Published: March 11, 2010
Safeguard Scientifics Announces Fourth Quarter and Year-End 2009 Financial Results
WAYNE, Pa. - (BUSINESS WIRE) - Safeguard
Scientifics, Inc. (NYSE: SFE), a holding company that builds value
in growth-stage life
sciences and technology
companies, today announced that aggregate revenue of its partner
companies for the year was $262 million, up 46% from $179 million in
2008, exceeding the company's 2009 guidance of $223 million to $243
million, as adjusted to reflect the inclusion of two new partner
companies.
Safeguard's fourth quarter consolidated net loss from continuing
operations attributable to common shareholders was $58.5 million, or
$2.88 per share, compared with a net loss of $19.4 million, or $0.96 per
share, for the three months ended December 31, 2008. The loss in the
fourth quarter was principally due to the quarterly fair value
adjustment with respect to our holdings of common stock of Clarient,
Inc. based on the change in its share value during the period. For the
year, net income from continuing operations attributable to common
shareholders was $66.2 million, or $3.26 per share, compared with a loss
of $42.8 million, or $2.10 per share, in 2008.
"Safeguard generated tangible value in 2009 and enters 2010 with a
strong mix of well-positioned partner companies," said Peter
J. Boni, Safeguard President and Chief Executive Officer. "Despite a
daunting economic environment and volatile capital markets in 2009, we
improved Safeguard's liquidity, reduced corporate debt and expenses, and
added two partner companies - MediaMath, Inc. and Quinnova
Pharmaceuticals, Inc. - with solid growth and profitability prospects.
In addition, the company's market capitalization increased nearly 150%
from December 31, 2008 to December 31, 2009. By comparison, the indices
for the Russell 2000, Dow Jones Industrials and Diversified Investment
Firms were up 25%, 15% and 8%, respectively, for the same period."
Key developments in 2009 included:
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Completion of a 1-for-6 reverse split of Safeguard common stock,
reducing the number of shares outstanding from 122.3 million to 20.4
million. "We believe this transaction broadened Safeguard's appeal to
investors," Boni said. "The company's stock price at year-end 2009 was
$10.31 per share, versus $4.14 at December 31, 2008 on a
split-adjusted basis."
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Placement by partner company Clarient, Inc. (Nasdaq: CLRT) of $40
million in convertible preferred stock with Oak Investment Partners.
The new capital enabled Clarient to extinguish all of its outstanding
debt, except for receivable financing. In addition, the transaction
allowed Safeguard to recapture more than $30 million in Clarient
borrowings and cash collateral supporting Clarient debt with third
parties. Safeguard has no further contractual commitment to provide
additional capital to Clarient.
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Sale of a total of 18.4 million shares of Clarient common stock in a
public offering to a broad group of institutional investors. The sale
reduced Safeguard's stake in Clarient to 28% on an as-converted basis.
Gross proceeds from the sale were approximately $61 million.
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Repurchase of an additional $7.8 million in face value of Safeguard's
2.625% convertible senior debentures, due March 2024. The $7.3 million
transaction brought Safeguard's debenture repurchase total since 2006
to $71.8 million in face value, reducing the outstanding balance of
the original 2004 issue of $150 million to $78.2 million.
In addition to the above, the Company also announced this morning that
it entered into privately negotiated agreements with certain
institutional holders of an aggregate of approximately $47 million of
its 2.625% convertible debentures pursuant to which such holders will
exchange their 2.625% debentures for a like amount of new debentures due
2014. The remaining existing balance of the 2.625% convertible
debentures is approximately $31 million. The new senior convertible
debentures bear interest at an annual rate of 10.125%. The effective
conversion price for the new debentures is $16.50, subject to certain
restrictions. If the new debentures are converted, the Company has the
right to settle the conversion in stock, cash or a combination thereof
at its choosing. "This transaction gives us enhanced financial
flexibility as we approach the first put date of our 2.625% debentures
in March 2011. By establishing a 2014 maturity date for the new
debentures, we are better matching our long term debt obligations with
our exit expectations regarding our partner company interests and
continuing cash deployment plans," said Stephen
T. Zarrilli, Senior Vice President and Chief Financial Officer at
Safeguard.
In 2010, Zarrilli also noted that Safeguard will focus on continuing to
strengthen the company's financial position. "We will manage cash
deployments appropriately to continue to support our partner companies,
as well as augment existing capital with well-timed exits and
alternative sources of capital," Zarrilli concluded.
Safeguard reported aggregate partner company revenue of $262 million in
2009, as compared to $179 million in 2008 and $100 million in 2007.
Safeguard projects aggregate partner company revenue for 2010 in the
range of $300 million to $325 million. For life sciences partner
companies, aggregate revenue for 2010 is expected to be between $200
million and $218 million, excluding pre-revenue companies Avid
Radiopharmaceuticals, Garnet BioTherapeutics, NuPathe and Tengion. For
technology partner companies, revenue is expected to be between $100
million and $107 million. The aggregate revenue stated here for 2007
through 2009 has been adjusted to include revenue for those periods
related to the addition of our new partner companies in 2009.
LIFE SCIENCES PARTNER COMPANIES HIGHLIGHTS
Advanced
BioHealing, Inc. (ABH), a profitable regenerative
medicine company, recently reported a nearly 100% year-over-year
increase in annual revenue to approximately $85 million, due to surging
demand for its bio-engineered skin substitute Dermagraft
for diabetic foot ulcers. Annual incidence of diabetic foot ulcers in
the U.S. is more than 800,000, representing an addressable market of
more than $1 billion. ABH is aggressively expanding its U.S. commercial
sales force and exploring new applications of its products in domestic
and international markets. In late 2009, an international clinical trial
was launched to assess the safety and efficacy of Dermagraft in healing
venous leg ulcers, a market opportunity estimated at an additional $600
million. Safeguard has deployed $10.8 million of capital in ABH since
February 2007 and has a 28% ownership position.
Alverix,
Inc. produces low-cost, handheld medical diagnostic instruments
that enable central laboratory-quality results to be achieved in the
physician offices, laboratory outreach locations, retail clinics and
homes where test information is critical to patient care. The company
continues to grow its platform of OEM partners and is awaiting FDA
approval for its first instrument, which could lead to domestic sales in
2010. Alverix has signed two partnerships, representing significant
revenue over the next five years. Safeguard has deployed $4.5 million of
capital in Alverix since October 2007 and has a 50% ownership position.
Avid
Radiopharmaceuticals, Inc. is a leader in the development of
molecular imaging products to enable early diagnosis and prognosis of
neurodegenerative diseases. Avid remains on track with FDA Phase III
trials of its lead compound, 18F-Florbetapir (AV-45), which
binds to amyloid plaques in the brain to image Alzheimer's disease,
potentially addressing a population of over 9 million people with
cognitive impairment in the U.S. alone by 2020. An NDA submission is
anticipated in 2010. Avid's 18F-AV-133 imaging compound for
the detection of Parkinson's disease and Dementia with Lewy Bodies
pathology is currently in Phase II trials, while its compound for
imaging diabetes pathology is currently in proof of concept Phase I
trials. Safeguard has deployed $12 million of capital in Avid since May
2007 and has a 14% ownership position.
Cellumen,
Inc., an innovator in solutions for accurate predictions
of drug efficacy and safety, recently announced the addition of a
promising, early-safety assessment process for use in drug development
to treat cardiac disease. Safeguard has deployed $6.8 million of capital
in Cellumen since June 2007 and has a 59% ownership position.
Clarient,
Inc. (Nasdaq: CLRT), a premier diagnostics services
resource for pathologists, oncologists and the pharmaceutical industry
reported solid results for 2009. Clarient's test volume increased 20%
year-over-year while its customer base of oncology and pathology
practices in the U.S. exceeds 1,125, reflecting a better than 98%
customer retention rate. Today, Clarient's more than 300 higher margin,
advanced molecular cancer-diagnostic tests are being used to detect
tumors of the breast, colon, prostate and lung as well as
lymphoma/leukemia. Clarient's 2009 revenue was $91.6 million, up 24%
from 2008. Clarient expects revenues for the full-year 2010 to range
from $108 million to $115 million, representing a year-over-year growth
rate of between 18% and 25% from 2009 revenues.
During the fourth quarter, Clarient acquired Applied Genomics, Inc.
(AGI) in an all-stock transaction valued at up to $17.6 million, if all
conditions are met. The AGI acquisition broadens Clarient's product
pipeline and expands its geographic footprint through AGI's lab
facilities in Alabama. In addition, during the quarter Clarient
implemented tighter controls across the organization, which improved
billing and collections metrics as new accounting assumptions and
systems began to take hold. In addition, bad debt expense declined 18%
as a percentage of revenue; DSOs declined by 17 days from 103 to 86
days; cash collections were $23.3 million; and cash flows from
operations were $3.4 million. As a result, after five years of rapid
top-line growth, Clarient is approaching sustainable profitability.
Safeguard's holdings of Clarient common stock and warrants had a fair
value of $75.5 million as of the close of business yesterday, versus
$80.5 million at December 31, 2009, based on previous market prices as
of each of such dates. Safeguard owns 28.0% of Clarient's outstanding
common shares on an as-converted basis. Clarient is included in the
Russell 2000 Index.
Garnet
BioTherapeutics, Inc. is a clinical-stage regenerative medicine
company focused on accelerating healing and reducing scarring and
inflammation while promoting healing in cosmetic wounds, an addressable
market estimated at more than $850 million in the U.S. The company
expects to initiate clinical trials of its lead product in Q1 2010.
Garnet's cell therapy is based on distinct, bone-marrow derived cells
capable of reducing inflammation and promoting healing. Garnet's
cost-effective, compliant manufacturing process derives a high number of
doses from a single, adult donor. Safeguard has deployed $4.0 million
since November 2008 for a 31% ownership position.
Molecular
Biometrics, Inc. applies novel metabolomic technologies to
develop accurate, non-invasive clinical tools for use in in vitro
fertilization. Commercial sales will begin this quarter in Asian,
European and Australian markets of ViaMetrics-E , the company's
non-invasive process that can increase the probability of pregnancy and
decrease multiple births from in vitro fertilization. In the U.S.,
clinical trials remain on track. Safeguard has deployed $10.0 million of
capital since September 2008 for a 35% ownership position.
NuPathe
Inc. specializes in the development of novel therapeutics for
the treatment of neurological and psychiatric disorders including
migraine, schizophrenia and Parkinson's disease. Phase III trials for Zelrix ,
the first and only migraine patch that delivers sumatriptan through
NuPathe's proven and proprietary SmartRelief technology, confirmed
clear clinical benefits for migraine patients, including eliminating the
pain, nausea and sensitivity to light and sound compared with placebo.
An NDA filing for Zelrix is anticipated in 2010. The U.S. market for
prescription migraine treatments is estimated at $3 billion. Progress is
also being made in pre-clinical, proof-of-concept studies for NuPathe's
NP201, a novel approach to the treatment of Parkinson's disease, and is
initiating preclinical studies for NP202, a product for schizophrenia.
Safeguard has deployed $12 million of capital in NuPathe since September
2006 and has a 23% ownership position.
Quinnova
Pharmaceuticals, Inc. is a specialty pharmaceutical company that
develops and markets novel delivery platform-based prescription
dermatology drugs. The company's FDA-approved Proderm
Technology Foam and Cream Delivery Systems address the need for
improved cost-effective treatment options, while simultaneously
enhancing efficacy and patient compliance in the treatment of skin
disorders, such as dermatitis, fungal infection, psoriasis and acne.
Quinnova has several products on the market and generated revenue of $10
million in 2009, up 78% from 2008. Quinnova raised a $17.4 million
Series B financing round during the fourth quarter 2009. Proceeds from
the financing are being used to fund a Phase III clinical trial for an
NDA product, which recently completed a Phase II trial; expand the
company's sales and marketing capabilities; facilitate the company's
other NDA and medical device clinical trials; and support research and
development initiatives. Safeguard deployed $5 million in Quinnova
October 2009 for a 26% ownership position.
Tengion
Inc. is a clinical-stage, organ-regeneration company with
products for urologic, vascular and renal regeneration based on its
proprietary Autologous Organ Regeneration Platform . The company is
considering an initial public offering of common stock and filed a Form
S-1 with the Securities and Exchange Commission in late 2009. In 2010, a
human clinical trial is planned with the Tengion Neo-Urinary Conduit
for patients with bladder cancer. Tengion recently completed a Phase II
trial of its patented Tengion Neo-Bladder Augment for
children with neurogenic bladders due to spina bifida. Enrollment is
complete in a second Phase II trial with the Neo-Bladder Augment in
adults with neurogenic bladders due to spinal cord injuries.
TECHNOLOGY PARTNER COMPANIES HIGHLIGHTS
Advantedge
Healthcare Solutions, Inc. (AHS) is among the nation's
largest medical billing firms using proven, proprietary software to
deliver outsourced billing solutions to hospital physician groups. AHS'
state-of-the-art technology efficiently collects financial information
and speeds the reimbursement of third-party claims and patient payments,
enabling physicians to maximize revenue and decrease their billing and
practice management costs. AHS continues to gain meaningful scale
through organic growth and strategic acquisitions. Since 2007, the
company has completed four acquisitions, most recently an Ohio-based
anesthesia billing company. It is estimated that fewer than 20% of U.S.
physician practices currently outsource billing and practice management.
Safeguard has deployed $13.5 million of capital in AHS beginning in
November 2006 and holds a 40% ownership position.
Authentium,
Inc. develops software and services to protect consumers in a
connected world. Leading software providers, including Google, Microsoft
and Symantec, use the company's core technologies to create or enhance
anti-malware and identity-protection software. In addition, consumers
use Authentium's identity-theft prevention product SafeCentral
to protect e-commerce transactions through an end-to-end, secured online
environment. Safeguard has deployed $9.3 million of capital in
Authentium beginning in April 2006 and holds a 20% ownership position.
Beyond.com,
Inc. is the largest Internet career network comprised of
thousands of local, industry and niche communities in the U.S. and
Canada. Beyond.com attracts niche audiences of job seekers,
professionals, employees and advertisers and delivers targeted and
highly relevant results through a multitude of online media and
advertising models, including recruitment advertising, email marketing,
banner advertising and other lead generation vehicles. The Beyond
network of web sites accounts for more than 5 million resumes and powers
portals for some of the Internet's best-known and well-established
career brands and media publishers. Despite the weak economy, Beyond.com
continues to expand its strategy and is now targeting areas to better
utilize its niche communities and employers to increase market share in
the online jobs-search market, remaining well positioned with long-term
growth drivers intact. The online jobs-search market is consolidating
and Beyond.com is exploring growth opportunities through acquisition.
Safeguard deployed $13.5 million of capital in Beyond.com in March 2007
and holds a 38% ownership position.
Bridgevine,
Inc. is an Internet marketing company that enables consumers to
compare and purchase digital services online, including Internet, phone,
VoIP, TV, wireless, music and entertainment. Bridgevine leverages its
proprietary technology platform to acquire leads through numerous
sources, including search, e-tail and retail, and then offers a bundle
of services from its growing base of participating merchants. The
company is growing revenue by expanding its merchant base and lineup of
products and services. Growth through strategic acquisitions also
remains on the horizon. Bridgevine's advertising partners include
Comcast, AT&T, Charter, Real Networks, Dlink, Vonage, Netflix, Qwest,
Time Warner and Verizon. Safeguard has deployed $10 million of capital
in Bridgevine since August 2007 and holds a 24% ownership position.
MediaMath,
Inc. has developed the advertising industry's leading real-time
algorithmic buying platform for display media, utilizing data and
optimization for superior performance. MediaMath's TerminalOne
advertising management platform runs hundreds of campaigns across 13
billion daily impressions in 23 countries. The company was first to
market with its technology in 2007 and continues to build on its
advantage. Today, MediaMath is employed by agencies on many of America's
leading brands including: 3 of top 5 banks/financial services firms; 4
of top 10 hotel brands; 2 of top 5 U.S. auto insurers; 2 of top 5 media
companies; and 2 of top 5 packaged goods manufacturers. In 2009,
MediaMath was named to the AlwaysOn OnMedia Top 100 annual listing of
the hottest emerging companies in digital advertising and won the
"Advertising Networks and Exchanges" category. Inclusion in the OnMedia
100 signifies leadership amongst its peers and game-changing approaches
and technologies that are likely to disrupt existing markets and
entrenched players. Safeguard deployed $6.7 million in July 2009 and
holds an 18% ownership position.
Portico
Systems, Inc. offers software and services to health insurance
providers that help reduce administrative, medical and IT costs; shorten
the cycle for launching new products and services; and comply with
federal privacy regulations. Company revenues have grown at double-digit
rates over each of the past five years. Through recent acquisitions and
contracts with global healthcare companies including CIGNA and MMM
Holdings, Portico now serves more than 35 healthcare customers with 42
million members annually. In 2009, the company was named Emerging
Technology Company of the Year by The Eastern Technology Council and was
also named to the Healthcare Informatics 100 List of top healthcare IT
companies in the world for the second consecutive year. Safeguard has
deployed $9.3 million of capital in Portico since August 2006 and holds
a 45% ownership position.
Swaptree,
Inc. is an Internet-based business that enables users to
trade books, CDs, DVDs and video games using its proprietary
trade-matching software. Swaptree's innovative model has gained
significant media attention, driving a fivefold increase in the
company's user base and a 400% gain in unique-visitor totals since
becoming a Safeguard partner company. In a challenging economy, Swaptree
expects to continue its rapid growth as consumers look towards swapping
used items as an alternative to buying new items or paying for used
items. Safeguard has deployed $3.4 million of capital in Swaptree in
July 2008 and holds a 29% ownership position.
SAFEGUARD SCIENTIFICS FOURTH QUARTER AND YEAR-END 2009 CONFERENCE CALL
Please
call at least 10 minutes prior to call to register.
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Date: Thursday, March 11, 2010
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Time: 9:00am EST
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Webcast: www.safeguard.com/earnings
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Conference ID#: 55589548
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Call-in Number: 877-640-9871
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(International) +914-495-8549
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Replay Number: 800-642-1687
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(International) +706-645-9291
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Replay available through April 11, 2010 at 11:59 pm EST
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Podcast: www.safeguard.com/podcast
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Available approximately 24 hours following the conclusion of
the earnings call
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Speakers: President and CEO Peter J. Boni; Senior Vice
President and CFO Stephen T. Zarrilli
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Format: Discussion of fourth quarter and year-end 2009
financial results followed by Q&A.
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UPCOMING EVENTS IN MAY 2010
For more information, please contact IR@safeguard.com.
About Safeguard Scientifics
Founded in 1953 and based in Wayne, PA, Safeguard Scientifics, Inc.
(NYSE: SFE) provides growth capital for entrepreneurial and innovative
life sciences and technology companies. Safeguard targets life sciences
companies in Molecular and Point-of-Care Diagnostics, Medical Devices,
Regenerative Medicine and Specialty Pharmaceuticals, and technology
companies in Internet / New Media, Financial Services IT and Healthcare
IT with capital requirements of up to $25 million. Safeguard
participates in expansion financings, corporate spin-outs, management
buyouts, recapitalizations, industry consolidations and early-stage
financings. For more information, please visit our website at www.safeguard.com
or our blog at blog.safeguard.com.
Forward-looking Statements
Except for the historical information and discussions contained
herein, statements contained in this release may constitute
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Our forward-looking
statements are subject to risks and uncertainties. The risks and
uncertainties that could cause actual results to differ materially
include, among others, managing rapidly changing technologies, limited
access to capital, competition, the ability to attract and retain
qualified employees, the ability to execute our strategy, the
uncertainty of the future performance of our companies, acquisitions and
dispositions of companies, the inability to manage growth, compliance
with government regulations and legal liabilities, additional financing
requirements, the effect of economic conditions in the business sectors
in which our companies operate, and other uncertainties described in the
Company's filings with the Securities and Exchange Commission. Many
of these factors are beyond our ability to predict or control. In
addition, as a result of these and other factors, our past financial
performance should not be relied on as an indication of future
performance. The Company does not assume any obligation to update
any forward-looking statements or other information contained in this
news release.
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Safeguard Scientifics, Inc.
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Condensed Consolidated Balance Sheets
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(in thousands)
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December 31,
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December 31,
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2009
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2008
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Assets
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Cash and cash equivalents and marketable securities - Parent
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$
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106,413
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$
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87,914
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Cash and cash equivalents - Consolidated Partner Company
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-
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1,838
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Other current assets
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7,476
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30,395
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Total current assets
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113,889
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120,147
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Ownership interests in and advances to companies
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167,387
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85,561
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Goodwill, net
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-
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12,729
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Other
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823
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13,965
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Total Assets
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$
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282,099
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$
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232,402
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Liabilities and Equity
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Lines of credit
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$
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-
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$
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14,104
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Other current liabilities
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7,906
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17,643
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Total current liabilities
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7,906
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31,747
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Other long-term liabilities
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5,461
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9,945
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Convertible senior debentures
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78,225
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86,000
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Total equity
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190,507
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104,710
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Total Liabilities and Equity
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$
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282,099
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$
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232,402
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Safeguard Scientifics, Inc.
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Condensed Consolidated Statements of Operations
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(in thousands except per share amounts)
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Three Months Ended December 31,
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Twelve Months Ended December 31,
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2009
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2008
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2009
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2008
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Revenue
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$
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-
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$
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21,937
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$
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34,839
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$
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73,736
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Operating expenses
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4,905
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26,572
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51,025
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93,751
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Operating loss
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(4,905
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)
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(4,635
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)
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(16,186
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)
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(20,015
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)
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Other income (loss), net interest and equity loss
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(53,572
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(14,939
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)
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82,970
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(26,052
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)
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Net income (loss) from continuing operations before income taxes
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(58,477
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(19,574
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66,784
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(46,067
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Income tax benefit
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-
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-
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14
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24
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Net income (loss) from continuing operations
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(58,477
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)
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(19,574
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)
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66,798
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(46,043
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)
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Income (loss) from discontinued operations, net of tax
|
|
|
|
|
475
|
|
|
|
|
-
|
|
|
|
|
1,975
|
|
|
|
|
(9,620
|
)
|
|
Net income (loss)
|
|
|
|
|
(58,002
|
)
|
|
|
|
(19,574
|
)
|
|
|
|
68,773
|
|
|
|
|
(55,663
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net (income) loss attributable to noncontrolling interest
|
|
|
|
|
-
|
|
|
|
|
180
|
|
|
|
|
(1,163
|
)
|
|
|
|
3,650
|
|
|
Net income (loss) attributable to Safeguard Scientifics, Inc.
|
|
|
|
$
|
(58,002
|
)
|
|
|
$
|
(19,394
|
)
|
|
|
$
|
67,610
|
|
|
|
$
|
(52,013
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic income (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) from continuing operations attributable to
Safeguard
Scientifics, Inc. common shareholders
|
|
|
|
$
|
(2.88
|
)
|
|
|
$
|
(0.96
|
)
|
|
|
$
|
3.26
|
|
|
|
$
|
(2.10
|
)
|
|
Net income (loss) from discontinued operations attributable to
Safeguard
Scientifics, Inc. common shareholders
|
|
|
|
|
0.03
|
|
|
|
|
-
|
|
|
|
|
0.07
|
|
|
|
|
(0.46
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to Safeguard Scientifics, Inc.
common
shareholders
|
|
|
|
$
|
(2.85
|
)
|
|
|
$
|
(0.96
|
)
|
|
|
$
|
3.33
|
|
|
|
$
|
(2.56
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted income (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) from continuing operations attributable to
Safeguard
Scientifics, Inc. common shareholders
|
|
|
|
$
|
(2.88
|
)
|
|
|
$
|
(0.96
|
)
|
|
|
$
|
3.08
|
|
|
|
$
|
(2.10
|
)
|
|
Net income (loss) from discontinued operations attributable to
Safeguard
Scientifics, Inc. common shareholders
|
|
|
|
|
0.03
|
|
|
|
|
-
|
|
|
|
|
0.06
|
|
|
|
|
(0.46
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to Safeguard Scientifics, Inc.
common
shareholders
|
|
|
|
$
|
(2.85
|
)
|
|
|
$
|
(0.96
|
)
|
|
|
$
|
3.14
|
|
|
|
$
|
(2.56
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
20,337
|
|
|
|
|
20,257
|
|
|
|
|
20,308
|
|
|
|
|
20,326
|
|
|
Diluted
|
|
|
|
|
20,337
|
|
|
|
|
20,257
|
|
|
|
|
22,383
|
|
|
|
|
20,326
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts attributable to Safeguard Scientifics, Inc. common
shareholders:
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations
|
|
|
|
$
|
(58,477
|
)
|
|
|
$
|
(19,394
|
)
|
|
|
$
|
66,240
|
|
|
|
$
|
(42,777
|
)
|
|
Income (loss) from discontinued operations
|
|
|
|
|
475
|
|
|
|
|
-
|
|
|
|
|
1,370
|
|
|
|
|
(9,236
|
)
|
|
Net Income (loss) attributable to Safeguard Scientifics, Inc.
|
|
|
|
$
|
(58,002
|
)
|
|
|
$
|
(19,394
|
)
|
|
|
$
|
67,610
|
|
|
|
$
|
(52,013
|
)
|
|
|
|
Safeguard Scientifics, Inc.
|
|
Segment Results from Continuing Operations
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
Twelve Months Ended December 31,
|
|
|
|
|
|
|
|
|
|
|
|
2009
|
|
|
|
|
2008
|
|
|
|
|
2009
|
|
|
|
|
2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Life Sciences
|
|
|
|
|
|
|
|
|
$
|
-
|
|
|
|
$
|
21,937
|
|
|
|
$
|
34,839
|
|
|
|
$
|
73,736
|
|
|
Technology
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
Total Segment Results
|
|
|
|
|
|
|
|
|
$
|
-
|
|
|
|
$
|
21,937
|
|
|
|
$
|
34,839
|
|
|
|
$
|
73,736
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income (Loss) from Continuing Operations (a)
|
|
|
|
|
|
|
|
|
|
|
Life Sciences
|
|
|
|
|
|
|
|
|
$
|
-
|
|
|
|
$
|
156
|
|
|
|
$
|
1,621
|
|
|
|
$
|
(1,600
|
)
|
|
Technology
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
Total Segment Results
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
156
|
|
|
|
|
1,621
|
|
|
|
|
(1,600
|
)
|
|
Other Items (c)
|
|
|
|
|
|
|
|
|
|
(4,905
|
)
|
|
|
|
(4,791
|
)
|
|
|
|
(17,807
|
)
|
|
|
|
(18,415
|
)
|
|
|
|
|
|
|
|
|
|
|
$
|
(4,905
|
)
|
|
|
$
|
(4,635
|
)
|
|
|
$
|
(16,186
|
)
|
|
|
$
|
(20,015
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) from Continuing Operations (b)
|
|
|
|
|
|
|
|
|
|
|
Life Sciences
|
|
|
|
|
|
|
|
|
$
|
(52,297
|
)
|
|
|
$
|
(9,644
|
)
|
|
|
$
|
99,289
|
|
|
|
$
|
(26,317
|
)
|
|
Technology
|
|
|
|
|
|
|
|
|
|
(1,240
|
)
|
|
|
|
(7,065
|
)
|
|
|
|
(12,742
|
)
|
|
|
|
(12,947
|
)
|
|
Total Segment Results
|
|
|
|
|
|
|
|
|
|
(53,537
|
)
|
|
|
|
(16,709
|
)
|
|
|
|
86,547
|
|
|
|
|
(39,264
|
)
|
|
Other Items (c)
|
|
|
|
|
|
|
|
|
|
(4,940
|
)
|
|
|
|
(2,865
|
)
|
|
|
|
(19,749
|
)
|
|
|
|
(6,779
|
)
|
|
Net Income (loss) from Continuing
Operations
|
$
|
(58,477
|
)
|
|
|
$
|
(19,574
|
)
|
|
|
$
|
66,798
|
|
|
|
$
|
(46,043
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Operating Income (Loss) from Continuing Operations represents
the revenue less
operating expenses of each segment, and
excludes any allocation to noncontrolling
interest.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b) Net Income (Loss) from Continuing Operations includes the net
results of each
segment, including other income (loss), net
interest and equity loss and excludes any
allocation to
noncontrolling interest.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(c) Other Items includes corporate expenses, income taxes, and
private equity fund
activity.
|
|
|
|
Safeguard Scientifics, Inc.
|
|
Partner Company Financial Data
|
|
(in thousands)
|
|
|
|
|
|
Additional Financial Information
|
|
|
|
To assist investors in understanding Safeguard and our 17 active
partner companies, we are providing
additional financial
information on our partner companies, including the aggregate cost
and carrying
value for all of our equity and cost method
partner companies and other holdings. Carrying value of a
partner
company represents the original acquisition cost and any follow-on
funding, plus or minus our
share of the earnings or losses of
each company, reduced by any impairment charges. The carrying
value
and cost data reflect our percentage holdings in the partner
companies.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
|
|
|
|
|
|
|
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carrying Value
|
|
Cost
|
|
Safeguard Carrying Value and Cost
|
|
|
|
|
|
|
|
|
|
|
Equity Method and Cost Method Partner Companies
|
|
|
|
|
|
|
|
$
|
78,922
|
|
$
|
138,355
|
|
Other holdings
|
|
|
|
|
|
|
|
7,982
|
|
|
35,615
|
|
|
|
|
|
|
|
|
|
|
$
|
86,904
|
|
$
|
173,970
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value Method
|
|
|
|
|
|
|
|
|
$
|
80,483
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
167,387
|
|
|
Safeguard Scientifics, Inc.
John
E. Shave, 610-975-4952
Vice President, Business Development and
Corporate Communications
Copyright © 2012, Business Wire, Inc., All rights reserved.
Copyright © 2012, NewsBlaze,
Daily News
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