Financial Data and Key Metrics Changes - The company's Q2 2024 revenue increased by 51.6% compared to Q2 2023, driven by the inclusion of Timber Technologies revenue and a full quarter of revenue from Big Lake Lumber [5][6] - Gross margin declined by 14.9%, primarily due to a one-time purchase price adjustment related to the Timber Technologies acquisition [5][6] - The net loss from continuing operations was $3.8 million in Q2 2024, compared to a net loss of $1.4 million in Q2 2023 [9] - Non-GAAP adjusted net loss from continuing operations was $0.9 million, roughly the same as in Q2 2023, while adjusted EBITDA for continuing operations was a loss of $0.5 million [10] Business Line Data and Key Metrics Changes - The Building Solutions division's performance reflected a decline on an organic basis due to credit tightening impacting project funding and timing, although the sales pipeline remains strong [6][7] - The integration of Timber Technologies into the Building Solutions division is substantially complete, and it is expected to generate healthy cash flow and improve overall profitability [4][6] Market Data and Key Metrics Changes - The company's unrestricted cash balance at the end of Q2 2024 was $2.5 million, down from $21.4 million a year ago, reflecting significant cash outlay associated with the Timber Technologies acquisition [11] - The Investments division's holdings in public securities decreased to $3.8 million from $4.8 million a year ago [11] Company Strategy and Development Direction - The company announced a $1 million share buyback program to capitalize on perceived undervaluation of its common stock [5] - The recent investment in Enservco marks the company's entry into the energy services and transportation and logistics sectors, diversifying its portfolio beyond Building Solutions [12] Management's Comments on Operating Environment and Future Outlook - Management noted that visibility into future projects is becoming hazy, with many projects experiencing delays rather than cancellations, primarily due to financing issues [21][22] - There is cautious optimism for improvement in the second half of the year, although the extent of this improvement remains uncertain [21][22] Other Important Information - The company completed two sale-leaseback transactions totaling approximately $7.2 million in net proceeds, which will not impact operations [4][5] - A one-time impairment of $1.3 million related to a cost method equity investment in TTG was reported, impacting SG&A expenses [8][10] Q&A Session Summary Question: Benefits of structuring the acquisition of Enservco as a share interest - Management believes the common stock is undervalued and structured the acquisition to take an initial stake of around 20%, allowing for monitoring of the transition [13][14] Question: Accounting treatment for the share interest in Enservco - The investment will sit in the Investments division and will be treated as a mark-to-market position since the company does not have control over Enservco [15] Question: Impact of Timber Technologies acquisition on gross profit - The $574,000 impact on gross profit was due to a one-time accounting adjustment related to the valuation of finished goods inventory from the Timber Technologies acquisition [17] Question: Overall business tone and outlook for the second half - Management indicated that while projects are being delayed, they are not being canceled, and they expect some improvement in the second half of the year [21][22]

Monetizes Two Real Estate Assets for $8.3 Million Proceeds to be Deployed into Accretive Acquisitions OLD GREENWICH, Conn., July 19, 2024 (GLOBE NEWSWIRE) -- Star Equity Holdings, Inc. (Nasdaq: STRR; STRRP) ("Star" or the "Company"), a diversified holding company, announced today that Star Real Estate Holdings USA, Inc. ("SRE"), the real estate arm of the Company's Investments division, has closed two sale-leaseback transactions for its South Paris, Maine and Big Lake, Minnesota facilities, totaling approxi ...

OLD GREENWICH, Conn., July 01, 2024 (GLOBE NEWSWIRE) -- Star Equity Holdings, Inc. (Nasdaq: STRR; STRRP) ("Star" or the "Company"), a diversified holding company, announced today changes in the composition of its board of directors (the "Board") to better reflect the current businesses owned by Star and its go-forward strategy. Effective today, the Company has appointed Todd Fruhbeis, Jennifer Palmer, and Louis Parks as independent directors to its Board of Directors replacing legacy directors John Gildea a ...

Core Viewpoint - Star Equity Holdings, Inc. announced a reverse stock split of its common stock at a ratio of 1-for-5, effective after market close on June 14, 2024, to comply with Nasdaq's minimum bid price requirement [1][5]. Company Overview - Star Equity Holdings, Inc. is a diversified holding company with two main divisions: Building Solutions and Investments [13]. - The Building Solutions division operates in modular building manufacturing, structural wall panel and wood foundation manufacturing, and glue-laminated timber manufacturing [3][10]. - The Investments division manages and finances the company's real estate assets and investment positions in private and public companies [14]. Reverse Stock Split Details - The reverse stock split will reduce the number of outstanding shares from approximately 15,848,202 to about 3,169,640 [9]. - No fractional shares or cash will be issued; owners of fractional shares will receive one full share of post-split common stock [9][12]. - All stock options and warrants will be proportionally adjusted following the reverse split [9]. Compliance and Approval - The reverse stock split was approved by the company's common stockholders on June 20, 2023, and by the Board of Directors on May 24, 2024 [5].

OLD GREENWICH, Conn., May 22, 2024 (GLOBE NEWSWIRE) -- Star Equity Holdings, Inc. (NASDAQ:STRR, STRRP))) ("Star Equity" or the "Company"), a diversified holding company, announced today that its Board of Directors (the "Board") declared a cash dividend to holders of the Company's 10% Series A Cumulative Perpetual Preferred Stock of $0.25 per share. The record date for this dividend is June 1, 2024, and the payment date is June 11, 2024. About Star Equity Holdings, Inc. Star Equity Holdings, Inc. is a divers ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED March 31, 2024 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (203) 489-9500 (Registrant's Telephone Number, Including Area Code) Securities registered pursuant to Section 12(b) of the Act: FOR THE TRANSITION PERIOD FROM TO Star Equity Holdings, Inc. (Ex ...

Financial Data and Key Metrics Changes - The company reported a non-GAAP adjusted EBITDA loss of $1.1 million in Q1 2024, compared to a positive $0.8 million in Q1 2023 [2] - Consolidated cash flow from continuing operations was an outflow of $2.4 million in Q1 2024, down from an inflow of $5.1 million in Q1 2023 [6] - The net loss from continuing operations was $2.2 million in Q1 2024, compared to a net breakeven result in Q1 2023 [54] Business Line Data and Key Metrics Changes - The Building Solutions Division generated a non-GAAP adjusted EBITDA loss of $0.3 million in Q1 2024, down from a positive $2.2 million in Q1 2023 [2] - The Building Solutions Division reported revenues of $45.8 million and adjusted EBITDA of $4.4 million for the full year 2023 [11] Market Data and Key Metrics Changes - The company noted that its sales pipeline and signed backlog remain roughly equivalent to historical averages, indicating stable demand despite current challenges [40] - The engineered wood products market, which Timber Technologies operates in, is experiencing increasing adoption over structural alternatives, suggesting a growing market opportunity [9] Company Strategy and Development Direction - The acquisition of Timber Technologies is part of the company's growth strategy, aimed at creating additional shareholder value through targeted business development initiatives [30] - The company is focused on expanding its Building Solutions Division and exploring new opportunities within its investments division [40] Management's Comments on Operating Environment and Future Outlook - Management indicated that the weaker-than-expected results were primarily due to economic headwinds and financing delays affecting large commercial projects [49] - The company believes the impact of current challenges is temporary and anticipates strong demand for new construction in the markets it serves [40] Other Important Information - As of March 31, 2024, the company had $1.9 million in interest-bearing debt and a consolidated unrestricting cash balance of $14.7 million, up from $5.0 million a year ago [7] - The company has a vacant factory and is considering expansion opportunities for its glue-lam business [34] Q&A Session Summary Question: Can you talk about the synergies between Timber Technologies and the other components of Building Solutions? - Management indicated that while shipping products from Wisconsin to the East Coast may not be ideal, there are opportunities for expansion in their vacant factory [34] Question: What is the financing structure for the Timber Technologies acquisition? - The company utilized cash for the acquisition but also secured a $7 million acquisition term loan from Bridgewater Bank at a 7.85% rate [17] Question: Is the engineered wood products label applicable to existing operations at KBS and Edge Builder? - Management clarified that it is a different sector, but there are opportunities for expansion in both businesses [20]

Nasdaq: STRR / STRRP Star Equity Holdings Announces Acquisition of Timber Technologies A Colfax, WI-based manufacturer of Engineered Wood Products ("EWP") May 20, 2024 | --- | --- | --- | --- | --- | --- | |-------|---------------------------------------------|-------|-------|-------|-------| | | | | | | | | ✓ | Enters Engineered Wood Product Market | | | | | | ✓ | Diversifies Revenue Sources and End Markets | | | | | | ✓ | Substantially Improves Cash Flow | | | | | 1 www.starequity.com FORWARD LOOKING STAT ...

Old Greenwich, CT. - Star Equity Holdings, Inc. (Nasdaq: STRR; STRRP) ("Star" or the "Company"), a diversified holding company, reported today its financial results for the first quarter (Q1) ended March 31, 2024. All 2024 and 2023 amounts in this release are unaudited. Following the sale of our Digirad Health business on May 4, 2023, all financial results for the 2023 reporting period, unless stated otherwise, relate to continuing operations, which currently include two divisions: Building Solutions (forme ...

Core Insights - Star Equity Holdings, Inc. reported a significant decline in revenues and gross profit for Q1 2024 compared to Q1 2023, indicating challenges in its Building Solutions division due to economic headwinds and financing delays [5][7][8]. Financial Performance - Q1 2024 revenues decreased by 26.1% to $9.1 million from $12.3 million in Q1 2023 [5][6]. - Gross profit fell by 63.1% to $1.6 million from $4.3 million in the same period [7][9]. - The net loss from continuing operations was $2.2 million, or $0.14 per share, compared to a net income of $16 thousand, or $0.00 per share, in Q1 2023 [11][29]. Segment Performance - The Building Solutions division experienced a revenue decline of 26.1% due to slower business activity and project delays [4][8]. - The Investments division saw a revenue increase of 19.0%, from $158 thousand in Q1 2023 to $188 thousand in Q1 2024 [6][42]. Operating Expenses - Sales, general and administrative (SG&A) expenses increased by 11.1% to $4.1 million, with SG&A as a percentage of revenue rising to 44.9% from 29.8% in the prior year [10]. Cash Position - As of March 31, 2024, cash and cash equivalents increased to $14.7 million from $5.0 million at the same time last year [7][31]. Acquisition Strategy - The acquisition of Timber Technologies, effective May 17, 2024, is expected to enhance growth by diversifying revenue sources and expanding the client base [4][21].