SWK Holdings Corporation, a life science-focused specialty finance company, held a conference call and live audio webcast on November 9, 2023 to announce its financial and operating results for the third quarter of 2023. Highlights included a $4.5 million net income, the closing of an approximately $33.0 million public offering of senior notes, and an upsize of its existing credit facility to $60.0 million after the end of the quarter. The company’s finance receivables segment updated, showing a 10.3% increase in gross finance receivables from September 30, 2022, as well as various loans closed after quarter end totaling $26.0 million.
Jody Staggs, President and CEO of SWK, is upbeat about the company’s performance, noting the healthy financial returns, improved balance sheet, and progress made by its subsidiary, Enteris, towards profitability. Enteris has booked $2.7 million of CDMO projects in 2023 with $5.0 million of proposals outstanding. Although the company reported a 34.2% decrease in total revenue for the third quarter of 2023 compared to the same period in 2022, it also revealed positive aspects, such as a 14.0% effective yield in its finance portfolio. Additionally, SWK experienced a 3.2% decrease in non-GAAP adjusted net income for its finance receivables segment in the third quarter of 2023 compared to the same period in 2022.
The finance receivables segment reported a $5.8 million of adjusted non-GAAP net income for the third quarter of 2023, compared with $6.0 million for the third quarter of 2022. The company boosted its income-producing assets by 10.3% compared to the same period in 2022, a sign of positive growth. Furthermore, SWK’s book value per share increased by 6.2% compared to September 30, 2022, after adjusting for the adoption of the current expected credit losses methodology. Overall, SWK remains focused on deploying its balance sheet capital and closing additional transactions over the next few months.
