Quantcast

LM Funding Reports First Quarter 2019 Financial Results

By GlobeNewswire,  May 16, 2019, 09:00:00 AM EDT


TAMPA, Fla., May 16, 2019 (GLOBE NEWSWIRE) -- LM Funding America, Inc. (NASDAQ:LMFA) ("LM Funding" or the "Company"), a technology-based specialty finance and travel insurance broker company, today announced its financial results for the first quarter ended March 31, 2019.

Bruce Rodgers, LM Funding's Chief Executive Officer, commented, "Our first quarter was highlighted by the acquisition and integration of IIU, Inc. a global medical travel insurance broker company. Going forward, we will continue to evaluate attractive acquisition opportunities to maximize shareholder value. At the same time, we remain focused on providing financing solutions to condominium and homeowner associations."

First Quarter 2019 Financial and Operational Highlights:

  • In January 2019, LM Funding completed the accretive acquisition of IIU, Inc. ("IIU");
  • As of March 31, 2019, the Company had $3.4 million in cash as compared to $3.5 million at December 31, 2018;
  • Operating revenues totaled $762,699 for the first quarter of 2019 as compared to $963,733 for the same period the year prior;
  • Rental revenue, totaled $147,669 as compared to $222,445 for the same period the year prior;
  • Operating expenses increased to $1.2 million as compared to $972,651 the year prior, driven by higher professional fees associated in part with fees for the IIU acquisition and operating expenses associated with IIU operations offset in part by a significant reduction in staff costs and payroll; and
  • Reported a net loss of $457,018 as compared to a net loss of $8,918 for the first quarter 2018.

First Quarter Financial Results:

For the quarter ended March 31, 2019, total operating revenues were $762,699, compared to $963,733 in the first quarter of 2018. This includes rental revenue of $147,669, compared to $222,445 for the quarter ended March 31, 2018.  IIU generated approximately $100,000 in revenue during the first quarter of 2019.

Operating expenses for the first quarter of 2019 was $1.2 million, compared to $972,651 the year prior. This was primarily attributable to IIU acquisition expenses and $76,000 of IIU operating expenses.

Net loss for the quarter ended March 31, 2019 was $457,018, compared to a net loss of $8,918 for the first quarter of 2018.

At March 31, 2019, the Company had cash and cash equivalents of $3.4 million, compared with $3.5 million at December 31, 2018.

About LM Funding America:

LM Funding America, Inc., together with its subsidiaries, is a technology-based specialty finance company that provides funding to nonprofit community associations (Associations) primarily located in the state of Florida, as well as in the states of Washington, Colorado and Illinois by funding a certain portion of the associations' rights to delinquent accounts that are selected by the Associations arising from unpaid Association assessments. The Company, through its IIU, Inc. subsidiary, also offers global medical insurance products for international travelers, specializing in policies covering high risk destination, emerging markets and foreign travelers coming to the United States.  All policies are fully underwritten with no claim risk remaining with the Company.

Forward-Looking Statements:

This press release may contain forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995. Words such as "anticipate," "estimate," "expect," "intend," "plan," and "project" and other similar words and expressions are intended to signify forward-looking statements. Forward-looking statements are not guarantees of future results and conditions but rather are subject to various risks and uncertainties. Some of these risks and uncertainties are identified in the company's most recent Annual Report on Form 10-K and its other filings with the SEC, which are available at www.sec.gov. The occurrence of any of these risks and uncertainties could have a material adverse effect on the company's business, financial condition, and results of operations.

Company Contact:  

Bruce Rodgers, Chairman and CEO  

LM Funding America, Inc.  

Tel (813) 222-8996  

investors@lmfunding.com
Investor Contacts:

Valter Pinto / Scott Eckstein

KCSA Strategic Communications

Tel (212) 896-1254 / (212) 896-1210

valter@kcsa.com / seckstein@kcsa.com



LM Funding America, Inc. and Subsidiaries Condensed Consolidated Balance Sheets

    March 31, 2019     December 31, 2018  
    (Unaudited)          
ASSETS                
Cash   $ 3,378,783     $ 3,520,753  
Finance receivables:                
Original product - net     385,058       425,012  
Special product - New Neighbor Guaranty program, net     245,255       237,043  
Prepaid expenses and other assets     169,366       155,420  
Due from related party     -       25,507  
Fixed assets, net     40,659       33,818  
Real estate assets owned     52,977       122,604  
Operating lease - right of use assets     24,259       -  
Other investments     -       1,507,375  
Goodwill     5,809,786       -  
Other Assets     32,036       32,036  
Total assets   $ 10,138,179     $ 6,059,568  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY                
Note payable   $ 700,876     $ 42,875  
Related party convertible note payable     3,581,982          
Operating lease liability     24,494       -  
Accounts payable and accrued expenses     301,066       188,354  
Due to related party     62,150       -  
Tax liability     28,426       -  
Other liabilities and obligations     61,734       19,690  
Total liabilities     4,760,728       250,919  
Stockholders' equity:                
Common stock, par value $.001; 30,000,000 shares authorized; 3,134,261 and 3,124,961 shares issued and outstanding as of March 31, 2019 and December 31, 2018, respectively     3,134       3,125  
Additional paid-in capital     17,321,219       17,295,408  
Accumulated deficit     (11,946,902 )     (11,489,884 )
Total stockholders' equity     5,377,451       5,808,649  
Total liabilities and stockholders' equity   $ 10,138,179     $ 6,059,568  



LM Funding America, Inc. and Subsidiaries Condensed Consolidated Statements of Operations

(unaudited) 

         
      For the Three Months Ended March 31,  
      2019     2018  
Revenues:                  
Interest on delinquent association fees     $ 414,275     $ 550,862  
Administrative and late fees       39,493       68,328  
Recoveries in excess of cost - special product       21,770       67,537  
Underwriting and other revenues       40,724       54,561  
Net commission revenue       98,768       -  
Rental revenue       147,669       222,445  
Total revenues       762,699       963,733  
                   
Operating Expenses:                  
Staff costs and payroll       288,398       402,283  
Professional fees       602,712       335,107  
Settlement costs with associations       1,892       15,712  
Selling, general and administrative       111,271       72,548  
Provision for credit losses       -       581  
Real estate management and disposal       197,128       119,362  
Depreciation and amortization       19,120       22,155  
Collection costs       (23,087 )     602  
Other operating expenses       14,496       4,301  
Total operating expenses       1,211,930       972,651  
Operating loss       (449,231 )     (8,918 )
Interest expense       7,787       -  
Loss before income taxes       (457,018 )     (8,918 )
Income tax benefit       -       -  
Net loss     $ (457,018 )   $ (8,918 )
                   
Loss per share:                  
Basic     $ (0.15 )   $ (0.01 )
Diluted       (0.15 )     (0.01 )
Weighted average number of common shares outstanding:                  
Basic       3,131,939       625,319  
Diluted       3,131,939       625,319  



LM Funding America, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows

(unaudited)

    For the Three Months ended March 31,  
    2019     2018  
CASH FLOWS FROM OPERATING ACTIVITIES:                
Net loss   $ (457,018 )   $ (8,918 )
                 
 Adjustments to reconcile net loss to cash used in operating activities                
Depreciation and amortization     16,693       22,155  
Right to use asset depreciation     2,426       -  
Stock Compensation     3,500       (540 )
                 
 Change in assets and liabilities                
Accounts receivable     1,643       (1,408 )
Prepaid expenses     4,147       (18,532 )
Accounts payable and accrued expenses     31,235       (139,119 )
Advances (repayments) to related party     87,657       27,480  
Other liabilities     42,044       (17,644 )
Lease liability payments     (2,191 )     -  
                 
Net cash used in operating activities     (269,864 )     (136,526 )
                 
CASH FLOWS FROM INVESTING ACTIVITIES:                
Net collections of finance receivables - original product     39,954       62,264  
Net collections of finance receivables - special product     (8,212 )     1,108  
Net cash received from business acquisition     51,327       -  
Proceeds for real estate assets owned     63,183       1,085  
                 
Net cash provided by investing activities     146,252       64,457  
                 
CASH FLOWS FROM FINANCING ACTIVITIES:                
Principal repayments     (40,678 )     (23,417 )
Exercise of warrants     22,320       -  
Debt issue costs     -       (30,000 )
                 
Net cash used in financing activities     (18,358 )     (53,417 )
                 
NET INCREASE (DECREASE) IN CASH     (141,970 )     (125,486 )
                 
CASH - BEGINNING OF YEAR     3,520,753       590,394  
                 
CASH - END OF YEAR   $ 3,378,783     $ 464,908  
                 
SUPPLEMENTAL DISCLOSURES OF CASHFLOW INFORMATION                
Cash paid for interest   $ 7,787     $ -  
Income tax   $ -     $ -  
SUPPLEMENTAL DISCLOSURES OF NON-CASHFLOW INFORMATION                
ROU asset obligation recognized   $ 26,685     $ -  

 

Source: LM Funding America, Inc.

This article appears in: News Headlines

Referenced Stocks: LMFA










Today's Market Activity

NASDAQ 7637.01
8.73  ▲  0.11%
DJIA 25585.69
95.22  ▲  0.37%
S&P 500 2826.06
3.82  ▲  0.14%
Data as of May 24, 2019