LMFA - Earnings call transcript Q1 2024 | LM Funding America, Inc.

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

Operator

Greetings. Welcome to the LM Funding America Inc.

First Quarter 2024 Business Update Conference Call. [Operator Instructions] Please note that this conference is being recorded. I will now turn the conference over to your host, Ted Ayvas.

begin. may You

Ted Ayvas

thank First and Call. joining Funding LM Good Financial you Results XXXX Quarter Conference and America's morning, for Business Update

On quarter Chief as today Officer; the company financial announced Funding. us condition Rodgers, results the XX, call Executive for XXXX, operating Chief its the This are morning, date. and March Officer of Financial Bruce Russell, that its of ended LM Richard with and

is release company's on posted press The website, the lmfunding.com.

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

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

the that the we Before may conference XX, as company's ended March financial for everyone and date, contain of statements. that operating remind months this results XXXX, to X its condition call forward-looking like management would reviews

of and current in may of All based needs. and the than facts our and position, results are forward-looking on and of These for operations and statements. future this statements it operations including short-term objectives and and strategy, affect financial are plans operations, that company's largely statements about projections events its regarding strategy future statements statements conference financial financial our operations call, results trends forward-looking expectations future other believes historical expectations and condition, long-term business contained

statements. materially circumstances not XXXX. could Commission and occur, actual risks, this with X, Because U.S. in call forward-looking company's filed the to April those These implied and the these forward-looking conference differ the risks, described from statements in Exchange uncertainties discussed and Form adversely or are uncertainties the of forward-looking anticipated and and as in various assumptions results assumptions, subject Securities XX-K events on and may

should as not events. of predictions statements You forward-looking future rely upon

statements that of are the the or future expectations reasonable, it reflected performance company guarantee forward-looking results, level in cannot activity, the believes Although achievement.

for person of these other forward-looking In of addition, nor statements. responsibility neither accuracy these the duty completeness to and of any any assumes company the statements. disclaims The update any forward-looking company any

their cautionary are as All forward-looking expressly well in as attributable statements the by in this call. these to others company qualified entirety made statements conference

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

discussion references measures. non-GAAP today's addition, In to will include

its is news company such The believes provides the performance. that, reconciliation release consistent today's Funding. the an that the measures Bruce to now most of of available our measurement of in and historical on website. Rogers, over would measures call Bruce? additional CEO GAAP comparable information to and to With non-GAAP Chairman LM comparison A directly turn like I

Bruce Rodgers

XXXX inaugural has in drive the to the the Ted. business We've On strides first mining industry. full made us into of in we operations mining to like Thank everyone our momentum our Thanks, you joined the behalf Bitcoin continues on building who Funding sunny XXXX shareholders I'd significant The today. in your Bitcoin substantial carried in for our first thank team, achieved quarter we Hello to in from our XXXX, year Tampa. built progress LM over XXXX, of ongoing support. forward. expanding

profitability. We returned to

Russell, Rick So I'd like that. our you CFO, to tell about

Richard Russell

Bruce. you, Thank

quarter this in XXXX on approximately million and X,XXX average capacity. strongly at Providing our XXX% mining of of first based last the approximately XXX We company LM $XX,XXX in of approximately Bitcoin sites. Bitcoin during at the with mine We revenue had believe approximately mined $XX,XXX. currently standing XX.X strategy. per first Funding With our As XX, during hosting by of highs XXXX, Bitcoin March the same reaching the engaged quarter prices $X.X validates quarter. price increased various in quarter year. machines record at Bitcoin compared Bitcoins mine the the to We operation valued PetaHash

net achieved the we $X.X quarter reported income EBITDA of March core of a the quarter in of the XXXX. in positive XX, Core a quarter compared million in comparable previous substantial from the $X.X approximately million $X.X Moreover year. loss Additionally, the comparable improvement a million first net a of EBITDA quarter of for ended significant to of loss turn XXXX, $XXX,XXX of we XXXX

we XXXX, of share. importantly, million equity perhaps or $XX.X highlight $XX.XX most of March that I Lastly, as want had to XX, per stockholders'

Bitcoin million XX, March $XX.X of of company value on $XX,XXX. the a price XXXX, approximately based held at roughly As XXX.X Bitcoin

the As based XX, on price valued the of Bitcoin recent million XXX.X at $XX,XXX. Bitcoins held company XXXX, April of approximately $X.X roughly

for turn to to Bruce want review. our it back over business I

Bruce Rodgers

Thanks, Rick.

painted company and of mining profitability. has of a the startup Bitcoin financial picture You've its attained that completed phase the operations

grow. We are scale now poised to and

for post-XXXX and So business overall I our place the which took halving want Bitcoin was to strategic And the ahead, entering hosting halving company beyond. The looking on focus that in our economic into realities. positioned agreements we XXXX, our XXXX attention recent mid-April. well for reflect anticipate event, and focus new

SXX for and per In prices XXX in the algorithm. Considering future. XXX rate to Manufactured new watts XXXX, mining halving. of a high X efficiency, the purchase SXX like hash new high for Bitmain, X,XXX a remain company The about optimistic quarter machines. the market approximately the high by Bitmain invested rate all-time approximately each boots led power. halving $X.X SHA-XXX in second which consumes machine and of the highly January, is one TeraHash conditions Bitcoin to Antminer a unit following hash months million April of current high $XX,XXX Historically, we the in have first its of the Bitcoin, future outlook all-time the reached events

model We generate to now the our expect PetaHash to revenue these XXXX. We our available. to company's operations we that and from leading believe These mining to SXX will mining equipment remain anticipate operational most second. market. believe continue be We will through the event on are Bitcoin capable committed efficient reinvesting mining the the which increased mining and capacity the XXX machines next most per the machines in machine fully Bitcoin proceeds into acquiring timing occur this producers are

We valued concentrate continue closely whose Bitcoin and on follows Bitcoins. investments capital mining our to machines

also mining and we opportunities However, open our hosting potentially our to machines. are costs to expand include operations lower could exploring that AI for

areas, for We forward to historical significant are we If in actively events and expected, anticipated unfold as pursuing developments shareholders. sharing and these with creating look shareholders. value our anticipate our patterns these hold

creation the holdings Bitcoin of as We [indiscernible]. reflect as expect this value appreciation to both our well

of on community nonprofit providing Our to legacy since XXXX. remained has focused associations selling stable business the is end

for a response growth see which arising changes of is the following South legislative tower increased collapse demand reserve Looking seaside funding Florida from opportunities XXXX. the we in in to ahead, the

fund dues. opportunity to associations increase association fully funding services We accounts. reserves The dues for an building requires to failed in and now reserve to maintenance. likely see help increase will pay who resulting funded homeowners law Florida to of their maintaining the fully to number transition provide associations

to stock stockholders' than what undervaluation our equity firm we be the per of our market's generating currently by X/X we shareholder is frustrated We perceive belief value, of less our substantial are price our as continue that share. shares, despite

first successful strategy. our quarter the execution net a business to is of record income Our clear in testament the

pursuing presenting conferences. at taking strategic share several goals including actively We are investors, and to upcoming our every with investment opportunity our story

our price market with better investors intrinsic and become our reflect will company value. more familiar growth share As opportunities, our

Our never optimism as been about bright. the business has

will We money recognize believe are improving these We to path Bitcoin, and see mine. and we eventually making Bitcoin our clear market the our mining per operations a efforts. scaling cost

LM Finally, Board I to Funding like the welcome of moment to Directors. would take Traber to back a Martin

to to We an our pleased are banking investment reintroduce perspective Board.

expertise to in expand and decisions our market current hold our Martin's we on balance continue his will the believe significantly Bitcoin we mining Given assist as Bitcoin our capital markets, sheet. strategic insights operations

Bitcoin contributions we Additionally, Zhang future success his mining his substantial for ramp-up thank the operations wish in Todd endeavors. during him our and sincerely of

Thank for today, again I to your you and hearing questions. look forward listening

Operator

first H.C. Wainright. Dede Your from Kevin with Instructions] [Operator today for question is

Kevin Dede

machines lines to Bruce, installed and that sure that have excuse now. press So the you'll think release to X,XXX wanted just I I in little figure hashing crossed. I and be SXX new have pointed everything The me, my XXX to included a that, is

Bruce Rodgers

of new April, also but end was we XXX SXX first May, of X,XXX March the machines. as we got The disposed of machines

the machines we about the of up. machines, read with still got same we're number with So but old And is PetaHash sub-XXX the the our slipped out out. SXX, that machines

Kevin Dede

right. All

earnings make sure forecast press talked heard don't on. that a So number have we're but that's right, I the our rate what know, just $XXX, because may of I I based $XXX to have hash

Bruce Rodgers

the XXX number. is right

Richard Russell

For forecast.

Kevin Dede

and help strategic of [indiscernible] my Bruce, your sort step attention snapshot. guys think right. appreciated could or you investment about just I back in a sort your hash All I know mean building view your are endeavors? I thinking strategic Perfect. versus your rate take your in financial on hearing maybe legacy you of of still guide me especially

Bruce Rodgers

we're and right miners now. Bitcoin So foremost primarily

legacy the way And Our to that's XXXX a unclear that would works, be. legislation that where really really event. as business

focus our a So I on miner. would being as company Bitcoin

our infrastructure on that for the -- we we're $X.X been initiatives has you some as announcements should making then and strategy million some pretty strategic in be borrowed we And but Q, might light, noticed have soon.

Kevin Dede

for HPC in Bitcoin bit Would a market? either the owning for your to HPC. alluded own little that consider you You reviewing in the or infrastructure call mining addressing

Bruce Rodgers

market. understand what not by HPC mean might I you

Kevin Dede

your That's computing. -- Are more some you you'll of little take sort a probably little I I reviewing know here and mouth say that maybe high-performance just you just back a you let's the sorry, AI. about I step. to forgive you've kind -- bit. are that to I'm my running talked said strategy? question me. I'm have Oh, -- asset-light money a shortly. you that know How apologize. of I bit, borrowed you the

you infrastructure for are owning -- thinking mining assets or other purposes? for But or about for Bitcoin

Bruce Rodgers

first would the primary purpose anything, Bitcoin and own we If mining. be

decide leave there You potential happen. exit field for the other that could purposes look things should you be to at

the that's we So regard way that.

Kevin Dede

Okay. talk sort about we've your perspective rev a of share, thinking to How pricing, seen And since are that rate the price this lower hash to halving? about partners you have SXX from obligations order? how fleet your pass-through last adding beyond given contractual hash you the hosting

Bruce Rodgers

Load of and than we hosting one have the more of partners. each than question one partner, more with because we there our hosting hosting contract have

things. is order bought usually at Back discussions you someone. a plan probably I million reality have of the the deposit every possible on times we in there's and to So to The focus alluded all make to. strategic to $X.X that initiative on hosting

looking So some we're of the or deposit type money over control of infrastructure. to get more using that

to we meter electric It's still up infrastructure light like in more some is. theory, to control have the where but right

Kevin Dede

Okay. That step. got to put mining fleet? you've helps, Bruce. guess I the How about one expanding

Bruce Rodgers

buy to That's machines. that's where -- more go starts lead cash, cash the goal, you roads mining flying of going right? So how is to if that's grow thing And all a the business. to the

You that, increase go keep then you than up your difficulty. returns. the with increase you in potential got to And if faster

Kevin Dede

or -- you you understand me did you digital how are that. expect Rich, incorporated when this you Have Help Right. how it or ruling? mark-to-market considering to? do asset for

Richard Russell

the Yes, the $X.X best see where mark-to-market and but place, we expenses. that's that's guide in you buried gain really is operating where year adopted million you on the that's effective I to. the don't that point this one, agree

now. And end of that X that's that right at XX-ish was what value March, XX about [indiscernible] mark and

Kevin Dede

You Bitcoin? XX mean

Richard Russell

No, $XX,XXX. bit. $XX,XXX per

Kevin Dede

Okay.

Richard Russell

Yes.

operations. million. a the on XX/XX, But that average That of the right? $XX,XXX, doing X what had $XX,XXX was of, resulted we that from we was we in what pickup recognized I it accumulate $XXX,XXX not about think mine quarter part I in mining at equity mined point think, the of was XXX, $X.X we adoption pickup what think, factored this into I in for big of and gain X/X, As an

Kevin Dede

Okay.

just sort I you of taking rulings going Have all as business in yourself effect Florida your and about regarding maybe from in comment that Bitcoin? separating Bruce, So in and 'XX. the think considered

Bruce Rodgers

it. to each businesses X that have other than absolutely with The I'm other, nothing in do involved the fact

be will -- be the when and things for to So are will time make that, there sense, will and yes, it obvious right it us. right, that

Kevin Dede

Appreciate it. enough. Fair Okay.

Operator

and will I turn session. closing for [Operator of remarks. Instructions] call the the We management our reached answer question have end over now to

Bruce Rodgers

call. Thank want today's you. for to on I thank everyone us joining

mining Bitcoin proven with so results far. promising towards pivot Our fruitful is

mining million debt strategic dedicated secured our initiatives. acquiring We've to We fund financing additional are and mining to $X.X reinvesting in help revenue equipment.

existing machinery. also we're software rate the and reaching and an around advanced on to $XX,XXX near other Furthermore, to hash in presently boost our Bitcoin technologies March, trading high of $XX,XXX. focused of integrating With $XX,XXX all-time

solidify. continues Our as enduring confidence of in the to Bitcoin an value investment

to continue the for grateful ongoing from shareholders are and you. We updates on emerge. as we'll provide progress developments our new support our Thank

Operator

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

LM Funding America (LMFA) 16 May 242024 Q1 Earnings call transcript