SWKH - Earnings call 1 2022 | SWK Holdings Corporation

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, and welcome to the SWK Holdings First Quarter 2022 Financial Results Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Jason Rando with Tiberend Strategic Advisors. Please go ahead.

Jason Rando

Good morning, everyone, and thank you for joining SWK Holdings First Quarter 2022 Financial and Corporate Results Call.

this financial Holdings months results XX, opened release a ended market XXXX. its detailing for the morning, issued SWK press March Before the X of in release Investor be press News found The Relations can section swkhold.com under Releases. the

our like plans, I regarding Today, including and strategy, cash future about events consumer making and Before be the statements forward-looking future statements. make the our would expectations circumstances, today's and candidates, following to operations regarding development product beginning about plans we'll and product certain allocation potential call, statement studies forward-looking future of our resources. and drug and expectations, capital statements for candidates

make expectations, to uncertainties, events section of These obligation filed in materially information may as not you filings Factors differ should reliance other including SEC forward-looking statements, the future to Risk of we with XX-K a any Actual Holdings statements disclaims otherwise. current the Holdings place risks whether result our time SEC those results new the to in SWK are due based detailed these information, with and from and on or on contained SWK and undue these update time. statements.

CEO ahead. today's Winston on results. XXXX quarter call update Joining me on first go Holdings, Black, of Chairman is who'll and SWK SWK's an financial provide corporate Winston, and

Winston Black

our quarter call. conference first joining for everyone, and Jason, you, Thank

of challenges of to the is Though high-quality positioned borrowers. preferred X that capital selectively facing are companies million address needs. first moment, funding with increased with our The with capital as completed additional million quarter, products. invested in remains small the patient provider commercial We life important $X.X the transactions science deploying to well assets fund aim nondilutive show sector at market existing and quarter XXXX life differentiated results for SWK during midsized $XX.X science interest

a loan U.S. million and quarter included oxygen a therapy structured its advanced secured disorders. $XX it to cycle to awaits company of support financings to the Acer approval for urea expansion as First treatment for debt Therapeutics $X.X million market

pleased improve quarter are platform patients. $XXX.X new their meet advantage income-yielding companies transactions, our how million of with assets needs, investment take opportunities. can for help they illustrate We of remains poised We these especially believe coupled to end when these help outcomes growth to compelling our

offerings the clients care life -- our life midst medical investment believe care really and health growth our commercialization need important financial the We their In sciences clients the companies of a help very of improve transform future to financing innovations. climate, can difficult ] support medical patients. [ of of suite science lives and

in is million have be meet one opportunities year in shaping of up we we return To for are our point new revolving levels. market. -- in SWK, this the targeting exciting effort, deal an plus cash origination This to historic to to and $XX for to excess to

in As January, in core we on and focusing business. remained to committed last finance specialty November announced SWK's we reaffirmed growing early

measures focused to we of our growth allocation. work and strategic improve advancing our evaluate now Board new The to capital place, are focused implement and Directors profile in on

coming on regarding this of month. bill press this the We the this our of allow the agreement or work rights to end as work, further part As in to quarters. has [ Board announced release determined this ] morning, the expire anticipate at termination announcements in annual date its

I of with its growth are technologies, strategy and a of the has and to manufacturing Rajiv state million two-pronged that approximately and Khosla team SWK manufacturing $XXX pursuing For Biopharma. rate take progress our of successfully expanded ProPerma time would a company discuss business. its investments return facility into of made XX%. by generated XXXX, realized to subsidiary like potential now realizations in maximize internal Enteris the XX his Peptelligence contract deployed capital XX

June, Conference oral The set Annual delivery Enteris that in abstracts were of traditionally CPHi of or to highlighting medications end of America compound is enables present and delivery to injected the in XXXX at technology X is oral contract company also research infused. Peptelligence that Conference services. The participating formulations showcases incorporates drug North in technology leuprolide. the manufacturing

] indications development the the oral programs during a sources X sciences licensing Enteris' oral potentially between We evolve are partners to women's in Enteris is delivery. In companies these system that partners feasibility new health income. engineer the peptide and advance cancer, Enteris' studies with medium ongoing disorders. small drug of this term, life [ of the variety agreements for could providing that nervous process central or drug advance includes molecules to of

finances. SWK to Turning

As received its the B&D from of a $X.X and cash include a total Pharmaceuticals million, SWKs investment that not March fan a post Please movements assets end a million. does a million was received also to payment company quarter. decrease from Dental $XXX.X XX.X% from SWK cash year note payoff. $X.X million long-running nonaccrual Acerus of figures at XX, position were portfolio carried $XX.X that quarter The ago. resolve

to year nonaccrual At XX.X% quarter versus the slight increase of realized of year yield a positions period. ago. and were better the the effective XXXX, first receivable collections our of weighted of ago leading projected the forecasts finance yield receivables end portfolio was a XX.X%, finance from with then XX.X% from portfolio the average Cash including a of

tangible tax Management March book share XX.X% value and per asset value per goodwill metric to tangible financing core figure views SWK as XX, That finance a non-GAAP specialty from company's an reported of of value the book XXXX, and consideration share the year ago. relevant of a increase payable. business. as assets, $XX.XX tangible contingent excludes deferred

(sic) the for of XXXX the payoff and to of of quarter interest I the $XX.X quarter XX% for was X early share revenue the totaled by The XXXX, million net quarter ] driven loans increase income $X.X or million fees XXXX. from million first compared That XX% to growth quarter first For $X.X share total compared [ $X.XX due first SWK of per GAAP million, $X.X per diluted for first of a to the XXXX. $X.XX the reported million, diluted before. $X.X noted largely

For business $X.X quarter, net generated non-GAAP first first finance million, XX% XXXX. adjusted special totaled from increase the a the our income by of quarter

the life Looking to be fund a synergy and ahead, needs the XXXX the and innovation financial market offerings ongoing capital remainder of and companies fruitful potential build has for small to market. to given mid-sized science for SWK treatments between year our

and to constraints places be base, climate, the coupled offer As growing advantageous with in traditional period routes position. us of for in challenges combination These sustained our strategy, momentum flexible long-term lack value new an a regulatory to mandate the financing investment SWK. foster of investment of current of creation tariffs potential permanent face dynamics, and capital

that, With I questions. now will open call to the your

Operator

comes Kyle Capital first Lake Markets. Instructions] [Operator from question Bauser from Street Our

Kyle Bauser

update. the all for thanks Winston,

So maybe becoming that's we just a think, people through in out of attractive, up their space, of of operations lot ramping true, than players. the as of better extent as equity, particularly kind financials different more To there. I activity have things and mid-cap their can are, you contemplate things your its with activity realm debt in kind chat equity? I seen the is mean, depressed more on they as for

Winston Black

Sure. Good question, Kyle.

amount can really those really financings values for highlights think have equity been need And accretive kind pipeline look to compressed, just they us I deals of of of how certainly, say, it accurate in is just speaking, are these as non-dilutive generally that good kind good right, activity spot. as to you're your the brisk, grow we companies. definitely debt I be companies our and puts and done. observation a a do get very finance seeing is also,

course, the market. of rest and ourselves the between So of in

robust it's pretty a period I there. think out So

Kyle Bauser

sounds I think got it appreciate said access million deploy. to you you like, $XX And you've that. And that could about I

rate pretty you're is of for you're think, your there, think that more So leverage kind you of But eventually curious and leverage ] kind appetite business? I'm [ interim about how capital a your while. -- disposal thinking is of an Or [ I good and do going just on there's for good ] plenty you taking kind at your for the forward. activity in price of

Winston Black

this I an my this of talked during remarks kind indirect to made Yes. in and today. about the past Sure. prepared reference We've

definitely issues to back the to as we're going of our With what last public issue enhancing and kind on as benefit that but about forward. in our sure comments And stockholders. of November we to think out business looking we well that returns evaluating and yes, Board, capital kind optimal So weeks X, our structure going positioned this -- profile our like. of look year, capital this about desire growing about for early all kind new should made build we're X year some kind structure business of of other this the basically have the well as with fairly focused we're for at are make now we

announcements right have we that announce say, coming the of So able expect some potentially suffice are we in anything and don't But capital months. like that now putting make be we're regarding considering quantum us looks debt what to may to that to on. to evaluating

Kyle Bauser

you you so to got And that. do resources kind I do like what maybe if would internal to how taking bit or -- understand add your by to trying Or of you up to you a sort if want of of your And capacity? leverage, of X to just at you anticipate are Or a expand mean, of quite scale feel Appreciate kind bandwidth more scale investment up, were still? needing you what you've kind internally? do potentially member organization? of need team? you kind

Winston Black

of From hard. [ of to we implemented [ yes, actually investment as do toward capacity did of on X. another dedicated a Director Everyone business kind level think started question. end Again, more. have works your this, also to SWK. JD we add perspective, Sure. internal very And quarter, definitely resources I part professional the ] the we function ] quarter, a But point, excellent at development the March first

exceptional always we're professionals. -- I we're think looking And I investment So think well positioned. we're for

definitely would for grow. as it perspective. not be this we're someone a from that to resources point, lookout at additional currently we So But look on hiring

Kyle Bauser

bit more well. the business, Enteris talk the a development of you No, Fair. lastly, about kind how kind playing as could appreciate internal on you you little just Maybe out. of mentioned, envision that studies. X of feasibility Got your And I course, it.

kind plan kind do of assets? you've for Just is to trying X understand the on to you want Or own? to license the what got internal studies them? So your to your feasibility of internally bring them the playbook is FDA

Winston Black

sure. Yes,

feasibility clarification yes, actually studies pharmaceutical doing with is team So Enteris partners. are one, the a guess there. that I third-party The work

we're agreements that evaluating make So those our aren't development our are and And revenue continues to like assets. very necessarily that potentially and driver can agreement. sorts assets. technology -- those the us the license assets things to using those feasibility our -- of in we're Those we aren't build versions that that for partners' important that turn oral agreement business license pipeline of are because are into Cara those -- a be

hopefully think its more is continuing on, say pipeline, really primary kind of additional talked one And to we're that. things leverage that look we'll internal goes really the that and the about getting this I -- we so some what current the clinical at on, the our year as program The team trial. on we're opportunities to that's On focused focus about technology. at to through -- have we're point,

Operator

Instructions] [Operator next Jensen question [ Investor. ], comes Our from Scott Private

Unknown Attendee

Kind up, and able to that to seeing questioning. your call adjust interest space market? opportunities are you're with of get the uneventful In areas space, follow-on prices some and appreciated. of of kind your the going is more from -- obviously, Kyle's that of lockstep now you rates are clients? well In An this you this

Winston Black

one interesting debt on very our typically hand, structured question. it's are LIBOR. transactions a indexed Yes, The to --

well be at so to we rate. we'll portfolio moving And across as changes obviously, some getting reference in new -- And from new a are on from benefit the that point, LIBOR. as deals

on way. things Yes, moved. And minus do I I have see market we hasn't I would is the the quarter of continue either remained say, formal said, much, capital generally from thing speaking, rest that is the will into looks. be throughout interesting points to that actually that the perspective. or all relatively The benefit that pricing, how basis overall market constant. XX these XX, the second think think probably year, that conditions That perhaps So plus see

to be will certainly looking price we where take can. We

issue, I think if kind our you want idea with an that of do the mindful to will. also not we borrowers creating be of and overburdening

within levers for other course, investment enhance look we'll of So returns to our our structures at to try stockholders.

Unknown Attendee

my That question. Excellent. answers

half trial, to that clinicaltrials.gov. Since to we at is recruiting looking is for when Now we a first kind Like next like according Phase expect do you're year, what -- have any as month time year? the of which we have of could leuprolide guidance do frame half data? the -- of like that What second might be? far kind of the as this II get

Winston Black

I the -- noted be personally some we're companies summer, able dissimilar not other Issues to hope what recruitment that recruitment, we over little talk a couple taking from it about this we longer. quarters. -- Sure. would The all of point but patient have that that the is bit seeing on last at pharmaceutical

at to But time been be and this pace very as the that make of the gating of has of the can really number trial but we're additional on we'll to on eyeing that's the expand some patient trial just focused possible, because the this of measures some on team recruitment. is to implementing think depends timing. get that factor see kind kind point, have half later sure in results. So able and the year we second I And looking as the done expeditiously really centers and to of

Unknown Attendee

would of to this about you a usually larger which Or more with point Phase a get open be or of yourself then somebody doing the -- be to III, to kind on you'd III? Or partnering Phase kind it see value you have cost Kyle's Are thinking go would or component. by you to that interested? that? And follow

Winston Black

Phase more forth to those your Yes. as license licensing with post-approval. terms course the of kind scale millions of with kind on higher the own art II, have III the do sliding levels. of And The be get you risk increasing, preclinical there's of of definitely you that an side and science -- in I, spend more kind rates you at so and Phase generally, advance royalty of to to Phase

-- I get required the the across regulatory how seeing the up. a data think from frankly, to it is depends shape actually what an line. what we're on asset perspective And

things be inform what decision we'll would sort Phase think -- make will those we'll I that then of time. at that the and III essentially costs

effect, course, license patients the optimal type consider factors that analysis. to though, were program demonstrate extent to may of we would, think having I a the desired all we that are But able be mentioned I in the to as it. XXXbX that time just part of

Unknown Attendee

Board there those guys my And is, where final people considering is isn't optimal the are a you Excellent. the a one market catch thinking catch buyback, of maybe to can are maybe considering stock, sometimes question that you there for stock? times you to the be

Winston Black

noted [Indiscernible] question. referring to the... Yes. what A I well-timed back

Unknown Attendee

[ friend my caught The who myself have fact is ] might and it.

Winston Black

Sure. Yes.

So definitely that. about we're thinking

-- some And type work like our agreement the at capital this we'll and we've of decisions. month. allow But getting that structure so X in rights months. buybacks weeks, of that. to hoped the X at forth that. on announcements Board think the additional definitely And end part that more make we everything, with get now determination expire to more looking doing at the the looking to we was this capital dividends, to able announcements first to We're forth. I new all coming so together would of make course, analysis these to now really and had what of think in about be be I think been to weeks, year for I position some We're earlier been have something allocation

Operator

our Black queue. like back This to I'd the concludes turn conference There closing remarks. question-and-answer session. more any no questions Winston to for the are over in

Winston Black

to Thanks, look you. I Jason. and In to my to Thank time closing, extend SWK forward and like I future appreciate updates all. sincerest continue everyone's attention health good and we would to Holdings. as also advance wishes

Operator

you for Thank now today's has presentation. Conference concluded. attending

now disconnect. You may

SWK (SWKH) 11 May 222022 Q1 Earnings call transcript