XML 40 R29.htm IDEA: XBRL DOCUMENT v3.24.3
Note 20 - Segmented Information
 9 Months Ended
Sep. 30, 2024
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

NOTE 20 SEGMENTED INFORMATION

 

The Company reports segment information based on the "management" approach. The management approach designates the internal reporting used by management for making decisions and assessing performance as a source of the Company’s reportable operating segments. The Company conducts its business through the following two reportable segments: Extended Warranty and Kingsway Search Xcelerator.

 

Extended Warranty Segment

 

Extended Warranty includes the following subsidiaries of the Company: IWS, Geminus, PW I and Trinity (collectively, "Extended Warranty").  

 

IWS is a licensed motor vehicle service agreement company and is a provider of after-market vehicle protection services distributed by credit unions in 25 states and the District of Columbia to their members, with customers in all fifty states.

 

Geminus primarily sells vehicle service agreements to used car buyers across the United States, through its subsidiaries, Penn and Prime. Penn and Prime distribute these products in 47 and 34 states, respectively, via independent used car dealerships and franchised car dealerships.

 

PWI markets, sells and administers vehicle service agreements to used car buyers in all fifty states via independent used car and franchise network of approved automobile and motorcycle dealer partners. PWI’s business model is supported by an internal sales and operations team and partners with American Auto Shield in three states with a "white label" agreement.  PWI also sells and administers a GAP product, under the Penn name, in states where Penn is approved.

 

Trinity sells HVAC, standby generator, commercial LED lighting and commercial refrigeration warranty products and provides equipment breakdown and maintenance support services to companies across the United States. As a seller of warranty products, Trinity markets and administers product warranty contracts for certain new and used products in the HVAC, standby generator, commercial LED lighting and commercial refrigeration industries throughout the United States. Trinity acts as an agent on behalf of the third-party insurance companies that underwrite and guaranty these warranty contracts. Trinity does not guaranty the performance underlying the warranty contracts it sells. As a provider of equipment breakdown and maintenance support services, Trinity acts as a single point of contact to its clients for both certain equipment breakdowns and scheduled maintenance of equipment. Trinity will provide such repair and breakdown services by contracting with certain HVAC providers.

 

Kingsway Search Xcelerator Segment

 

Kingsway Search Xcelerator includes the Company's subsidiaries CSuite, Ravix, SNS, SPI, DDI and Image Solutions.  

 

CSuite is a professional services firm that provides experienced chief financial officer and other finance professionals to its clients through a variety of flexible offerings. These offerings include project and interim staffing engagements, and contingent search services for permanent placements for its clients throughout the United States.

 

Ravix provides outsourced financial services and human resources consulting for short or long duration engagements for customers throughout the United States. 

 

SNS provides healthcare staffing services to acute healthcare facilities on a contract or per diem basis in the United States, primarily in California.  

 

SPI provides software products created exclusively to serve the management needs of all types of shared-ownership properties throughout the United States, Europe, Asia, Mexico and the Caribbean.

 

DDI provides outsourced 24 hours a day and 7 days per week ("24/7") cardiac telemetry services for long-term acute care ("LTAC") and inpatient rehabilitation hospitals. Outsourcing cardiac monitoring is intended to allow hospitals to eliminate personnel callouts and human resources issues, remove distractions from onsite operations, and free up facility staff to assist directly with patient care. DDI has been operating for over 10 years and currently has a presence in 39 states. 

 

Image Solutions provides comprehensive information technology managed services, including equipment sales, service, and helpdesk support to customers primarily in North Carolina, Kansas, Georgia, Kentucky and Tennessee.  Since Image Solutions was acquired on September 26, 2024, the consolidated statement of operations for the three and nine months ended September 30, 2024, does not include any revenue, expenses or earnings of Image Solutions, as such items are insignificant. 

 

Revenues and Operating Income by Reportable Segment

 

Results for the Company's reportable segments are based on the Company's internal financial reporting systems and are consistent with those followed in the preparation of the unaudited consolidated interim financial statements. The following tables provide financial data used by management. Segment assets are not allocated for management use and, therefore, are not included in the segment disclosures below.

 

Revenues by reportable segment reconciled to consolidated revenues for the three and nine months ended September 30, 2024 and September 30, 2023 were:

 

(in thousands)

 

Three months ended September 30,

  

Nine months ended September 30,

 
  

2024

  

2023

  

2024

  

2023

 

Revenues:

                

Service fee and commission revenue - Extended Warranty

 $17,843  $17,254  $51,633  $50,968 

Service fee and commission revenue - Kingsway Search Xcelerator

  9,293   7,536   28,109   26,408 

Total revenues

 $27,136  $24,790  $79,742  $77,376 

 

The operating income by reportable segment in the following table is before income taxes and includes revenues and direct segment costs. Total segment operating income reconciled to the consolidated (loss) income from continuing operations for the three and nine months ended September 30, 2024 and September 30, 2023 were:

 

(in thousands)

 

Three months ended September 30,

  

Nine months ended September 30,

 
  

2024

  

2023

  

2024

  

2023

 

Segment operating income:

                

Extended Warranty

 $1,704  $1,778  $4,024  $4,602 

Kingsway Search Xcelerator

  1,144   1,003   3,928   4,196 

Total segment operating income

  2,848   2,781   7,952   8,798 

Net investment income

  403   351   1,037   1,419 

Net realized gains

  958   206   1,359   539 

Net gain (loss) on equity investments

  —   592   (3)  3,374 

Gain on change in fair value of limited liability investments, at fair value

  95   320   173   194 

Net change in unrealized gain on private company investments

  —   63   —   63 

Impairment losses on investments

  —   (71)  —   (166)

Loss on change in fair value of derivative asset option contracts

  —   —   —   (1,366)

Interest expense

  (1,173)  (1,061)  (3,480)  (5,119)

Other revenue and expenses not allocated to segments, net

  (3,290)  (2,833)  (7,116)  (9,279)

Amortization of intangible assets

  (1,437)  (1,424)  (4,308)  (4,252)

Impairment of intangible assets

  (640)  —   (1,841)  — 

Gain (loss) on change in fair value of debt

  81   (165)  (48)  (195)

Gain on disposal of subsidiary

  —   342   —   342 

(Loss) gain on extinguishment of debt

  —   —   (160)  31,616 

(Loss) income from continuing operations before income tax expense (benefit)

  (2,155)  (899)  (6,435)  25,968 

Income tax expense (benefit)

  21   (102)  209   810 

(Loss) income from continuing operations

 $(2,176) $(797) $(6,644) $25,158