Safeguard Scientifics (SFE) Tops Q1 EPS by 28c

Safeguard Scientifics (NYSE: SFE) reported Q1 EPS of $1.05, $0.28 better than the analyst estimate of $0.77.

Highlights

• Safeguard announced the engagement of Evercore as its financial advisor as it continues to execute its strategy to maximize the return of value to shareholders.
• The Company appointed new independent director, Joseph M. Manko Jr., to the Safeguard Board of Directors.
• The Company realized $41.5 million in cash proceeds from the sale of partner company Propeller. The transaction represented an approximate 3x cash-on-cash return and 34% IRR.
• Safeguard continues to prudently manage follow-on deployments to its partner companies. Follow-on fundings totaled $3.9 million for the quarter.
• At March 31, 2019, the Company\'s balance of cash, cash equivalents, restricted cash and marketable securities was $78.0 million.
• On April 15, 2019 the Company made a principal and interest payment of $27.4 million on its credit facility, which reduced the principal amount outstanding under the facility to $44.5 million.
• Safeguard has entered into subleases regarding its current offices and for a new smaller office space which will reduce our net lease payments by $3.5 million from the original term of the current office lease.
• Corporate expenses totaled $2.1 million for the quarter ended March 31, 2019 reflecting the Company's reduced cost structure.

OUTLOOK

"We are pleased with the continued and substantial reduction of the Company's debt balance, resulting from what we have accomplished so far in 2019. Our aggregate cash and marketable securities now exceed our debt," said Mark A. Herndon, Safeguard's Senior Vice President and Chief Financial Officer. "Further, we continue to be optimistic about the overall health of our partner companies as revenues continue to increase in the aggregate and several are nearing cash flow breakeven." We expect corporate costs for the year ended December 31, 2019 to be less than $8.0 million.

For earnings history and earnings-related data on Safeguard Scientifics (SFE) click here.

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