Valentine is a longtime friend and collaborator of Warren Lichtenstein, Founder & Executive Chairman of Steel Partners Holdings L.P. and Founder of Steel Sports. Valentine brings decades of experience as a coach, leader, and international ambassador for the game of baseball. He will serve as a key advisor to Steel Sports' leadership, helping advance its mission to put Kids First and develop the next generation of leaders through sports. "I've known Bobby for many years, and he's someone who truly lives our ...

Financial Performance - Revenue for Q4 2024 was $497.9 million, a 6.6% increase compared to Q4 2023[5] - Net income for Q4 2024 was $74.6 million, a 74.7% increase compared to Q4 2023[5] - Adjusted EBITDA for Q4 2024 was $84.7 million, with an adjusted EBITDA margin of 17.0%[5] - Full year 2024 revenue totaled $2.0 billion, a 6.4% increase compared to 2023[5] - Full year net income was $271.2 million, a 76.1% increase compared to 2023[5] - Adjusted EBITDA for the full year 2024 was $303.0 million, with an adjusted EBITDA margin of 14.9%[5] - Total revenue for the year ended December 31, 2024, was $2,027.8 million, an increase of 6.4% compared to $1,905.5 million in 2023[32] - Net income attributable to common unitholders for the year ended December 31, 2024, was $261.6 million, up from $150.8 million in 2023, representing a growth of 73.5%[32] - Net income for Q4 2024 was $74,602,000, compared to $42,697,000 in Q4 2023, representing a 74.7% increase[35] - Total revenue for Q4 2024 reached $497,920,000, up from $466,907,000 in Q4 2023, indicating a growth of 6.4%[38] - Adjusted EBITDA for Q4 2024 was $84,697,000, compared to $59,358,000 in Q4 2023, reflecting a 42.5% increase[35] - Adjusted EBITDA margin improved to 17.0% in Q4 2024 from 12.7% in Q4 2023[35] Cash Flow and Liquidity - Adjusted free cash flow for Q4 2024 was $72.5 million, compared to $87.6 million in Q4 2023[25] - The company reported a net cash provided by operating activities of $363.3 million for the year ended December 31, 2024, compared to $21.2 million in 2023[33] - As of December 31, 2024, the company had $470.0 million in available liquidity and $263.4 million in cash and cash equivalents, excluding WebBank cash[27] - Net cash position increased to $62,231,000 as of December 31, 2024, compared to $56,376,000 in 2023[36] - Adjusted free cash flow for Q4 2024 was $72,461,000, down from $87,587,000 in Q4 2023, a decrease of 17.5%[37] Debt and Assets - Total debt as of December 31, 2024, was $119.7 million, with net cash totaling $62.2 million[5] - Total debt decreased by $71.7 million to $119.7 million as of December 31, 2024, with net cash increasing by $5.9 million to $62.2 million[28] - The company’s total assets decreased to $3,580.3 million as of December 31, 2024, from $3,990.4 million in 2023[31] - The company’s total liabilities decreased to $2,406.8 million as of December 31, 2024, from $2,985.0 million in 2023[31] - Total debt decreased to $(119,655,000) as of December 31, 2024, from $(191,371,000) in 2023, a reduction of 37.4%[36] Investments and Shareholder Metrics - The company’s long-term investments increased to $84.7 million as of December 31, 2024, from $41.2 million in 2023[31] - The company’s weighted-average number of common units outstanding (basic) decreased to 20,006,429 for the year ended December 31, 2024, from 21,433,900 in 2023[32] - The company’s net income per common unit (basic) for the year ended December 31, 2024, was $13.07, compared to $7.04 in 2023, reflecting an increase of 85.5%[32] Segment Performance - The Financial Services segment contributed significantly to the increase in adjusted EBITDA due to higher revenue and lower credit loss provisions[26] - Revenue from the Diversified Industrial segment was $297,394,000 in Q4 2024, up from $275,394,000 in Q4 2023, a growth of 8.4%[38] - Financial Services segment revenue increased to $115,650,000 in Q4 2024 from $112,341,000 in Q4 2023, a rise of 3.0%[38] Risks and Compliance - The company identifies forward-looking statements using terms such as "expect," "anticipate," and "estimate," indicating its current expectations and projections for future performance[47] - Risks include economic downturns, inflation, supply chain disruptions, and volatility in crude oil and commodity prices due to geopolitical conflicts[47] - The company faces potential cash flow requirements from its subsidiaries' defined pension plans and must comply with extensive legal and regulatory requirements[47] - There are risks associated with the company's wholly-owned subsidiary, WebBank, including its FDIC status and capital requirements[47] - The company is exposed to risks from conducting business outside the U.S. and potential changes in U.S. trade policies[47] - The company must maintain effective internal control over financial reporting and protect its intellectual property rights[47] - The company is dependent on its Manager, which impacts total partners' capital and management fees[47] - The company must comply with the New York Stock Exchange listing standards and manage risks related to its investment portfolio[47] - Changes in tax rates, laws, or regulations could negatively impact operations and tax benefits[47] - The company acknowledges the potential loss of essential employees as a risk factor[47]

Business Segments - Steel Partners Holdings L.P. operates through four segments: Diversified Industrial, Energy, Financial Services, and Supply Chain[24]. - The Diversified Industrial segment includes businesses that manufacture engineered niche industrial products, with significant market positions across various industries[26]. - The Energy segment provides drilling and production services primarily in North Dakota, Montana, Colorado, Wyoming, Texas, and New Mexico[36]. - WebBank, a subsidiary of Steel Partners, engages in a full range of banking activities, including originating loans and issuing credit cards, and is FDIC-insured[38]. - ModusLink Corporation, part of the Supply Chain segment, offers end-to-end global supply chain solutions and serves clients in consumer electronics, communications, and retail markets[40]. Employee and Operational Data - The company employs approximately 5,200 employees worldwide as of December 31, 2024[45]. - The company has not experienced significant issues in obtaining necessary raw materials, which are generally available from multiple sources[42]. - The company faces significant risks from economic downturns, particularly in the transportation, oil and gas exploration, and construction-related industries, which are cyclical and have experienced financial downturns in the past[57]. - Revenues in the Supply Chain segment are highly dependent on customer traffic and demand, which can be adversely affected by macroeconomic conditions, leading to potential declines in volumes and financial results[58]. Financial Performance and Risks - Inflation and supply chain disruptions have negatively impacted the company's operations, with rising costs of labor and materials potentially affecting financial results[61]. - The company has experienced significant volatility in crude oil prices, which has adversely affected its Diversified Industrial and Energy segments, leading to diminished demand and pricing pressures[62]. - Customer demand is sensitive to oil and gas price fluctuations, with ongoing geopolitical tensions contributing to market volatility and uncertainty[63]. - The company is exposed to risks associated with commodity price fluctuations, which can impact raw material costs and profit margins[65]. - Rising interest rates may increase borrowing costs and adversely affect the company's financial condition and investment opportunities[68]. - The company is subject to substantial cash funding requirements for defined benefit pension plans, which could impact its financial condition due to market performance and interest rate changes[69]. - Compliance with environmental, health, and safety regulations may require significant costs, and any violations could lead to substantial liabilities and operational impacts[73]. Regulatory and Compliance Issues - The market for banking and related financial services is highly competitive, with WebBank facing competition from both traditional banks and nontraditional lending companies[50]. - The company faces significant compliance costs due to extensive regulations, which could adversely affect its financial condition and operations[80]. - The SEC finalized rules requiring public companies to include extensive climate-related disclosures, which could lead to substantial compliance costs if reinstated[76]. - Political and financial risks may reduce demand for the company's Energy segment services due to increased regulations on greenhouse gas emissions[78]. - The company may face increased regulatory scrutiny and potential enforcement actions that could impact its operations and financial performance[85]. - The company is subject to extensive regulations, including those related to anti-corruption, privacy, and banking, which increase its regulatory compliance burden[83]. Financial Strategy and Capital Management - As of December 31, 2024, the company had a borrowing capacity of $470 million available under its senior credit facility and $118.8 million of outstanding indebtedness[89]. - Future cash flows may not be sufficient to meet obligations under the senior credit facility, potentially affecting liquidity and financial condition[88]. - The company’s business strategy includes acquisitions, which entail risks such as management diversion and increased costs[91]. - The company intends to manage its affairs to meet the Qualifying Income Exception to avoid being taxed as a corporation[157]. Taxation and Financial Implications - Changes in U.S. tax laws, such as the reduction of the corporate income tax rate from 35% to 21%, could negatively impact the company's operations[154]. - The company is subject to partnership audit rules, which could result in tax liabilities for current unitholders due to adjustments in prior year tax returns[153]. - If the company is taxed as a corporation, net income would be taxed at 21%, significantly reducing profitability and cash available for distribution[158]. - Tax-exempt entities may face adverse tax consequences from owning common units due to unrelated business taxable income (UBTI)[162]. Cybersecurity and Operational Risks - The company has established a comprehensive cybersecurity incident response and recovery plan, including a Cybersecurity Incident Policy and a Corporate Cyber Security Incident Team[178]. - The Audit Committee oversees the company's cybersecurity risk management program, ensuring effective controls and response strategies are in place[171]. - Cybersecurity threats and breaches could lead to significant operational disruptions and reputational damage, affecting overall business performance[105]. Revenue and Income Growth - Revenue for the year ended December 31, 2024, increased by $122,391, or 6.4%, to $2,027,848 compared to $1,905,457 in 2023[207]. - Net income for the year ended December 31, 2024, was $271,222, an increase of $117,220, or 76.1%, from $154,002 in 2023[216]. - The Financial Services segment revenue increased by $37,314, or 9.0%, contributing to overall revenue growth[208]. - Cost of goods sold increased by $49,338, or 4.5%, to $1,152,355 in 2024, driven by higher sales in the Diversified Industrial segment[209].

Revenue Growth - Revenue for Q3 2024 was $520.4 million, a 5.7% increase compared to Q3 2023[1] - Year-to-date revenue for 2024 reached $1.5 billion, up 6.4% from the same period in 2023[2] - Total revenue for the nine months ended September 30, 2024, was $1,529,928, up from $1,438,550 in the same period of 2023, representing a growth of approximately 6.3%[28] - Total revenue for the three months ended September 30, 2024, was $520,423,000, an increase of 5.3% from $492,254,000 for the same period in 2023[37] - The Diversified Industrial segment reported revenue of $318,642,000 for the three months ended September 30, 2024, compared to $299,098,000 in the same period of 2023, reflecting a growth of 6.5%[37] - Supply Chain segment revenue increased significantly to $48,488,000 for the three months ended September 30, 2024, compared to $40,009,000 in the same period of 2023, marking a growth of 21.8%[37] Net Income - Net income for Q3 2024 was $36.9 million, reflecting a 32.2% increase year-over-year[1] - Net income attributable to common unitholders for YTD 2024 was $187.0 million, or $8.02 per diluted common unit[2] - Net income attributable to common unitholders for the nine months ended September 30, 2024, was $186,985, compared to $109,568 for the same period in 2023, reflecting a significant increase of approximately 70.7%[28] - Net income for the nine months ended September 30, 2024, increased to $196,620,000 from $111,305,000 for the same period in 2023, representing a 76.7% increase[30] - Net income for the nine months ended September 30, 2024, was $196,620,000, compared to $111,305,000 for the same period in 2023, representing a 76.7% increase[37] Adjusted EBITDA - Adjusted EBITDA for Q3 2024 totaled $76.0 million, with an adjusted EBITDA margin of 14.6%[1] - Adjusted EBITDA for the nine months ended September 30, 2024, was $218,320, an increase of $37,119 compared to $181,201 for the same period in 2023[21] - Adjusted EBITDA for the nine months ended September 30, 2024, reached $218,320,000, compared to $181,201,000 in the same period of 2023, marking a 20.5% increase[33] - Adjusted EBITDA for the three months ended September 30, 2024, was $75,953,000, up 70.8% from $44,464,000 for the same period in 2023[37] - The adjusted EBITDA margin improved to 14.6% for the three months ended September 30, 2024, compared to 9.0% in the same quarter of 2023[33] Cash Flow and Capital Expenditures - Adjusted free cash flow for Q3 2024 was $34.3 million, down from $85.5 million in Q3 2023[20] - Adjusted free cash flow decreased to $96,796 for the nine months ended September 30, 2024, down from $148,393 in 2023, primarily due to higher working capital usage and capital expenditures[21] - Cash and cash equivalents at the end of the period decreased to $388,124,000 from $562,149,000 at the end of the previous year, a decline of 30.9%[32] - The company reported a net cash used in financing activities of $560,437,000 for the nine months ended September 30, 2024, compared to a net cash provided of $486,419,000 in the same period of 2023[30] - Capital expenditures for Q3 2024 were $37.3 million, representing 7.2% of revenue[16] Debt and Liabilities - As of September 30, 2024, total debt was $120,171, a decrease of approximately $71,200 from December 31, 2023[23] - Total liabilities decreased to $2,550,402 as of September 30, 2024, from $2,985,032 at the end of 2023[26] - Total current assets decreased to $2,317,945 as of September 30, 2024, from $2,627,356 at the end of 2023[26] - Total leverage ratio improved to approximately 1.0x as of September 30, 2024, down from 1.5x as of December 31, 2023[23] Credit Quality - Interest expense decreased by 51.6% for Q3 2024 compared to the same period last year[11] - The provision for credit losses decreased significantly to $10,159,000 from $47,979,000 year-over-year, indicating improved credit quality[30] Company Outlook - The company anticipates continued growth and momentum across its business segments, despite potential risks from economic downturns and supply chain disruptions[44] - The company emphasizes the importance of non-GAAP financial measurements, such as Adjusted EBITDA, to provide useful insights into its financial condition and operational performance[39]

Revenue Performance - Revenue for the three months ended September 30, 2024, increased by $28,169, or 5.7%, compared to the same period last year, driven by a 6.5% increase in the Diversified Industrial segment and a 21.2% increase in the Supply Chain segment [172]. - Revenue for the nine months ended September 30, 2024, increased by $91,378, or 6.4%, compared to the same period last year, with a notable 94.6% increase in the Supply Chain segment [173]. - Total revenue for the three months ended September 30, 2024 was $520,423, an increase of $28,169, or 5.7%, compared to $492,254 for the same period in 2023 [183]. - Revenue for the Financial Services segment for the three months ended September 30, 2024 increased by $6,622, or 6.2%, and by $34,005, or 11.2%, for the nine months ended September 30, 2024, compared to the same periods in 2023 [191][192]. - The Supply Chain segment generated revenue of $48,488 and $136,595 for the three and nine months ended September 30, 2024, respectively, compared to $40,009 and $70,190 for the same periods in 2023, marking a 21.2% increase for the three-month period [195]. - The Financial Services segment reported a revenue increase of $34,005, or 11.2%, for the nine months ended September 30, 2024 [173]. Cost and Expenses - Cost of goods sold for the three months ended September 30, 2024, increased by $12,292, or 4.3%, primarily due to higher net sales from the Diversified Industrial and Supply Chain segments [174]. - Selling, general and administrative expenses for the three months ended September 30, 2024, increased by $12,376, or 9.9%, mainly due to higher expenses in the Financial Services and Supply Chain segments [176]. - SG&A expenses for the nine months ended September 30, 2024 increased by $36,049, or 9.6%, compared to the same period last year, driven by higher expenses in the Financial Services and Supply Chain segments [177]. Net Income and Financial Performance - Net income for the three months ended September 30, 2024, was $36,873, compared to $27,887 for the same period last year [171]. - Interest expense decreased by $2,122, or 51.6%, for the three months ended September 30, 2024, and by $10,860, or 68.2%, for the nine months ended September 30, 2024, due to significantly lower average debt outstanding [178]. - The Company recorded losses of $2,060 and gains of $2,994 for the three months ended September 30, 2024, compared to gains of $8,665 and $6,151 for the same periods in 2023 [179]. Cash Flow and Working Capital - Net cash provided by operating activities for the nine months ended September 30, 2024 was $368,173, a significant increase compared to $11,675 for the same period in 2023 [198]. - The Company recorded a net change of $(189,952) for the period in cash flows, compared to a net change of $329,402 for the same period in 2023 [198]. - For the nine months ended September 30, 2024, the Company generated $368,173 in cash from operating activities, compared to $11,675 for the same period in 2023 [199]. - The Company's working capital decreased to $497,364 as of September 30, 2024, from $562,224 as of December 31, 2023 [203]. Capital Expenditures and Financial Position - Capital expenditures for the nine months ended September 30, 2024, were $55,712, an increase from $36,667 for the same period in 2023 [203]. - The Company expects full-year capital expenditures in the range of $66,000 to $70,000 for 2024, compared to $51,451 in 2023 [203]. - As of September 30, 2024, the total availability under the Credit Agreement was approximately $470,000 [203]. - WebBank had $461,412 in cash, lines of credit, and access to the Federal Reserve Bank discount window as of September 30, 2024, representing approximately 21.3% of its total assets [204]. - The Company's senior credit facility has a maximum principal amount of $600,000, with compliance maintained as of September 30, 2024 [201]. - ModusLink had available borrowing capacity of $11,890 under its revolving credit agreement as of September 30, 2024 [205]. Asset Impairment and Pension Contributions - The Company reported an asset impairment charge of $530 for the three months ended September 30, 2024, compared to $329 in the same period last year [171]. - The Company contributed $7,226 to its pension plans during the nine months ended September 30, 2024, with an estimated additional contribution of $2,983 for the remainder of 2024 [203]. - The Company did not identify indicators of impairment for the Electrical Products reporting unit as of September 30, 2024 [209].

Core Viewpoint - Steel Partners Holdings L.P. (SPLP) demonstrated strong financial performance in Q2 2024, with significant growth in earnings and revenues, despite challenges in the Energy segment [1][2]. Financial Metrics - Earnings per share for Q2 2024 reached $4.85, a 99% increase from $2.44 in the same quarter last year [3]. - Total revenues for the quarter were $533.2 million, reflecting a 6.4% rise from $501 million in Q2 2023 [3]. - Net income surged 113.2% year over year to $124.9 million, with net income attributable to common unitholders at $116.3 million, up from $59.2 million [8]. Segmental Results - **Diversified Industrial**: Revenues increased by 6.2% to $334.5 million, with adjusted EBITDA rising to $42.2 million from $34.9 million [4]. - **Energy**: Revenues declined by 26.5% to $37 million, with adjusted EBITDA decreasing to $5.4 million from $7.2 million due to lower rig hours [5]. - **Financial Services**: Revenues grew by 9.7% to $115.6 million, with adjusted EBITDA increasing to $28.9 million from $25.8 million [6]. - **Supply Chain**: Revenues surged by 52.7% to $46.1 million, with adjusted EBITDA rising to $6.1 million from $2.9 million [7]. Profitability - Adjusted EBITDA for the quarter increased to $83.8 million from $73.6 million in the same period last year, driven by improved performance in Diversified Industrial and Financial Services segments [10]. - A notable factor in the net income increase was a $71.5 million non-cash adjustment related to deferred tax assets, which significantly impacted the income tax benefit [9]. Cost Management - Cost of goods sold rose by 4.8% to $303.2 million, attributed to higher net sales in the Diversified Industrial segment and Supply Chain consolidation [11]. - Selling, general, and administrative expenses increased by 2.4% to $139.7 million, primarily due to higher expenses in the Financial Services segment [12]. Cash and Debt Position - As of June 30, 2024, Steel Partners had cash and cash equivalents of $428.8 million, with total debt reduced to $78.6 million from $191.3 million at the end of December 2023 [13]. - Interest expenses declined by 71.1% year over year to $1.7 million, reflecting lower average debt outstanding [13]. Other Developments - The company repurchased 43,557 common units for $1.6 million and 76,146 preferred units for $1.8 million, aligning with its strategy to return capital to unitholders [13].

Financial Performance - Revenue for Q2 2024 was $533.2 million, a 6.4% increase compared to Q2 2023[1] - Net income for Q2 2024 was $124.9 million, reflecting a 113.2% increase year-over-year[1] - Adjusted EBITDA for Q2 2024 totaled $83.8 million, with an adjusted EBITDA margin of 15.7%[1] - Year-to-date (YTD) revenue for 2024 reached $1.0 billion, up 6.7% from the same period in 2023[1] - Net income for the six months ended June 30, 2024, was $159,747,000, compared to $83,418,000 for the same period in 2023, representing a 91.3% increase[25] - Total revenue for the three months ended June 30, 2024, was $533,159,000, an increase from $500,925,000 in the same period of 2023, reflecting a growth of 6.5%[28] - Adjusted EBITDA for the six months ended June 30, 2024, was $142,367,000, compared to $136,737,000 for the same period in 2023, indicating a 4.8% increase[28] - Adjusted EBITDA for the six months ended June 30, 2024, was $142,367,000, up from $136,737,000 in the prior year, indicating a growth of 4.8%[33] - Net income for the three months ended June 30, 2024, was $124,946,000, compared to $58,615,000 for the same period in 2023, representing a 113.0% increase[33] Cash Flow and Debt - Net cash provided by operating activities for YTD 2024 was $266.4 million[1] - Adjusted free cash flow for Q2 2024 was $38.6 million, compared to $29.5 million in Q2 2023[17] - Total debt at the end of Q2 2024 was $78.7 million, with net cash of $53.7 million[1] - Net cash provided by operating activities was $266,415,000 for the six months ended June 30, 2024, compared to a net cash used of $(54,511,000) in the same period of 2023[25] - The company reported a net cash decrease of $(148,203,000) for the period, compared to an increase of $119,762,000 in the same period of 2023[25] - The company’s net cash totaled $53,653 as of June 30, 2024, a decrease of approximately $2,723 compared to December 31, 2023[19] - The company’s net cash position, excluding WebBank, was $256,427,000 as of June 30, 2024, down from $407,642,000 at the end of 2023[29] Segment Performance - The Financial Services segment contributed $27.4 million in revenue growth, a 13.8% increase YTD 2024[5] - Diversified Industrial segment revenue increased to $334,494,000, up 6.0% from $315,046,000 year-over-year[33] - Financial Services segment revenue rose to $115,593,000, a 9.0% increase compared to $105,384,000 in the prior year[33] - Supply Chain segment revenue surged to $46,077,000, a significant increase from $30,181,000, reflecting a 52.7% growth[33] - The Energy segment reported a revenue decline to $36,995,000, down 26.5% from $50,314,000 year-over-year[33] - Corporate and other segment showed a net income improvement from a loss of $6,851,000 in 2023 to a profit of $2,264,000 in 2024[33] Assets and Liabilities - The company reported a total of $2,291,782 in current assets as of June 30, 2024, down from $2,627,356 as of December 31, 2023[21] - The company’s total assets decreased to $3,674,716 as of June 30, 2024, from $3,990,440 as of December 31, 2023[21] - The company’s total liabilities decreased to $2,560,984 as of June 30, 2024, from $2,985,032 as of December 31, 2023[21] - Total debt decreased by approximately $112,683 to $78,688 as of June 30, 2024, compared to December 31, 2023[19] - The company’s total leverage improved to approximately 0.8x as of June 30, 2024, compared to 1.5x as of December 31, 2023[19] Other Financial Metrics - The company emphasizes the importance of non-GAAP financial measurements like Adjusted EBITDA for evaluating its financial condition[35] - Forward-looking statements indicate potential risks including economic downturns, inflation, and supply chain disruptions that may impact future performance[40]

Financial Performance - Revenue for Q1 2024 was $476.3 million, an increase of 7.0% compared to Q1 2023[5] - Net income for Q1 2024 was $34.8 million, a 40.3% increase from $24.8 million in Q1 2023[5] - Adjusted EBITDA for Q1 2024 totaled $58.6 million, with an adjusted EBITDA margin of 12.3%[5] - Total revenue for Q1 2024 was $476,346, an increase of 6.5% compared to $445,371 in Q1 2023[26] - Net income attributable to common unitholders rose to $34,231, up 37.8% from $24,846 in the previous year[26] - Adjusted EBITDA for Q1 2024 was $58,560, a decrease of 7.8% from $63,131 in Q1 2023, resulting in an adjusted EBITDA margin of 12.3%[30] Segment Performance - The Financial Services segment saw an 18.5% increase in revenue, contributing $17.2 million to the overall revenue growth[7] - Financial Services revenue increased by 18.5% to $109,955 from $92,781 year-over-year[26] - Diversified Industrial segment revenue decreased to $292,440, down 3.2% from $304,426 in the same quarter last year[34] - Energy segment revenue fell by 33.6% to $31,921 compared to $48,164 in Q1 2023[34] - Supply Chain revenue was reported at $42,030, marking its first contribution as a new segment[34] Cash Flow and Debt - Net cash provided by operating activities was $197.5 million for Q1 2024[5] - Cash flows from operating activities provided $197,460 in Q1 2024, a significant improvement from a cash outflow of $48,248 in Q1 2023[28] - Total debt decreased to $92.8 million, down approximately $98.6 million from December 31, 2023[22] - The company reported a net cash position of $41,231 as of March 31, 2024, down from $56,376 at the end of 2023[30] - Adjusted free cash flow for Q1 2024 was $23.9 million, down from $33.4 million in Q1 2023[20] Tax and Expenditures - The effective tax rate for Q1 2024 was 23.8%, a decrease from 33.7% in Q1 2023[13] - Capital expenditures for Q1 2024 were $10.1 million, representing 2.1% of revenue[17] - The company repurchased 933,787 common units for $39.5 million during Q1 2024[18] Risks and Uncertainties - The Company identifies forward-looking statements that reflect current expectations and projections about future results, subject to various risks and uncertainties[41] - Factors affecting future performance include economic downturns, inflation, supply chain disruptions, and volatility in crude oil and commodity prices[41] - The Company faces risks related to compliance with legal and regulatory requirements, particularly in environmental and banking regulations[41] - Recent events in the financial services industry, including bank closures, may impact the Company's operations and profitability[41] - The Company is pursuing a business strategy that includes acquisitions, which may increase costs and affect profitability[41] - The Company emphasizes the importance of maintaining effective internal control over financial reporting to mitigate risks[41] - The Company has a dependence on its Manager, which may impact total partners' capital and operational decisions[41] - Investors are advised to review the "Risk Factors" section in the Company's SEC filings for detailed information on potential risks[41] Financial Metrics and Analysis - The Company relies on U.S. GAAP financial measures and considers Adjusted EBITDA, Adjusted EBITDA Margin, Net Debt, and Adjusted Free Cash Flow as supplemental information for analysis[38] - Adjusted EBITDA does not account for tax provisions, interest expenses, or cash requirements for asset replacement, which may affect its comparability with other companies[39]

Revenue Performance - Revenue for the three months ended March 31, 2024, increased by $30,975, or 7.0%, compared to the same period last year, driven by a $42,030 favorable impact from the consolidation of the Supply Chain segment and an 18.5% increase in the Financial Services segment [171]. - Total revenue for the three months ended March 31, 2024, was $476,346, an increase of 6.5% compared to $445,371 for the same period in 2023 [180]. - The Financial Services segment reported a revenue increase of $17,174, or 18.5%, contributing positively to overall revenue growth [171]. - Financial Services segment revenue increased by $17,174, or 18.5%, to $109,955 for the three months ended March 31, 2024, driven by higher interest income and fees [184]. - Energy segment net revenue decreased by $16,243, or 33.7%, to $31,921 for the three months ended March 31, 2024, primarily due to lower rig hours [183]. - Diversified Industrial segment net sales decreased by $11,986, or 3.9%, to $292,440 for the three months ended March 31, 2024, mainly due to lower sales volume in Tubing and Building Materials business units [181]. Expenses and Costs - Cost of goods sold for the same period increased by $12,863, or 4.9%, primarily due to the consolidation of the Supply Chain segment, partially offset by lower revenue volume from the Energy segment and lower sales from the Diversified Industrial segment [172]. - Selling, general and administrative expenses rose by $20,338, or 17.7%, mainly due to higher expenses in the Financial Services segment and the impact of the Supply Chain segment consolidation [173]. - Interest expense decreased significantly by $4,592, or 76.7%, due to lower average debt outstanding [174]. Net Income and Gains - Net income for the three months ended March 31, 2024, was $34,801, compared to $24,803 for the same period in 2023, reflecting improved operational performance [170]. - The Company recorded net gains of $4,068 for the three months ended March 31, 2024, compared to gains of $607 in the same period of 2023, attributed to mark-to-market adjustments on the securities portfolio [175]. - Net income for the three months ended March 31, 2024, was $34,801, compared to $24,803 for the same period in 2023, reflecting a year-over-year increase of 40.3% [180]. Tax and Financial Position - The effective tax rate for the three months ended March 31, 2024, was 23.8%, down from 33.7% in the same period last year, primarily due to tax incentives and the inclusion of Steel Connect tax attributes [177]. - The Company’s working capital decreased to $448,284 as of March 31, 2024, from $562,224 as of December 31, 2023 [195]. Cash Flow and Capital Expenditures - Cash provided by operating activities for the three months ended March 31, 2024, was $197,460, a significant improvement from cash used of $48,248 in the same period of 2023 [188]. - Capital expenditures for the three months ended March 31, 2024, were $10,066, compared to $10,708 for the same period in 2023 [195]. - The Company plans to continue capital expenditures in the range of $42,000 to $52,000 for the full year 2024, compared to $51,451 in 2023 [195]. Goodwill and Impairment - As of March 31, 2024, the goodwill for the Electrical Products reporting unit was $46,641 million, slightly down from $46,682 million as of December 31, 2023 [201]. - The fair value of the Electrical Products reporting unit exceeded its net book value by 11% as of December 1, 2023 [201]. - The Company did not identify indicators of impairment for the Electrical Products reporting unit as of March 31, 2024 [201]. - Goodwill at the Electrical Products reporting unit is at risk for future impairment if ongoing cash flow projections are not met [201]. Accounting Policies and Estimates - There were no material changes to critical accounting policies during the three months ended March 31, 2024 [202]. - Actual results could differ from estimates made in preparing the financial statements [202]. - There have been no material changes to quantitative and qualitative disclosures about market risk compared to the 2023 Annual Report [203].

Revenue Performance - Revenue for Q4 2023 was $466.9 million, a 10.5% increase from $422.6 million in Q4 2022[5] - Full year 2023 revenue reached $1.9 billion, up 12.4% from $1.7 billion in 2022[8] - Total revenue for the year ended December 31, 2023, was $1.905 billion, a 12.4% increase from $1.695 billion in 2022[39] - Financial Services revenue rose significantly to $416.9 million in 2023, compared to $228.0 million in 2022, marking an 83% increase[36] - Revenue from the Diversified Industrial segment for Q4 2023 was $275.394 million, down 8% from $299.553 million in Q4 2022[42] - Financial Services segment revenue increased to $112.341 million in Q4 2023, up 43.9% from $78.001 million in Q4 2022[42] Net Income - Net income for Q4 2023 was $42.7 million, down from $73.1 million in Q4 2022[25] - Full year net income for 2023 was $154.0 million, compared to $206.2 million in 2022[26] - Net income attributable to common unitholders for the year was $150.8 million, down from $206.2 million in 2022[36] - The company reported a net income per common unit of $7.04 for 2023, compared to $9.03 in 2022[36] - Net income from continuing operations for Q4 2023 was $42.697 million, a decrease of 41.5% compared to $73.083 million in Q4 2022[39] Cash Flow and Liquidity - Adjusted free cash flow for Q4 2023 totaled $87.6 million, significantly higher than $30.3 million in Q4 2022[28] - Cash and cash equivalents at the end of the period increased to $577.9 million from $234.4 million at the end of 2022[38] - As of December 31, 2023, the company had $399.3 million in available liquidity and $407.6 million in cash and cash equivalents, excluding WebBank cash[30] - The company reported a net cash position of $56.376 million as of December 31, 2023, compared to a net debt of $47.631 million in 2022[40] Expenses and Capital Expenditures - Adjusted EBITDA for Q4 2023 was $59.4 million, with an adjusted EBITDA margin of 12.7%[28] - Full year adjusted EBITDA was $240.6 million, with an adjusted EBITDA margin of 12.6%[29] - Selling, general and administrative expenses increased by 25.2% in Q4 2023 compared to Q4 2022, totaling $128.7 million[11] - Capital expenditures for Q4 2023 were $14.8 million, representing 3.2% of revenue[27] Debt and Liabilities - Total debt as of December 31, 2023, was $191.4 million, with net cash of $56.4 million[5] - Total debt increased to $191.4 million as of December 31, 2023, up by $11.0 million compared to the previous year[31] - The company’s total liabilities increased to $2.985 billion, up from $2.434 billion in the previous year[35] Risks and Uncertainties - The company anticipates significant risks and uncertainties that could affect its future results, including economic downturns and supply chain disruptions[51] - The ongoing Russia-Ukraine war and the conflict between Israel and Hamas have contributed to volatility in crude oil and commodity prices[51] - Rising interest rates may impact the company's financial performance and cash flow requirements[51] - The company is subject to extensive legal and regulatory requirements, including environmental and banking regulations[51] - There are risks associated with the company's wholly-owned subsidiary, WebBank, due to its FDIC status and highly-regulated lending programs[51] - Changes in U.S. trade policies and tax regulations could negatively impact the company's operations[51] - The company must maintain effective internal control over financial reporting to mitigate risks[51] - The company has outlined various risk factors in its SEC filings that could affect its results, including potential loss of significant customer contracts[51] Strategic Focus - The company plans to continue focusing on market expansion and new product development to drive future growth[43] - Adjusted EBITDA is defined as net income before interest, taxes, depreciation, and amortization, providing a clearer view of operational performance[44]