Oct 26, 2017 6:00 AM
"The vast majority of Safeguard's portfolio of growth-stage, technology-driven businesses in healthcare, financial services and digital media continues to meet or exceed developmental goals for 2017," said
THIRD QUARTER 2017 HIGHLIGHTS
AGGREGATE PARTNER COMPANY REVENUE
Aggregate partner company revenue for 2017 is now projected to increase between 23% and 26% from
PARTNER COMPANY HIGHLIGHTS
This section provides highlights on significant accomplishments achieved by several of Safeguard's partner companies during the third quarter of 2017. For a complete list of milestones achieved during this period, please visit www.safeguard.com/PartnerNews.
~ Product Launches / Regulatory Approvals ~
~ Major Customer Wins / Strategic Partnerships ~
CloudMine and digital innovation studio, Modus, announced a partnership to help companies improve patient experiences, clinical applications, internal workflows, telemedicine, systems integration and cloud transformation to accelerate digital transformation and remove barriers to innovation.
QuanticMind added Peddle,
Zipnosis announced that
~ Industry Awards ~
CloudMine was honored as a 2017 Health Care Innovator in the
~ Other Milestones ~
QuanticMind raised a
PARTNER COMPANY HOLDINGS AT
Partner Company Revenue Stages | |||
Development Stage
|
Initial Revenue Stage
|
Expansion Stage
|
High Traction Stage
|
Partner Companies |
Stage |
Category |
Acquisition |
Primary |
Carrying (in millions) |
Cost (in millions) |
|
High Traction |
Healthcare |
2006 |
40% |
|
|
|
Initial Revenue |
Healthcare |
2016 |
25% |
4.9 |
9.7 |
|
Expansion |
Other |
2013 |
29% |
8.5 |
22.1 |
Brickwork |
Initial Revenue |
Digital Media |
2016 |
20% |
3.6 |
4.2 |
|
Initial Revenue |
Other |
2015 |
31% |
7.4 |
12.6 |
CloudMine |
Initial Revenue |
Healthcare |
2015 |
47% |
3.7 |
7.5 |
|
Expansion |
Digital Media |
2013 |
43% |
8.8 |
16.3 |
Full Measure Education |
Initial Revenue |
Digital Media |
2015 |
42% |
6.7 |
11.0 |
|
Initial Revenue |
Digital Media |
2011 |
26% |
0.2 |
5.1 |
|
Initial Revenue |
Healthcare |
2014 |
40% |
1.9 |
19.4 |
Lumesis |
Initial Revenue |
Financial Services |
2012 |
44% |
1.7 |
6.3 |
|
High Traction |
Digital Media |
2009 |
20.4% |
3.2 |
25.5 |
meQuilibrium |
Initial Revenue |
Healthcare |
2015 |
37% |
6.1 |
10.5 |
|
Initial Revenue |
Healthcare |
2016 |
32% |
3.9 |
4.5 |
|
High Traction |
Healthcare |
2011 |
32% |
2.1 |
23.6 |
|
Expansion |
Healthcare |
2011 |
35% |
4.2 |
11.6 |
|
Initial Revenue |
Healthcare |
2014 |
24% |
7.2 |
14.0 |
QuanticMind |
Initial Revenue |
Digital Media |
2015 |
25% |
8.1 |
11.5 |
Sonobi |
Expansion |
Digital Media |
2015 |
22% |
5.8 |
8.4 |
|
Expansion |
Digital Media |
2012 |
23% |
6.5 |
18.0 |
|
Initial Revenue |
Healthcare |
2014 |
26% |
3.4 |
13.3 |
T-REX |
Initial Revenue |
Financial Services |
2016 |
21% |
5.4 |
6.0 |
|
Expansion |
Financial Services |
2014 |
24% |
9.5 |
14.5 |
Trice Medical |
Initial Revenue |
Healthcare |
2014 |
25% |
4.1 |
10.2 |
|
Expansion |
Digital Media |
2014 |
38% |
8.0 |
14.0 |
Zipnosis |
Initial Revenue |
Healthcare |
2015 |
25% |
4.2 |
7.0 |
TOTAL: |
|
|
CONFERENCE CALL AND WEBCAST DETAILS
Please call 10-15 minutes prior to the call to register.
Date: Thursday, October 26, 2017
Time: 9:00am ET
Webcast: www.safeguard.com/results
Live Number: 844-579-6824 // (International) 763-488-9145
Replay Number: 855-859-2056 // (International) 404-537-3406
Access Code: 71988474
Speakers: President and Chief Executive Officer,
Format: Discussion of third 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, IRC
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 |
$ |
39,488 |
$ |
30,442 | |||||
Other current assets |
7,572 |
2,109 | |||||||
Total current assets |
47,060 |
32,551 | |||||||
Ownership interests in and advances to partner companies |
138,698 |
183,470 | |||||||
Long-term marketable securities |
249 |
7,302 | |||||||
Long-term restricted cash equivalents |
6,336 |
6,336 | |||||||
Other assets |
1,942 |
2,169 | |||||||
Total Assets |
$ |
194,285 |
$ |
231,828 | |||||
Liabilities and Equity |
|||||||||
Other current liabilities |
$ |
5,510 |
$ |
5,861 | |||||
Convertible senior debentures - current |
40,148 |
— | |||||||
Total current liabilities |
45,658 |
5,861 | |||||||
Other long-term liabilities |
3,504 |
3,630 | |||||||
Credit facility |
44,911 |
— | |||||||
Convertible senior debentures |
— |
52,560 | |||||||
Total equity |
100,212 |
169,777 | |||||||
Total Liabilities and Equity |
$ |
194,285 |
$ |
231,828 | |||||
| ||||||||||||||||
Condensed Consolidated Statements of Operations | ||||||||||||||||
(in thousands, except per share amounts) | ||||||||||||||||
Three Months Ended |
Nine Months Ended | |||||||||||||||
2017 |
2016 |
2017 |
2016 | |||||||||||||
Operating expenses |
$ |
3,758 |
$ |
4,687 |
$ |
13,191 |
$ |
14,764 | ||||||||
Operating loss |
(3,758) |
(4,687) |
(13,191) |
(14,764) | ||||||||||||
Other loss |
(379) |
(2,405) |
(219) |
(1,746) | ||||||||||||
Interest, net |
(1,639) |
(648) |
(3,061) |
(2,005) | ||||||||||||
Equity income (loss) |
(12,874) |
(16,345) |
(53,373) |
17,954 | ||||||||||||
Net loss before income taxes |
(18,650) |
(24,085) |
(69,844) |
(561) | ||||||||||||
Income tax benefit (expense) |
— |
— |
— |
— | ||||||||||||
Net loss |
$ |
(18,650) |
$ |
(24,085) |
$ |
(69,844) |
$ |
(561) | ||||||||
Net loss per share: |
||||||||||||||||
Basic |
$ |
(0.91) |
$ |
(1.18) |
$ |
(3.42) |
$ |
(0.03) | ||||||||
Diluted |
$ |
(0.91) |
$ |
(1.18) |
$ |
(3.42) |
$ |
(0.03) | ||||||||
Weighted average shares used in computing loss per share: |
||||||||||||||||
Basic |
20,455 |
20,387 |
20,416 |
20,390 | ||||||||||||
Diluted |
20,455 |
20,387 |
20,416 |
20,390 | ||||||||||||
|
||||||||||||||||
Partner Company Financial Data |
||||||||||||||||
(in thousands) |
||||||||||||||||
Additional Financial Information |
||||||||||||||||
To assist investors in understanding Safeguard and our 26 partner companies as of |
||||||||||||||||
|
||||||||||||||||
Carrying |
Cost |
|||||||||||||||
Safeguard Carrying Value and Cost |
||||||||||||||||
Equity method partner companies |
$ |
133,908 |
$ |
323,284 |
||||||||||||
Other holdings |
4,790 |
37,899 |
||||||||||||||
$ |
138,698 |
$ |
361,183 |
|||||||||||||
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