LM Funding America Shares Increased 10.65%: Why It Happened

By Amit Chowdhry ● Aug 17, 2021
  • The shares of LM Funding America, Inc. (NASDAQ: LMFA) increased 10.65%. This is why it happened.

The shares of technology-based specialty finance company LM Funding America, Inc. (NASDAQ: LMFA) increased 10.65%, going from a previous close of $4.60 to $5.09. Investors are responding positively to the company’s financial results for the 3 and 6 months ended June 30, 2021.

These are the financial highlights for the 3- and 6-month period ended June 30, 2021:

— Net income attributable to LM Funding for the three and six-month periods ended June 30, 2021, totaled $11.1 million or $2.05 per basic and diluted share and $15.5 million or $2.96 per basic and $2.95 per diluted share, respectively.

— Cash increased to $22.2 million or approximately $4.09 per basic and diluted share on June 30, 2021, as compared to $11.6 million on December 31, 2020.

— Working capital as of June 30, 2021, was $29.7 million or $5.49 per basic and diluted share.

— As of August 6, 2021, there were 5,414,296 common shares outstanding.

KEY QUOTE:

“We continue to operate under the tagline ‘We Buy Problems.’ In the first two quarters, we originated, structured, and monetized our problem-buying business operations to generate $2.96 in net income per basic and diluted share. As our balance sheet has grown our opportunities to buy problems has increased. With a stronger balance sheet, we could also take larger participations in the deals we put together. Although we originated, structured, and executed the two BRQS transactions and recognized $14.1 million in gains this year, we only participated in less than one-third of the principal investment required in these deals and outsourced the balance to third parties. So we plan to continue to combine our team’s strengths and our balance sheet with $5.49 per share of working capital to buy problems and solve them profitably.”

— Bruce M. Rodgers, Chairman and CEO of LM Funding

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.