Wayne, PA (PRWEB) March 05, 2015
Safeguard Scientifics, Inc. (NYSE:SFE) today announced fourth quarter and full-year 2014 financial results. For the three months ended December 31, 2014, Safeguards net loss was $ 15.1 million, or $ 0.73 per share, compared to net income of $ 24.0 million, or $ 1.10 per share for the same period in 2013. For the year ended December 31, 2014, Safeguards net loss was $ 5.1 million, or $ 0.25 per share, compared to a net loss of $ 35.5 million, or $ 1.66 per share for the same period in 2013.
In 2014, we executed against our plan to achieve and maintain consistency in the amount of capital we deployed and realized; and we returned a portion of the capital generated to our shareholders by executing a significant stock repurchase, said Stephen T. Zarrilli, President and CEO at Safeguard. In 2014, Safeguard deployed $ 43.3 million in six new partner companiesInfoBionic, Propeller Health, Syapse, Transactis, Trice Medical and WebLinc. We also deployed $ 26.6 million in follow-on capital to support the growth of ten partner companies in which we already had an interest at the beginning of the year. In addition, Safeguard realized aggregate initial cash proceeds of $ 81.3 million from the sale of our interests in four partner companiesAlverix, Crescendo Bioscience, NuPathe and Sotera Wireless. Lastly, Safeguard undertook a share repurchase program, repurchasing 1,194,313 shares of the Companys common stock in open market transactions at prices ranging from $ 19.54 to $ 22.18 per share for an aggregate cost of $ 25.0 million.
At December 31, 2014, our roster of partner companies totaled 24, including eleven healthcare and thirteen technology companies. The cost of our interests in these companies totaled $ 238.1 million, whereas the carrying value of those partner companies at year-end was $ 149.8 million, said Jeffrey B. McGroarty, Senior Vice President and CFO at Safeguard. Our net cash, cash equivalents and marketable securities at year-end 2014 totaled $ 106.0 million, after subtracting the total carrying value of debt outstanding of $ 50.6 million. Overall, our financial strength, flexibility and liquity remain the foundation of Safeguards evergreen business model. Safeguard remains well-positioned to continue to deploy capital in promising early- and growth-stage healthcare and technology companies.
Zarrilli concluded, As we embark on 2015, we remain focused and disciplined. We have set out the following goals and objectives: to increase the total number of our partner companies to approximately 30; to realize continued growth in partner company aggregate revenue; to deploy $ 35 million to $ 50 million in new partner companies; to deploy $ 30 million to $ 50 million in follow-on funding for current partner companies; and to realize a minimum of two profitable exits.
AGGREGATE PARTNER COMPANY REVENUE
Aggregate partner company revenue for 2014 was $ 349 million, up from $ 284 million in 2013 and $ 201 million in 2012 for those same companies. These figures do not include new partner companies in which Safeguard initially deployed capital in 2014.
For 2015, aggregate partner company revenue is projected to be between $ 440 million and $ 460 million, which includes revenue for all partner companies in which Safeguard had an interest at January 1, 2015. Aggregate revenue for the same partner companies for prior years was $ 368 million for 2014 and $ 299 million for 2013.
Aggregate revenue for all years reflects revenue on a net basis. Revenue data for certain partner companies pertain to periods prior to Safeguards involvement with those companies and are based solely on information provided to Safeguard by those companies. Safeguard reports the revenue of its equity and cost-method partner companies on a one-quarter lag basis.
PARTNER COMPANY HIGHLIGHTS
The following partner company highlights represent information as of December 31, 2014.
Partner Company Revenue Stages
Proving out technology
Beta stage customers