Steel Partners(SPLP) - 2024 Q4 - Annual Results

Financial Performance - Revenue for Q4 2024 was $497.9 million, a 6.6% increase compared to Q4 2023[5] - Net income for Q4 2024 was $74.6 million, a 74.7% increase compared to Q4 2023[5] - Adjusted EBITDA for Q4 2024 was $84.7 million, with an adjusted EBITDA margin of 17.0%[5] - Full year 2024 revenue totaled $2.0 billion, a 6.4% increase compared to 2023[5] - Full year net income was $271.2 million, a 76.1% increase compared to 2023[5] - Adjusted EBITDA for the full year 2024 was $303.0 million, with an adjusted EBITDA margin of 14.9%[5] - Total revenue for the year ended December 31, 2024, was $2,027.8 million, an increase of 6.4% compared to $1,905.5 million in 2023[32] - Net income attributable to common unitholders for the year ended December 31, 2024, was $261.6 million, up from $150.8 million in 2023, representing a growth of 73.5%[32] - Net income for Q4 2024 was $74,602,000, compared to $42,697,000 in Q4 2023, representing a 74.7% increase[35] - Total revenue for Q4 2024 reached $497,920,000, up from $466,907,000 in Q4 2023, indicating a growth of 6.4%[38] - Adjusted EBITDA for Q4 2024 was $84,697,000, compared to $59,358,000 in Q4 2023, reflecting a 42.5% increase[35] - Adjusted EBITDA margin improved to 17.0% in Q4 2024 from 12.7% in Q4 2023[35] Cash Flow and Liquidity - Adjusted free cash flow for Q4 2024 was $72.5 million, compared to $87.6 million in Q4 2023[25] - The company reported a net cash provided by operating activities of $363.3 million for the year ended December 31, 2024, compared to $21.2 million in 2023[33] - As of December 31, 2024, the company had $470.0 million in available liquidity and $263.4 million in cash and cash equivalents, excluding WebBank cash[27] - Net cash position increased to $62,231,000 as of December 31, 2024, compared to $56,376,000 in 2023[36] - Adjusted free cash flow for Q4 2024 was $72,461,000, down from $87,587,000 in Q4 2023, a decrease of 17.5%[37] Debt and Assets - Total debt as of December 31, 2024, was $119.7 million, with net cash totaling $62.2 million[5] - Total debt decreased by $71.7 million to $119.7 million as of December 31, 2024, with net cash increasing by $5.9 million to $62.2 million[28] - The company’s total assets decreased to $3,580.3 million as of December 31, 2024, from $3,990.4 million in 2023[31] - The company’s total liabilities decreased to $2,406.8 million as of December 31, 2024, from $2,985.0 million in 2023[31] - Total debt decreased to $(119,655,000) as of December 31, 2024, from $(191,371,000) in 2023, a reduction of 37.4%[36] Investments and Shareholder Metrics - The company’s long-term investments increased to $84.7 million as of December 31, 2024, from $41.2 million in 2023[31] - The company’s weighted-average number of common units outstanding (basic) decreased to 20,006,429 for the year ended December 31, 2024, from 21,433,900 in 2023[32] - The company’s net income per common unit (basic) for the year ended December 31, 2024, was $13.07, compared to $7.04 in 2023, reflecting an increase of 85.5%[32] Segment Performance - The Financial Services segment contributed significantly to the increase in adjusted EBITDA due to higher revenue and lower credit loss provisions[26] - Revenue from the Diversified Industrial segment was $297,394,000 in Q4 2024, up from $275,394,000 in Q4 2023, a growth of 8.4%[38] - Financial Services segment revenue increased to $115,650,000 in Q4 2024 from $112,341,000 in Q4 2023, a rise of 3.0%[38] Risks and Compliance - The company identifies forward-looking statements using terms such as "expect," "anticipate," and "estimate," indicating its current expectations and projections for future performance[47] - Risks include economic downturns, inflation, supply chain disruptions, and volatility in crude oil and commodity prices due to geopolitical conflicts[47] - The company faces potential cash flow requirements from its subsidiaries' defined pension plans and must comply with extensive legal and regulatory requirements[47] - There are risks associated with the company's wholly-owned subsidiary, WebBank, including its FDIC status and capital requirements[47] - The company is exposed to risks from conducting business outside the U.S. and potential changes in U.S. trade policies[47] - The company must maintain effective internal control over financial reporting and protect its intellectual property rights[47] - The company is dependent on its Manager, which impacts total partners' capital and management fees[47] - The company must comply with the New York Stock Exchange listing standards and manage risks related to its investment portfolio[47] - Changes in tax rates, laws, or regulations could negatively impact operations and tax benefits[47] - The company acknowledges the potential loss of essential employees as a risk factor[47]