Steel Partners(SPLP) - 2022 Q1 - Quarterly Report

Revenue and Income - Total revenue for the three months ended March 31, 2022, was $405,745, a 29% increase from $314,493 in the same period of 2021[29] - Net income for the three months ended March 31, 2022, was $4.541 million, a decrease of 91.5% compared to $53.342 million in the same period of 2021[152] - The Diversified Industrial segment generated revenue of $327.249 million, up 31.7% from $248.489 million year-over-year[152] - The Energy segment reported revenue of $38.317 million, an increase of 19.0% from $32.086 million year-over-year[152] - The Financial Services segment's revenue increased to $40.179 million, up 18.4% from $33.918 million in the prior year[152] Assets and Liabilities - The contract asset balance as of March 31, 2022, was $12,619, up from $12,014 as of December 31, 2021[32] - Contract liabilities decreased to $3,210 as of March 31, 2022, from $3,396 as of December 31, 2021[34] - Loans held for sale increased to $253,311 as of March 31, 2022, compared to $198,632 as of December 31, 2021[41] - Total loans receivable, net, was $784,179 as of March 31, 2022, down from $842,341 as of December 31, 2021[41] - The total outstanding loan balances as of March 31, 2022, were $797,995 million, a decrease from $856,266 million on December 31, 2021[47] - The company recorded liabilities of $10,095 million in accrued liabilities and $23,874 million in other non-current liabilities as of March 31, 2022, compared to $2,043 million and $23,801 million respectively as of December 31, 2021[119] Loan and Credit Information - The allowance for loan losses (ALLL) decreased by $109, or 1%, during the three months ended March 31, 2022[45] - As of March 31, 2022, the total allowance for loan losses (ALLL) was $13,816 million, a decrease from $13,925 million on December 31, 2021[46] - Commercial and industrial loans past due 90 days or more and still accruing interest were $4,050 million as of March 31, 2022, compared to $3,037 million on December 31, 2021[48] - The company had no nonaccrual loans as of March 31, 2022, and December 31, 2021[48] - The Company granted loan modifications on $5,485 million of loans, representing 0.69% of total loan balances as of March 31, 2022[54] Inventory and Investments - Total inventory as of March 31, 2022, was $196,989 million, an increase from $184,271 million as of December 31, 2021[55] - The Company reported a total of $228,226 million in long-term investments as of March 31, 2022, down from $261,080 million as of December 31, 2021[64] - The fair value of precious metal and commodity inventories is based on quoted market prices and is considered a Level 1 measurement[110] - The company reported unrealized losses of $764 million in long-term investments as of March 31, 2022[112] Environmental and Legal Matters - The estimated range of potential losses for environmental liabilities is between $10,500 million and $17,500 million, with a reserve of $14,000 million recorded for future remediation costs[124] - The Company has established a reserve of approximately $1,000 for its expected 25% share of anticipated costs related to environmental remediation in New Jersey, based on a recent final remedy selection and ongoing operations[125] - The Company recorded a charge of $12,500 in Selling, General and Administrative expenses for a legal settlement related to a stockholder class action, with insurance carriers contributing $17,500 towards the settlement amount[129] - The Company intends to assert all legal and procedural defenses available in ongoing litigation matters, including environmental claims and stockholder lawsuits[126][129] Financial Ratios and Capital - As of March 31, 2022, the total capital to risk-weighted assets ratio was 23.90%, with total capital amounting to $264,964 million[155] - Tier 1 capital to risk-weighted assets ratio was 22.70%, with Tier 1 capital amounting to $251,148 million[155] - Common Equity Tier 1 capital to risk-weighted assets ratio was 22.70%, with Common Equity Tier 1 capital also at $251,148 million[155] Other Financial Activities - The company repurchased 268,623 common units for a total cost of $10,418,000 during the three months ended March 31, 2022, with a total of 6,520,868 common units repurchased since the program's inception[92] - The company declared cash distributions of approximately $2,408,000 to preferred unitholders for both the three months ended March 31, 2022, and 2021[94] - The company received forgiveness payments from the SBA totaling $114,843 million during the three months ended March 31, 2022[53] - The company acquired an interest in PCS-Mosaic Co-Invest L.P. for approximately $24,000 million on April 1, 2022[157]