of the Search Fund approach, targeting around 35% IRR and aligning with evolving market dynamics.
- Released a comprehensive investor presentation on May 18, 2025, providing critical insights for stakeholders.
- Scheduled the Investor Day event at the New York Stock Exchange on May 19, 2025 at 9:30 AM ET, with a live stream available for remote participants.
- Issued 80,000 shares of Class D Preferred Stock with a par value of $0.01 per share, carrying a liquidation preference of $25 per share and fixed cumulative dividends at an annual rate of 8% (increasing to 18% if dividends are unpaid for over two quarters).
- The Class D Preferred Stock features conversion rights into common stock at a rate of approximately 2.6316 common shares per preferred share and includes detailed provisions regarding adjustments for stock events.
- Consolidated revenue reached $28.3 million, up 8.4% from Q1 2024 .
- The company reported a net loss of $3.1 million (up from $2.3 million) with an adjusted consolidated EBITDA decline of $0.7 million .
- The KSX segment saw revenue rise to $11.7 million with adjusted EBITDA reflecting a 23.3% YoY increase (reaching $1.9 million) .
- Completed the acquisition of Bud’s Plumbing for $5 million plus a $1.25 million seller note, adding $6.0 million in annual revenue and $0.8 million in adjusted EBITDA .
- Acquired the cloud-native software provider ViewPoint to enhance the KSX platform and boost recurring revenue .
- Announced board and financing updates with two new independent directors and a $6 million convertible preferred stock issuance to strengthen governance and liquidity .
- Extended Warranty revenue remained flat at $16.7 million .
- Adam J. Patinkin and Joshua S. Horowitz have been appointed as non-employee directors, effective March 31, 2025.
- They will be nominated for election at the upcoming 2025 Annual Meeting of Shareholders, reinforcing the company’s strategy and growth trajectory.
- The announcement also noted significant share acquisitions by affiliates, with 9.2% and 1.5% ownership stakes respectively.
- Acquisition Details: Kingsway Financial Services established its Kingsway Skilled Trades platform with the acquisition of Bud's Plumbing (M.L.C. Plumbing LLC) for $5 million (plus transaction expenses), financed with $3.75 million in cash and $1.25 million in seller debt financing.
- Financial Metrics: Bud's Plumbing reported unaudited $6 million in revenue and approximately $800,000 adjusted EBITDA for the 12 months ending October 2024, corresponding to a valuation multiple of approximately 0.8x revenue and 6.0x adjusted EBITDA.
- Capital and Strategy: The acquisition funding included the issuance of Class C preferred stock with an 8% fixed cumulative dividend, a conversion price of $9.5 per share, and a redemption price of $25 per share in 2032, while the company outlined plans for both organic growth and further M&A activity in mid-sized markets.
- Strategic Portfolio Moves: The company executed key transactions in 2024, notably completing the acquisition of Image Solutions and divesting its VA Lafayette subsidiary, thereby refining and diversifying its portfolio.
- Strong Financial Performance: Consolidated revenue grew 6% to $109.4 million and adjusted EBITDA increased 17% to $10.6 million, with sequential quarterly improvements validating the company’s strategy.
- Expansion in Skilled Trades: The acquisition of Buds Plumbing for $5 million plus additional transaction terms underscores the company’s focus on organic and inorganic growth within the KSX segment.
- Consolidated revenue increased 5.9% to $109.4 million in 2024, driven by a modest rise in the Extended Warranty segment and a strong 15.7% improvement in the KSX segment following acquisitions.
- The Company reported a consolidated net loss of $8.3 million in 2024 compared to a net income of $24.0 million in the prior year, reflecting the absence of an earlier one-time gain on debt extinguishment.
- Adjusted EBITDA improved to $10.6 million for the full year, with segment highlights including a 14.9% increase in KSX adjusted EBITDA despite some pressure on Extended Warranty margins.