SWK Holdings Corp (SWKH) 2025 Q2 法說會逐字稿

Greetings. Welcome to the SWK Holdings second-quarter 2025 conference call. (Operator Instructions) Please note, this conference is being recorded.

問候。歡迎參加SWK Holdings 2025年第二季業績電話會議。（操作員說明）請注意，本次會議正在錄音。

I will now turn the conference over to your host, Susan Xu, Investor Relations. You may begin.

現在我將把會議交給主持人，投資者關係部門的徐蘇珊女士。你可以開始了。

Good morning, everyone, and thank you for joining SWK Holdings second-quarter 2025 financial and corporate results call. Yesterday, SWK Holdings issued a press release detailing its financial results for the three months ended June 30, 2025. The press release can be found in the Investor Relations section of swkhold.com under news releases.

各位早安，感謝各位參加SWK Holdings 2025年第二季財務及公司業績電話會議。昨天，SWK Holdings 發布新聞稿，詳細介紹了截至 2025 年 6 月 30 日的三個月的財務表現。新聞稿可在 swkhold.com 網站的「投資者關係」欄位下的「新聞稿」欄位中找到。

Today, we will be making certain forward-looking statements about future expectations, plans, events, and circumstances, including statements about our strategy, future operations, and our expectations regarding our capital allocation and cash resources. These statements are based on our current expectations, and you should not place undue reliance on these statements.

今天，我們將對未來的預期、計劃、事件和情況做出一些前瞻性聲明，包括對我們的策略、未來營運以及我們對資本配置和現金資源的預期所做的聲明。這些陳述是基於我們目前的預期，您不應過度依賴這些陳述。

Actual results may differ materially due to risks and uncertainties, including those detailed in the risk factors section of SWK Holdings 10-K filed with the SEC and other filings we make with the SEC from time to time. SWK Holdings disclaims any obligation to update information contained in these forward-looking statements, whether as a result of new information, future events, or otherwise.

由於存在風險和不確定性，實際結果可能與預期存在重大差異，包括SWK Holdings向美國證券交易委員會提交的10-K文件中「風險因素」部分詳述的風險和不確定性，以及我們不時向美國證券交易委員會提交的其他文件中詳述的風險和不確定性。SWK Holdings 聲明，無論由於新資訊、未來事件或其他原因，均無義務更新這些前瞻性聲明中所包含的資訊。

Joining me from SWK Holdings on today's call is Jody Staggs, President and CEO; and Adam Rice, CFO, who will provide an update on SWK's second-quarter 2025 corporate and financial results. Over to you, Jody.

今天與我一同參加電話會議的還有SWK Holdings的總裁兼執行長Jody Staggs和財務長Adam Rice，他們將介紹SWK 2025年第二季的公司和財務表現。接下來就交給你了，喬迪。

Thank you, Susan, and thank you, everyone, for joining our second-quarter conference call. Since we last spoke, SWK has worked to reconcile the gap between how the market prices our assets and our view of the underlying value.

謝謝蘇珊，也謝謝各位參加我們第二季電話會議。自從我們上次交談以來，SWK 一直在努力彌合市場對我們資產的定價與我們對資產內在價值的看法之間的差距。

During the second quarter, we completed a sale of the majority of our royalty assets, and after quarter close, we completed the sale of the majority of the assets at our MOD3 subsidiary. The sale of these assets was completed for approximately book value, a premium to where SWK has historically traded. During the quarter, SWK returned $49 million of the proceeds of these sales to shareholders through a $4 per share dividend.

在第二季度，我們完成了大部分特許權使用費資產的出售；季度結束後，我們完成了 MOD3 子公司大部分資產的出售。這些資產的出售價格接近帳面價值，比SWK的歷史交易價格溢價。本季度，SWK 將這些銷售所得的 4,900 萬美元以每股 4 美元的股息形式返還給了股東。

Additionally, year to date, SWK has returned an additional $3 million of capital to shareholders through the repurchase of approximately 200,000 of our common stock. We believe these steps demonstrate the organization's focus on realizing the underlying value of our assets and ensuring that shareholders benefit from these realizations.

此外，今年迄今為止，SWK 已透過回購約 20 萬股普通股，向股東返還了 300 萬美元的資本。我們相信，這些措施顯示了本組織致力於實現資產的潛在價值，並確保股東從這些價值的實現中受益。

These assets -- or excuse me, these actions have simplified our business and SWK's remaining financial assets are cash, $234 million of gross performing first lien term loans with an effective yield of 14.1%, $12 million of gross nonperforming reorg royalties, $5 million of public equities warrants, and approximately 11 private warrants and earnouts, which are carried at $0 for GAAP purposes. Against these assets, we carry an $8.8 million general loan loss reserve.

這些資產——或者更確切地說，這些舉措簡化了我們的業務，SWK 的剩餘金融資產包括現金、2.34 億美元的正常優先擔保定期貸款（有效收益率為 14.1%）、1200 萬美元的不良重組特許權使用費、500 萬美元的公開股票認股權證，以及大約 11 份私人認股權證和股權針對這些資產，我們提列了 880 萬美元的一般貸款損失準備金。

For the second quarter, both our non-GAAP adjusted net income and finance segment adjusted non-GAAP net income totaled $4.6 million. We believe this level is a reasonable run rate for the business going forward. Our non-GAAP tangible financing book value per share totaled $18.47. A year-over-year increase of 11.7% after considering the $4 per share special dividend and achieving our stated goal of 10%-plus book value per share growth.

第二季度，我們的非GAAP調整後淨收入和財務部門調整後非GAAP淨收入總計為460萬美元。我們認為，對於公司未來的發展而言，這是一個合理的成長速度。我們的非GAAP有形融資每股帳面價值總計為18.47美元。在計入每股4美元的特別股息並實現我們既定的每股帳面價值成長10%以上的目標後，年增11.7%。

On July 15, the Aptar Group exercised its option to acquire the majority of the MOD3 assets for a predetermined purchase price totaling $6.9 million which includes the $3.3 million of payments SWK had already received. We view this as a successful outcome and in the best interest of SWK shareholders, our former MOD3 colleagues in Aptar.

7 月 15 日，Aptar 集團行使了其選擇權，以預先確定的購買價格 690 萬美元收購 MOD3 的大部分資產，其中包括 SWK 已收到的 330 萬美元款項。我們認為這是一個成功的結果，符合 SWK 股東以及我們在 Aptar 的前 MOD3 同事的最大利益。

We wish Paul and the team the best and look forward to following their success under the Aptar banner. With that, I will turn the call to our CFO, Adam Rice to review the quarter's financial results.

我們祝福保羅和他的團隊一切順利，並期待他們在 Aptar 旗下取得成功。接下來，我將把電話轉給我們的財務長亞當·賴斯，讓他回顧本季的財務表現。

Thank you, Jody, and good morning, everyone. Yesterday, we reported earnings for the second quarter of 2025. We reported GAAP pretax net income of $4.6 million or $0.37 per diluted share. Our reported second-quarter 2025 net income is $3.5 million after income tax expense of just over $1 million. This includes a $1.2 million decrease in year-over-year Finance Receivables segment revenue and $500,000 increase in year-over-year Pharmaceutical Development segment revenue.

謝謝你，喬迪，大家早安。昨天，我們公佈了2025年第二季的收益。我們公佈的GAAP稅前淨收入為460萬美元，即每股稀釋收益0.37美元。我們公佈的 2025 年第二季淨收入為 350 萬美元，扣除略高於 100 萬美元的所得稅費用後。這其中包括財務應收帳款部門收入年減 120 萬美元，以及藥品開發部門收入年增 50 萬美元。

The $1.2 million decrease in year-over-year Financing Receivables segment revenue was primarily due to a $3.4 million decrease in interest and fees due to paydowns, payoffs, and the sale of the majority of our royalty portfolio. The decrease was partially offset by a $2.2 million increase in interest and fees earned due to add-on fundings and newly funded finance receivables. The previously mentioned paydown on funding activity is typical as SWK continually manages return of capital as well as capital deployment.

融資應收款部門收入年減 120 萬美元，主要是由於償還、結清和出售大部分特許權使用費組合導致利息和費用減少 340 萬美元。新增資金和新融資應收款帶來的利息和費用收入增加了 220 萬美元，部分抵銷了上述下降。前面提到的資金活動償還是典型的，因為SWK不斷管理資本回報和資本部署。

As of June 30, 2025, our GAAP book value per share was $20.23, an 11% decrease compared to $22.72 as of June 30, 2024. When adjusting for the $4 per share dividend paid during the quarter, the GAAP book value per share was $24.46 and a 6.8% increase year over year.

截至 2025 年 6 月 30 日，我們的 GAAP 每股帳面價值為 20.23 美元，比 2024 年 6 月 30 日的 22.72 美元下降了 11%。扣除本季支付的每股 4 美元股息後，以 GAAP 計算的每股帳面價值為 24.46 美元，年增 6.8%。

Overall, operating expenses, which include interest, pharmaceutical manufacturing, research and development expense, general and administrative expense, and provision for credit losses were $5.4 million during the second quarter of 2025 compared to 9.9% in the second quarter of 2024.

整體而言，2025 年第二季的營運費用（包括利息、藥品製造、研發費用、一般及行政費用和信貸損失準備金）為 540 萬美元，而 2024 年第二季為 9.9%。

The MOD3 operating expenses were $1.2 million in the second quarter of 2025 compared to $2.5 million in the second quarter of 2024. The Finance Receivables segment operating expenses were $4.2 million in the second quarter of 2025 compared to $7.4 million in the second quarter of 2024.

2025 年第二季 MOD3 的營運費用為 120 萬美元，而 2024 年第二季為 250 萬美元。2025 年第二季財務應收帳款部門的營運費用為 420 萬美元，而 2024 年第二季為 740 萬美元。

The Finance Receivables operating expenses further break down for the second quarter of 2025 to general and administrative expense of $2.2 million, provision for credit losses of $800,000, and interest expense of $1.2 million. And for second quarter of 2024, general and administrative expenses of $2.2 million, provision for credit losses of $4.1 million, and interest expense of $1.1 million.

2025 年第二季財務應收款營運費用進一步細分為：一般及行政費用 220 萬美元，信貸損失準備金 80 萬美元，利息支出 120 萬美元。2024 年第二季度，一般及行政費用為 220 萬美元，信貸損失準備金為 410 萬美元，利息支出為 110 萬美元。

The decrease in Finance Receivables segment operating expenses was mainly due to a $3.3 million decrease in provision for credit losses. The decrease in provision for credit losses is most notably attributable to $500,000 of asset impairments in the second quarter of 2025 versus $4.3 million of asset impairments in the second quarter of 2024.

財務應收款部門營運費用的減少主要是由於信貸損失準備金減少了 330 萬美元。信貸損失準備金的減少最顯著的原因在於，2025 年第二季資產減損額為 50 萬美元，而 2024 年第二季資產減損額為 430 萬美元。

Turning to our share repurchase program. We bought back just under 60,000 shares for a total of $900,000 during the quarter. Since quarter closed, we have repurchased an additional 88,000 shares for a total cost of $1.3 million.

接下來談談我們的股票回購計畫。本季我們回購了近 6 萬股股票，總計 90 萬美元。自季度結束以來，我們已回購了 88,000 股股票，總成本為 130 萬美元。

With that, I'll turn it back over to Jody.

這樣，我就把麥克風交還給喬迪了。

Thank you, Adam. The management team and Board are focused on achieving value for our shareholders as demonstrated by our actions year to date. Our remaining loan book is healthy, and we believe the second-quarter's results are a reasonable proxy for the earnings power of the business going forward. With that, let's open the line to questions.

謝謝你，亞當。管理團隊和董事會致力於為股東創造價值，我們今年迄今為止的行動證明了這一點。我們剩餘的貸款組合狀況良好，我們認為第二季的業績可以合理地反映公司未來的獲利能力。接下來，我們開始接受提問。

(Operator Instructions) Scott Jensen, Private Investor.

（操作說明）斯科特‧詹森，私人投資者。

Congratulations on a nice quarter. With the MOD3 sale, obviously, we'll see a bump in revenue in the third quarter. But what about the costs associated with that business going on to Aptar, do you have any recurring costs that remain on your side of the ledger. And then kind of what would that maybe SG&A impact the -- now that Aptar owns it?

恭喜你本季業績出色。顯然，隨著 MOD3 的銷售，我們將在第三季看到營收成長。但是，隨著這項業務轉移到 Aptar，相關的成本又該如何計算呢？您是否還有任何需要由您承擔的經常性成本？那麼，Aptar收購該公司後，銷售、一般及行政費用（SG&A）可能會產生什麼影響呢？

Yeah. Let me take the first stab at that, and then I wanted to Adam maybe to speak a little bit to this as well and some of the accounting around it. But third quarter will be a little bit messy because we did agree to a transition services agreement which runs through mid-September. Now we are getting those costs reimbursed. So all the cost of the business went to Aptar close.

是的。讓我先嘗試一下，然後我想讓亞當也談談這方面以及相關的一些會計問題。但第三季會有點混亂，因為我們確實同意了一項過渡服務協議，該協議將持續到九月中旬。現在這些費用正在報銷。所以，所有的業務成本都給了 Aptar 關閉公司。

There's no ongoing cost at MOD3. So we -- it was an asset sale. We still own the MOD3 shell. And there is some IP in there that we'll try to monetize. But all the costs have gone. Again, there may be a little bit of challenges or sort of some lingering costs in the third quarter.

MOD3 沒有持續的費用。所以，這是一場資產出售。我們仍然擁有MOD3外殼。其中有一些知識產權，我們會嘗試將其變現。但所有費用都已付清。第三季可能會出現一些挑戰或一些遺留成本。

In terms of the cost going forward, if I just look at our Finance segment financials, which is everything, bought MOD3, so that includes all the corporate costs. We had $2.3 million of G&A in the quarter. Now I think when we look through that, there was a few transactions going on in the quarter. Of course, we had legal spend. So sort of normalized SG&A was in the ballpark of $2 million, which is our goal is to be at that level.

就未來的成本而言，如果我只看我們財務部門的財務數據（涵蓋所有方面），我們收購了 MOD3，因此其中包括所有公司成本。本季一般及行政費用為230萬美元。現在看來，如果我們仔細分析一下，就會發現這個季度確實發生了一些交易。當然，我們也有法律上的支出。因此，正常化的銷售、一般及行政費用大約在 200 萬美元左右，這也是我們的目標，即達到這個水準。

So I think that's a reasonable level, obviously, assuming no sort of one-off legal spend.

所以我覺得這顯然是一個合理的水平，前提是沒有一次性的法律支出。

Okay. Thank you.

好的。謝謝。

Yeah. And I would just add to that. Jody's really nailed it. There will be some third quarter noise related to ins and outs and also as we sort of see MOD3 out of our ecosystem. And then the ongoing cost, pretty minimal, especially when you consider, if you look at the guaranteed revenue agreement we had in place and how MOD3 was carried over the last several quarters.

是的。我還要補充一點。喬迪做得真棒。第三季會有一些與人員流動相關的波動，我們也會看到 MOD3 從我們的生態系統中退出。而且持續成本也相當低，特別是考慮到我們先前簽訂的保證收入協議以及 MOD3 在過去幾季的營運情況。

It was relatively neutral on a net basis. So I think that's really what you'll see. I don't think you should see any big surprises one way or another.

從整體來看，它相對中性。所以我覺得這應該就是你們會看到的。我認為結果應該不會有太大的意外。

Okay. Great. And then I've got some kind of -- kind of higher-level questions. And that is -- the first is do you see or kind of what's your read on changes at the FDA affecting underlying portfolio companies and some of the companies that you invest in? Do you see any impact risk, things like that due to some of the changes that seem to be going on?

好的。偉大的。然後我還有一些──一些更高層次的問題。第一個問題是——您是否看到或如何看待 FDA 的變化會影響您投資組合中的公司以及您投資的一些公司？您認為目前正在發生的一些變化會帶來任何影響風險嗎？

Yeah. We've spent a fair amount of time talking about regulatory changes and risks in the portfolio. Initially, it was tariffs. We reviewed all of our companies and had them do an analysis and felt that we had sort of minimal exposure there. I think there's maybe like three or four different regulatory things going on.

是的。我們已經花了不少時間討論監管變化和投資組合中的風險。最初是關稅問題。我們對所有公司進行了審查，並讓他們進行了分析，感覺我們在這方面的風險敞口很小。我認為可能有三到四項不同的監管措施正在實施中。

One is sort of FDA. I mean, it's a little hard to sort of hypothesize on where this leads out. But near term, I guess the current thought is that there could be fewer drugs approved. That doesn't really impact our portfolio. We don't have any drug companies or device companies that are pending some type of approved products. So not a big concern there.

一個類似美國食品藥物管理局（FDA）。我的意思是，很難推測這件事最終會如何發展。但就短期而言，我認為目前普遍的看法是核准的藥物數量可能會減少。這其實不會對我們的投資組合產生影響。我們沒有任何製藥公司或醫療器材公司正在等待某種產品的批准。所以這方面沒什麼大問題。

The second, broadly speaking, I'll call is like pricing risk, for a pricing risk and this takes all kinds of different forms. We don't think anything we have is -- any of our borrowers are too at risk. If you look at the specialty pharma companies we have, Eton is a rare disease situation. And that's kind of a whole unique pricing structure, but nothing we've seen thus far really scares us there. A couple of our companies are not that, but are fairly low price.

第二點，廣義上講，我稱之為定價風險，它是一種定價風險，而且它有各種不同的形式。我們認為我們擁有的任何東西——我們的任何借款人——都不存在太大的風險。如果你看看我們擁有的專業製藥公司，Eton 就是一家專注於罕見疾病的公司。這確實是一種非常獨特的定價結構，但到目前為止，我們看到的還沒有什麼真正讓我們感到擔憂的地方。我們公司中有幾家雖然不是那樣，但價格相當低廉。

If you look at Accrufer, the Shield product, it's a low-priced product. I don't worry too much about rebates or sort of negotiations. They're -- so -- and the Journey is dermatology and a lot of that is cash pay. So I'm not too worried about that.

如果你看看 Accrufer 的 Shield 產品，它是一款價格低廉的產品。我不太擔心回扣或談判之類的事情。他們是——所以——而且 Journey 是皮膚科，其中很多都是現金支付。所以我並不太擔心。

The area that probably we've had a little more concern about has been (inaudible) sort of scientific funding cuts. We've got a couple of companies that are vendors into the sort of that channel. We've got one CDMO and then there's a company we have that sells life science tools.

我們可能比較關注的一個領域是（聽不清楚）科學研究經費削減。我們有幾家公司是這類通路的供應商。我們有一家CDMO（合約研發生產機構），還有一家銷售生命科學工具的公司。

And they definitely have seen some impact from these cuts. I don't think it's drastic or material to the ongoing business, particularly as a lender. But I know they've lost some orders along the way, and it's probably we're saying that whole space has really had a tough go the last couple of years.

他們肯定已經感受到了這些削減措施的影響。我認為這對正在進行的業務來說並不嚴重，也不具有實質影響，尤其對於貸款方而言。但我知道他們在過程中失去了一些訂單，這可能意味著整個行業在過去幾年確實過得很艱難。

If you look at the biotech, their customer base went through kind of a classic boom-bust cycle and we're potentially kind of in the bottom of that bus cycle. So it's been a tough go for all those folks for really a couple of years.

如果你觀察一下生技產業，你會發現他們的客戶群經歷了一個典型的繁榮-蕭條週期，而我們可能正處於這個週期的底部。所以，這兩年來，對這些人來說真的非常艱難。

Understandable. And then my other kind of global question is we've just seen so many, and it's the talk of the town, private credit and everybody coming in and raising funds and people who probably have no business coming into the space, but that doesn't prevent them if they've got access to capital.

可以理解。然後，我的另一個全球性問題是，我們已經看到了很多這樣的例子，這成了人們熱議的話題：私人信貸，每個人都湧入這個領域籌集資金，有些人可能根本不應該進入這個領域，但這並不能阻止他們，只要他們能獲得資金。

How do you see that affecting yield flow, people willing to take more risk than you'd be willing to. Are you comfortable just sitting back, buying back stock, waiting for a better pitch, kind of how do you see that development in the marketplace?

你認為這會對收益流動產生什麼影響？人們願意承擔的風險可能比你願意承擔的風險更大。你是否樂於袖手旁觀，回購股票，等待更好的機會？你如何看待市場的發展趨勢？

Yeah. And thanks. You sent me a bunch of articles. I don't know, we've traded notes on that. There are definitely -- over the last couple of years. And I know we've talked a bit about some of these retail products, interval funds and private BDCs, and that needs to deploy capital. So we are aware of that.

是的。謝謝。你寄給我一堆文章。我不知道，我們已經就此交換意見了。過去幾年裡，確實有這種情況。我知道我們已經討論過一些零售產品、定期基金和私人商業發展公司，而這些都需要部署資本。所以我們知道這一點。

And I think if you look year to date, we've been fairly tempered on the deployment side, we've been able to add some on to existing performing borrowers, which is always great. I think we made one new loan to an Australian company that was a little bit off the run and we felt good fine about that on kind of a core deal for us.

我認為，從今年迄今為止的情況來看，我們在貸款發放方面一直比較謹慎，我們能夠為現有的表現良好的借款人增加一些貸款，這總是件好事。我認為我們向一家不太活躍的澳洲公司發放了一筆新貸款，我們對此感覺很好，因為這筆交易對我們來說算是核心交易。

So we've been pretty disciplined. I think there's still the ability to put money to work in a small fund setting like SWK, but I mean the fact of the matter is, it's capitalism, money comes in, returns come down. So we've got to just be a bit more careful and given our cost of capital in particular. So that probably explains some of the, I think, measured pace we've had on deployments this year.

所以我們一直都很自律。我認為像SWK這樣的小型基金仍然能夠讓資金發揮作用，但事實是，這就是資本主義，資金流入，回報下降。所以我們必須更加謹慎一些，尤其考慮到我們的資金成本。所以，這或許可以解釋我們今年在部署上所採取的較為穩健的步伐。

Thank you. I'll get on the line, see if anybody else has questions. Congratulations and thanks.

謝謝。我接通電話，看看還有沒有其他人有問題。恭喜並感謝。

(Operator Instructions) We have reached the end of the question-and-answer session, and I will now turn the call over to Jody for closing remark.

（操作員指示）問答環節到此結束，現在我將把電話交給 Jody 做總結發言。

Great. Well, thanks, everyone, for joining the call. Thanks for your continuing support of SWK. I hope everyone has a wonderful day and a fantastic weekend. Bye-bye.

偉大的。謝謝大家參加這次電話會議。感謝您一直以來對SWK的支持。祝大家今天過得愉快，週末愉快！再見。

This concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.

今天的會議到此結束，您可以斷開線路了。感謝您的參與。