Disciplined execution continues to propel Safeguard and our partner companies toward achieving various strategic milestones and value creation opportunities in 2014.
Wayne, PA (PRWEB) October 24, 2014
Safeguard Scientifics, Inc. (NYSE:SFE) today announced third quarter 2014 financial results. For the three months ended September 30, 2014, Safeguard’s net loss was $14.0 million, or $0.68 per share, compared to a net loss of $19.4 million, or $0.90 per share, for the same period in 2013. For the nine months ended September 30, 2014, Safeguard’s net income was $10.0 million, or $0.47 per share, compared to a net loss of $59.5 million, or $2.80 per share, for the same period of 2013.
“Disciplined execution continues to propel Safeguard and our partner companies toward achieving various strategic milestones and value creation opportunities in 2014,” said Stephen T. Zarrilli, President and CEO at Safeguard. “During the third quarter, Safeguard deployed $29.5 million in four new healthcare and technology companies. Year-to-date, Safeguard deployed $39.3 million in six new healthcare and technology partner companies and realized $81.3 million in proceeds from exit transactions involving four partner companies. Safeguard remains well-positioned to continue to grow our stable of partner companies and to respond to M&A opportunities.”
“At September 30, 2014, Safeguard had deployed $233 million of capital into its 24 current partner companies,” said Jeffrey B. McGroarty, Senior Vice President and CFO at Safeguard. “Safeguard enjoys exceptional financial strength, flexibility and liquidity. Our net cash, cash equivalents and marketable securities totaled $115.4 million, after subtracting the total carrying value of debt outstanding of $50.3 million.”
PARTNER COMPANY AGGREGATE REVENUE GUIDANCE
Safeguard reiterates that partner company aggregate revenue in 2014 is projected to be between $345 million and $365 million. Aggregate revenue guidance for the same partner companies in 2013 and 2012 was $284 million and $201 million, respectively. Aggregate revenue guidance for 2014 and prior years reflects revenue on a net basis. Revenue data for certain partner companies pertain to periods prior to Safeguard’s involvement with those companies and are based solely on information provided to Safeguard by those companies. Revenue figures do not include new partner companies InfoBionic, Propeller Health, Syapse, Transactis, Trice Medical and WebLinc, which were acquired in 2014. Safeguard reports the revenue of its equity and cost-method partner companies on a one-quarter lag basis.
CONFERENCE CALL AND WEBCAST DETAILS
Please call 10-15 minutes prior to the call to register.
Friday, October 24, 2014
877-201-0168 // (International) 647-788-4901
855-859-2056 // (International) 404-537-3406
President and Chief Executive Officer, Stephen T. Zarrilli; and Senior Vice President and Chief Financial Officer, Jeffrey B. McGroarty.
Discussion of third quarter 2014 financial results followed by Q&A.
Replay will be available through November 24, 2014 at 11:59pm EST.
For more information please contact IR(at)safeguard(dot)com.
About Safeguard Scientifics
Safeguard Scientifics, Inc. (NYSE:SFE) has a distinguished track record of fostering innovation and building market leaders. For six decades, Safeguard has been providing growth capital and operational support to entrepreneurs across an evolving spectrum of industries. Today, Safeguard is focused specifically on two sectors—healthcare and technology. Recent successful exits include Alverix (acquired by Becton, Dickinson for $40 million); Crescendo Bioscience (acquired by Myriad Genetics for $270 million); NuPathe (acquired by Teva Pharmaceutical Industries for $144 million); and ThingWorx (acquired by PTC for initial proceeds of $112 million). For more information, please visit http://www.safeguard.com or Follow Us on Twitter @safeguard.
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 Securities and Exchange Commission. Many of these factors are beyond the Company’s ability to predict or control. As a result of these and other factors, the Company’s past financial performance should not be relied on as an indication of future performance. The Company does not assume any obligation to update any forward-looking statements or other information contained in this press release.