Steel Partners(SPLP) - 2024 Q1 - Quarterly Results

Financial Performance - Revenue for Q1 2024 was $476.3 million, an increase of 7.0% compared to Q1 2023[5] - Net income for Q1 2024 was $34.8 million, a 40.3% increase from $24.8 million in Q1 2023[5] - Adjusted EBITDA for Q1 2024 totaled $58.6 million, with an adjusted EBITDA margin of 12.3%[5] - Total revenue for Q1 2024 was $476,346, an increase of 6.5% compared to $445,371 in Q1 2023[26] - Net income attributable to common unitholders rose to $34,231, up 37.8% from $24,846 in the previous year[26] - Adjusted EBITDA for Q1 2024 was $58,560, a decrease of 7.8% from $63,131 in Q1 2023, resulting in an adjusted EBITDA margin of 12.3%[30] Segment Performance - The Financial Services segment saw an 18.5% increase in revenue, contributing $17.2 million to the overall revenue growth[7] - Financial Services revenue increased by 18.5% to $109,955 from $92,781 year-over-year[26] - Diversified Industrial segment revenue decreased to $292,440, down 3.2% from $304,426 in the same quarter last year[34] - Energy segment revenue fell by 33.6% to $31,921 compared to $48,164 in Q1 2023[34] - Supply Chain revenue was reported at $42,030, marking its first contribution as a new segment[34] Cash Flow and Debt - Net cash provided by operating activities was $197.5 million for Q1 2024[5] - Cash flows from operating activities provided $197,460 in Q1 2024, a significant improvement from a cash outflow of $48,248 in Q1 2023[28] - Total debt decreased to $92.8 million, down approximately $98.6 million from December 31, 2023[22] - The company reported a net cash position of $41,231 as of March 31, 2024, down from $56,376 at the end of 2023[30] - Adjusted free cash flow for Q1 2024 was $23.9 million, down from $33.4 million in Q1 2023[20] Tax and Expenditures - The effective tax rate for Q1 2024 was 23.8%, a decrease from 33.7% in Q1 2023[13] - Capital expenditures for Q1 2024 were $10.1 million, representing 2.1% of revenue[17] - The company repurchased 933,787 common units for $39.5 million during Q1 2024[18] Risks and Uncertainties - The Company identifies forward-looking statements that reflect current expectations and projections about future results, subject to various risks and uncertainties[41] - Factors affecting future performance include economic downturns, inflation, supply chain disruptions, and volatility in crude oil and commodity prices[41] - The Company faces risks related to compliance with legal and regulatory requirements, particularly in environmental and banking regulations[41] - Recent events in the financial services industry, including bank closures, may impact the Company's operations and profitability[41] - The Company is pursuing a business strategy that includes acquisitions, which may increase costs and affect profitability[41] - The Company emphasizes the importance of maintaining effective internal control over financial reporting to mitigate risks[41] - The Company has a dependence on its Manager, which may impact total partners' capital and operational decisions[41] - Investors are advised to review the "Risk Factors" section in the Company's SEC filings for detailed information on potential risks[41] Financial Metrics and Analysis - The Company relies on U.S. GAAP financial measures and considers Adjusted EBITDA, Adjusted EBITDA Margin, Net Debt, and Adjusted Free Cash Flow as supplemental information for analysis[38] - Adjusted EBITDA does not account for tax provisions, interest expenses, or cash requirements for asset replacement, which may affect its comparability with other companies[39]