Safe Harbor Financial Services, Inc. (NASDAQ:SHFS) reported a 245% year-over-year increase in net income to approximately $2.0 million for the first quarter of 2024. This is a significant change from a net loss of $1.4 million in the same period last year.
CEO Sundie Seefried noted the company's strategic initiatives and diversified income base, particularly through its lending program. "We have nearly tripled our loan book year-over-year, driving a 251% increase in our loan income to $1.64 million," Seefried stated.
Revenue And Gross Profit
The company's revenue for the quarter was approximately $4.1 million, slightly down from $4.2 million in the first quarter of 2023.
Safe Harbor recorded a gross profit of approximately $325,000, compared to a gross loss of $1.6 million in the prior year period.
Operating Expenses And Adjusted EBITDA
Operating expenses decreased by 35.8% to $3.7 million, compared to $5.8 million in the same period last year.
Adjusted EBITDA for the quarter increased by 165.3% to approximately $1.1 million, up from $410,000 in the first quarter of 2023.
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Operational Highlights And Future Outlook
Safe Harbor's first-quarter operational activities included originating a $9 million first-lien secured loan for a cultivation facility in Denver, Colorado and a $4.6 million secured credit facility for a Michigan cannabis operator.
With the potential reclassification of cannabis from a Schedule I to a Schedule III substance, Safe Harbor anticipates an increase in capital flowing into financial institutions. This regulatory shift could enhance demand for Safe Harbor's financial services.
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