CCUR Holdings Reports EPS of $0.39 for First Quarter of FY2020; Generates $537,000 Operating Cash Flow

DULUTH, GA / ACCESSWIRE / November 1, 2019 / CCUR Holdings, Inc. (OTCQB:CCUR) today reported net income attributable to its stockholders of $3,406,000, or $0.39 per share, for the first fiscal quarter of 2020. During the prior year period, the Company reported a net loss of $3,000, or $0.00 per share.

Revenue for the quarter increased to $1,731,000 compared to $131,000 during the prior year period. The revenue increase is primarily due to Merchant Cash Advance (MCA) revenue of $1,448,000 compared to zero MCA revenue in the first fiscal quarter of 2019. The Company's MCA business commenced revenue generation in the second fiscal quarter of 2019. Revenue from interest on loans increased greater than 100% to $283,000. Other interest, dividend and investment income for the period totaled $3,703,000 compared to $688,000 in the year-ago fiscal first quarter.

"Our performance in the quarter reflects the solid execution of our strategic plan," said Wayne Barr, President and CEO. "The strength of our MCA offering coupled with the continuing track record and performance of our real estate business give us confidence we can build on this progress and achieve our near, short and long-term objectives – enhancing stockholder value by expanding on our MCA business and prudently managing our strong balance sheet."

General and administrative expenses for the first quarter of fiscal year 2020 increased to $1,029,000 compared to $835,000 and reflected increased salaries from additional personnel and financial performance bonuses accrued for the period. Total operating expenses for the first quarter of fiscal 2020 were $1,680,000 and included sales and marketing expenses of $305,000 as the Company continues to invest in awareness programs for its MCA operations, as well as a $216,000 provision for MCA losses. The Company incurred no sales and marketing expenses in the first quarter of fiscal 2019. Operating cash flow for the first quarter of fiscal 2020 was $537,000.

The Company's operating income for the first quarter of fiscal 2020 was $51,000 as compared to an operating loss of $704,000 for the first fiscal quarter of fiscal 2019. Total working capital as of September 30, 2019 was $49.4 million as compared with $48.8 million as of June 30, 2019.

About CCUR Holdings, Inc.

CCUR Holdings, Inc. operates MCA and real estate business segments through its subsidiaries Recur Holdings LLC and LM Capital Solutions, LLC and actively pursues other business opportunities to maximize the value of its assets through evaluation of additional operating businesses or assets for acquisition. More information on the Company is available at www.ccurholdings.com.

Forward Looking Statements

Certain statements made or incorporated by reference herein may constitute "forward-looking statements" within the meaning of federal securities laws. When used or incorporated by reference in this report, the words "believes," "expects," "estimates," "anticipates," and similar expressions are intended to identify forward-looking statements. Statements regarding future events and developments such as future financial performance or returns, as well as expectations, beliefs, plans, estimates or projections relating to the future and current assessments of business opportunities, are forward-looking statements within the meaning of these laws. These statements are based on beliefs and assumptions of CCUR's management, which are based on currently available information. Except for the historical information contained herein, the matters discussed in this communication may contain forward-looking statements that involve risks and uncertainties that may cause CCUR's actual results to be materially different from such forward-looking statements and could materially adversely affect its business, financial condition, operating results and cash flows. These risks and uncertainties include, but are not limited to, CCUR's ability to successfully negotiate, perform due diligence and consummate any additional acquisitions, expected cash and liquidity positions, expected financial performance and revenue streams, market fluctuations in or material financial or regulatory changes impacting the MCA and real estate industry and general business conditions, as well as other risks listed in the Company's Form 10-K filed on August 28, 2019 and subsequent quarterly reports filed with the Securities and Exchange Commission and risk and uncertainties not presently known to CCUR or that CCUR currently deems immaterial.

CCUR wishes to caution against placing undue reliance on any forward-looking statements, which speak only as of the date on which they were made. CCUR does not undertake any obligation to update forward-looking statements, whether as a result of future events, new information or otherwise, except as required by law.

(Tables to follow)

CONTACT:

Michael Polyviou
mpolyviou@evcgroup.com
732-933-2755

CCUR HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS (Unaudited)
(Amounts in thousands, except share and per share data)

 
September 30,
2019
 
 
June 30,
2019
 

ASSETS
 

Current assets:

Cash and cash equivalents

 
$
8,767
 
 
$
8,083
 

Equity securities, fair value

 
 
6,991
 
 
 
7,405
 

Fixed maturity securities, available-for-sale, fair value

 
 
22,785
 
 
 
20,393
 

Current maturities of mortgage and commercial loans receivable

 
 
2,418
 
 
 
3,184
 

Advances receivable, net

 
 
7,660
 
 
 
9,389
 

Prepaid expenses and other current assets

 
 
2,256
 
 
 
1,779
 

Total current assets

 
 
50,877
 
 
 
50,233
 

Land investment

 
 
3,527
 
 
 
3,265
 

Deferred income taxes, net

 
 
475
 
 
 
475
 

Mortgage and commercial loans receivable, net of current maturities

 
 
6,460
 
 
 
3,680
 

Definite-lived intangibles, net

 
 
2,791
 
 
 
2,910
 

Goodwill

 
 
1,260
 
 
 
1,260
 

Other long-term assets, net

 
 
608
 
 
 
651
 

Total assets

 
$
65,998
 
 
$
62,474
 

LIABILITIES AND STOCKHOLDERS' EQUITY
 

Current liabilities:

Accounts payable and accrued expenses

 
$
702
 
 
$
660
 

Contingent consideration, current

 
 
750
 
 
 
750
 

Total current liabilities

 
 
1,452
 
 
 
1,410
 

Long-term liabilities:

Pension liability

 
 
3,979
 
 
 
4,136
 

Contingent consideration, long-term

 
 
2,350
 
 
 
2,340
 

Long-term debt

 
 
1,600
 
 
 
1,600
 

Other long-term liabilities

 
 
584
 
 
 
632
 

Total liabilities

 
 
9,965
 
 
 
10,118
 

Commitments and contingencies

Stockholders' equity:

Shares of common stock, par value $0.01;
14,000,000 authorized; 8,756,156 issued
and outstanding at both September 30, 2019, and June 30, 2019

 
 
87
 
 
 
87
 

Capital in excess of par value

 
 
208,980
 
 
 
208,881
 

Non-controlling interest

 
 
917
 
 
 
762
 

Accumulated deficit

 
 
(147,389
)
 
 
(150,795
)

Accumulated other comprehensive loss

 
 
(6,562
)
 
 
(6,579
)

Total stockholders' equity

 
 
56,033
 
 
 
52,356
 

Total liabilities, non-controlling interest, and stockholders' equity

 
$
65,998
 
 
$
62,474
 

CCUR HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(Amounts in thousands, except share and per share data)

 
Three Months Ended September 30,
 

 
2019
 
 
2018
 

Revenues:

Merchant cash advance fees and other revenue

 
$
1,448
 
 
$
–
 

Interest on mortgage and commercial loans

 
 
283
 
 
 
131
 

Total revenues

 
 
1,731
 
 
 
131
 

Operating expenses:

Sales and marketing

 
 
305
 
 
 
–
 

General and administrative

 
 
1,029
 
 
 
835
 

Change in fair value of contingent consideration

 
 
10
 
 
 
–
 

Amortization of purchased intangibles

 
 
120
 
 
 
–
 

Provision for credit losses on advances

 
 
216
 
 
 
–
 

Total operating expenses

 
 
1,680
 
 
 
835
 

Operating income (loss)

 
 
51
 
 
 
(704
)

Other interest income

 
 
2,137
 
 
 
880
 

Dividend income

 
 
21
 
 
 
64
 

Realized gain on investments, net

 
 
1,076
 
 
 
201
 

Unrealized gain (loss) on equity securities, net

 
 
469
 
 
 
(457
)

Other (expense) income, net

 
 
(20
)
 
 
15
 

Income (loss) before income taxes

 
 
3,734
 
 
 
(1
)

Provision for income taxes

 
 
173
 
 
 
2
 

Net income (loss)

 
 
3,561
 
 
 
(3
)

Net income attributable to non-controlling interest

 
 
(155
)
 
 
–
 

Net income (loss) attributable to CCUR Holdings, Inc. stockholders

 
$
3,406
 
 
$
(3
)

Basic and diluted earnings (loss) per share:

Net income attributable to CCUR Holdings, Inc. stockholders

 
$
0.39
 
 
$
–
 

Weighted average shares outstanding – basic

 
 
8,756,156
 
 
 
9,105,527
 

Weighted average shares outstanding – diluted

 
 
8,809,572
 
 
 
9,105,527
 

CCUR HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(Amounts in thousands, except share and per share data)

 
Three Months Ended
 

 
September 30,
2019
 
 
June 30,
2019
 

Revenues:

Merchant cash advance fees and other revenue

 
$
1,448
 
 
$
1,435
 

Interest on mortgage and commercial loans

 
 
283
 
 
 
411
 

Total revenues

 
 
1,731
 
 
 
1,846
 

Operating expenses:

Sales and marketing

 
 
305
 
 
 
287
 

General and administrative

 
 
1,029
 
 
 
876
 

Change in fair value of contingent consideration

 
 
10
 
 
 
730
 

Amortization of purchased intangibles

 
 
120
 
 
 
126
 

Provision for credit losses on advances

 
 
216
 
 
 
767
 

Total operating expenses

 
 
1,680
 
 
 
2,786
 

Operating income (loss)

 
 
51
 
 
 
(940
)

Other interest income

 
 
2,137
 
 
 
1,628
 

Dividend income

 
 
21
 
 
 
19
 

Realized gain (loss) on investments, net

 
 
1,076
 
 
 
(259
)

Unrealized gain on equity securities, net

 
 
469
 
 
 
382
 

Other expense, net

 
 
(20
)
 
 
(35
)

Income before income taxes

 
 
3,734
 
 
 
795
 

Provision for income taxes

 
 
173
 
 
 
113
 

Net income

 
 
3,561
 
 
 
682
 

Net (income) loss attributable to non-controlling interest

 
 
(155
)
 
 
121
 

Net income attributable to CCUR Holdings, Inc. stockholders

 
$
3,406
 
 
$
803
 

Basic and diluted earnings per share:

Net income attributable to CCUR Holdings, Inc. stockholders

 
$
0.39
 
 
$
0.09
 

Weighted average shares outstanding – basic

 
 
8,756,156
 
 
 
8,768,516
 

Weighted average shares outstanding – diluted

 
 
8,809,572
 
 
 
8,793,809
 

SOURCE: CCUR Holdings, Inc.

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