RECAP: Safeguard Scientifics Third Quarter 2013 Financial Results

Posted by | October 24, 2013

Safeguard announced third quarter 2013 financial results and reiterated increased aggregate partner company revenue guidance for 2013 to a range of $285 million to $295 million, up from initial revenue guidance of $250 million to $270 million. This represents an increase of 44% to 49% as compared to $197.3 million in 2012.

We are enthusiastic about the performance of our partner companies during a time of increased political and market uncertainty. At the beginning of the year, we established operating, financial and strategic performance milestones for our partner companies and most of them continue to deliver and/or exceed expectations.

We maintain a disciplined focus on our core business as the key driver for shareholder value. We strive for greater consistency in the amount of capital deployed and capital realized and will continue to target aggregate cash-on-cash returns at a minimum of 2x cost. We believe that this combination will push our capital under management to a range of $550 million to $700 million by year-end 2015.

At September 30, 2013, Safeguard had deployed $249 million of capital into our 22 current partner companies. Our net cash, cash equivalents and marketable securities at the end of the quarter totaled $116.4 million, after subtracting the total carrying value of debt outstanding of $49.7 million. For the three months ended September 30, 2013, Safeguard’s net loss was $19.4 million, or $0.90 per share, compared to $8.8 million, or $0.42 per share, for the same quarter of 2012. For the nine months ended September 30, 2013, Safeguard’s net loss was $59.5 million, or $2.80 per share, compared to $28.6 million, or $1.36 per share, for the same period in 2012.

Click here for the complete press release, which provides complete updates about each of our partner companies.

A full replay of Safeguard’s third quarter financial results conference call is available through November 25, 2013 at 9:00 a.m. EST. To listen to the replay, dial 877-344-7529, or (International) +412-317-0088. The replay access code is 10034325. A webcast is also available.

In addition, here’s a copy of the transcript along with a copy of the presentation from the call:

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