Steel Partners(US:SPLP)2024-11-08 21:31Revenue 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].