LM Funding America (NASDAQ:PWCM) Issues Earnings Results

LM Funding America (NASDAQ:PWCM) released its quarterly earnings data on Friday. The financial services provider reported $0.20 earnings per share (EPS) for the quarter, FiscalAI reports. The business had revenue of $1.89 million during the quarter. LM Funding America had a negative net margin of 413.92% and a negative return on equity of 132.69%.

Here are the key takeaways from LM Funding America’s conference call:

• PowerCompute mined 23.9 Bitcoin, up 36% year over year, while mining margin after curtailment and energy sales rose to 50.7% from 29% in the prior quarter. Management put energy cost per Bitcoin at about $35,000, compared with average Bitcoin revenue of about $71,000.
• The company paid cash for 600 replacement miners, which it expects to deploy by mid-December and add about 10% to hash rate without increasing power capacity. It also reduced secured debt by about 94% since June, holds no Bitcoin pledged, and extended its remaining secured note’s maturity to December 2027.
• Third-quarter revenue fell 13.3% year over year to about $1.9 million as the average value of mined Bitcoin declined 37.5%, despite higher production. The reported $400,000 net income included significant, nonrecurring fair-value effects tied to the repaid Arch facility; the company also disclosed substantial doubt about its ability to continue as a going concern.
• PowerCompute said early GPU-hosting utilization and demand on Vast.ai exceeded expectations, but described its HPC business as being at an early stage and gave no quantitative results. Management is still evaluating whether future capital and power should go to Bitcoin mining or HPC.

LM Funding America Trading Up 3.5%

Shares of NASDAQ:PWCM traded up $0.02 during midday trading on Friday, hitting $0.50. 176,414 shares of the stock were exchanged, compared to its average volume of 232,266. The stock has a market capitalization of $889,809.00, a price-to-earnings ratio of -0.01 and a beta of 2.17. The company has a debt-to-equity ratio of 0.13, a quick ratio of 0.99 and a current ratio of 0.99. The business’s 50-day moving average price is $0.83 and its 200 day moving average price is $4.47. LM Funding America has a 12 month low of $0.43 and a 12 month high of $25.25.

Analyst Upgrades and Downgrades

A number of research firms have weighed in on PWCM. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of LM Funding America in a research note on Monday, September 21st. Wall Street Zen cut LM Funding America to a “strong sell” rating in a research note on Tuesday, August 25th. One analyst has rated the stock with a Sell rating. According to MarketBeat.com, the stock currently has a consensus rating of “Sell”.

LM Funding America Company Profile

LM Funding America, Inc. is a specialty finance company that provides funding solutions to nonprofit community associations in the United States. Its core business involves advancing funds against delinquent association assessments, helping community associations maintain cash flow while pursuing collection of unpaid amounts from property owners. The company has offered several assessment-receivable funding programs, including traditional and cooperative arrangements. These programs are designed to provide associations with an alternative to waiting for delinquent assessments to be collected and may include services related to receivables management and collection support.