Welcome to our dedicated page for Star Equity Holdings news (Ticker: STRR), a resource for investors and traders seeking the latest updates and insights on Star Equity Holdings stock.
Star Equity Holdings, Inc. (STRR) is a diversified holding company dedicated to enhancing stockholder value through operational excellence, strategic planning, and effective capital allocation. The company operates through two primary segments: Construction and Investments.
In the Construction segment, Star Equity Holdings excels in the manufacturing of modular housing units catering to both commercial and residential markets. This segment focuses on two key business areas: modular building manufacturing and structural wall panel and wood foundation manufacturing, which also includes building supply retail operations. The construction segment is the company's primary revenue generator, reflecting its significant market presence and operational efficiency.
The Investments segment focuses on managing and financing the company's real estate assets. This segment includes corporate-owned real estate, comprising two manufacturing facilities in Maine. These properties are leased back to KBS and the manufacturing facility, showcasing the strategic utilization of real estate to generate consistent income and support business operations.
Star Equity Holdings is committed to sustained growth through strategic initiatives and effective management. The company's recent achievements include the non-GAAP adjusted EBITDA performance, reflecting a sound financial health and an efficient investment strategy. The company continually seeks opportunities to enhance its portfolio, leveraging both public and private investment positions to drive future growth.
For the latest updates and more detailed information, investors can access a simultaneous webcast of the company's events and presentations through the Investor Relations page on their website. Notably, the financials provided are unaudited, ensuring transparency and accuracy in reporting.
Star Equity Holdings (Nasdaq: STRR) has adopted a Rights Agreement to protect its $43.2 million in net operating loss carryforwards (NOLs) as of December 31, 2023. The agreement aims to deter transfers of common stock that could result in an 'ownership change' under Section 382 of the Internal Revenue Code, which could limit the company's ability to use its NOLs to offset future taxable income.
The Board has declared a share dividend to stockholders of record as of August 19, 2024, allowing them to purchase one one-thousandth of a share of a new series of participating preferred stock. If any person or group acquires 4.99% or more of outstanding shares without Board approval, it would trigger the Rights Agreement, resulting in significant dilution for the acquiring party.
The Rights Agreement will expire on August 8, 2027, unless certain events occur earlier. Star Equity intends to seek stockholder approval at its 2024 annual meeting, although the agreement is effective immediately.
Star Equity Holdings (Nasdaq: STRR) has declared a cash dividend of $0.25 per share for holders of its 10% Series A Cumulative Perpetual Preferred Stock. The record date is set for September 1, 2024, with the payment date on September 10, 2024. Star Equity is a diversified holding company with two main divisions: Building Solutions and Investments. The Building Solutions division operates in modular building manufacturing, structural wall panel and wood foundation manufacturing, and glue-laminated timber production. The Investments division manages the company's real estate assets and investment positions in private and public companies.
Star Equity Holdings (STRR) reported Q2 2024 financial results, highlighting a 51.6% revenue increase to $13.5 million, primarily due to the Timber Technologies acquisition. However, the company faced challenges with a gross profit decrease of 14.9% to $2.2 million and a net loss of $3.8 million. Key developments include:
1. Timber Technologies acquisition diversifying Building Solutions division
2. Sale-leaseback transactions improving liquidity
3. Announcement of a $1 million stock repurchase program
4. Integration challenges and market headwinds affecting performance
5. Strong sales pipeline despite slower project conversion rates
The company remains focused on its growth strategy, including expansion, acquisitions, and exploring new opportunities in its Investments division.
Star Equity Holdings (Nasdaq: STRR) has announced a strategic investment in Enservco (NYSE American: ENSV), marking its entry into the Energy Services and Transportation & Logistics sectors. The transaction involves:
1. Star issuing 250,000 shares of its 10% Series A Cumulative Perpetual Preferred Stock to Enservco in exchange for 12.5 million ENSV common shares and equivalents, valued at $2.5 million.
2. A $1 million short-term loan from Star to Enservco to facilitate the acquisition of Buckshot Trucking,
3. Star gaining a seat on Enservco's Board of Directors.
This investment aligns with Star's expansion strategy, diversifying its portfolio beyond Building Solutions. Star now holds approximately 20% of ENSV common shares and additional convertible preferred shares.
Star Equity Holdings, Inc. (Nasdaq: STRR; STRRP) has announced the release of its second quarter 2024 financial results on August 13, 2024, before market opening. A conference call is scheduled for 10:00 a.m. ET on the same day to discuss the results and management's outlook. The call can be accessed via phone or webcast, with details provided on the company's website.
Star Equity Holdings is a diversified holding company with two main divisions: Building Solutions and Investments. The Building Solutions division operates in modular building manufacturing, structural wall panel and wood foundation manufacturing, and glue-laminated timber manufacturing. The Investments division manages the company's real estate assets and investment positions in private and public companies.
Star Equity Holdings (Nasdaq: STRR) has closed two sale-leaseback transactions for its facilities in South Paris, Maine and Big Lake, Minnesota, generating $8.3 million in net proceeds. The South Paris facility, operated by KBS Builders, was sold for $5.6 million with a 20-year lease agreement. The Big Lake facility, operated by Glenbrook Building Supply, was sold for $2.7 million with a 15-year lease agreement.
These transactions align with Star's strategy of strategic capital allocation and focus on EBITDA-generating assets. The proceeds will be used to pursue the company's long-term growth strategy, including potential acquisitions within existing divisions or new business segments. Star's recent acquisition of Timber Technologies in May 2024 exemplifies this strategy, increasing cash flow and diversifying revenue.
Star Equity Holdings has announced the appointment of three new independent directors to its board: Todd Fruhbeis, Jennifer Palmer, and Louis Parks. These appointments replace former directors John Gildea and Mitch Quain, effective June 30, 2024. The new board members bring extensive expertise in capital markets, finance, and investment management, aligning with Star's growth strategy. Fruhbeis has over 25 years of capital markets experience, Palmer is the Founder and CEO of JPalmer Collective with a background in small-to-mid-size company banking, and Parks has over 35 years in investment management. The changes are aimed at enhancing corporate governance and driving shareholder value through diverse expertise. The new directors will stand for election at the 2024 Annual Meeting of Shareholders.
Star Equity Holdings (Nasdaq: STRR; STRRP) announced a 1-for-5 reverse stock split, effective post-market on June 14, 2024. The company aims to fulfill Nasdaq's minimum bid price requirement. Trading on a post-split basis will begin on June 17, 2024, under a new CUSIP number (85513Q301). The reverse split will consolidate every five shares into one, reducing the total outstanding shares from 15,848,202 to approximately 3,169,640. The reverse split will also proportionately adjust stock options, warrants, and shares in equity incentive plans. No fractional shares will be issued; holders will receive one full share instead. Equiniti Trust Company, is facilitating the split.
Star Equity Holdings announced a cash dividend of $0.25 per share for its 10% Series A Cumulative Perpetual Preferred Stock. This decision was approved by the Board of Directors and will affect shareholders on the record date of June 1, 2024, with the payment scheduled for June 11, 2024.
Star Equity Holdings, a diversified holding company, currently operates in two main divisions: Building Solutions and Investments. The Building Solutions division focuses on modular building manufacturing, structural wall panel, wood foundation, and glulam timber manufacturing. The Investments division manages the company's real estate assets and investment positions in various companies. The company recently sold its Healthcare division on May 4, 2023.
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.
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