Latest news with #SPISoftware
Yahoo
09-05-2025
- Business
- Yahoo
Kingsway Financial Services Inc (KFS) Q1 2025 Earnings Call Highlights: Strategic Acquisitions ...
Release Date: May 08, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Kingsway Financial Services Inc (NYSE:KFS) completed the acquisition of MLC Plumbing, enhancing their Kingsway Skilled Trades platform. The acquisition of Viewpoint by SPI Software strengthens their leadership in the vacation ownership software market. Revenue and adjusted EBITA for the KSX segment grew by 23% year over year. The extended warranty segment is showing signs of recovery with cash sales up 3.7% year over year. Kingsway Financial Services Inc (NYSE:KFS) appointed two new independent directors, strengthening their corporate governance. Consolidated adjusted EBITDA declined by $800,000 compared to the prior year quarter. The extended warranty segment's adjusted EBITA decreased from $1.4 million to $800,000 year over year. Higher operating expenses impacted profitability in the extended warranty segment. Raviix and C-suite experienced a small year-over-year decline in revenue. Debt increased slightly due to the addition of Bud's Plumbing seller note and refinancing of Ravik's debt. Warning! GuruFocus has detected 5 Warning Sign with KFS. Q: The Viewpoint acquisition seems interesting. Could you please provide any color on how the transaction came about and why it might make sense strategically? A: The acquisition was sourced by Drew at SPI, who developed a relationship with the company and its former owners. Strategically, it makes sense because SPI is a hosted on-prem software solution for enterprise customers in North America, while Viewpoint is a cloud-native software for smaller customers in the Asia Pacific and Australia. This acquisition provides SPI with a cloud-native solution for North America and access to a new geography for its enterprise solution. Q: Can you please explain what you mean by the J curve with search acquisitions and how it works in practice? A: The J curve refers to the performance curve over time in search fund acquisitions. Initially, there's a negative impact on profitability due to investments in talent, processes, and technology. Over time, as these investments pay off, performance improves significantly. This curve also applies to operators, where high-attribute, inexperienced operators may initially lag but eventually outperform experienced ones. Q: You mentioned a robust deal pipeline. Can you share more about what you're seeing with respect to search M&A? A: We have three Operators in Residence (OIRs) who are adept at building M&A pipelines. Additionally, platforms like Skilled Trades are specifically formed for transactions with experienced operators. We are excited about the opportunities for tuck-in acquisitions in fragmented markets. Q: Can you speak to the reasoning for the owner of Bud's staying on as President for a one-year transition period? Could we see that replicated with future acquisitions? A: It's typical and desirable in search acquisitions for the previous owner to stay on during a transition period. This helps in transferring customer relationships and institutional knowledge, making it a win-win situation. We hope to replicate this in future acquisitions. Q: With vertical market solutions and now skilled trades, you have a couple of platforms. Are there any other industries you might target for platforms? A: We evaluate industries based on growth potential and recurring revenue. Industries like insurance brokerage, wealth management, and accounting services could be compelling for building platforms. The key is finding industries that support growth via acquisition and align with our operators' interests. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Associated Press
30-04-2025
- Business
- Associated Press
Kingsway Announces Strategic Acquisition of Viewpoint by SPI Software
Combination Creates Global Leader in Vacation Ownership Software CHICAGO, ILLINOIS / ACCESS Newswire / April 30, 2025 / (NYSE:KFS) Kingsway Financial Services Inc. ('Kingsway' or the 'Company'), the only publicly-traded US company employing the Search Fund model to acquire and build great businesses, today announced that its wholly-owned subsidiary Systems Products International Inc. ('SPI Software'), a leading provider of vacation ownership software, has acquired @Work International Pty Ltd ('ViewPoint'), a cloud native timeshare software firm headquartered in Mount Waverley, Australia, from RCI Pacific. The acquisition advances SPI Software's leadership in the vacation ownership software market and positions the company to serve an even broader global client base with innovative, cloud-based solutions. 'I am pleased to welcome ViewPoint's employees, customers, and partners to the SPI Software family,' said Drew Richard, President of SPI Software. 'SPI Software and ViewPoint are a wonderful strategic fit given our highly complementary offerings. I am confident that by bringing the two firms together we can accelerate our collective product roadmap and capitalize on exciting new opportunities for geographic and market expansion. Importantly, SPI Software and ViewPoint share a commitment to outstanding customer relationships and support, which will remain a top priority going forward.' 'Under Drew's leadership, SPI Software has achieved Rule-of-40 status by investing in its product, its people, and its customer experience,' said JT Fitzgerald, Kingsway's President and CEO. 'Kingsway is thrilled to continue supporting Drew as he adds a second company to the Vertical Market Solutions software platform under the Kingsway Search Xcelerator.' The transaction is immediately accretive to Kingsway's Adjusted EBITDA. Financial terms were not disclosed. About the Company Kingsway Financial Services Inc. ('Kingsway') (NYSE:KFS) is the only publicly-traded US company employing the Search Fund model to acquire and build great businesses. Kingsway owns and operates a collection of high-quality B2B and B2C services companies that are asset-light, growing, profitable, and that have recurring revenues. Kingsway seeks to compound long-term shareholder value on a per share basis via its decentralized management model, its talented team of operators, and its tax-advantaged corporate structure. About SPI Software SPI Software is a leading provider of software, technology, and business services solutions for the vacation ownership industry. With a focus on innovation and customer satisfaction, SPI empowers resorts and vacation clubs to streamline operations, enhance the member experience, and drive revenue growth. For more information, visit Additional Information Additional information about Kingsway, including a copy of its Annual Reports, can be accessed on the EDGAR section of the U.S. Securities and Exchange Commission's website at on the Canadian Securities Administrators' website at or through the Company's website at For Media Inquiries: Hayden IR James Carbonara (646) 755-7412 [email protected] For Company Inquiries: Kingsway Financial Services Inc. Kent Hansen, CFO (312) 766-2163 [email protected] For SPI Software Inquiries: Systems Products International Inc. Drew Richard, President (305) 209-1408 [email protected] SOURCE: Kingsway Financial Services, Inc. press release
