ITASCA, IL, June 19, 2019 /CNW/ - (NYSE: KFS) Kingsway
Financial Services Inc. ("Kingsway" or the "Company") today
announced that it has filed a Current Report on Form 8-K (the "Form
8-K"). As described in the Form 8-K, the Company intends to
issue restated financial statements for the year ended December 31, 2017 and the quarters ended
March 31, 2018, June 30, 2018 and September 30, 2018 to reflect adjustments
comparable to the adjustments described in the Company's
April 16, 2019 and May 30, 2019 press releases. These
adjustments, which the Company expects will be reflected in the
Annual Report on Form 10-K for the year ended December 31, 2018 (the "2018 Form 10-K"), relate
primarily to:
- The consolidation of certain limited liability investments,
previously accounted for under the equity method of accounting;
and
- The accounting for its Class A Preferred Stock and Series C
Warrants issued February 3,
2014.
The Company's estimates of adjustments reported in its
April 16, 2019 and May 30, 2019 press releases have not
changed.
The Company stated in its May 30,
2019 press release its expectation that the adjustment
related to its Class A Preferred Stock and Series C Warrants would
be an increase in shareholders' equity and an offsetting decrease
to the carrying value of the Class A Preferred Stock but did not
provide an estimate of the dollar amount thereof. The Company
now estimates this adjustment will increase shareholders' equity
and reduce Class A Preferred Stock carrying value by $2.0 million and $1.5
million at December 31, 2017
and December 31, 2018, respectively.
Consistent with the Company's statement in its May 30, 2019 press release, the Company expects
this adjustment will have a negligible effect on the Company's net
loss for the years ended December 31,
2017 and December 31,
2018.
Kingsway's auditors have not completed their audit procedures,
so, until such time that the Company's auditors have completed
their audit procedures, there remains the possibility of additional
adjustments to the financial results released by Kingsway on
March 14, 2019. Kingsway will
continue to work with its auditors with the objective of filing its
2018 Form 10-K as soon as practicable following completion of their
audit procedures.
About the Company
Kingsway is a holding company that owns or controls subsidiaries
primarily in the extended warranty, asset management and real
estate industries. The common shares of Kingsway are listed
on the New York Stock Exchange under the trading symbol "KFS."
Forward-Looking Statements
This press release includes "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934 that are not historical
facts, and involve risks and uncertainties that could cause actual
results to differ materially from those expected and projected.
Words such as "expects," "believes," "anticipates," "intends,"
"estimates," "seeks" and variations and similar words and
expressions are intended to identify such forward-looking
statements; however, the absence of such words or similar
expressions does not mean that a statement is not forward-looking.
Such forward-looking statements relate to future events or future
performance, but reflect Kingsway management's current beliefs,
based on information currently available. These statements
include the Company's expectations as to the timing and outcome of
its audit and the filing of its 2018 Form 10-K. A number of
factors could cause actual events, performance or results to differ
materially from the events, performance and results discussed in
the forward-looking statements. For information identifying
important factors that could cause actual results to differ
materially from those anticipated in the forward-looking
statements, please refer to the section entitled "Risk Factors" in
the Company's Quarterly Report on Form 10-Q for the period ended
September 30, 2018. Except as
expressly required by applicable securities law, the Company
disclaims any intention or obligation to update or revise any
forward-looking statements whether as a result of new information,
future events or otherwise.
Additional Information
Additional information about Kingsway, including a copy of its 2017
Annual Report and filings on Forms 10-Q and 8-K, can be accessed on
the Canadian Securities Administrators' website at www.sedar.com,
on the EDGAR section of the U.S. Securities and Exchange
Commission's website at www.sec.gov or through the Company's
website at www.kingsway-financial.com.
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SOURCE Kingsway Financial Services Inc.