Steel Partners Holdings Reports Third Quarter Financial Results
Third Quarter 2024 Results
-
Revenue was
$520.4 million , an increase of 5.7% as compared to the same period in the prior year -
Net income was
$36.9 million , an increase of 32.2% as compared to the same period in the prior year -
Net income attributable to common unitholders was
$36.4 million , or$1.65 per diluted common unit -
Adjusted EBITDA* totaled
$76.0 million ; Adjusted EBITDA margin* was 14.6% -
Net cash provided by operating activities was
$101.8 million -
Adjusted free cash flow* totaled
$34.3 million -
Total debt at quarter-end was
$120.2 million ; net cash*, which includes, among other items, pension and preferred unit liabilities, and long-term investments was$5.9 million
YTD 2024 Results
-
Revenue was
$1.5 billion , an increase of 6.4% as compared to the same period in the prior year -
Net income was
$196.6 million , an increase of 76.6% as compared to the same period in the prior year -
Net income attributable to common unitholders was
$187.0 million , or$8.02 per diluted common unit -
Adjusted EBITDA* totaled
$218.3 million ; Adjusted EBITDA margin* was 14.3% -
Net cash provided by operating activities was
$368.2 million -
Adjusted free cash flow* totaled
$96.8 million
(Unaudited) |
|
|
|
|
|
|
||
Q3 2024 |
|
Q3 2023 |
|
($ in thousands) |
|
YTD 2024 |
|
YTD 2023 |
|
|
|
|
Revenue |
|
|
|
|
36,873 |
|
27,887 |
|
Net income |
|
196,620 |
|
111,305 |
36,416 |
|
25,572 |
|
Net income attributable to common unitholders |
|
186,985 |
|
109,568 |
75,953 |
|
44,464 |
|
Adjusted EBITDA* |
|
218,320 |
|
181,201 |
14.6% |
|
9.0% |
|
Adjusted EBITDA margin* |
|
14.3% |
|
12.6% |
37,349 |
|
13,116 |
|
Purchases of property, plant and equipment |
|
55,712 |
|
36,667 |
34,338 |
|
85,536 |
|
Adjusted free cash flow* |
|
96,796 |
|
148,393 |
*Non-GAAP financial measure. See reconciliations to the nearest GAAP measure included in the financial tables. See "Note Regarding Use of Non-GAAP Financial Measurements" below for the definition of these non-GAAP measures. |
"We are proud to announce continued record revenue this quarter, driven by robust performance across multiple segments,” said Executive Chairman
Results of Operations
Comparison of the Three and Nine Months Ended
(Dollar amounts in table and commentary in thousands, unless otherwise indicated) |
Three Months Ended
|
|
Nine Months Ended
|
|||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||||
Revenue |
$ |
520,423 |
|
$ |
492,254 |
|
|
$ |
1,529,928 |
|
|
$ |
1,438,550 |
|
Cost of goods sold |
|
295,577 |
|
|
283,285 |
|
|
|
872,929 |
|
|
|
833,977 |
|
Selling, general and administrative expenses |
|
137,310 |
|
|
124,934 |
|
|
|
412,301 |
|
|
|
376,252 |
|
Asset impairment charge |
|
530 |
|
|
— |
|
|
|
530 |
|
|
|
329 |
|
Interest expense |
|
1,993 |
|
|
4,115 |
|
|
|
5,074 |
|
|
|
15,934 |
|
Realized and unrealized losses (gains) on securities, net |
|
2,060 |
|
|
(8,665 |
) |
|
|
(2,994 |
) |
|
|
(6,151 |
) |
All other expense, net* |
|
29,856 |
|
|
58,539 |
|
|
|
77,367 |
|
|
|
96,667 |
|
Total costs and expenses |
|
467,326 |
|
|
462,208 |
|
|
|
1,365,207 |
|
|
|
1,317,008 |
|
Income from operations before income taxes and equity method investments |
|
53,097 |
|
|
30,046 |
|
|
|
164,721 |
|
|
|
121,542 |
|
Income tax provision (benefit) |
|
16,224 |
|
|
(981 |
) |
|
|
(31,906 |
) |
|
|
(1,707 |
) |
Loss of associated companies, net of taxes |
|
— |
|
|
3,140 |
|
|
|
7 |
|
|
|
11,944 |
|
Net income |
$ |
36,873 |
|
$ |
27,887 |
|
|
$ |
196,620 |
|
|
$ |
111,305 |
|
* Includes Finance interest expense, Provision for credit losses, and Other expense (income), net from the Consolidated Statements of Operations |
Revenue
Revenue for the three months ended
Revenue for the nine months ended
Cost of Goods Sold
Cost of goods sold for the three months ended
Cost of goods sold for the nine months ended
Selling, General and Administrative Expenses
Selling, general and administrative expenses ("SG&A") for the three months ended
SG&A for the nine months ended
Interest Expense
Interest expense decreased
Realized and Unrealized Losses (Gains) on Securities, Net
The Company recorded losses of
All Other Expense, Net
All other expense, net totaled
Income Tax Provision (Benefit)
The Company recorded an income tax provision of
Loss of Associated Companies, Net of Taxes
The Company recorded a loss from associated companies, net of taxes, of
Net Income
Net income for the three and nine months ended
Purchases of Property, Plant and Equipment (Capital Expenditures)
Capital expenditures for the three and nine months ended
Common Units Repurchase Program
The Company repurchased, under the Repurchase Program, 13,813 and 991,157 common units for an aggregate purchase price of
On
Preferred Units Repurchase Program
On
Additional Non-GAAP Financial Measures
Adjusted EBITDA was
Adjusted EBITDA was
Liquidity and Capital Resources
As of
As of
About Steel Partners Holdings L.P.
Steel Partners Holdings L.P. (www.steelpartners.com) is a diversified global holding company that owns and operates businesses and has significant interests in various companies, including diversified industrial products, energy, defense, supply chain management and logistics, banking and youth sports. At Steel Partners, our culture and core values of Teamwork, Respect, Integrity, and Commitment guide our Kids First purpose, which is to forge a path of success for the next generation by instilling values, building character, and teaching life lessons through sports.
(Financial Tables Follow)
Consolidated Balance Sheets
|
(Unaudited) |
|
|
||||
(in thousands, except common units) |
|
|
|
||||
ASSETS |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
388,124 |
|
|
$ |
577,928 |
|
Trade and other receivables - net of allowance for doubtful accounts of |
|
240,473 |
|
|
|
216,429 |
|
Loans receivable, including loans held for sale of |
|
1,430,323 |
|
|
|
1,582,536 |
|
Inventories, net |
|
210,714 |
|
|
|
202,294 |
|
Prepaid expenses and other current assets |
|
48,311 |
|
|
|
48,169 |
|
Total current assets |
|
2,317,945 |
|
|
|
2,627,356 |
|
Long-term loans receivable, net |
|
236,603 |
|
|
|
386,072 |
|
|
|
145,958 |
|
|
|
148,838 |
|
Other intangible assets, net |
|
101,555 |
|
|
|
114,177 |
|
Deferred tax assets |
|
81,397 |
|
|
|
581 |
|
Other non-current assets |
|
328,423 |
|
|
|
341,465 |
|
Property, plant and equipment, net |
|
278,882 |
|
|
|
253,980 |
|
Operating lease right-of-use assets |
|
64,983 |
|
|
|
76,746 |
|
Long-term investments |
|
78,329 |
|
|
|
41,225 |
|
Total Assets |
$ |
3,634,075 |
|
|
$ |
3,990,440 |
|
LIABILITIES AND CAPITAL |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
154,643 |
|
|
$ |
131,922 |
|
Accrued liabilities |
|
98,868 |
|
|
|
117,943 |
|
Deposits |
|
1,475,481 |
|
|
|
1,711,585 |
|
Other current liabilities |
|
91,589 |
|
|
|
103,682 |
|
Total current liabilities |
|
1,820,581 |
|
|
|
2,065,132 |
|
Long-term deposits |
|
258,780 |
|
|
|
370,107 |
|
Long-term debt |
|
120,104 |
|
|
|
191,304 |
|
Other borrowings |
|
2,068 |
|
|
|
15,065 |
|
Preferred unit liability |
|
155,065 |
|
|
|
154,925 |
|
Accrued pension liabilities |
|
43,198 |
|
|
|
46,195 |
|
Deferred tax liabilities |
|
35,073 |
|
|
|
18,353 |
|
Long-term operating lease liabilities |
|
52,094 |
|
|
|
61,790 |
|
Other non-current liabilities |
|
63,439 |
|
|
|
62,161 |
|
Total Liabilities |
|
2,550,402 |
|
|
|
2,985,032 |
|
Commitments and Contingencies |
|
|
|
||||
Capital: |
|
|
|
||||
Partners' capital common units: 19,183,332 and 21,296,067 issued and outstanding (after deducting 20,626,267 and 18,367,307 units held in treasury, at cost of |
|
1,164,004 |
|
|
|
1,079,853 |
|
Accumulated other comprehensive loss |
|
(121,147 |
) |
|
|
(121,223 |
) |
|
|
1,042,857 |
|
|
|
958,630 |
|
Noncontrolling interests in consolidated entities |
|
40,816 |
|
|
|
46,778 |
|
Total Capital |
|
1,083,673 |
|
|
|
1,005,408 |
|
Total Liabilities and Capital |
$ |
3,634,075 |
|
|
$ |
3,990,440 |
|
Consolidated Statements of Operations (unaudited)
(in thousands, except common units and per common unit data) |
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenue: |
|
|
|
|
|
|
|
||||||||
|
$ |
318,642 |
|
|
$ |
299,098 |
|
|
$ |
945,576 |
|
|
$ |
918,570 |
|
Energy net revenue |
|
40,266 |
|
|
|
46,742 |
|
|
|
109,182 |
|
|
|
145,220 |
|
Financial Services revenue |
|
113,027 |
|
|
|
106,405 |
|
|
|
338,575 |
|
|
|
304,570 |
|
Supply Chain revenue |
|
48,488 |
|
|
|
40,009 |
|
|
|
136,595 |
|
|
|
70,190 |
|
Total revenue |
|
520,423 |
|
|
|
492,254 |
|
|
|
1,529,928 |
|
|
|
1,438,550 |
|
Costs and expenses: |
|
|
|
|
|
|
|
||||||||
Cost of goods sold |
|
295,577 |
|
|
|
283,285 |
|
|
|
872,929 |
|
|
|
833,977 |
|
Selling, general and administrative expenses |
|
137,310 |
|
|
|
124,934 |
|
|
|
412,301 |
|
|
|
376,252 |
|
Asset impairment charge |
|
530 |
|
|
|
— |
|
|
|
530 |
|
|
|
329 |
|
Finance interest expense |
|
22,648 |
|
|
|
22,371 |
|
|
|
69,697 |
|
|
|
54,494 |
|
Provision for credit losses |
|
7,085 |
|
|
|
36,969 |
|
|
|
10,159 |
|
|
|
47,979 |
|
Interest expense |
|
1,993 |
|
|
|
4,115 |
|
|
|
5,074 |
|
|
|
15,934 |
|
Realized and unrealized losses (gains) on securities, net |
|
2,060 |
|
|
|
(8,665 |
) |
|
|
(2,994 |
) |
|
|
(6,151 |
) |
Other expense (income), net |
|
123 |
|
|
|
(801 |
) |
|
|
(2,489 |
) |
|
|
(5,806 |
) |
Total costs and expenses |
|
467,326 |
|
|
|
462,208 |
|
|
|
1,365,207 |
|
|
|
1,317,008 |
|
Income from operations before income taxes and equity method investments |
|
53,097 |
|
|
|
30,046 |
|
|
|
164,721 |
|
|
|
121,542 |
|
Income tax provision (benefit) |
|
16,224 |
|
|
|
(981 |
) |
|
|
(31,906 |
) |
|
|
(1,707 |
) |
Loss of associated companies, net of taxes |
|
— |
|
|
|
3,140 |
|
|
|
7 |
|
|
|
11,944 |
|
Net income |
|
36,873 |
|
|
|
27,887 |
|
|
|
196,620 |
|
|
|
111,305 |
|
Net income attributable to noncontrolling interests in consolidated entities |
|
(457 |
) |
|
|
(2,315 |
) |
|
|
(9,635 |
) |
|
|
(1,737 |
) |
Net income attributable to common unitholders |
$ |
36,416 |
|
|
$ |
25,572 |
|
|
$ |
186,985 |
|
|
$ |
109,568 |
|
Net income per common unit - basic |
|
|
|
|
|
|
|
||||||||
Net income attributable to common unitholders |
$ |
1.83 |
|
|
$ |
1.20 |
|
|
$ |
9.19 |
|
|
$ |
5.10 |
|
Net income per common unit - diluted |
|
|
|
|
|
|
|
||||||||
Net income attributable to common unitholders |
$ |
1.65 |
|
|
$ |
1.14 |
|
|
$ |
8.02 |
|
|
$ |
4.68 |
|
Weighted-average number of common units outstanding - basic |
|
19,929,713 |
|
|
|
21,298,871 |
|
|
|
20,338,033 |
|
|
|
21,495,689 |
|
Weighted-average number of common units outstanding - diluted |
|
23,985,875 |
|
|
|
25,081,210 |
|
|
|
24,470,418 |
|
|
|
25,360,324 |
|
Consolidated Statements of Cash Flows (unaudited)
(in thousands) |
Nine Months Ended |
||||||
|
|
2024 |
|
|
|
2023 |
|
Cash flows from operating activities: |
|
|
|
||||
Net income |
$ |
196,620 |
|
|
$ |
111,305 |
|
Adjustments to reconcile net income from operations to net cash (used in) provided by operating activities: |
|
|
|
||||
Provision for credit losses |
|
10,159 |
|
|
|
47,979 |
|
Loss of associated companies, net of taxes |
|
7 |
|
|
|
11,944 |
|
Realized and unrealized gains on securities, net |
|
(2,994 |
) |
|
|
(6,151 |
) |
Derivative gains on economic interests in loans |
|
(4,187 |
) |
|
|
(3,762 |
) |
Non-cash pension expense |
|
4,199 |
|
|
|
8,948 |
|
Deferred income taxes |
|
(65,224 |
) |
|
|
(30,390 |
) |
Depreciation and amortization |
|
43,839 |
|
|
|
41,433 |
|
Non-cash lease expense |
|
17,342 |
|
|
|
12,710 |
|
Equity-based compensation |
|
1,668 |
|
|
|
1,007 |
|
Asset impairment charges |
|
530 |
|
|
|
329 |
|
Other |
|
1,317 |
|
|
|
2,193 |
|
Net change in operating assets and liabilities: |
|
|
|
||||
Trade and other receivables |
|
(24,479 |
) |
|
|
(12,999 |
) |
Inventories |
|
(8,243 |
) |
|
|
6,241 |
|
Prepaid expenses and other assets |
|
2,544 |
|
|
|
(1,038 |
) |
Accounts payable, accrued and other liabilities |
|
(20,590 |
) |
|
|
(4,689 |
) |
Net decrease (increase) in loans held for sale |
|
215,665 |
|
|
|
(173,385 |
) |
Net cash provided by operating activities |
$ |
368,173 |
|
|
$ |
11,675 |
|
Cash flows from investing activities: |
|
|
|
||||
Purchases of investments |
|
(50,706 |
) |
|
|
(204,611 |
) |
Proceeds from sales of investments |
|
13,788 |
|
|
|
207,893 |
|
Proceeds from maturities of investments |
|
16,832 |
|
|
|
41,058 |
|
Principal repayment on Steel Connect Convertible Note |
|
— |
|
|
|
1,000 |
|
Loan originations, net of collections |
|
76,790 |
|
|
|
(242,667 |
) |
Purchases of property, plant and equipment |
|
(55,712 |
) |
|
|
(36,667 |
) |
Proceeds from sale of property, plant and equipment |
|
1,501 |
|
|
|
490 |
|
Increase in cash upon consolidation of Steel Connect |
|
— |
|
|
|
65,896 |
|
Other |
|
(181 |
) |
|
|
(1,084 |
) |
Net cash provided by (used in) investing activities |
$ |
2,312 |
|
|
$ |
(168,692 |
) |
Cash flows from financing activities: |
|
|
|
||||
Net revolver (repayments) borrowings |
|
(71,149 |
) |
|
|
6,910 |
|
Repayments of term loans |
|
(51 |
) |
|
|
(51 |
) |
Purchases of the Company's common units |
|
(105,070 |
) |
|
|
(19,727 |
) |
Purchases of the Company's preferred units |
|
(1,830 |
) |
|
|
— |
|
Net decrease in other borrowings |
|
(10,528 |
) |
|
|
(21,277 |
) |
Distribution to preferred unitholders |
|
(7,139 |
) |
|
|
(7,225 |
) |
Purchase of subsidiary shares from noncontrolling interests |
|
(16,181 |
) |
|
|
(2,784 |
) |
Tax withholding related to vesting of restricted units |
|
(1,059 |
) |
|
|
(433 |
) |
Net (decrease) increase in deposits |
|
(347,430 |
) |
|
|
531,006 |
|
Net cash (used in) provided by financing activities |
$ |
(560,437 |
) |
|
$ |
486,419 |
|
Net change for the period |
|
(189,952 |
) |
|
|
329,402 |
|
Effect of exchange rate changes on cash and cash equivalents |
|
148 |
|
|
|
(1,701 |
) |
Cash, cash equivalents and restricted cash at beginning of period |
|
577,928 |
|
|
|
234,448 |
|
Cash, cash equivalents and restricted cash at end of period |
$ |
388,124 |
|
|
$ |
562,149 |
|
Supplemental Balance Sheet Data (
(in thousands, except common and preferred units) |
|
|
|
||
|
2024 |
|
2023 |
||
Cash and cash equivalents |
$ |
388,124 |
|
$ |
577,928 |
|
|
142,110 |
|
|
170,286 |
Cash and cash equivalents, excluding |
$ |
246,014 |
|
$ |
407,642 |
Common units outstanding |
|
19,183,332 |
|
|
21,296,067 |
Preferred units outstanding |
|
6,345,982 |
|
|
6,422,128 |
Supplemental Non-GAAP Disclosures
Adjusted EBITDA Reconciliation: |
(Unaudited) |
||||||||||||||
(in thousands) |
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net income |
$ |
36,873 |
|
|
$ |
27,887 |
|
|
$ |
196,620 |
|
|
$ |
111,305 |
|
Income tax provision (benefit) |
|
16,224 |
|
|
|
(981 |
) |
|
|
(31,906 |
) |
|
|
(1,707 |
) |
Income before income taxes |
|
53,097 |
|
|
|
26,906 |
|
|
|
164,714 |
|
|
|
109,598 |
|
Add (Deduct): |
|
|
|
|
|
|
|
||||||||
Loss of associated companies, net of taxes |
|
— |
|
|
|
3,140 |
|
|
|
7 |
|
|
|
11,944 |
|
Realized and unrealized losses (gains) on securities, net |
|
2,060 |
|
|
|
(8,665 |
) |
|
|
(2,994 |
) |
|
|
(6,151 |
) |
Interest expense |
|
1,993 |
|
|
|
4,115 |
|
|
|
5,074 |
|
|
|
15,934 |
|
Depreciation |
|
10,728 |
|
|
|
10,255 |
|
|
|
31,000 |
|
|
|
29,222 |
|
Amortization |
|
4,268 |
|
|
|
4,438 |
|
|
|
12,839 |
|
|
|
12,211 |
|
Asset impairment charge |
|
530 |
|
|
|
— |
|
|
|
530 |
|
|
|
329 |
|
Non-cash pension expense |
|
1,399 |
|
|
|
2,979 |
|
|
|
4,199 |
|
|
|
8,948 |
|
Non-cash equity-based compensation |
|
743 |
|
|
|
599 |
|
|
|
1,612 |
|
|
|
1,007 |
|
Other items, net |
|
1,135 |
|
|
|
697 |
|
|
|
1,339 |
|
|
|
(1,841 |
) |
Adjusted EBITDA |
$ |
75,953 |
|
|
$ |
44,464 |
|
|
$ |
218,320 |
|
|
$ |
181,201 |
|
|
|
|
|
|
|
|
|
||||||||
Total revenue |
$ |
520,423 |
|
|
$ |
492,254 |
|
|
$ |
1,529,928 |
|
|
$ |
1,438,550 |
|
Adjusted EBITDA margin |
|
14.6 |
% |
|
|
9.0 |
% |
|
|
14.3 |
% |
|
|
12.6 |
% |
Net Cash Reconciliation: |
(Unaudited) |
|
|
||||
(in thousands) |
|
|
|
||||
|
|
2024 |
|
|
|
2023 |
|
Total debt |
$ |
(120,171 |
) |
|
$ |
(191,371 |
) |
Accrued pension liabilities |
|
(43,198 |
) |
|
|
(46,195 |
) |
Preferred unit liability |
|
(155,065 |
) |
|
|
(154,925 |
) |
Cash and cash equivalents, excluding |
|
246,014 |
|
|
|
407,642 |
|
Long-term investments |
|
78,329 |
|
|
|
41,225 |
|
Net cash |
$ |
5,909 |
|
|
$ |
56,376 |
|
Adjusted Free Cash Flow Reconciliation: |
(Unaudited) |
||||||||||||||
(in thousands) |
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net cash provided by operating activities |
$ |
101,758 |
|
|
$ |
66,186 |
|
|
$ |
368,173 |
|
|
$ |
11,675 |
|
Purchases of property, plant and equipment |
|
(37,349 |
) |
|
|
(13,116 |
) |
|
|
(55,712 |
) |
|
|
(36,667 |
) |
Net (decrease) increase in loans held for sale |
|
(30,071 |
) |
|
|
32,466 |
|
|
|
(215,665 |
) |
|
|
173,385 |
|
Adjusted free cash flow |
$ |
34,338 |
|
|
$ |
85,536 |
|
|
$ |
96,796 |
|
|
$ |
148,393 |
|
Segment Results (unaudited)
(in thousands) |
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenue: |
|
|
|
|
|
|
|
||||||||
|
$ |
318,642 |
|
|
$ |
299,098 |
|
|
$ |
945,576 |
|
|
$ |
918,570 |
|
Energy |
|
40,266 |
|
|
|
46,742 |
|
|
|
109,182 |
|
|
|
145,220 |
|
Financial Services |
|
113,027 |
|
|
|
106,405 |
|
|
|
338,575 |
|
|
|
304,570 |
|
Supply Chain |
$ |
48,488 |
|
|
$ |
40,009 |
|
|
$ |
136,595 |
|
|
$ |
70,190 |
|
Total revenue |
$ |
520,423 |
|
|
$ |
492,254 |
|
|
$ |
1,529,928 |
|
|
$ |
1,438,550 |
|
|
|
|
|
|
|
|
|
||||||||
Income (loss) before interest expense and income taxes: |
|
|
|
|
|
|
|
||||||||
|
$ |
26,346 |
|
|
$ |
14,756 |
|
|
$ |
66,175 |
|
|
$ |
61,015 |
|
Energy |
|
3,466 |
|
|
|
5,968 |
|
|
|
8,149 |
|
|
|
15,239 |
|
Financial Services |
|
23,945 |
|
|
|
(2,588 |
) |
|
|
80,846 |
|
|
|
48,246 |
|
Supply Chain |
|
2,637 |
|
|
|
4,011 |
|
|
|
8,870 |
|
|
|
5,846 |
|
Corporate and other |
|
(1,304 |
) |
|
|
8,874 |
|
|
|
5,748 |
|
|
|
(4,814 |
) |
Income before interest expense and income taxes: |
|
55,090 |
|
|
|
31,021 |
|
|
|
169,788 |
|
|
|
125,532 |
|
Interest expense |
|
1,993 |
|
|
|
4,115 |
|
|
|
5,074 |
|
|
|
15,934 |
|
Income tax provision (benefit) |
|
16,224 |
|
|
|
(981 |
) |
|
|
(31,906 |
) |
|
|
(1,707 |
) |
Net income |
$ |
36,873 |
|
|
$ |
27,887 |
|
|
$ |
196,620 |
|
|
$ |
111,305 |
|
|
|
|
|
|
|
|
|
||||||||
Loss of associated companies, net of taxes: |
|
|
|
|
|
|
|
||||||||
Corporate and other |
$ |
— |
|
|
$ |
3,140 |
|
|
$ |
7 |
|
|
$ |
11,944 |
|
Total |
$ |
— |
|
|
$ |
3,140 |
|
|
$ |
7 |
|
|
$ |
11,944 |
|
|
|
|
|
|
|
|
|
||||||||
Segment depreciation and amortization: |
|
|
|
|
|
|
|
||||||||
|
$ |
10,604 |
|
|
$ |
10,257 |
|
|
$ |
31,743 |
|
|
$ |
30,333 |
|
Energy |
|
2,161 |
|
|
|
2,740 |
|
|
|
6,482 |
|
|
|
7,732 |
|
Financial Services |
|
233 |
|
|
|
205 |
|
|
|
620 |
|
|
|
630 |
|
Supply Chain |
|
1,450 |
|
|
|
1,324 |
|
|
|
4,145 |
|
|
|
2,234 |
|
Corporate and other |
|
548 |
|
|
|
167 |
|
|
|
849 |
|
|
|
504 |
|
Total depreciation and amortization |
$ |
14,996 |
|
|
$ |
14,693 |
|
|
$ |
43,839 |
|
|
$ |
41,433 |
|
|
|
|
|
|
|
|
|
||||||||
Segment Adjusted EBITDA: |
|
|
|
|
|
|
|
||||||||
|
$ |
39,988 |
|
|
$ |
33,581 |
|
|
$ |
105,222 |
|
|
$ |
100,370 |
|
Energy |
|
5,965 |
|
|
|
7,971 |
|
|
|
14,035 |
|
|
|
22,517 |
|
Financial Services |
|
24,218 |
|
|
|
(4,412 |
) |
|
|
81,526 |
|
|
|
47,573 |
|
Supply Chain |
|
4,266 |
|
|
|
5,935 |
|
|
|
13,594 |
|
|
|
8,806 |
|
Corporate and other |
|
1,516 |
|
|
|
1,389 |
|
|
|
3,943 |
|
|
|
1,935 |
|
Total Adjusted EBITDA |
$ |
75,953 |
|
|
$ |
44,464 |
|
|
$ |
218,320 |
|
|
$ |
181,201 |
|
Note Regarding Use of Non-GAAP Financial Measurements
The financial data contained in this press release includes certain non-GAAP financial measurements as defined by the
However, the measures are not measures of financial performance under generally accepted accounting principles in the
- Adjusted EBITDA does not reflect the Company's tax provision or the cash requirements to pay its taxes;
- Adjusted EBITDA does not reflect income or loss from the Company's investments in associated companies and other investments held at fair value;
- Adjusted EBITDA does not reflect the Company's interest expense;
- Although depreciation and amortization are non-cash expenses in the period recorded, the assets being depreciated and amortized may have to be replaced in the future, and Adjusted EBITDA does not reflect the cash requirements for such replacement;
- Adjusted EBITDA does not reflect the Company's net realized and unrealized gains and losses on its investments;
- Adjusted EBITDA does not include non-cash charges for pension expense and equity-based compensation;
- Adjusted EBITDA does not include amounts related to noncontrolling interests in consolidated entities;
- Adjusted EBITDA does not include certain other non-recurring and non-cash items; and
- Adjusted EBITDA does not include the Company's discontinued operations.
In addition,
The Company compensates for these limitations by relying primarily on its
Forward-Looking Statements
This press release contains certain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that reflect SPLP's current expectations and projections about its future results, performance, prospects and opportunities. SPLP identifies these forward-looking statements by using words such as "expect," "anticipate," "intend," "plan," "believe," "seek," "estimate," and similar expressions, including but not limited to, the Company's expectations regarding its ability to deliver shareholder value and build momentum across the business. These forward-looking statements are only predictions based upon the Company's current expectations and projections about future events, and are based on information currently available to the Company and are subject to risks, uncertainties, and other factors that could cause its actual results, performance, prospects, or opportunities in 2024 and beyond to differ materially from those expressed in, or implied by, these forward-looking statements. These factors include, without limitation: disruptions to the Company's business as a result of economic downturns; the negative impact of inflation and supply chain disruptions; the significant volatility of crude oil and commodity prices, including from the ongoing
View source version on businesswire.com: https://www.businesswire.com/news/home/20241108461716/en/
Investor Relations
212-520-2300
jgolembeske@steelpartners.com
Source: Steel Partners Holdings L.P.