Steel Partners(SPLP) - 2024 Q3 - Quarterly Results

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]