Lion Street 2020 Annual Report - Report - Page 3
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FINANCIAL RESULTS
Jim Cahill
Chief Financial Officer
2020 set forth possibly the greatest challenge of Lion
Key financial highlights from 2020 include:
Street’s 10-year history and perhaps our greatest
triumph thus far. While the global pandemic threatened
•Year-over-year revenue growth to more than $90
to stifle your company’s ability to execute on its core
million despite one of the most challenging macro
life insurance business, the Owner-Firms showed great
environments in the company’s history after a record
resiliency in the face of this crisis. Total revenue grew
year in 2019.
to more than $90 million. While others in the industry
•
19% revenue growth in securities driven by a 22%
contracted, your company expanded financially in its
increase in assets under management.
core business lines and invested aggressively into the
institutional market and additional resources for Firms.
•23% increase in net income in 2020.
Your company maintains a strong cash position with more
•30 new Firms recruited in 2020, significantly
than $20 million in cash reserves and $12 million in debt
expanding the national footprint.
related to the recapitalization in 2019.
• $5 million increase in cash on hand.
As we move into 2021, management continues to be
•The launch of Lion Street Private Client Group has
focused on driving value and liquidity for its shareholders.
positioned the company to drive further EBITDA
Your investment as Owners in Lion Street has grown
growth by leveraging its scale to achieve more
significantly over the last six years with the value of the
earnings.
common stock growing from $0.30 to $3.35 per share. We
•Prudent expense management has allowed the
will be obtaining a new valuation of the company within
company to extend its track record of increasing
the next 90 days of 2021, and given the outstanding
EBITDA despite the challenges presented by
2020 financial results despite the business environment,
the market.
management expects another significant uptick in the
value of the common stock.
While the economy was gripped by the challenges foisted
upon it by the global pandemic, your company continued
to grow its footprint and further diversify its revenue
streams. The additional 30 Firms added in 2020 and
our expansion into the institutional market leave the
company poised to disproportionately participate in the
post-pandemic economic recovery. Furthermore, our
conservative cash management and capital structure
have positioned us to take advantage of expansion
opportunities.
Average Premium by Top Independent Firms
$ in millions
2017
2018
2019
2020
TOP 25
$1.7
$2.5
$2.8
$2.9
TOP 50
$1.1
$1.6
$1.8
$1.9
TOP 100
$0.7
$1.0
$1.1
$1.2
CAGR Performance
FIVE-YEAR CONSOLIDATED KEY PERFORMANCE INDICATORS & CAGR
$100
37%
$90
$80
$70
$Millions
$60
$50
$40
25%
$30
$20
67%
$10
$0
2015
2016
2017
Gross Revenue
2018
Net Revenue
2019
EBITDA
2020