Sherman Oaks, CA - Signature Group Holdings, Inc. reported financial results for its first quarter ended March 31, 2014.
Signature posted net earnings of $0.1 million in the first quarter of 2014, or $0.01 per share, an improvement of $2.9 million from the $2.8 million net loss, or $(0.23) per share, reported in the first quarter of 2013. Sequentially, net earnings were lower by $0.4 million compared to the fourth quarter of 2013.
"Our company reported a second consecutive profitable quarter," stated Signature's Chairman and CEO Craig Bouchard. "With our corporate cost structure now aligned with our current operating size, we are focused on the future. We are exploring opportunities for growth primarily in the transportation, industrial, food, water, energy and security sectors. Opportunities are plentiful and we are finding valuations to be reasonable."
First Quarter 2014 Results
Loss from continuing operations was $0.7 million in the first quarter of 2014, compared to $2.2 million in the first quarter of 2013 and $0.4 million in the fourth quarter of 2013. Excluding the impact of the change in our warrant liability, a noncash item, the loss from continuing operations in the first quarter of 2014 was $1.5 million, compared to $0.7 million in 2013, and $1.9 million in the fourth quarter of 2013. Year over year comparisons are not meaningful given the significant change in our results of operations following the sale of the residential real estate loans in the second quarter of 2013. The improvement on a sequential basis was largely due to reduced interest expense associated with lower debt balances.
Earnings from discontinued operations was $0.8 million in the first quarter of 2014, a $1.4 improvement from the $0.6 million loss from discontinued operations reported in the first quarter of 2013 and a slight reduction of the $0.9 million earnings reported in the fourth quarter of 2013. The improvement in earnings this quarter was largely due to the settlement of our litigation with a former employee in which we will receive $1.5 million, offset by legal expenses associated with the settlement and lawsuits of two other former employees and a noncash impairment charge taken against inventory. As of March 31, 2014, the Company had $44.7 million in cash and cash equivalents; $54.4 million of working capital; and $18.3 million of total debt.