Q2 2024 Star Equity Holdings Inc Earnings Call Transcript
Key Points
- Star Equity Holdings Inc (STRR) reported a 51.6% increase in second-quarter revenue compared to the same period last year.
- The acquisition of Timber Technologies is expected to improve overall profitability and generate healthy cash flow.
- The company completed two sale-leaseback transactions, adding approximately $7.2 million in net proceeds to the balance sheet.
- A $1 million share buyback program was announced, indicating confidence in the company's undervalued stock.
- The investment in Enservco diversifies Star Equity Holdings Inc (STRR)'s portfolio and marks its entry into the energy services and transportation and logistics sectors.
- Gross margin declined by 14.9%, primarily due to a onetime purchase price adjustment related to the Timber Technologies acquisition.
- The company reported a net loss from continuing operations of $3.8 million in Q2 2024, compared to a net loss of $1.4 million in Q2 2023.
- SG&A expenses increased by 26.8% due to a $1.3 million impairment related to an equity investment.
- Consolidated cash flow from continuing operations was an outflow of $4.3 million, compared to an inflow of $1.9 million in the same period last year.
- The unrestricted cash balance decreased significantly to $2.5 million as of June 30, 2024, from $21.4 million a year ago.
Greetings, ladies and gentlemen, and welcome to Star Equity Holdings second-quarter 2024 results conference call. Please be advised that the discussions on today's call may include forward-looking statements. Such forward-looking statements involve certain risks and uncertainties that may cause actual results to differ materially from those contained in the forward-looking statements.
Please refer to Star Equity's most recent 10-K, 10-Q and other filings for a more complete description of risk factors that could affect these projections and assumptions. The company assumes no obligation to update forward-looking statements as a result of new information, future events or otherwise.
Please also note that on this call, management will reference non-GAAP financial measures, including EBITDA, adjusted EBITDA, adjusted net income, and adjusted earnings per share, which are all financial measures not recognized under US GAAP. As required by SEC rules and regulations, these non-GAAP financial measures are reconciled to their most comparable GAAP financial measures in our earnings release issued
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