This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Safeguard Scientifics CEO Discusses Q2 2011 Results - Earnings Call Transcript

We announced two great acquisitions of our partner companies by prominent top tier multinational firms, Shire’s acquisition of Advanced BioHealing and McKesson’s acquisition of Portico Systems.

Portico officially closed yesterday for which Safeguard expects to receive $38.1 million in aggregate cash proceeds, that represents a four times cash-on-cash return and a 36% IRR, now that’s on the heels of GE Healthcare and Eli Lilly’s acquisition of Clarient and Avid Radiopharmaceuticals respectively that occurred in December of 2010.

As a result of all this activity, Safeguard enjoys improved financial strength and flexibility with excellent liquidity and access to capital.

In March, we repurchase substantially all of Safeguard’s convertible notes due in 2024. Our debt-to-equity ratio improved to 1 to 8 at June 30th, that’s from 1 to 3 at year end 2010 and 1 to 2 at year end 2009. Now in 2006 as we embarked upon this current strategy that ratio stood at 1 to 1. So as you can see, we’ve improved a much of our long-term obligations with exit expectations and cash deployment plans.

Value creation is both the objective and the motivation behind Safeguard’s progress. Our life sciences and technology partner companies remain well-positioned for continued growth and improved profitability. Our deal teams continue to evaluate promising, high potential businesses in our targeted verticals.

Now, our optimism is really high for creating additional value in 2011 and beyond. That confidence stems from Safeguard’s disciplined focus on specific segments of life sciences and technology industries that exploit five strategic growth driving themes maturity, migration, convergence, compliance and cost containment.

In life sciences we target opportunities in the areas of lower relative technological and regulatory risk, namely in the molecular and point-of-care diagnostics, medical devices, regenerative medicine, specialty pharmaceuticals and selected healthcare services.

Read the rest of this transcript for free on seekingalpha.com

3 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,098.45 +18.88 0.11%
S&P 500 2,003.37 +6.63 0.33%
NASDAQ 4,580.2710 +22.5760 0.50%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs