Apr 27, 2017 6:00 AM
"Safeguard's key objective for 2017 is to increase the number of exit transactions at meaningful cash-on-cash returns to drive shareholder value," said
FIRST QUARTER 2017 HIGHLIGHTS
AGGREGATE PARTNER COMPANY REVENUE
Aggregate partner company revenue for 2017 is projected to be between
PARTNER COMPANY HIGHLIGHTS
The following section includes highlights of significant accomplishments achieved by Safeguard's partner companies during the first quarter of 2017. For a detailed overview of all milestones achieved during the first quarter of 2017, please visit www.safeguard.com/companies.
~ Product Launches / Regulatory Approvals ~
~ Major Customer Wins / Strategic Partnerships ~
CloudMine is partnering with
Sonobi announced the integration of Facebook's Audience Network with its header-based digital advertising technology to offer publishers greater yield without sacrificing user experience. Sonobi,
~ Industry Awards ~
QuanticMind was recognized by
~ Other Milestones ~
PARTNER COMPANY HOLDINGS AT
Partner Company Revenue Stages | |||
Development Stage · Pre-revenue · Proving out · Developing prototype · Beta stage customers |
Initial Revenue Stage · Up to · Initial customers · Early market penetration · Management team forming · Infrastructure being built
|
Expansion Stage · · Commercial grade solution · Growing market penetration · Management team built out · Infrastructure in place |
High Traction Stage · $20M+ in revenue · Significant commercial |
Partner Companies |
Stage |
Category |
Acquisition |
Primary |
Carrying (in millions) |
Cost (in millions) |
|
High Traction |
Healthcare |
2006 |
40% |
|
|
|
Initial Revenue |
Healthcare |
2016 |
31% |
6.7 |
8.3 |
|
Expansion |
Other |
2013 |
29% |
9.8 |
22.1 |
Brickwork |
Initial Revenue |
Digital Media |
2016 |
20% |
4.0 |
4.2 |
|
Initial Revenue |
Other |
2015 |
31% |
7.4 |
11.0 |
CloudMine |
Initial Revenue |
Healthcare |
2015 |
47% |
4.9 |
7.5 |
|
Expansion |
Digital Media |
2013 |
43% |
10.2 |
16.3 |
Full Measure Education |
Initial Revenue |
Digital Media |
2015 |
42% |
7.7 |
11.0 |
|
High Traction |
Healthcare |
2010 |
30% |
- |
17.1 |
|
Initial Revenue |
Digital Media |
2011 |
26% |
- |
4.8 |
|
Initial Revenue |
Healthcare |
2014 |
40% |
4.5 |
18.5 |
Lumesis |
Initial Revenue |
Financial Services |
2012 |
44% |
2.0 |
6.3 |
|
High Traction |
Digital Media |
2009 |
21% |
5.0 |
25.5 |
meQuilibrium |
Initial Revenue |
Healthcare |
2015 |
32% |
4.7 |
8.0 |
|
Initial Revenue |
Healthcare |
2016 |
32% |
4.3 |
4.5 |
|
High Traction |
Healthcare |
2011 |
32% |
2.6 |
22.6 |
Pneuron |
Initial Revenue |
Financial Services |
2013 |
35% |
2.5 |
8.5 |
|
Expansion |
Healthcare |
2011 |
35% |
5.4 |
11.6 |
|
Initial Revenue |
Healthcare |
2014 |
24% |
8.8 |
14.0 |
QuanticMind |
Initial Revenue |
Digital Media |
2015 |
23% |
7.3 |
9.8 |
Sonobi |
Expansion |
Digital Media |
2015 |
22% |
3.5 |
5.4 |
|
Expansion |
Digital Media |
2012 |
23% |
11.8 |
18.0 |
|
Initial Revenue |
Healthcare |
2014 |
26% |
5.3 |
13.3 |
T-REX |
Initial Revenue |
Financial Services |
2016 |
24% |
5.8 |
6.0 |
|
Expansion |
Financial Services |
2014 |
24% |
10.5 |
14.5 |
Trice Medical |
Initial Revenue |
Healthcare |
2014 |
28% |
3.0 |
8.1 |
|
Expansion |
Digital Media |
2014 |
38% |
8.6 |
13.0 |
Zipnosis |
Initial Revenue |
Healthcare |
2015 |
25% |
5.3 |
7.0 |
TOTAL: |
|
|
CONFERENCE CALL AND WEBCAST DETAILS
Please call 10-15 minutes prior to the call to register.
Date: Thursday, April 27, 2017
Time: 9:00am EDT
Webcast: www.safeguard.com/results
Live Number: 877-201-0168 // (International) 647-788-4901
Replay Number: 800-585-8367 // (International) 416-621-4642
Access Code: 95476871
Speakers: President and Chief Executive Officer,
Format: Discussion of first quarter 2017 financial results followed by Q&A.
Replay will be available through
About
Forward-looking Statements
Except for the historical information and discussions contained herein, statements contained in this release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Our forward-looking statements are subject to risks and uncertainties. The risks and uncertainties that could cause actual results to differ materially include, among others, our ability to make good decisions about the deployment of capital, the fact that our partner companies may vary from period to period, our substantial capital requirements and absence of liquidity from our partner company holdings, fluctuations in the market prices of our publicly traded partner company holdings, competition, our inability to obtain maximum value for our partner company holdings, our ability to attract and retain qualified employees, market valuations in sectors in which our partner companies operate, our inability to control our partner companies, our need to manage our assets to avoid registration under the Investment Company Act of 1940, and risks associated with our partner companies, including the fact that most of our partner companies have a limited history and a history of operating losses, face intense competition and may never be profitable, the effect of economic conditions in the business sectors in which Safeguard's partner companies operate, and other uncertainties described in our filings with the
SAFEGUARD CONTACT:
John E. Shave III
Senior Vice President, Investor Relations and Corporate Communications
610.975.4952
jshave(at)safeguard(dot)com
| |||||||||
Condensed Consolidated Balance Sheets | |||||||||
(in thousands) | |||||||||
|
| ||||||||
Assets |
|||||||||
Cash, cash equivalents and marketable securities |
$ |
32,919 |
$ |
30,442 |
|||||
Other current assets |
2,325 |
2,109 |
|||||||
Total current assets |
35,244 |
32,551 |
|||||||
Ownership interests in and advances to partner companies |
161,625 |
183,470 |
|||||||
Long-term marketable securities |
3,047 |
7,302 |
|||||||
Long-term restricted cash equivalents |
6,336 |
6,336 |
|||||||
Other assets |
1,910 |
2,169 |
|||||||
Total Assets |
$ |
208,162 |
$ |
231,828 |
|||||
Liabilities and Equity |
|||||||||
Other current liabilities |
$ |
4,022 |
$ |
5,861 |
|||||
Total current liabilities |
4,022 |
5,861 |
|||||||
Other long-term liabilities |
3,581 |
3,630 |
|||||||
Convertible senior debentures |
52,983 |
52,560 |
|||||||
Total equity |
147,576 |
169,777 |
|||||||
Total Liabilities and Equity |
$ |
208,162 |
$ |
231,828 |
|||||
| ||||||||
Condensed Consolidated Statements of Operations | ||||||||
(in thousands, except per share amounts) | ||||||||
Three Months Ended | ||||||||
2017 |
2016 | |||||||
Operating expenses |
$ |
4,947 |
$ |
5,228 |
||||
Operating loss |
(4,947) |
(5,228) |
||||||
Other income (loss), net |
249 |
— |
||||||
Interest, net |
(397) |
(729) |
||||||
Equity loss |
(17,002) |
(9,495) |
||||||
Net loss before income taxes |
(22,097) |
(15,452) |
||||||
Income tax benefit (expense) |
— |
— |
||||||
Net loss |
$ |
(22,097) |
$ |
(15,452) |
||||
Net loss per share: |
||||||||
Basic |
$ |
(1.08) |
$ |
(0.76) |
||||
Diluted |
$ |
(1.08) |
$ |
(0.76) |
||||
Weighted average shares used in computing loss per share: |
||||||||
Basic |
20,380 |
20,448 |
||||||
Diluted |
20,380 |
20,448 |
||||||
|
||||||||||||||||
Partner Company Financial Data |
||||||||||||||||
(in thousands) |
||||||||||||||||
Additional Financial Information |
||||||||||||||||
To assist investors in understanding Safeguard and our 28 partner companies as of |
||||||||||||||||
|
||||||||||||||||
Carrying |
Cost |
|||||||||||||||
Safeguard Carrying Value and Cost |
||||||||||||||||
Equity method partner companies |
$ |
156,842 |
$ |
333,354 |
||||||||||||
Other holdings |
4,783 |
37,824 |
||||||||||||||
$ |
161,625 |
$ |
371,178 |
|||||||||||||
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/safeguard-scientifics-announces-first-quarter-2017-financial-results-300446823.html
SOURCE