Star Equity Holdings, Inc. (NASDAQ:STRR) Q2 2022 Earnings Conference Call August 12, 2022 10:00 AM ET

Company Participants

Rick Coleman - Chief Executive Officer

David Noble - Chief Financial Officer

Conference Call Participants

Tate Sullivan - Maxim Group

Adam Waldo - Lismore Partners

Operator

Greetings, ladies and gentlemen, and welcome to Star Equity Holdings Inc. Second Quarter 2022 Results Conference Call.

Please be advised that the discussion 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 for a more complete discussion 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 all are -- which are all financial measures not recognized under US 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 may be accessed at Star Equity's website at -- 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. Thank you. You may begin.

Rick Coleman

Thank you operator. Good morning and thank you all for joining us today for our second quarter 2022 results conference call. On the call today are our Executive Chairman, Jeff Eberwein; and our Chief Financial Officer, David Noble.

On a [Technical Difficulty] and operational performance with a 19% revenue increase, as well as a significant improvement in gross margins. On a segment basis as compared to the second quarter of 2021, our Healthcare division revenue decreased by 6.4% to $13.9 million, predominantly driven by a decrease in revenue from fewer total scanning days due to the national shortage of nuclear medicine technologists. However, gross margin improved by 3.5 percentage points to 26.4% and gross profit for the quarter increased by 7.9% both due to a better mix of products and services sold.