DULUTH, GA / ACCESSWIRE / November 1, 2019 / CCUR Holdings, Inc. (OTCQB:CCUR) today reported net income attributable to its stockholders of $3,406,000, or $0.39 per share, for the first fiscal quarter of 2020. During the prior year period, the Company reported a net loss of $3,000, or $0.00 per share.
Revenue for the quarter increased to $1,731,000 compared to $131,000 during the prior year period. The revenue increase is primarily due to Merchant Cash Advance (MCA) revenue of $1,448,000 compared to zero MCA revenue in the first fiscal quarter of 2019. The Company's MCA business commenced revenue generation in the second fiscal quarter of 2019. Revenue from interest on loans increased greater than 100% to $283,000. Other interest, dividend and investment income for the period totaled $3,703,000 compared to $688,000 in the year-ago fiscal first quarter.
"Our performance in the quarter reflects the solid execution of our strategic plan," said Wayne Barr, President and CEO. "The strength of our MCA offering coupled with the continuing track record and performance of our real estate business give us confidence we can build on this progress and achieve our near, short and long-term objectives - enhancing stockholder value by expanding on our MCA business and prudently managing our strong balance sheet."
General and administrative expenses for the first quarter of fiscal year 2020 increased to $1,029,000 compared to $835,000 and reflected increased salaries from additional personnel and financial performance bonuses accrued for the period. Total operating expenses for the first quarter of fiscal 2020 were $1,680,000 and included sales and marketing expenses of $305,000 as the Company continues to invest in awareness programs for its MCA operations, as well as a $216,000 provision for MCA losses. The Company incurred no sales and marketing expenses in the first quarter of fiscal 2019. Operating cash flow for the first quarter of fiscal 2020 was $537,000.
The Company's operating income for the first quarter of fiscal 2020 was $51,000 as compared to an operating loss of $704,000 for the first fiscal quarter of fiscal 2019. Total working capital as of September 30, 2019 was $49.4 million as compared with $48.8 million as of June 30, 2019.
About CCUR Holdings, Inc.
CCUR Holdings, Inc. operates MCA and real estate business segments through its subsidiaries Recur Holdings LLC and LM Capital Solutions, LLC and actively pursues other business opportunities to maximize the value of its assets through evaluation of additional operating businesses or assets for acquisition. More information on the Company is available at www.ccurholdings.com.
Forward Looking Statements
Certain statements made or incorporated by reference herein may constitute "forward-looking statements" within the meaning of federal securities laws. When used or incorporated by reference in this report, the words "believes," "expects," "estimates," "anticipates," and similar expressions are intended to identify forward-looking statements. Statements regarding future events and developments such as future financial performance or returns, as well as expectations, beliefs, plans, estimates or projections relating to the future and current assessments of business opportunities, are forward-looking statements within the meaning of these laws. These statements are based on beliefs and assumptions of CCUR's management, which are based on currently available information. Except for the historical information contained herein, the matters discussed in this communication may contain forward-looking statements that involve risks and uncertainties that may cause CCUR's actual results to be materially different from such forward-looking statements and could materially adversely affect its business, financial condition, operating results and cash flows. These risks and uncertainties include, but are not limited to, CCUR's ability to successfully negotiate, perform due diligence and consummate any additional acquisitions, expected cash and liquidity positions, expected financial performance and revenue streams, market fluctuations in or material financial or regulatory changes impacting the MCA and real estate industry and general business conditions, as well as other risks listed in the Company's Form 10-K filed on August 28, 2019 and subsequent quarterly reports filed with the Securities and Exchange Commission and risk and uncertainties not presently known to CCUR or that CCUR currently deems immaterial.
CCUR wishes to caution against placing undue reliance on any forward-looking statements, which speak only as of the date on which they were made. CCUR does not undertake any obligation to update forward-looking statements, whether as a result of future events, new information or otherwise, except as required by law.
(Tables to follow)
CONTACT:
Michael Polyviou
[email protected]
732-933-2755
CCUR HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS (Unaudited)
(Amounts in thousands, except share and per share data)
|
|
September 30, 2019 |
June 30, 2019 |
|||||||||
| ASSETS | |||||||||||
|
Current assets:
|
|||||||||||
|
Cash and cash equivalents
|
$ | 8,767 | $ | 8,083 | |||||||
|
Equity securities, fair value
|
6,991 | 7,405 | |||||||||
|
Fixed maturity securities, available-for-sale, fair value
|
22,785 | 20,393 | |||||||||
|
Current maturities of mortgage and commercial loans receivable
|
2,418 | 3,184 | |||||||||
|
Advances receivable, net
|
7,660 | 9,389 | |||||||||
|
Prepaid expenses and other current assets
|
2,256 | 1,779 | |||||||||
|
Total current assets
|
50,877 | 50,233 | |||||||||
|
|
|||||||||||
|
Land investment
|
3,527 | 3,265 | |||||||||
|
Deferred income taxes, net
|
475 | 475 | |||||||||
|
Mortgage and commercial loans receivable, net of current maturities
|
6,460 | 3,680 | |||||||||
|
Definite-lived intangibles, net
|
2,791 | 2,910 | |||||||||
|
Goodwill
|
1,260 | 1,260 | |||||||||
|
Other long-term assets, net
|
608 | 651 | |||||||||
|
Total assets
|
$ | 65,998 | $ | 62,474 | |||||||
|
|
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| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
|
Current liabilities:
|
|||||||||||
|
Accounts payable and accrued expenses
|
$ | 702 | $ | 660 | |||||||
|
Contingent consideration, current
|
750 | 750 | |||||||||
|
Total current liabilities
|
1,452 | 1,410 | |||||||||
|
|
|||||||||||
|
Long-term liabilities:
|
|||||||||||
|
Pension liability
|
3,979 | 4,136 | |||||||||
|
Contingent consideration, long-term
|
2,350 | 2,340 | |||||||||
|
Long-term debt
|
1,600 | 1,600 | |||||||||
|
Other long-term liabilities
|
584 | 632 | |||||||||
|
Total liabilities
|
9,965 | 10,118 | |||||||||
|
|
|||||||||||
|
Commitments and contingencies
|
|||||||||||
|
|
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|
Stockholders' equity:
|
|||||||||||
|
Shares of common stock, par value $0.01;
14,000,000 authorized; 8,756,156 issued and outstanding at both September 30, 2019, and June 30, 2019 |
87 | 87 | |||||||||
|
Capital in excess of par value
|
208,980 | 208,881 | |||||||||
|
Non-controlling interest
|
917 | 762 | |||||||||
|
Accumulated deficit
|
(147,389 | ) | (150,795 | ) | |||||||
|
Accumulated other comprehensive loss
|
(6,562 | ) | (6,579 | ) | |||||||
|
Total stockholders' equity
|
56,033 | 52,356 | |||||||||
|
Total liabilities, non-controlling interest, and stockholders' equity
|
$ | 65,998 | $ | 62,474 | |||||||
CCUR HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(Amounts in thousands, except share and per share data)
|
|
Three Months Ended September 30, | |||||||
|
|
2019 | 2018 | ||||||
|
Revenues:
|
||||||||
|
Merchant cash advance fees and other revenue
|
$ | 1,448 | $ | - | ||||
|
Interest on mortgage and commercial loans
|
283 | 131 | ||||||
|
Total revenues
|
1,731 | 131 | ||||||
|
Operating expenses:
|
||||||||
|
Sales and marketing
|
305 | - | ||||||
|
General and administrative
|
1,029 | 835 | ||||||
|
Change in fair value of contingent consideration
|
10 | - | ||||||
|
Amortization of purchased intangibles
|
120 | - | ||||||
|
Provision for credit losses on advances
|
216 | - | ||||||
|
Total operating expenses
|
1,680 | 835 | ||||||
|
Operating income (loss)
|
51 | (704 | ) | |||||
|
|
||||||||
|
Other interest income
|
2,137 | 880 | ||||||
|
Dividend income
|
21 | 64 | ||||||
|
Realized gain on investments, net
|
1,076 | 201 | ||||||
|
Unrealized gain (loss) on equity securities, net
|
469 | (457 | ) | |||||
|
Other (expense) income, net
|
(20 | ) | 15 | |||||
|
Income (loss) before income taxes
|
3,734 | (1 | ) | |||||
|
|
||||||||
|
Provision for income taxes
|
173 | 2 | ||||||
|
|
||||||||
|
Net income (loss)
|
3,561 | (3 | ) | |||||
|
|
||||||||
|
Net income attributable to non-controlling interest
|
(155 | ) | - | |||||
|
|
||||||||
|
Net income (loss) attributable to CCUR Holdings, Inc. stockholders
|
$ | 3,406 | $ | (3 | ) | |||
|
Basic and diluted earnings (loss) per share:
|
||||||||
|
Net income attributable to CCUR Holdings, Inc. stockholders
|
$ | 0.39 | $ | - | ||||
|
|
||||||||
|
Weighted average shares outstanding - basic
|
8,756,156 | 9,105,527 | ||||||
|
Weighted average shares outstanding - diluted
|
8,809,572 | 9,105,527 | ||||||
CCUR HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(Amounts in thousands, except share and per share data)
|
|
Three Months Ended | |||||||
|
|
September 30, 2019 |
June 30, 2019 |
||||||
|
Revenues:
|
||||||||
|
Merchant cash advance fees and other revenue
|
$ | 1,448 | $ | 1,435 | ||||
|
Interest on mortgage and commercial loans
|
283 | 411 | ||||||
|
Total revenues
|
1,731 | 1,846 | ||||||
|
Operating expenses:
|
||||||||
|
Sales and marketing
|
305 | 287 | ||||||
|
General and administrative
|
1,029 | 876 | ||||||
|
Change in fair value of contingent consideration
|
10 | 730 | ||||||
|
Amortization of purchased intangibles
|
120 | 126 | ||||||
|
Provision for credit losses on advances
|
216 | 767 | ||||||
|
Total operating expenses
|
1,680 | 2,786 | ||||||
|
Operating income (loss)
|
51 | (940 | ) | |||||
|
|
||||||||
|
Other interest income
|
2,137 | 1,628 | ||||||
|
Dividend income
|
21 | 19 | ||||||
|
Realized gain (loss) on investments, net
|
1,076 | (259 | ) | |||||
|
Unrealized gain on equity securities, net
|
469 | 382 | ||||||
|
Other expense, net
|
(20 | ) | (35 | ) | ||||
|
Income before income taxes
|
3,734 | 795 | ||||||
|
|
||||||||
|
Provision for income taxes
|
173 | 113 | ||||||
|
|
||||||||
|
Net income
|
3,561 | 682 | ||||||
|
|
||||||||
|
|
||||||||
|
Net (income) loss attributable to non-controlling interest
|
(155 | ) | 121 | |||||
|
|
||||||||
|
Net income attributable to CCUR Holdings, Inc. stockholders
|
$ | 3,406 | $ | 803 | ||||
|
Basic and diluted earnings per share:
|
||||||||
|
Net income attributable to CCUR Holdings, Inc. stockholders
|
$ | 0.39 | $ | 0.09 | ||||
|
|
||||||||
|
Weighted average shares outstanding - basic
|
8,756,156 | 8,768,516 | ||||||
|
Weighted average shares outstanding - diluted
|
8,809,572 | 8,793,809 | ||||||
SOURCE: CCUR Holdings, Inc.