SWKH - Earnings call transcript Q2 2024 | SWK Holdings Corporation

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Operator

Good day, and welcome to the SWK Holdings Second Quarter 2024 Conference Call. [Operator Instructions] Please note this conference is being recorded. I will now turn the conference over to your host, Mr. Ira Gostin, Investor Relations. Sir, the floor is yours.

Ira M. Gostin

Good morning, everyone, and thank you for joining the SWK Holdings Second Quarter 2024 Financial and Corporate Results Call. press ending our June a the results issued months X XX, we release financial detailing for Yesterday, XXXX. News at The on press under website the found the swkhold.com Investor Relations release section of can Release section. be our

make beginning SWK expectations may on detailed regarding with the events the Holdings uncertainties, statement a These materially differ time about with we Holdings statements, make statements and our will making obligation current our circumstances, regarding to to like SEC allocation including about statements our time. and we following results certain other and strategy, these Today, should resources. including of based in risks information call, Factors forward-looking would or those Risk statements. disclaims filings future future Before result whether today's and events and be new the to any XX-K reliance I SWK forward-looking statements. Actual the contained forward-looking you expectations, statements future the otherwise. and filed our are due undue of on in our operations expectations, from update as section to SEC cash place capital information, not these plans,

it's call yours. me on will Jody, President provide financial Go Joining SWK and is an ahead, second on SWK all from and Holdings And today's results. update Staggs, please. Jody CEO, who quarter corporate

Jody Staggs

quarter our you, call. Thank everyone, second conference thanks, joining for Ira, and

to First, platform joins brings mortgage and new operational accounting and I'd SWK from SWK. Adam to like valuable welcome private credit our experience a CFO, Adam loan Rice. and

leading Courtney accounting our structures, XQ, with has started will the reporting our in and of a reporting assisted Adam. relationship you banks. take consultants familiarized financial with During our himself then. with months, Welcome, XQ a couple will our Adam Adam from his partner with role hear building starting and him the financing and Controller, first

companies investments. financing a through science innovative $X million and commercial first lien stage on business loans product royalties with life term $XX focus core is SWK's to million

points our non-GAAP effective net income. segment During portfolio to $X.X million and revenue and ], XX% the second XX% XX.X% receivables XX.X% a finance million year-over-year million (sic) XX quarter, $XXX generated XX bps $XXX.X to the growth XX.X%. by [ year-over-year yield sequentially core (sic) The finance increased accompanied [ portfolio improved XX.X% million realized to net ] year-over-year as of ] basis increased yield. adjusted Segment [ $XX.X was (sic) receivables

company $X.X to royalty, XXXX results AOTI quarter of million net our $XXX,XXX X Second impairments the of increase ] on impacted the positively by impacted a segment $X.X nonaccrual taken financial AIM carrying borrowers (sic) which private by gain Exchange. million as was and in of listing $X.X stock, triggered were value negatively on million [ as by warrants London Illuvien the a the common to well conversion a

As warrants X a books. reminder, our SWK private at on carries

During to Therapeutics. we the to borrowers, royalty an $X X up August, performing added and in million monetization with million quarter, closed existing $XX second we on Relief

science life innovative and available close opportunities. multiple to companies these to royalties and the loans pursuing have are We capital

division low the is to of Under Enteris strategic $XXX,XXX. agreement, each by X-month is Our for sequentially tripling partner, revenue as to our entitled segment revenue guaranteed with payments the receive evidenced million nearly ramping Enteris work minimum strategic single-digit periods.

could over be next months at bookings the X realized were received by this that requirement satisfied quarters. the year, quarter. first will of be For we revenue deferred the end These the of bookings the few and agreed the

for partner revenue the the the Our payment guaranteed full after requirement made cash minimum close, satisfying quarter payment period.

intended the revenue builds. as to revenue minimum the operating costs reminder, payment a materials guaranteed is of fund help As

projects. CDMO increased bookings progress pleased are by the is making Enteris We pipeline a of as evidenced with growing and

XXX,XXX We Turning second at we total a quarter. an share back quarter Since $X.X cost during additional million. cost million to for close, shares the repurchased repurchase bought of our program. shares $X a total XX,XXX of

June was XXXX. a $XX.XX X.X% tangible June compared XXXX. $XX.XX [ as (sic) XXXX, totaled per share ] value June share [ a Non-GAAP of X% $XX.XX, as of compared GAAP $XX.X, book increase ] per book X% XX, As XX, X.X% to our value (sic) to of financing increase XX,

book we Cara royalty off milestone the payments future clinical During value remaining the the QX, wrote of our to the Enteris consists PP&E. In has was and by had Enteris impairments were response to Peptelligence borrowers. financial impacted negatively discontinue which to in million, almost write-off, program $X segment associated entirely the underlying which Cara's value Therapeutics. of at solid segment for this Post potential Oral approximately program. with during quarter, This X a KORSUVA the decision license summary, for results,

multiple and by We deals additional close year-end. are working to pursuing financing opportunities are

is Our Enteris better the breakeven or of strategic partnership bookings through that, open business cash has let's be partner revenue our and positioned assistance up to to questions. growth period. With seen in with and flow line the the

Operator

question Jensen, We investor. a Instructions] private who [Operator Scott is a from have

Unknown Attendee

-- that? One and direction. nice nice coming question market competition institutions, of kind charge, up is looking map? the go is coming Cara out the larger the as far over kind It's the to then I'm the what so all how within out they're deal my lending they see is, you -- upfront of XX-Q Iluvien. other the twofold. kind that's the all I of out quarter. you players there now it's of lane Look to like of to there? what nice guess as -- with may coming Like be see of writing the do happy stay from you to in and used see areas the up that their kind bigger different And do you took one in

Jody Staggs

question. good Yes,

more think his of stride. We've at is top So our you Head due pipeline. I done Blumberg, high. -- year, of Business started really has we've Peter a of our at the an good job to had if inflow look at that is Development, has part the pipeline and all-time this pipeline our And

good. So funnel the has in been

rate has close mean in things of players, wouldn't -- sort necessarily those I think, perhaps it's the is getting out we're a been, sort but And -- But of It's certainly I it's a space of the say past others. the royalty we're and some lot of been discrete has have by seeing like Our traditional one-offs. been through I think been equity beat down. there lot it what few is lowest years. the I -- competition fallen in been

of And sort public the of in down, were just look fact. their and the at of months of are size, many TRA guys of terms and bookings another the through down, of year, our you them, that In can of they talked space. of about statement sponsor-backed kind -- the kind that and first state the competitors, flow sort less BDCs to space, to flat X our deal

have people to find is opportunities. So capital. What out I a we looking there do, to there to think, are of deploy lot unique

of I underwriting, heavy think through our some example good royalties Director of this run JD, fantastic relieve royalty pretty a the being of off unique and geographies. one, job kind that -- where structuring different did a who's it's

have to to on got creative. to We're So excellent unique service. be got going go hustle. lean We've got opportunities. have find customer to to we're have to going We've to We've we've worked on money nice to people with. million just put that work give we'll us us call banks way. and like count can't the certainly sponsor-backed $XX deals, a We never to

folks. helpful -- hustling finding to going be ways to and to So be it's is

Unknown Attendee

question. And Okay. another

then As hit you any buyback? And said to... the you in that another your have $XX opening Does the Are are million? plans bought you then so, left no the capacity million. statements about that if under buyback $X.X there current

Jody Staggs

No. Yes.

XX, we do to May I think facility. about program. to in The -- rate because -- May, limiting did is was this want I -- our So program we XX, it renew the make factor be renewed our going credit sure I XX, we believe

So on right going mean, period. the deal an with -- the bucket. the yes, is until I to limiting to and we be thing that's working LTM today, same -- that going now. finalized. of get factor with But We're it's not them But increase and we to are million $X prefer be to talking right I as them, working that

Operator

line for any Staggs Since have questions time, Instructions] currently we Mr. it comments. no the this so at I on [Operator closing to will back hand

Jody Staggs

Great. a has operator. second joining Thanks, our great Friday for Bye-bye. everyone Thank weekend. you, I everyone, quarter hope great and call.

Operator

lines we your ladies you today's disconnect time, for and your thank This conference, at participation. may and Thank this you, gentlemen. concludes and you

SWK (SWKH) 16 Aug 242024 Q2 Earnings call transcript