Thu, Aug 22, 8:16 PM (145 days ago)
Seaport Entertainment Group Inc. (SEG) reported a significant decline in quarterly financial performance for Q2 2024 compared to Q2 2023, with total revenues of $33,941,000, down 10% year-over-year. The company experienced a net loss of $34,997,000, a 24% increase in losses attributed mainly to a rise in general and administrative costs, which surged 165% to $18,613,000 due to separation-related expenses. Operating costs also rose, leading to an operating loss of $25,235,000. In terms of cash flow, SEG utilized $39,149,000 in operating activities, a substantial increase from $7,911,000 the previous year. Cash used in investing activities decreased, while financing activities yielded $73,907,000, bolstered by net transfers from the parent company, Howard Hughes Holdings Inc. (HHH). The company’s liquidity is expected to improve through a planned $175 million Rights Offering. However, uncertainties remain regarding future profitability, influenced by macroeconomic conditions and operational challenges, including the impact of recent weather disruptions on business performance. Overall, the performance metrics indicate a need for strategic adjustments following the recent separation from HHH.