Core Insights - Star Equity Holdings, Inc. reported a significant increase in fourth quarter revenues and gross profit, with revenues rising 21.1% to $17.1 million and gross profit increasing 55.9% to $4.4 million compared to the same period in the previous year [6][7][9] - The company closed the acquisition of Alliance Drilling Tools (ADT) on March 4, 2025, establishing a new Energy Services division [2][5] - The Building Solutions division experienced strong performance due to the realization of pent-up demand and the adoption of factory-built construction, contributing to a year-end backlog of $17.2 million [5] Financial Performance - Q4 2024 revenues increased to $17.1 million from $14.1 million in Q4 2023, driven by higher activity in Building Solutions and contributions from Big Lake Lumber and Timber Technologies Solutions [6][8] - For FY 2024, total revenues reached $53.4 million, up 16.5% from $45.8 million in FY 2023 [7][8] - The gross profit for Q4 2024 was $4.4 million, compared to $2.9 million in Q4 2023, reflecting a gross margin increase to 26.0% [9][10] Operating Expenses and Cash Flow - Total operating expenses for Q4 2024 increased by $1.3 million, primarily due to the inclusion of operations from BLL and TT [11] - Cash flow from operations for Q4 2024 was an outflow of $1.5 million, compared to a neutral cash flow in the same period of the previous year [16] Net Income and Adjusted EBITDA - The net loss from continuing operations for Q4 2024 was $2.5 million, or $0.77 loss per share, compared to a net income of $1.8 million in Q4 2023 [12] - Non-GAAP adjusted EBITDA for Q4 2024 was a gain of $1.1 million, a significant improvement from a loss of $0.1 million in the same quarter of the prior year [15] Backlog and Future Outlook - The Building Solutions division ended Q4 2024 with a backlog of $17.2 million, indicating strong future revenue potential [5][17] - The company anticipates a positive start to 2025, supported by the integration of ADT and ongoing growth initiatives [5]
Star Equity Holdings, Inc. Announces 2024 Fourth Quarter and Full Year Financial Results