Steel Partners Holdings Reports Fourth Quarter Results

Rhea-AI Summary

Steel Partners Holdings L.P. (NYSE: SPLP) reported its Q4 and FY 2020 operating results, revealing a revenue decline to $338.7 million in Q4 2020 from $346.7 million in Q4 2019, and total FY revenue at $1.31 billion, down from $1.46 billion the previous year. Despite challenges, the company achieved net income from continuing operations of $94.2 million in Q4 and $83.5 million for FY 2020, showcasing improved EBITDA margins of 19.8%. The Executive Chairman highlighted cost reductions and operational improvements, leading to increased cash flow despite lower revenues.

Positive

• Net income from continuing operations increased to $94.2 million in Q4 2020 compared to $10.3 million in Q4 2019.
• Adjusted EBITDA margin improved to 19.8% in Q4 2020, up from 13.4% in Q4 2019.
• Adjusted free cash flow rose to $13.8 million in Q4 2020 compared to $36.5 million in Q4 2019.
• Reduced selling, general, and administrative expenses to $75.3 million in Q4 2020 from $78.3 million in Q4 2019.

Negative

• Q4 2020 revenue decreased by 2.8% to $338.7 million from $346.7 million in Q4 2019.
• Full-year revenue fell to $1.31 billion, down from $1.46 billion in FY 2019.
• Goodwill impairment charges of $1.1 million recorded in FY 2020.

Steel Partners Holdings L.P. (NYSE: SPLP), a diversified global holding company, today announced operating results for the fourth quarter and year ended December 31, 2020.

Q4 2020		Q4 2019		($ in thousands)		FY 2020		FY 2019
$338,719		$346,691		Revenue		$1,310,636		$1,455,048
94,231		10,259		Net income from continuing operations		83,477		79,471
108,388		(28,564)		Net income (loss) attributable to common unitholders		72,675		(1,597)
67,084		46,614		Adjusted EBITDA*		213,739		195,349
19.8%		13.4%		Adjusted EBITDA margin*		16.3%		13.4%
7,645		13,293		Purchases of property, plant and equipment		23,226		39,816
13,843		36,491		Adjusted free cash flow*		149,648		117,028

^* 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.

"Despite the many headwinds in 2020, we dedicated ourselves to safely providing quality, on-time products and services to our customers, and our results reflect this hard work and perseverance," said Executive Chairman Warren Lichtenstein. "We were able to respond to the pandemic and economic volatility by reducing costs, improving our operational performance, and increasing our financial flexibility, which led to increased EBITDA and cash flow despite reduced revenue in 2020. I am proud of our entire team, and we will continue to execute our strategy to deliver value for our unitholders, customers, and employees."

Results of Operations

Comparisons of the Three Months and Years Ended December 31, 2020 and 2019

	Three Months Ended December 31,								Year Ended December 31,
	2020				2019				2020				2019
Revenue	$	338,719			$	346,691			$	1,310,636			$	1,455,048
Cost of goods sold	222,158				225,373				859,863				952,071
Selling, general and administrative expenses	75,317				78,322				290,784				334,566
Goodwill impairment charges	1,100				—				1,100				15,924
Asset impairment charges	(11		)		—				606				849
Interest expense	6,176				8,737				29,514				38,835
Realized and unrealized (gains) losses on securities, net	(51,158		)		21,405				(25,643		)		(47,315		)
All other (income) expenses, net	(6,595		)		13,915				29,013				58,041
Total costs and expenses	246,987				347,752				1,185,237				1,352,971
Income (loss) before income taxes and equity method investments	91,732				(1,061		)		125,399				102,077
Income tax provision (benefit)	20,135				(19,771		)		38,136				14,563
(Income) loss of associated companies, net of taxes	(22,634		)		8,451				3,786				8,043
Net income from continuing operations	94,231				10,259				83,477				79,471
Income (loss) from discontinued operations, net of taxes	14,191				(38,949		)

FAQ

What were the Q4 2020 operating results for Steel Partners Holdings (SPLP)?

Steel Partners Holdings reported Q4 2020 revenue of $338.7 million, a decrease from $346.7 million in Q4 2019, with net income from continuing operations at $94.2 million.

How did Steel Partners Holdings' FY 2020 revenue compare to 2019?

In FY 2020, Steel Partners Holdings generated $1.31 billion in revenue, down from $1.46 billion in FY 2019.

What was the adjusted EBITDA margin for Steel Partners Holdings in Q4 2020?

The adjusted EBITDA margin for Steel Partners Holdings in Q4 2020 was 19.8%, an increase from 13.4% in Q4 2019.

Did Steel Partners Holdings experience any goodwill impairment charges in FY 2020?

Yes, Steel Partners Holdings recorded goodwill impairment charges of $1.1 million in FY 2020.