Freedom Holding Corp
For the period ended Jun 30, 2024. Filed Aug 9, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 9, 2024
Extracted filing text, with the paragraph anchors used by the comparison.
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Condensed Consolidated Statements of Cash Flows for the and
FREEDOM HOLDING CORPCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)(All amounts in thousands of United States dollars, unless otherwise stated)
| For the Three Months Ended June 30, | ||
|---|---|---|
| 2024 | 2023 | |
| Cash Flows From Operating Activities | ||
| Net income | $34,259 | $67,921 |
| Adjustments to reconcile net income used in operating activities: | ||
| Depreciation and amortization | 4,154 | 2,607 |
| Amortization of deferred acquisition costs | 48,115 | 8,724 |
| Noncash lease expense | 2,868 | 1,927 |
| Change in deferred taxes | (796) | 4,778 |
| Stock compensation expense | 10,615 | 1,233 |
| Unrealized loss/(gain) on trading securities | 64,943 | (20,951) |
| Unrealized (gain)/loss on derivatives | (8,150) | 3,112 |
| Net realized gain on available-for-sale securities | (18) | (958) |
| Net change in accrued interest | 69,821 | (16,304) |
| Revaluation of purchase price of previously held interest in Arbuz | — | (1,040) |
| Gain from sale of ITS tech | (4,201) | — |
| Change in insurance reserves | 40,958 | 15,002 |
| Change in unused vacation reserves | 1,009 | 1,186 |
| (Recovery of)/provision for allowance for expected credit losses | (1,770) | 14,326 |
| Changes in operating assets and liabilities: | ||
| Trading securities | (24,454) | (933,290) |
| Margin lending, brokerage and other receivables (including $(15,797) and $(89,703) changes from related parties) | 399,425 | (147,366) |
| Insurance contract assets | 565 | 2,454 |
| Other assets | (70,073) | (18,236) |
| Brokerage customer liabilities (including $(40,843) and $(50,531) changes from related parties) | 260,972 | 29,037 |
| Current income tax liability | 7,492 | 11,202 |
| Margin lending and trade payables (including $252 and $(3,239) changes from related parties) | 26,888 | 55,045 |
| Lease liabilities | (1,539) | (1,631) |
| Liabilities from insurance activity | (2,076) | 206 |
| Other liabilities | (4,941) | 6,882 |
| Net cash flows from/(used in) operating activities | 854,066 | (914,134) |
| Cash Flows Used In Investing Activities | ||
| Purchase of fixed assets | (24,178) | (10,682) |
| Net change in loans issued to customers | (2,591) | (263,370) |
| Purchase of available-for-sale securities, at fair value | (103,679) | (82,979) |
| Proceeds from sale of available-for-sale securities, at fair value | 48,033 | 104,698 |
| Consideration paid for Arbuz | — | (13,281) |
| Consideration paid for Internet Tourism | — | (31) |
| Consideration paid for Aviata | — | (690) |
| Consideration paid for Ticketon | — | (3,003) |
| Cash, cash equivalents and restricted cash disposed as a result of deconsolidation of Freedom UA | — | (1,987) |
| Cash, cash equivalents and restricted cash received from acquisitions | — | 1,807 |
| Capital contribution to investment in associate | (1,240) | — |
| Cash, cash equivalents disposed from sale of ITS Tech | (542) | — |
| Prepayment on acquisitions | (10,488) | — |
FREEDOM HOLDING CORPCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)(All amounts in thousands of United States dollars, unless otherwise stated)
| Net cash flows used in investing activities | (94,685) | (269,518) |
|---|---|---|
| Cash Flows From Financing Activities | ||
| (Reimbursement)/proceeds from securities repurchase agreement obligations | (54,912) | 1,059,944 |
| Proceeds from issuance of debt securities | — | 5,784 |
| Repurchase of debt securities | (29) | (1,702) |
| Repurchase of mortgage loans under the State Program | (13,001) | (9,071) |
| Funds received under state program for financing of mortgage loans | 20,453 | 24,889 |
| Net change in bank customer deposits | 293,411 | 181,159 |
| Purchase of non-controlling interest in Arbuz | — | (3,228) |
| (Repayment of)/proceeds from loans received | (388) | 758 |
| Net cash flows from financing activities | 245,534 | 1,258,533 |
| Effect of changes in foreign exchange rates on cash and cash equivalents | (114,815) | (2,575) |
| Effect of expected credit losses on cash and cash equivalents and restricted cash | 367 | — |
| NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 890,467 | 72,306 |
| CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD | 1,007,721 | 1,026,945 |
| CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD | $1,898,188 | $1,099,251 |
| For The Three Months Ended June 30, | ||
|---|---|---|
| 2024 | 2023 | |
| Supplemental disclosure of cash flow information: | ||
| Cash paid for interest | $142,595 | $113,120 |
| Income tax paid | $819 | $224 |
| Supplemental non-cash disclosures: | ||
| Operating lease right-of-use assets obtained/disposed of in exchange for operating lease obligations during the period, net | $1,855 | $4,677 |
The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the Condensed Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Condensed Consolidated Statements of Cash Flows:
| June 30, 2024 | June 30, 2023 | |
|---|---|---|
| Cash and cash equivalents | $718,678 | $597,364 |
| Restricted cash | 1,179,510 | 501,887 |
| Total cash, cash equivalents and restricted cash shown as in the statement of cash flows | $1,898,188 | $1,099,251 |
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