Steel Partners Holdings Reports Fourth Quarter and Full Year Results
Fourth Quarter 2024 Results
-
Revenue totaled
, an increase of$497.9 million 6.6% as compared to the same period in the prior year -
Net income was
, an increase of$74.6 million 74.7% as compared to the same period in the prior year -
Net income attributable to common unitholders was
, or$74.6 million per diluted common unit$3.40 -
Adjusted EBITDA* totaled
; Adjusted EBITDA margin* was$84.7 million 17.0% -
Net cash used in operating activities was
$4.9 million -
Adjusted free cash flow* totaled
$72.5 million -
Total debt was
; net cash,* which also includes our pension and preferred unit liabilities, less cash, pension asset, and investments, totaled$119.7 million $62.2 million
Full Year 2024 Results
-
Revenue totaled
, an increase of$2.0 billion 6.4% as compared to the same period in the prior year -
Net income was
, an increase of$271.2 million 76.1% as compared to the same period in the prior year -
Net income attributable to common unitholders was
, or$261.6 million per diluted common unit$11.38 -
Adjusted EBITDA* totaled to
; Adjusted EBITDA margin* was$303.0 million 14.9% -
Net cash provided by operating activities was
$363.3 million -
Adjusted free cash flow* totaled
$169.3 million
Unaudited |
|
|
|
|
|
|
||
Q4 2024 |
|
Q4 2023 |
|
($ in thousands) |
|
FY 2024 |
|
FY 2023 |
|
|
|
|
Revenue |
|
|
|
|
74,602 |
|
42,697 |
|
Net income |
|
271,222 |
|
154,002 |
74,577 |
|
41,261 |
|
Net income attributable to common unitholders |
|
261,562 |
|
150,829 |
84,697 |
|
59,358 |
|
Adjusted EBITDA* |
|
303,017 |
|
240,559 |
|
|
|
|
Adjusted EBITDA margin* |
|
|
|
|
9,251 |
|
14,784 |
|
Purchases of property, plant and equipment |
|
64,963 |
|
51,451 |
72,461 |
|
87,587 |
|
Adjusted free cash flow* |
|
169,257 |
|
235,980 |
* 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're proud to report record revenue this year, with particularly strong results in our diversified industrial and financial services businesses," said Executive Chairman Warren Lichtenstein. "We grew EBITDA by staying focused on what we do best – delivering quality products to our customers. Our team's commitment to continuous improvement and operational excellence drove these results for all our stakeholders."
Results of Operations
Comparisons of the Three Months and Years Ended December 31, 2024 and 2023
|
Unaudited |
|
|
|
|
||||||||||
(Dollar amounts in table in thousands, unless otherwise indicated) |
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Revenue |
$ |
497,920 |
|
|
$ |
466,907 |
|
|
$ |
2,027,848 |
|
|
$ |
1,905,457 |
|
Cost of goods sold |
|
279,426 |
|
|
|
269,040 |
|
|
|
1,152,355 |
|
|
|
1,103,017 |
|
Selling, general and administrative expenses |
|
134,824 |
|
|
|
128,708 |
|
|
|
547,125 |
|
|
|
504,960 |
|
Asset impairment charges |
|
141 |
|
|
|
536 |
|
|
|
671 |
|
|
|
865 |
|
Interest expense |
|
2,941 |
|
|
|
2,466 |
|
|
|
8,015 |
|
|
|
18,400 |
|
Realized and unrealized losses (gains) on securities, net |
|
5,977 |
|
|
|
(923 |
) |
|
|
2,983 |
|
|
|
(7,074 |
) |
Gains from sales of businesses |
|
— |
|
|
|
(58 |
) |
|
|
— |
|
|
|
(58 |
) |
All other expenses, net * |
|
15,750 |
|
|
|
27,474 |
|
|
|
93,117 |
|
|
|
124,141 |
|
Total costs and expenses |
|
439,059 |
|
|
|
427,243 |
|
|
|
1,804,266 |
|
|
|
1,744,251 |
|
Income before income taxes and equity method investments |
|
58,861 |
|
|
|
39,664 |
|
|
|
223,582 |
|
|
|
161,206 |
|
Income tax (benefit) provision |
|
(21,349 |
) |
|
|
33 |
|
|
|
(53,255 |
) |
|
|
(1,674 |
) |
Loss (income) of associated companies, net of taxes |
|
5,608 |
|
|
|
(3,066 |
) |
|
|
5,615 |
|
|
|
8,878 |
|
Net income |
|
74,602 |
|
|
|
42,697 |
|
|
|
271,222 |
|
|
|
154,002 |
|
Net income attributable to noncontrolling interests in consolidated entities |
|
(25 |
) |
|
|
(1,436 |
) |
|
|
(9,660 |
) |
|
|
(3,173 |
) |
Net income attributable to common unitholders |
$ |
74,577 |
|
|
$ |
41,261 |
|
|
$ |
261,562 |
|
|
$ |
150,829 |
|
* includes finance interest, provision (benefit) for credit losses, and other expenses (income) from the consolidated statements of operations |
Revenue
Revenue for the three months ended December 31, 2024 increased
Revenue in the year ended December 31, 2024 increased
Cost of Goods Sold
Cost of goods sold for the three months ended December 31, 2024 increased
Cost of goods sold in the year ended December 31, 2024 increased
Selling, General and Administrative Expenses
Selling, general and administrative expenses ("SG&A") for the three months ended December 31, 2024 increased
SG&A in 2024 increased
Interest Expense
Interest expense for the three months ended December 31, 2024 and 2023 was
Realized and Unrealized Losses (Gains) on Securities, Net
The Company recorded losses of
All Other Expenses, Net
All other expense, net totaled
All other expense, net totaled
Income Taxes
The Company recorded an income tax benefit of
For the year ended December 31, 2024, a tax benefit of
As a limited partnership, we are generally not responsible for federal and state income taxes, and our profits and losses are passed directly to our limited partners for inclusion in their respective income tax returns. The Company's tax provision represents the income tax expense or benefit of its consolidated corporate subsidiaries.
Loss (income) 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 months ended December 31, 2024 was
Net income for the year ended December 31, 2024 was
Purchases of Property, Plant and Equipment (Capital Expenditures)
Capital expenditures for the three months ended December 31, 2024 totaled
Additional Non-GAAP Financial Measures
Adjusted EBITDA for the three months ended December 31, 2024 was
For the year ended December 31, 2024, Adjusted EBITDA and Adjusted EBITDA margin were
Liquidity and Capital Resources
As of December 31, 2024, the Company had
As of December 31, 2024, total debt was
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
|
December 31, 2024 |
|
December 31, 2023 |
||||
ASSETS |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
404,442 |
|
|
$ |
577,928 |
|
Trade and other receivables - net of allowance for doubtful accounts of |
|
227,996 |
|
|
|
216,429 |
|
Loans receivable, including loans held for sale of |
|
1,566,981 |
|
|
|
1,582,536 |
|
Inventories, net |
|
195,617 |
|
|
|
202,294 |
|
Prepaid expenses and other current assets |
|
48,649 |
|
|
|
48,169 |
|
Total current assets |
|
2,443,685 |
|
|
|
2,627,356 |
|
Long-term loans receivable, net |
|
231,262 |
|
|
|
386,072 |
|
Goodwill |
|
145,670 |
|
|
|
148,838 |
|
Other intangible assets, net |
|
97,280 |
|
|
|
114,177 |
|
Deferred tax assets |
|
80,273 |
|
|
|
581 |
|
Other non-current assets |
|
149,429 |
|
|
|
341,465 |
|
Property, plant and equipment, net |
|
275,775 |
|
|
|
253,980 |
|
Pension asset |
|
5,903 |
|
|
|
— |
|
Operating lease right-of-use assets |
|
66,297 |
|
|
|
76,746 |
|
Long-term investments |
|
84,693 |
|
|
|
41,225 |
|
Total Assets |
$ |
3,580,267 |
|
|
$ |
3,990,440 |
|
LIABILITIES AND CAPITAL |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
131,768 |
|
|
$ |
131,922 |
|
Accrued liabilities |
|
101,592 |
|
|
|
117,943 |
|
Deposits |
|
1,483,241 |
|
|
|
1,711,585 |
|
Other current liabilities |
|
101,768 |
|
|
|
103,682 |
|
Total current liabilities |
|
1,818,369 |
|
|
|
2,065,132 |
|
Long-term deposits |
|
173,801 |
|
|
|
370,107 |
|
Long-term debt |
|
119,588 |
|
|
|
191,304 |
|
Other borrowings |
|
1,632 |
|
|
|
15,065 |
|
Preferred unit liability |
|
155,613 |
|
|
|
154,925 |
|
Accrued pension liabilities |
|
16,447 |
|
|
|
46,195 |
|
Deferred tax liabilities |
|
10,047 |
|
|
|
18,353 |
|
Long-term operating lease liabilities |
|
53,134 |
|
|
|
61,790 |
|
Other non-current liabilities |
|
58,212 |
|
|
|
62,161 |
|
Total Liabilities |
|
2,406,843 |
|
|
|
2,985,032 |
|
Commitments and Contingencies |
|
|
|
||||
Capital: |
|
|
|
||||
Partners' capital common units: 19,078,201 and 21,296,067 issued and outstanding (after deducting 20,727,941 and 18,367,307 units held in treasury, at cost of |
|
1,234,793 |
|
|
|
1,079,853 |
|
Accumulated other comprehensive loss |
|
(102,381 |
) |
|
|
(121,223 |
) |
Total Partners' Capital |
|
1,132,412 |
|
|
|
958,630 |
|
Noncontrolling interests in consolidated entities |
|
41,012 |
|
|
|
46,778 |
|
Total Capital |
|
1,173,424 |
|
|
|
1,005,408 |
|
Total Liabilities and Capital |
$ |
3,580,267 |
|
|
$ |
3,990,440 |
|
Consolidated Statements of Operations
|
Unaudited |
|
|
|
|
||||||||||
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenue: |
|
|
|
|
|
|
|
||||||||
Diversified Industrial net sales |
$ |
297,394 |
|
|
$ |
275,394 |
|
|
$ |
1,242,970 |
|
|
$ |
1,193,964 |
|
Energy net revenue |
|
35,837 |
|
|
|
34,218 |
|
|
|
145,019 |
|
|
|
179,438 |
|
Financial Services revenue |
|
115,650 |
|
|
|
112,341 |
|
|
|
454,225 |
|
|
|
416,911 |
|
Supply Chain revenue |
|
49,039 |
|
|
|
44,954 |
|
|
|
185,634 |
|
|
|
115,144 |
|
Total revenue |
|
497,920 |
|
|
|
466,907 |
|
|
|
2,027,848 |
|
|
|
1,905,457 |
|
Costs and expenses: |
|
|
|
|
|
|
|
||||||||
Cost of goods sold |
|
279,426 |
|
|
|
269,040 |
|
|
|
1,152,355 |
|
|
|
1,103,017 |
|
Selling, general and administrative expenses |
|
134,824 |
|
|
|
128,708 |
|
|
|
547,125 |
|
|
|
504,960 |
|
Asset impairment charges |
|
141 |
|
|
|
536 |
|
|
|
671 |
|
|
|
865 |
|
Finance interest expense |
|
19,303 |
|
|
|
25,938 |
|
|
|
89,000 |
|
|
|
80,432 |
|
(Benefit) provision for credit losses |
|
(2,419 |
) |
|
|
3,845 |
|
|
|
7,740 |
|
|
|
51,824 |
|
Interest expense |
|
2,941 |
|
|
|
2,466 |
|
|
|
8,015 |
|
|
|
18,400 |
|
Gains from sales of businesses |
|
— |
|
|
|
(58 |
) |
|
|
— |
|
|
|
(58 |
) |
Realized and unrealized losses (gains) on securities, net |
|
5,977 |
|
|
|
(923 |
) |
|
|
2,983 |
|
|
|
(7,074 |
) |
Other income, net |
|
(1,134 |
) |
|
|
(2,309 |
) |
|
|
(3,623 |
) |
|
|
(8,115 |
) |
Total costs and expenses |
|
439,059 |
|
|
|
427,243 |
|
|
|
1,804,266 |
|
|
|
1,744,251 |
|
Income from operations before income taxes and equity method investments |
|
58,861 |
|
|
|
39,664 |
|
|
|
223,582 |
|
|
|
161,206 |
|
Income tax (benefit) provision |
|
(21,349 |
) |
|
|
33 |
|
|
|
(53,255 |
) |
|
|
(1,674 |
) |
Loss (income) of associated companies, net of taxes |
|
5,608 |
|
|
|
(3,066 |
) |
|
|
5,615 |
|
|
|
8,878 |
|
Net income |
|
74,602 |
|
|
|
42,697 |
|
|
|
271,222 |
|
|
|
154,002 |
|
Net income attributable to noncontrolling interests in consolidated entities |
|
(25 |
) |
|
|
(1,436 |
) |
|
|
(9,660 |
) |
|
|
(3,173 |
) |
Net income attributable to common unitholders |
$ |
74,577 |
|
|
$ |
41,261 |
|
|
$ |
261,562 |
|
|
$ |
150,829 |
|
Net income per common unit - basic |
|
|
|
|
|
|
|
||||||||
Net income attributable to common unitholders |
$ |
3.92 |
|
|
$ |
1.94 |
|
|
$ |
13.07 |
|
|
$ |
7.04 |
|
Net income per common unit - diluted |
|
|
|
|
|
|
|
||||||||
Net income attributable to common unitholders |
$ |
3.40 |
|
|
$ |
1.75 |
|
|
$ |
11.38 |
|
|
$ |
6.43 |
|
Weighted-average number of common units outstanding - basic |
|
19,018,824 |
|
|
|
21,250,547 |
|
|
|
20,006,429 |
|
|
|
21,433,900 |
|
Weighted-average number of common units outstanding - diluted |
|
22,809,504 |
|
|
|
25,348,229 |
|
|
|
24,053,388 |
|
|
|
25,356,796 |
|
Consolidated Statements of Cash Flows
(in thousands) |
Year Ended December 31, |
||||||
|
|
2024 |
|
|
|
2023 |
|
Cash flows from operating activities: |
|
|
|
||||
Net income |
$ |
271,222 |
|
|
$ |
154,002 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Provision for credit losses |
|
7,740 |
|
|
|
51,824 |
|
Loss of associated companies, net of taxes |
|
5,615 |
|
|
|
8,878 |
|
Realized and unrealized losses (gains) on securities, net |
|
2,983 |
|
|
|
(7,074 |
) |
Gains from sale of businesses |
|
— |
|
|
|
(58 |
) |
Derivative gains on economic interests in loans |
|
(5,940 |
) |
|
|
(4,713 |
) |
Non-cash pension expense |
|
5,326 |
|
|
|
11,806 |
|
Deferred income taxes |
|
(93,912 |
) |
|
|
(30,069 |
) |
Depreciation and amortization |
|
59,310 |
|
|
|
56,565 |
|
Non-cash lease expense |
|
23,081 |
|
|
|
18,377 |
|
Equity-based compensation |
|
2,228 |
|
|
|
1,617 |
|
Asset impairment charges |
|
671 |
|
|
|
865 |
|
Other |
|
1,351 |
|
|
|
4,166 |
|
Net change in operating assets and liabilities: |
|
|
|
||||
Trade and other receivables |
|
(11,948 |
) |
|
|
4,802 |
|
Inventories |
|
6,116 |
|
|
|
19,247 |
|
Prepaid expenses and other assets |
|
4,807 |
|
|
|
(7,718 |
) |
Accounts payable, accrued and other liabilities |
|
(44,430 |
) |
|
|
4,914 |
|
Net decrease (increase) in loans held for sale |
|
129,062 |
|
|
|
(266,209 |
) |
Net cash provided by operating activities |
|
363,282 |
|
|
|
21,222 |
|
Cash flows from investing activities: |
|
|
|
||||
Purchases of investments |
|
(142,412 |
) |
|
|
(208,836 |
) |
Proceeds from maturities of investments |
|
263,459 |
|
|
|
45,731 |
|
Proceeds from sales of investments |
|
20,619 |
|
|
|
213,319 |
|
Principal repayment on Steel Connect Convertible Note |
|
— |
|
|
|
1,000 |
|
Loan originations, net of collections |
|
32,670 |
|
|
|
(208,571 |
) |
Purchases of property, plant and equipment |
|
(64,963 |
) |
|
|
(51,451 |
) |
Proceeds from sale of property, plant and equipment |
|
2,093 |
|
|
|
1,846 |
|
Increase in cash upon consolidation of Steel Connect |
|
— |
|
|
|
65,896 |
|
Other |
|
(305 |
) |
|
|
(1,136 |
) |
Net cash provided by (used in) investing activities |
|
111,161 |
|
|
|
(142,202 |
) |
Cash flows from financing activities: |
|
|
|
||||
Net revolver (repayments) borrowings |
|
(71,648 |
) |
|
|
11,115 |
|
Repayments of term loans |
|
(68 |
) |
|
|
(67 |
) |
Purchases of the Company's common units |
|
(109,411 |
) |
|
|
(20,040 |
) |
Purchases of the Company's preferred units |
|
(1,945 |
) |
|
|
— |
|
Net decrease in other borrowings |
|
(11,814 |
) |
|
|
(26,486 |
) |
Distribution to preferred unitholders |
|
(9,519 |
) |
|
|
(9,633 |
) |
Purchase of subsidiary shares from noncontrolling interests |
|
(16,181 |
) |
|
|
(2,934 |
) |
Tax withholding related to vesting of restricted units |
|
(1,077 |
) |
|
|
(605 |
) |
Net (decrease) increase in deposits |
|
(424,649 |
) |
|
|
513,211 |
|
Net cash (used in) provided by financing activities |
|
(646,312 |
) |
|
|
464,561 |
|
Net change for the period |
|
(171,869 |
) |
|
|
343,581 |
|
Effect of exchange rate changes on cash and cash equivalents |
|
(1,617 |
) |
|
|
(101 |
) |
Cash and cash equivalents at beginning of period |
|
577,928 |
|
|
|
234,448 |
|
Cash and cash equivalents at end of period |
$ |
404,442 |
|
|
$ |
577,928 |
|
Supplemental Balance Sheet Data
(in thousands, except common and preferred units) |
December 31, |
|
December 31, |
||
|
2024 |
|
2023 |
||
Cash and cash equivalents |
$ |
404,442 |
|
$ |
577,928 |
WebBank cash and cash equivalents |
|
141,092 |
|
|
170,286 |
Cash and cash equivalents, excluding WebBank |
$ |
263,350 |
|
$ |
407,642 |
Common units outstanding |
|
19,078,201 |
|
|
21,296,067 |
Preferred units outstanding |
|
6,341,247 |
|
|
6,422,128 |
Supplemental Non-GAAP Disclosures
Adjusted EBITDA Reconciliation: |
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
|
Unaudited |
|
|
|
|
||||||||||
(in thousands) |
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net income |
$ |
74,602 |
|
|
$ |
42,697 |
|
|
$ |
271,222 |
|
|
$ |
154,002 |
|
Income tax (benefit) provision |
|
(21,349 |
) |
|
|
33 |
|
|
|
(53,255 |
) |
|
|
(1,674 |
) |
Income from operations before income taxes |
|
53,253 |
|
|
|
42,730 |
|
|
|
217,967 |
|
|
|
152,328 |
|
Add (Deduct): |
|
|
|
|
|
|
|
||||||||
Loss (income) of associated companies, net of taxes |
|
5,608 |
|
|
|
(3,066 |
) |
|
|
5,615 |
|
|
|
8,878 |
|
Realized and unrealized losses (gains) on securities, net |
|
5,977 |
|
|
|
(923 |
) |
|
|
2,983 |
|
|
|
(7,074 |
) |
Interest expense |
|
2,941 |
|
|
|
2,466 |
|
|
|
8,015 |
|
|
|
18,400 |
|
Depreciation |
|
11,231 |
|
|
|
10,756 |
|
|
|
42,231 |
|
|
|
39,978 |
|
Amortization |
|
4,240 |
|
|
|
4,376 |
|
|
|
17,079 |
|
|
|
16,587 |
|
Non-cash asset impairment charges |
|
141 |
|
|
|
536 |
|
|
|
671 |
|
|
|
865 |
|
Non-cash pension expense |
|
1,127 |
|
|
|
2,858 |
|
|
|
5,326 |
|
|
|
11,806 |
|
Non-cash equity-based compensation |
|
559 |
|
|
|
610 |
|
|
|
2,171 |
|
|
|
1,617 |
|
Gains from sales of businesses |
|
— |
|
|
|
(58 |
) |
|
|
— |
|
|
|
(58 |
) |
Other items, net |
|
(380 |
) |
|
|
(927 |
) |
|
|
959 |
|
|
|
(2,768 |
) |
Adjusted EBITDA |
$ |
84,697 |
|
|
$ |
59,358 |
|
|
$ |
303,017 |
|
|
$ |
240,559 |
|
|
|
|
|
|
|
|
|
||||||||
Total revenue |
$ |
497,920 |
|
|
$ |
466,907 |
|
|
$ |
2,027,848 |
|
|
$ |
1,905,457 |
|
Adjusted EBITDA margin |
|
17.0 |
% |
|
|
12.7 |
% |
|
|
14.9 |
% |
|
|
12.6 |
% |
Net Cash (Debt) Reconciliation: |
|
|
|
||||
|
|
|
|
||||
(in thousands) |
December 31, |
|
December 31, |
||||
|
|
2024 |
|
|
|
2023 |
|
Total debt |
$ |
(119,655 |
) |
|
$ |
(191,371 |
) |
Accrued pension liabilities |
|
(16,447 |
) |
|
|
(46,195 |
) |
Preferred unit liability, including current portion |
|
(155,613 |
) |
|
|
(154,925 |
) |
Cash and cash equivalents, excluding WebBank |
|
263,350 |
|
|
|
407,642 |
|
Pension assets |
|
5,903 |
|
|
|
— |
|
Long-term investments |
|
84,693 |
|
|
|
41,225 |
|
Net cash |
$ |
62,231 |
|
|
$ |
56,376 |
|
Adjusted Free Cash Flow Reconciliation: |
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
|
Unaudited |
|
|
|
|
||||||||||
(in thousands) |
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net cash (used in) provided by operating activities of continuing operations |
$ |
(4,891 |
) |
|
$ |
9,547 |
|
|
$ |
363,282 |
|
|
$ |
21,222 |
|
Purchases of property, plant and equipment |
|
(9,251 |
) |
|
|
(14,784 |
) |
|
|
(64,963 |
) |
|
|
(51,451 |
) |
Net increase (decrease) in loans held for sale |
|
86,603 |
|
|
|
92,824 |
|
|
|
(129,062 |
) |
|
|
266,209 |
|
Adjusted free cash flow |
$ |
72,461 |
|
|
$ |
87,587 |
|
|
$ |
169,257 |
|
|
$ |
235,980 |
|
Segment Results
|
Unaudited |
|
|
|
|
||||||||||
(in thousands) |
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenue: |
|
|
|
|
|
|
|
||||||||
Diversified Industrial |
$ |
297,394 |
|
|
$ |
275,394 |
|
|
$ |
1,242,970 |
|
|
$ |
1,193,964 |
|
Energy |
|
35,837 |
|
|
|
34,218 |
|
|
|
145,019 |
|
|
|
179,438 |
|
Financial Services |
|
115,650 |
|
|
|
112,341 |
|
|
|
454,225 |
|
|
|
416,911 |
|
Supply Chain |
|
49,039 |
|
|
|
44,954 |
|
|
|
185,634 |
|
|
|
115,144 |
|
Total revenue |
$ |
497,920 |
|
|
$ |
466,907 |
|
|
$ |
2,027,848 |
|
|
$ |
1,905,457 |
|
|
|
|
|
|
|
|
|
||||||||
Income (loss) before interest expense and income taxes: |
|
|
|
|
|
|
|
||||||||
Diversified Industrial |
$ |
19,301 |
|
|
$ |
9,922 |
|
|
$ |
85,476 |
|
|
$ |
70,937 |
|
Energy |
|
4,060 |
|
|
|
1,008 |
|
|
|
12,209 |
|
|
|
16,247 |
|
Financial Services |
|
35,404 |
|
|
|
26,002 |
|
|
|
116,250 |
|
|
|
74,248 |
|
Supply Chain |
|
7,042 |
|
|
|
2,880 |
|
|
|
15,912 |
|
|
|
8,726 |
|
Corporate and other |
|
(9,613 |
) |
|
|
5,384 |
|
|
|
(3,865 |
) |
|
|
570 |
|
Income before interest expense and income taxes |
|
56,194 |
|
|
|
45,196 |
|
|
|
225,982 |
|
|
|
170,728 |
|
Interest expense |
|
2,941 |
|
|
|
2,466 |
|
|
|
8,015 |
|
|
|
18,400 |
|
Income tax (benefit) provision |
|
(21,349 |
) |
|
|
33 |
|
|
|
(53,255 |
) |
|
|
(1,674 |
) |
Net income |
$ |
74,602 |
|
|
$ |
42,697 |
|
|
$ |
271,222 |
|
|
$ |
154,002 |
|
|
|
|
|
|
|
|
|
||||||||
Loss (income) of associated companies, net of taxes: |
|
|
|
|
|
|
|
||||||||
Corporate and other |
$ |
5,608 |
|
|
$ |
(3,066 |
) |
|
$ |
5,615 |
|
|
$ |
8,878 |
|
Total |
$ |
5,608 |
|
|
$ |
(3,066 |
) |
|
$ |
5,615 |
|
|
$ |
8,878 |
|
|
|
|
|
|
|
|
|
||||||||
Segment depreciation and amortization: |
|
|
|
|
|
|
|
||||||||
Diversified Industrial |
$ |
10,855 |
|
|
$ |
11,091 |
|
|
$ |
42,598 |
|
|
$ |
41,424 |
|
Energy |
|
2,150 |
|
|
|
2,333 |
|
|
|
8,632 |
|
|
|
10,065 |
|
Financial Services |
|
218 |
|
|
|
205 |
|
|
|
838 |
|
|
|
835 |
|
Supply Chain |
|
1,498 |
|
|
|
1,335 |
|
|
|
5,643 |
|
|
|
3,569 |
|
Corporate and other |
|
750 |
|
|
|
168 |
|
|
|
1,599 |
|
|
|
672 |
|
Total depreciation and amortization |
$ |
15,471 |
|
|
$ |
15,132 |
|
|
$ |
59,310 |
|
|
$ |
56,565 |
|
|
|
|
|
|
|
|
|
||||||||
Segment Adjusted EBITDA: |
|
|
|
|
|
|
|
||||||||
Diversified Industrial |
$ |
31,093 |
|
|
$ |
24,376 |
|
|
$ |
136,315 |
|
|
$ |
124,746 |
|
Energy |
|
5,786 |
|
|
|
2,113 |
|
|
|
19,821 |
|
|
|
24,630 |
|
Financial Services |
|
35,663 |
|
|
|
26,207 |
|
|
|
117,189 |
|
|
|
73,780 |
|
Supply Chain |
|
8,737 |
|
|
|
4,373 |
|
|
|
22,331 |
|
|
|
13,179 |
|
Corporate and other |
|
3,418 |
|
|
|
2,289 |
|
|
|
7,361 |
|
|
|
4,224 |
|
Total Adjusted EBITDA |
$ |
84,697 |
|
|
$ |
59,358 |
|
|
$ |
303,017 |
|
|
$ |
240,559 |
|
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
The Company defines Adjusted EBITDA as net income or loss from continuing operations before the effects of income or loss from investments in associated companies and other investments held at fair value, interest expense, taxes, depreciation and amortization, non-cash pension expense or income, and realized and unrealized gains or losses on investments, and excludes certain non-recurring and non-cash items. The Company defines Adjusted EBITDA margin as Adjusted EBITDA divided by revenue.
The Company defines Net Cash (Debt) as the sum of total debt, loan guarantee liability, accrued pension liabilities and preferred unit liability, less the sum of cash and cash equivalents (excluding those used in WebBank's banking operations), marketable securities, and long-term investments.
The Company defines Adjusted Free Cash Flow as net cash provided by or used in operating activities of continuing operations less the sum of purchases of property, plant and equipment, and net increases or decreases in loans held for sale.
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, Net Cash (Debt) assumes the Company's cash and cash equivalents (excluding those used in WebBank's banking operations), marketable securities, and long-term investments are immediately convertible in cash and can be used to reduce outstanding debt without restriction at their recorded fair value, while Adjusted Free Cash Flow excludes net increases or decreases in loans held for sale, which can vary significantly from period-to-period since these loans are typically sold after origination and thus represent a significant component in WebBank's operating cash flow requirements.
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. 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 2025 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/20250311010767/en/
Investor Relations
Jennifer Golembeske
212-520-2300
jgolembeske@steelpartners.com
Source: Steel Partners Holdings L.P.