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K KINGSWAY REPORTS FIRST QUARTER 2021 RESULTS Itasca , Illinois ( May 12 , 2021 ) - ( NYSE : KFS ) Kingsway Financial Services Inc. ( " Kingsway " or the " Company " ) today announced its operating results for the three months ended March 31 , 2021 , which includes the following highlights : • Net income was $ 0.9 million for the three months ended March 31 , 2021 , compared to a net loss of ( $ 0.4 ) million for the same period in 2020 ; • • • Non - GAAP adjusted income was $ 4.3 million for the three months ended March 31 , 2021 , compared to Non - GAAP adjusted loss of ( $ 1.1 ) million for the same period in 2020 ; Extended Warranty operating income increased to $ 5.3 million for the three months ended March 31 , 2021 compared to $ 0.9 million for the same period in 2020 , while non - GAAP adjusted EBITDA increased to $ 5.4 million for the three months ended March 31 , 2021 , compared to $ 1.2 million for the same period for 2019 . The results above are inclusive of a benefit from loan forgiveness under the Paycheck Protection Program ( " PPP " ) , as described more fully below . " The three months ended March 31 , 2021 include a full quarter of PWI results for the first time since we acquired it in December 2020 , " said JT Fitzgerald , Kingsway CEO . He continued , " while early , we are very pleased with the results Edmund and his leadership team have delivered to date . We are also pleased with the solid results delivered by Kingsway's other extended warranty businesses as they continued to navigate an uncertain environment . " Non - GAAP Adjusted ( Loss ) Income For the three months ended March 31 , 2021 , non - GAAP adjusted ( loss ) income improved from a loss of ( $ 1.1 ) million in 2020 to income of $ 4.3 million in 2021. Included in 2021 is a benefit from the PPP loan forgiveness of $ 2.5 million and three months of PWI results . Reconciliations of net ( loss ) income to non - GAAP adjusted ( loss ) income are presented in the attached schedules . Extended Warranty The Extended Warranty service fee and commission revenue increased 66 % ( or $ 7.4 million ) to $ 18.6 million for the three months ended March 31 , 2021 compared with $ 11.2 million for the three months ended March 31 , 2020. The increase is primarily due to the inclusion of PWI ( $ 7.4 million ) for the first quarter of 2021 following its acquisition effective December 1 , 2020 . The Extended Warranty operating income was $ 5.3 million for the three months ended March 31 , 2021 compared with $ 0.9 million for the three months ended March 31 , 2020. The increase in operating income is primarily due to the following : $ 2.2 million of PPP loan forgiveness related to Extended Warranty companies included in 2021 ;