gfp Posted February 13 Posted February 13 (edited) "The company recorded net gains of $1,033.5 million (fourth quarter of 2024 - $341.9 million) on equity total return swaps on Fairfax subordinate voting shares. During the fourth quarter of 2024 the company closed out derivative contracts on 203,800 Fairfax subordinate voting shares with an original notional amount of $68.5 million (Cdn$88.9 million). At December 31, 2024 the company continued to hold equity total return swaps on 1,760,355 Fairfax subordinate voting shares with an original notional amount of $664.0 million (Cdn$846.1 million) or $377.19 (Cdn$480.62) per share." Edited February 13 by gfp
gfp Posted February 13 Posted February 13 " On December 20, 2024 the company increased its equity interest in Peak Achievement Athletics Inc. ("Peak Achievement") to 100.0% by acquiring the 42.6% equity interest owned by Sagard Holdings Inc. and the 14.8% equity interest owned by other minority shareholders for purchase consideration of $765.0 million. The company was required to remeasure its existing equity accounted investment in Peak Achievement to its fair value of $325.7 million upon consolidation and recorded a pre-tax gain of $203.4 million in net gains on investments in the consolidated statement of earnings, which reflected Peak Achievement being now carried at approximately 8.5 times free cash flow. Peak Achievement is engaged in the design, manufacture and distribution of performance sports equipment and related apparel and accessories for ice hockey, roller hockey and lacrosse, under brands such as Bauer Hockey, Cascade Lacrosse and Maverik Lacrosse."
gfp Posted February 13 Posted February 13 End of year share count is: "At December 31, 2024 there were 21,668,466 (December 31, 2023 - 23,003,248) common shares effectively outstanding."
SafetyinNumbers Posted February 13 Posted February 13 7 minutes ago, gfp said: "The company recorded net gains of $1,033.5 million (fourth quarter of 2024 - $341.9 million) on equity total return swaps on Fairfax subordinate voting shares. During the fourth quarter of 2024 the company closed out derivative contracts on 203,800 Fairfax subordinate voting shares with an original notional amount of $68.5 million (Cdn$88.9 million). At December 31, 2024 the company continued to hold equity total return swaps on 1,760,355 Fairfax subordinate voting shares with an original notional amount of $664.0 million (Cdn$846.1 million) or $377.19 (Cdn$480.62) per share." It looks like they bought those shares back.
mananainvesting Posted February 13 Posted February 13 Some new Acquisitions: Albingia : More new here on the other partners => https://www.eurazeo.com/en/newsroom/press-releases/eurazeo-enters-exclusive-discussions-consortium-led-la-financiere-de
Hoodlum Posted February 13 Posted February 13 5 minutes ago, SafetyinNumbers said: It looks like they bought those shares back. Maybe this is how they plan to slowly close off the TRS over time.
Hoodlum Posted February 13 Posted February 13 5 minutes ago, mananainvesting said: Some new Acquisitions: Albingia : More new here on the other partners => https://www.eurazeo.com/en/newsroom/press-releases/eurazeo-enters-exclusive-discussions-consortium-led-la-financiere-de We did see some info on both of these previously but now we see the details of the transactions. It will be interesting to hear more about Blizzard Vacatia as that is a notable investment and at 50%, a significant share of the company. I wonder what the dividends would look like in Q1.
nwoodman Posted February 13 Posted February 13 (edited) 11 minutes ago, SafetyinNumbers said: It looks like they bought those shares back. That's cool. How they unwound was a key question for me. Looks like we may be getting an answer there Edited February 13 by nwoodman
Junior R Posted February 13 Posted February 13 "our annual interest and dividend income increased to $2.5 billion"
gfp Posted February 13 Posted February 13 I agree that those look like the shares that went into treasury stock, but they didn't seem to affect the "effective shares outstanding" calc - which declined by a bit over 300k shares as expected (334k or 322k depending on how you count)
Hoodlum Posted February 13 Posted February 13 I see the combined losses on Hurricane Milton and Helene was $304M. Less than what I expected and it would seem less than the industry as a whole based on prior hurricanes. It looks like our risk models are holding up well compared to the competition.
Hoodlum Posted February 13 Posted February 13 Just now, gfp said: I agree that those look like the shares that went into treasury stock, but they didn't seem to affect the "effective shares outstanding" calc - which declined by a bit over 300k shares as expected (334k or 322k depending on how you count) Could there be Employee share purchases in Q4 that need to be accounted for?
gfp Posted February 13 Posted February 13 (edited) 14 minutes ago, Hoodlum said: Could there be Employee share purchases in Q4 that need to be accounted for? Yeah that is probably the 12k shares mentioned above. I don't think it explains $240 million worth of stock edit: I wonder if this means that they have been counting the entire TRS share count as treasury stock this whole time and that is why they term it "effective shares outstanding" Edited February 13 by gfp
SafetyinNumbers Posted February 13 Posted February 13 26 minutes ago, gfp said: Yeah that is probably the 12k shares mentioned above. I don't think it explains $240 million worth of stock edit: I wonder if this means that they have been counting the entire TRS share count as treasury stock this whole time and that is why they term it "effective shares outstanding" Can you share the specific numbers you are referring to? I’m not clear what the issue is.
gfp Posted February 13 Posted February 13 (edited) 6 minutes ago, SafetyinNumbers said: Can you share the specific numbers you are referring to? I’m not clear what the issue is. Effective Share count end of q3 vs end of q4 " During 2024 the company purchased 207,974 of its subordinate voting shares for treasury at a cost of $240.4 million and 1,346,953 subordinate voting shares for cancellation at a cost $1,588.4 million, or $1,179.24 per share." "At December 31, 2024 there were 21,668,466 (December 31, 2023 – 23,003,248) common shares effectively outstanding." vs: " During the first nine months of 2024 the company purchased 1,012,906 of its subordinate voting shares for cancellation at an aggregate cost of $1,127.1 million. On September 30, 2024 the company renewed its normal course issuer bid." At September 30, 2024 there were 21,990,603 common shares effectively outstanding. Edited February 13 by gfp
SafetyinNumbers Posted February 13 Posted February 13 2 minutes ago, gfp said: Effective Share count end of q3 vs end of q4 So these numbers? What’s the problem?
gfp Posted February 13 Posted February 13 So from the numbers in my post above, they purchased and cancelled 334,047 shares in Q4. The effective share count went down by 322,137 shares. No big deal, employee purchases, minor net issuance, etc. Where is the other $240 million worth? I'm saying it must have always been counted as treasury stock in the "effective shares outstanding" language. Which means so are all the other TRS shares right?
Hoodlum Posted February 13 Posted February 13 It looks like we will need to wait for the conference call to find out if there was any material change in bond duration.
glider3834 Posted February 13 Posted February 13 from Q4'24 release 'Adjusted operating income (which excludes the benefit of discounting, net of a risk adjustment on claims) of the property and casualty insurance and reinsurance operations increased by 20.9% to a record $4,761.1 million from $3,938.5 million, reflecting the best year in the company's history for both underwriting profit and interest and dividends, and continued strong results from share of profit of associates.'
Txvestor Posted February 13 Posted February 13 1 hour ago, Hoodlum said: Maybe this is how they plan to slowly close off the TRS over time. Yeah I think he wants to take the share count back to what it was prior to the allied world acquisition.
Hektor Posted February 13 Posted February 13 48 minutes ago, gfp said: I wonder if this means that they have been counting the entire TRS share count as treasury stock this whole time and that is why they term it "effective shares outstanding" Does the regulations/rules allow this?
Viking Posted February 13 Author Posted February 13 (edited) What an amazing year Fairfax delivered for shareholders in 2024. And what an outstanding press release. It is absolutely chocked full of really good information. Well done team Fairfax. 1.) 2024FY Diluted EPS = $160.56 2.) 1 year change in excess of fair value over carrying value (associate and consolidated holdings) was $475 million (pre-tax). If we assume a tax rate of 30%, we get another $15/share (after tax) in value creation. Bottom line, Fairfax increased intrinsic business value by a minimum of $175/share in 2024. Yes, this amount is likely understated (it likely does not capture all the value building in all of the consolidated equity holdings). $175/share is an ROE of 17.5% on average shareholders equity. Fairfax also ‘ate’ a $22/share impact from currency (very strong US$). like I said, what a great year. Edited February 14 by Viking
Viking Posted February 13 Author Posted February 13 (edited) The ‘non-insurance consolidated companies’ income stream looks like it might be breaking out for Fairfax. It delivered $150.1 million in Q4. This does not include a full quarter of results from Peak Achievements. If the annual run rate for this income stream is now $600 million… well that would be amazing. That is not in analysts estimates right now. Hopefully it is discussed on the conference call tomorrow. A stock is worth the future cash flows it generates discounted back to today… Do we care that a new material income stream has materialized right before our eyes (kind of like what Share of Profit of Associates did 3 years ago…)? Who is included in ‘non-insurance consolidated companies’ bucket? Sleep Country, Peak Achievements, Recipe, Grivalia Hospitality, Meadow Foods, Sporting Life, And more… Of Fairfax’s 5 income streams, this one is the smallest. But it looks like it is about to get much bigger: Underwriting income Interest and dividend income Share of profit of associates investment gains Non-insurance consolidated companies Edited February 14 by Viking
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