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Star Equity (STRR) - 2024 Q3 - Quarterly Results
STRRStar Equity (STRR)2024-11-19 13:43

Revenue Performance - Q3 2024 revenues increased by 30.9% to 13.7millionfrom13.7 million from 10.4 million in Q3 2023[2] - Year-to-date 2024 revenues increased by 14.5% to 36.3millionfrom36.3 million from 31.7 million in the same period in 2023[3] - Total revenues for the three months ended September 30, 2024, were 13,663million,anincreasefrom13,663 million, an increase from 10,435 million for the same period in 2023, representing a growth of 31.5%[24] - Total consolidated revenue for the nine months ended September 30, 2024, was 36,264million,a14.536,264 million, a 14.5% increase from 31,674 million in the same period of 2023[39] Profitability Metrics - Q3 2024 gross profit increased by 27.9% to 2.8millionfrom2.8 million from 2.2 million in Q3 2023[2] - Gross profit for the three months ended September 30, 2024, was 2,817million,comparedto2,817 million, compared to 2,203 million for the same period in 2023, reflecting a gross margin improvement[24] - Total gross profit for the nine months ended September 30, 2024, was 6,607million,downfrom6,607 million, down from 9,072 million in the same period of 2023[39] Net Loss and Earnings Per Share - Q3 2024 net loss from continuing operations was 2.0million,or2.0 million, or 0.61 per share, compared to a net loss of 2.4million,or2.4 million, or 0.75 per share in Q3 2023[9] - Year-to-date 2024 net loss from continuing operations was 8.0million,or8.0 million, or 2.53 per share, compared to a net loss of 3.7million,or3.7 million, or 1.19 per share in the same period in 2023[9] - The net loss attributable to common shareholders for the three months ended September 30, 2024, was 2,511million,comparedtoalossof2,511 million, compared to a loss of 3,101 million for the same period in 2023, showing a reduction in losses[24] - Basic and diluted net income (loss) per share for the three months ended September 30, 2024, was (0.61),animprovementfrom(0.61), an improvement from (0.75) in the same period last year[24] Operating Expenses - Operating expenses for the three months ended September 30, 2024, totaled 8,139million,upfrom8,139 million, up from 3,864 million in the same period last year, indicating a significant increase of 110.5%[24] - SG&A expenses increased by 115.9% in Q3 2024, primarily due to a 2.8millionimpairmentrelatedtoaninvestment[8]CashFlowandAssets−Cashflowfromoperationsfor9M2024wasanoutflowof2.8 million impairment related to an investment[8] Cash Flow and Assets - Cash flow from operations for 9M 2024 was an outflow of 3.7 million, compared to an inflow of 2.7millionfor9M2023[12]−Totalcurrentassetsdecreasedfrom2.7 million for 9M 2023[12] - Total current assets decreased from 39,152,000 as of December 31, 2023, to 25,250,000asofSeptember30,2024,adeclineofapproximately35.525,250,000 as of September 30, 2024, a decline of approximately 35.5%[27] - Cash and cash equivalents decreased from 18,326,000 as of December 31, 2023, to 5,492,000asofSeptember30,2024,adeclineofapproximately705,492,000 as of September 30, 2024, a decline of approximately 70%[27] Liabilities and Equity - Total liabilities rose significantly from 10,197,000 as of December 31, 2023, to 27,349,000asofSeptember30,2024,anincreaseofapproximately168.527,349,000 as of September 30, 2024, an increase of approximately 168.5%[27] - Stockholders' equity decreased from 65,299,000 as of December 31, 2023, to 58,374,000asofSeptember30,2024,adeclineofapproximately10.658,374,000 as of September 30, 2024, a decline of approximately 10.6%[27] Segment Performance - Income from continuing operations for Building Solutions segment was a loss of 578 million for the three months ended September 30, 2024, compared to a loss of 21millioninthesameperiodof2023[39]−Investmentssegmentreportedalossof21 million in the same period of 2023[39] - Investments segment reported a loss of 2,745 million for the three months ended September 30, 2024, compared to a loss of 71millioninthesameperiodof2023[39]−Segmentincome(loss)fromoperationsfortheninemonthsendedSeptember30,2024,wasalossof71 million in the same period of 2023[39] - Segment income (loss) from operations for the nine months ended September 30, 2024, was a loss of 11,997 million, compared to a loss of 3,545millioninthesameperiodof2023[39]OtherFinancialMetrics−Non−GAAPadjustedEBITDAforQ32024wasalossof3,545 million in the same period of 2023[39] Other Financial Metrics - Non-GAAP adjusted EBITDA for Q3 2024 was a loss of 0.3 million compared to a loss of 14thousandinQ32023[10]−Non−GAAPadjustednetincomefromcontinuingoperationsforthethreemonthsendedSeptember30,2024,wasalossof14 thousand in Q3 2023[10] - Non-GAAP adjusted net income from continuing operations for the three months ended September 30, 2024, was a loss of 915,000 compared to a gain of 204,000forthesameperiodin2023[29]−Thecompanyreportedanunrealizedlossonequitysecuritiesof204,000 for the same period in 2023[29] - The company reported an unrealized loss on equity securities of 221,000 for the three months ended September 30, 2024, compared to a gain of 971,000forthesameperiodin2023[29]−Thecompanyincurredtransactioncostsrelatedtomergersandacquisitionsamountingto971,000 for the same period in 2023[29] - The company incurred transaction costs related to mergers and acquisitions amounting to 218,000 for the three months ended September 30, 2024[29]