Core Insights - Star Equity Holdings, Inc. reported a significant decline in revenues and gross profit for Q1 2024 compared to Q1 2023, indicating challenges in its Building Solutions division due to economic headwinds and financing delays [5][7][8]. Financial Performance - Q1 2024 revenues decreased by 26.1% to $9.1 million from $12.3 million in Q1 2023 [5][6]. - Gross profit fell by 63.1% to $1.6 million from $4.3 million in the same period [7][9]. - The net loss from continuing operations was $2.2 million, or $0.14 per share, compared to a net income of $16 thousand, or $0.00 per share, in Q1 2023 [11][29]. Segment Performance - The Building Solutions division experienced a revenue decline of 26.1% due to slower business activity and project delays [4][8]. - The Investments division saw a revenue increase of 19.0%, from $158 thousand in Q1 2023 to $188 thousand in Q1 2024 [6][42]. Operating Expenses - Sales, general and administrative (SG&A) expenses increased by 11.1% to $4.1 million, with SG&A as a percentage of revenue rising to 44.9% from 29.8% in the prior year [10]. Cash Position - As of March 31, 2024, cash and cash equivalents increased to $14.7 million from $5.0 million at the same time last year [7][31]. Acquisition Strategy - The acquisition of Timber Technologies, effective May 17, 2024, is expected to enhance growth by diversifying revenue sources and expanding the client base [4][21].
Star Equity Holdings, Inc. Announces 2024 First Quarter Financial Results