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Star Equity Holdings, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing an increase in revenues to $13,663,000 from $10,435,000 in the same quarter the previous year. This increase is attributed to the inclusion of revenues from recent acquisitions.
Cost of revenues for the quarter was $10,846,000, representing 79.4% of revenues, compared to 78.9% in the same quarter of the previous year. The slight increase in cost ratio is due to fixed costs remaining constant despite revenue fluctuations.
The company reported a gross profit of $2,817,000 for the quarter, compared to $2,203,000 in the previous year, with the increase attributed to the inclusion of revenues from acquisitions.
Operating expenses increased significantly to $8,139,000 from $3,864,000, primarily due to the inclusion of expenses from acquisitions and an impairment recorded on a cost method investment.
The company reported a net loss of $1,970,000 for the quarter, compared to a net loss of $2,365,000 in the previous year. The improvement is attributed to gains from sale and leaseback transactions.
Cash used in operating activities was $3,696,000, while cash used in investing and provided by financing activities was $12,493,000 and $4,338,000, respectively.
Star Equity had cash and cash equivalents of $5,492,000 as of September 30, 2024. The company acknowledges its dependence on positive operating results and potential financing to meet future obligations.
The filing also details various financial agreements, including a revolving credit loan agreement with Premier Bank and a loan agreement with KeyBank National Association (KEY-3.31%).
Star Equity does not anticipate cash dividend payments to common stockholders in the near future.
The company identified a material weakness in its internal controls over financial reporting due to insufficient accounting resources to address complex accounting matters.
Star Equity continues to focus on expanding its Building Solutions division and managing its Investments division, highlighting its strategy of acquisitions to drive growth.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Star Equity Holdings Inc. quarterly 10-Q report dated November 19, 2024. To report an error, please email earnings@qz.com.