Star Equity Holdings, Inc. Series A Cumulative Perpetual Preferred Stock - STRRP STOCK NEWS

Star Equity Holdings (Nasdaq: STRR; STRRP) reported a significant decline in Q1 2024 financial results. Revenues dropped by 26.1% to $9.1 million from $12.3 million in Q1 2023, and gross profit decreased by 63.1% to $1.6 million. The company posted a net loss of $2.2 million, contrasting with a net income of $16 thousand in the same period last year. Non-GAAP adjusted net loss stood at $1.4 million, and adjusted EBITDA was a loss of $1.1 million. However, cash and cash equivalents rose to $14.7 million from $5.0 million a year ago, and debt increased to $1.9 million from $0.7 million. The acquisition of Timber Technologies marks a step forward in diversification and expansion. CEO Rick Coleman attributed the financial downturn to credit tightening and macroeconomic factors, but remains optimistic about future growth and continued strong demand.

Star Equity Holdings (Nasdaq: STRR; STRRP) announced its acquisition of Timber Technologies for $23 million on May 17, 2024. The deal includes $16 million upfront cash, $4 million deferred cash, and a $3 million earn-out. Timber Tech, based in Wisconsin, manufactures glue-laminated timber products and will enhance Star’s Building Solutions division. Timber Tech reported $18.8 million in revenue and $5.5 million Adjusted EBITDA in 2023. The acquisition aims to improve Star's profitability and diversify its market reach. Additionally, a $7 million loan from Bridgewater Bank partially financed the acquisition.

Star Equity Holdings (Nasdaq: STRR; STRRP) will release its first quarter 2024 financial results on May 20, 2024, before market open. The company will host a conference call at 10:00 a.m. ET (7:00 a.m. PT) on the same day to discuss these results and provide management's outlook. Interested parties can access the call via toll-free and international numbers or through a simultaneous webcast available on the company's investor relations webpage. An archived replay of the webcast will be available shortly after the call.

Star Equity Holdings operates through two divisions: Building Solutions and Investments. The Building Solutions division manufactures modular housing units for commercial and residential projects, including structural wall panels and wood foundations. The Investments division manages and finances real estate assets and investment positions in private and public companies.

Star Equity Holdings announced that its KBS Builders business unit closed a $4 million revolving line of credit with KeyBank. The LOC will be used for working capital and growth initiatives, providing financial flexibility. The credit facility has a maturity date of April 30, 2025, with an interest rate of SOFR plus a 3.00% margin.

Star Equity Holdings, Inc. reported financial results for Q4 and FY 2023, ending with $18.9 million in cash. Revenues and gross profit decreased in Q4 compared to 2022, while net income improved. The Construction division saw a decline in revenue but improved gross margins. Investments division revenue remained stable. Operating expenses varied, resulting in a net loss for FY 2023. Cash flow from operations turned positive, with a decrease in debt. The Company remains focused on strategic acquisitions and growth opportunities.

Star Equity Holdings, Inc. will release its Q4 2023 financial results on March 22, 2024. A conference call will be held to discuss the results and management's outlook.

Star Equity Holdings, Inc. declares a cash dividend of $0.25 per share for its 10% Series A Cumulative Perpetual Preferred Stock. The record date is March 1, 2024, with a payment date of March 11, 2024.

Star Equity Holdings, Inc. has announced a sale-leaseback agreement for its South Paris, Maine facility, with the real estate arm of the company's Investments division. The transaction is valued at $5.935 million, with a 20-year lease agreement and the potential for a 20-year extension. The company's modular manufacturing business, KBS Builders, Inc., will continue to operate the facility with no impact on its operations. The CFO, David Noble, expressed excitement about the value-unlocking transaction and the company's ability to fund its growth strategy and redeploy cash into EBITDA-generating assets.

Star Equity Holdings, Inc. announced that its subsidiary, KBS Builders, Inc., has secured a $2 million contract to manufacture modular units for affordable workforce housing in Nantucket, MA. The contract involves constructing a multi-family building with 20 apartments, addressing housing shortages for the local community. The CEO, Rick Coleman, expressed enthusiasm for the new contract and highlighted KBS' essential role in providing affordable housing solutions in the New England area.