10-K - STAR EQUITY HOLDINGS, INC. (0000707388) (Filer)

Fri, Mar 21, 8:56 PM (30 days ago)

### Summary of Star Equity Holdings, Inc. (STRR) 2024 Annual Report **Financial Performance:** - **Revenue:** $53.4 million, an increase of $7.6 million (16.5%) from 2023. - **Net Income:** A net loss of $12.5 million, compared to a net income of $23.2 million in 2023. - **Gross Profit:** $11.1 million, a decrease of $0.9 million (7.3%) from 2023. - **Operating Expenses:** $19.5 million, an increase of $3.2 million (20%) from 2023. - **Earnings per Share (EPS):** A loss of $3.97 per share, compared to a gain of $7.42 per share in 2023. **Strategic Overview:** - **Business Segments:** Star Equity operates in two divisions: Building Solutions and Investments. - **Building Solutions:** Focuses on construction, including modular buildings, structural wall panels, and glue-laminated timber products. - **Investments:** Holds corporate-owned real estate and minority investments in public and private companies. **Future Outlook:** - **Growth Strategy:** Includes organic growth, new service introductions, and complementary business acquisitions. - **Market Position:** Sees opportunities in the growing demand for offsite construction and modular housing. **Risk Factors:** - **Financial Risks:** History of annual net losses, reliance on information technology, and potential failure to achieve synergies from acquisitions. - **Operational Risks:** Dependence on raw materials, trade tariffs, and compliance with regulatory standards. - **Market Risks:** Volatility in financial markets, changes in economic conditions, and potential disruptions from global events. **Financial Condition:** - **Liquidity:** $4.0 million in cash and cash equivalents as of December 31, 2024. - **Debt:** Approximately $11.3 million in debt at December 31, 2024. - **Market Position:** The aggregate market value of voting common stock held by non-affiliates was $5.1 million as of June 30, 2024. **Market Position Changes:** - **Stock Performance:** The market price of common stock has been volatile, and the value of investments could decline significantly. - **Trading Volume:** The common stock has had a low trading volume, which could affect the trading price and liquidity. **Conclusion:** Star Equity Holdings, Inc. faced financial challenges in 2024, with a significant net loss and increased operating expenses. However, the company is strategically positioned to capitalize on the growing demand for offsite construction and modular housing. The future outlook includes a focus on organic growth, new service introductions, and complementary business acquisitions. The company's financial condition is stable, with adequate liquidity and manageable debt levels. However, the market position remains volatile, with low trading volume and potential risks from global events and economic conditions.