01 · Challenge
The Challenge
Kingsway’s investment thesis was not clear to investors and was further complicated by a complex balance sheet. The company had accumulated $200 million of non-recourse debt tied to non-core assets, plus $60 million of trust preferred debt. With an $18.5 million EBITDA run rate, Kingsway was clearly undervalued, trading at just 8x current-year EBITDA.
02 · Solution
Our Solution
- Simplified the messaging in investor collateral
- Conducted virtual roadshows with targeted investors including Thompson Davis, Tourlite Capital, Greenhaven Road, David Partners and Crossroads Capital
- Developed messaging for earnings releases and scripts emphasizing key data points that could drive stock price appreciation: debt reduction, a simpler story, earnings power and the “searcher model”
03 · Impact
The Impact
- Stock increased ~61%, from $6.47 at engagement to $10.40 after five months
- Secured virtual investor conference invitations from Sidoti and LD Micro
Past results are not indicative of future performance. Figures are as reported in Hayden IR’s case study for Kingsway Financial Services, Inc. See our disclosures.
