Steel Partners(SPLP) - 2024 Q2 - Quarterly Results

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]