Earnings call transcript Q1 2023

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Operator

Greetings, and welcome to the LM Funding America, Incorporated.

First Quarter 2023 Business Update Conference Call. At this time, all participants are in a listen-only mode. And a question-and-answer session will follow the formal presentation. [Operator Instructions] Please note, this conference is being recorded.

the Investor to Relations. turn Avas] host, now with (ph) will conference your over [Ted I Sir, may you begin.

Unidentified Company Representative

Good morning quarter first LM Funding and thank you XXXX for conference joining America's call.

posted Executive us of and Officer Funding. its the XX, of for This on announced as Bruce call the Chief company LM today that the financial press operating the Richard Russell, condition lmfunding.com. with Rodgers, On release website date. XXXX Chief its Officer; morning, quarter and Financial March is are company's The results ended

In addition, the on which United and the well www.sec.gov. company its on quarterly SEC's Commission, website company's has States Form report filed the can Exchange accessed at as the XX-Q be as also with website Securities

or the information any If you would have like company, XXX-XXX-XXXX. contact any about Crescendo Communications call, additional questions please the after

may call, statements including on company's and future plans events future current it are results and that for of management company's Before than These contain of to historical our regarding March contained call this the XX, condition position, quarter facts largely strategy statements this date, conference and our financial conference and and for statements. forward-looking about projections operations are remind expectations we ended statements results as based statements its in forward-looking other would XX, statements. those future these the like All events and financial occur forward-looking that that the XXXX and filed operations of risks, from operating everyone forward-looking expectations reviews the and U.S. may XXXX. trends materially adversely objectives statements. assumptions the not March the and and statements call and financial anticipated described in forward-looking discussed may uncertainties risks, term on believes needs. in condition, financial or forward-looking uncertainties this results and actual differ various Form of Securities the of company's as subject short affect its conference Commission and and to XX-K in could Exchange and are long circumstances strategy, assumptions, with results business operations operations, term Because implied These

not rely future the the performance expectations of as level predictions reasonable, cannot or guarantee events, of company should in You statements achievements. forward-looking activity, although upon statements believes it the results, forward-looking are that reflected future

any addition, the completeness forward-looking by well as qualified to for the as assumes others expressly entirety forward-looking made responsibility neither conference In any The in company duty their of statements nor forward-looking this accuracy of statements. to person statements, any company of are and call. update the disclaims statements. in cautionary these All any these company these attributable

should context by You risks evaluate these company the the all and forward-looking made uncertainties. statements in of

reconciliation will an provides company In to today's most the A to include comparison additional our believes the non-GAAP of addition, of historical its is that today's news performance. measurement measures measures release measures. non-GAAP discussion comparable directly such in GAAP consistent available website. and The information is on

Bruce Having said will Bruce. over the go ahead, call turn that, Rodgers. to now Please I

Bruce Rodgers

to today. joining Thank extend belief behalf support team, through continued the vision. our of and Funding good you want to Ted, gratitude morning. investors LM us I our for Thanks, our sincere to everyone in On and

achieving We drive which on will significant goals, way are shareholder believe our our we well value. towards

The XXXX. the This made operations in pleased in in mining that in ended an we've our is focus company's year-over-year during quarter as revenue almost in XX, March with digital shift this increase mining bit reflected impact our progress commencement entirely Funding of quarter than result of connection toward with was increase more the in XXXX% September revenue reported are the XXXX. LM the XXXX positive we shift has the We mining. steadily the of of first coin bitcoin

four months Increasing added and We X,XXX mining close nearly operational quarter, to the at our first actively to fully machines which petahash the over with X,XXX total about several $XX,XXX mining to of more and around of XXX last we a average began is machines an Throughout capacity XXXX. contrast mining with during XXXX approximately today. current XX.XX fluctuating bitcoin $XX,XXX per value bitcoin between the dollars price, mined bitcoin. months. the X,XXX of In $XX,XXX

acquire edge a were strategically XXX to purchase from continue $XXX,XXX which We of January, bitcoin XP additional Technologies an delivered In April mining machines. XXXX. purchased price for machines SXX approximately additional cutting we in Bitmain

mining and These XP Technologies of opportunities cutting were a were the [Pizza SXX May we favorable surprised to identify Bitmain XXXX. pleasantly edge continue also find to machines. mining XXX delivery took We Day] able of our plan obtain raffle, additional that of to We to we part machines additional due in (ph) machines by to for are leverage purchase and for around $XXX,XXX. cost the end an efforts

to prudent of a maintained in in Regardless efforts fluctuations bitcoin and the of we enhance efficiently shareholders. value term the machines long approach have for our operating acquiring bitcoin mining market strategically

company May contract the GIGA Energy to a In host addition, mining in bitcoin our of signed X,XXX with machines.

operational expect to May, the end total petahash have We XXX these company's energized bringing the by fully end May of the machines projected by to and XXXX. of capacity mining

coming approach anticipated All and our event, acquiring consumption in bitcoin XXXX. joules energy of sometime the occur terahash our with we to opportunistically next objectives as having these in actions and further energizing align mining the per more quarters machines of lowering

run and and lower in months to which after navigating joules six our due mining efficient highly profile XXXX of terahash Historically round, XXXX anticipation up a occurs of having. the events investor having further having events. mining per our XXXX, the in to will having XXXX fleet We machine and operating through the mining we value make to bitcoin's purchases machines key is XX typically price the climbed successfully to XXXX believe has XXXX, to bitcoin

businesses our to stable fairly of business, since the respect which last the associations, nonprofit to funding in community quarter With report legacy fourth our involves remained XXXX.

mining bitcoin future. to and be continues enthusiastic we forward moving are focus about the extremely primary Our

mining As machines we high more bitcoin. consistently online order mine to additional acquire in and efficiency bring

We acquire further miners be to generative channel accelerating company. allow of bitcoin the mined revenue implementation back strategy. more from the our into even expect us our business This will to to

to find discount there of merely discrepancy outstanding equivalent continue it million of and per per equity share current $XX XX, trading a $X.XX such We to that as $X.XX the value. exists between of XXXX, shares, share a stockholders' our XX% March significant our price book representing to perplexing

the to our investment which the we market profitability, and the our we overall execution been gap driving market, in recognize particular business microcap in believe the model the in can While of stock valuation impacted. community. has disproportionately We by our weakness and outreach while expanding close

three note, the of period Chief XX, to will like LM over turn On results would Rick I to financial who Rick? that XXXX. Russell, March of the Funding, call the ending Financial month review Officer

Richard Russell

March mining million and XX, Bruce, more to good $X.X XXXX increase Thanks, bitcoins than totaled XXXX% of includes of due XXXX the the months $X.X XX, ended digital million, quarter XX.X XXXX. Revenues for revenues dollars morning, ended the three everyone. in mining revenue three XXXX. for and of three Total first a months March the XX, for March the ended $XXX,XXX months

comparable as $X.X attributable $X.X in prior totaled primarily a compared $X.X the in for offset XXXX realized $X.X $XXX,XXX quarter to by compensation, to professional mining costs, is year the The a million depreciation to increases of expense and million expenses $XXX,XXX bitcoin, decrease million stock of on Operating the of of compared XXXX. first quarter fees gain partially million decrease the for quarter. digital first sale

securities million. $X Core XXXX, for of attributable quarter $X,X LM improved We unrealized concluded the XXXX quarter For on net quarter. million the $XXX,XXX to a March to Funding to shareholders loss compared the XX, $X.X $X.X loss million ended of months in ended first million was in loss XXXX, which $X.X equity loss three equity included the loss comparable to March a securities. non-cash a compared unrealized XX, a the investment XXXX, a million for in of EBITDA investment loss on

to ended to $X.X our capital execute mining million cash, believe we $X.X XX in bitcoin worth on we provides million Turning a current with balance our $X.X bitcoins the around liquidity working sufficient quarter which million, of strategy. sheet,

stockholders share. addition, $X.XX we debt long had LM the and or minimal of million per quarter Funding's equity with In term ended $XX

months was in was operating driven cash, partially sale bitcoin. $X.X in net the mined as Finally, used the in revenues, used million March primarily of of net activities from of recognize in recognize $XXX,XXX cash by This operation operations cash not the cash XX, of ended to $X.X during compared proceeds bitcoin, $X.X offset million XXXX, three as but during million by change XXXX used comparable period.

remarks. to now That would questions. assist concludes us for I could please our Operator, call the open prepared with that? you like

Operator

Friedman] [Alan question-and-answer a Our time proceed. coming will Instructions] Thank from may (ph). is you. conducting this first we Sir, At session. question [Operator you be

Unidentified Participant

but we Thank have also a your strong additional you online. not this quarter. very for color of balance It like more coming on for machines you. the guidance, year? give can I'm some expectations on Congratulations looks looking

Bruce Rodgers

want don't to to us think places that are want puts to we cash next machines put takes goals, be this but any XP through and to and having. looking we're four us where because attach having years in for bargains numbers and we mining I we generating that the and Sure. the for them, after strategy

the plan. and current operating that's intent current the So

Richard Russell

what place we anticipate this I had, we by think disclosed think machines in is And from that Russell. this X,XXX And March. I Rick we up have in about ended X,XXX month had

[indiscernible] this So quarter actually new machines. of those

excess said, when new machines cash arises. reinvest Bruce As that we'll into our

Unidentified Participant

you. Thank Great.

Operator

Instructions] [Operator you. Thank Okay.

in We at have no further questions this time. queue

hand remarks. it for Rodgers I'll back closing his So to Mr.

Bruce Rodgers

believe our Sure. through with machines. the bitcoin I term invest purchase in machines. as mining asset and of We of in free. bitcoin to conference efficient the XXXX reinvesting call. the revenues would debt now the goal we class for most of long achieved quarter is like machines mining pivoted bitcoin X,XXX and energizing an efficient goal believe are that mining highly thank mining additional participating first We've everyone to purchase way We in appreciation mining to

talking support XXXX. and are new electrify to the for quarters. our persist progress provide We're first continue So forward quarter. as with our subsequent progress next And momentum more Thank machines and mining to we're the to of emerge. eager updates developments shareholders as we during you in to pleased anticipate to all the ongoing We from you thankful our look quarter again. on acquire

Operator

conference this your today's at conclude for does may and disconnect lines This your participation. time you you and we you. thank Thank

David Waldman	IR
Bruce Rodgers	CEO
Richard Russell	CFO

LM Funding America (LMFA) 15 May 232023 Q1 Earnings call transcript