Star Equity Holdings, Inc. (NASDAQ:STRR) Q3 2022 Earnings Conference Call November 11, 2022 10:00 AM ET
Company Participants
Rick Coleman - Chief Executive Officer
Jeff Eberwein - Executive Chairman
Dave Noble - Chief Financial Officer
Conference Call Participants
Theodore O’Neill - Litchfield Hills Research
Tate Sullivan - Maxim Group
Operator
Greetings, ladies and gentlemen and welcome to Star Equity Holdings Third Quarter 2022 Results Conference Call. Please be advised that the discussions on today’s call may include forward-looking statements. Such forward-looking statements involve certain risks and uncertainties that may cause actual results to differ materially from those contained in the forward-looking statements. Please refer to Star Equity’s most recent 10-K and 10-Q filings and also third quarter 10-Q, which we expect to file on Monday, November 14, 2022 for a more complete description of risk factors that could affect these projections and assumptions.
The company assumes no obligation to update forward-looking statements as a result of new information, future events or otherwise. Please also note that on this call, management will reference non-GAAP financial measures, including EBITDA, adjusted EBITDA, adjusted net income and adjusted earnings per share, which are all financial measures not recognized under U.S. GAAP. As required by SEC rules and regulations, these non-GAAP financial measures are reconciled to their most comparable GAAP financial measures in our earnings release issued this morning.
If you did not receive a copy of the earnings release and would like one after the call, please contact Star Equity at 203-489-9500 or its Investor Relations representative, Lena Cati of the Equity Group at 212-836-9611. Also, this call is being broadcast live over the Internet and maybe accessed at Star Equity’s website via www.starequity.com. Shortly after the call, a replay will also be available on the company’s website.
It is now my pleasure to introduce Rick Coleman, Chief Executive Officer of Star Equity. Please go ahead, sir.
Rick Coleman
Thank you, Maria. Good morning and thanks for joining us today for our third quarter 2022 results conference call. On the call with me today are Executive Chairman, Jeff Eberwein; and Chief Financial Officer, Dave Noble. I am pleased to report significant progress in both our Construction and Healthcare businesses this quarter.
On a consolidated basis, despite an overall 16% decrease in revenue, we grew gross profit by 54.8% versus the third quarter of last year. Gross profit was driven predominantly by substantially increased profitability at our Construction division and strong operating discipline in our Healthcare division. Our Healthcare division revenue decreased by 11.3% compared to the third quarter of last year, and gross margin decreased by 1 percentage point to 20.7%. Both results were primarily impacted by the continued effect of labor market tightness on our scanning service utilization.