Star Equity Holdings, Inc. (NASDAQ:STRR) Q3 2023 Earnings Conference Call November 8, 2023 10:00 AM ET

Company Participants

Rick Coleman - CEO & Director

Dave Noble - CFO

Jeff Eberwein - Executive Chairman

Conference Call Participants

Theodore O'Neill - Litchfield Hills Research

Justin Smith - Maxim Group

Devon Xu - North First Capital Management

Operator

Greetings, ladies and gentlemen, and welcome to the Star Equity Holdings, Inc's third quarter 2023 results conference call. Please be advised the discussions on today's call may include forward-looking statements such forward-looking statements involve certain risks and uncertainties that could 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 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 be referencing non-GAAP financial measures, including EBITDA, adjusted EBITDA, adjusted net income, and adjusted earnings per share, 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 the 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 to -- 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. You may access at Star Equity's website via www.starequity.com. Shortly after the call, a replay will be available on the company's website.

It's now my pleasure to introduce Rick Coleman, Chief Executive Officer of Star Equity.

Rick Coleman

Thank you, operator. Good morning, everyone. Thanks for joining us for our third quarter 2023 results conference call. With me today are our Executive Chairman, Jeff Eberwein, and our Chief Financial Officer, Dave Noble. It's a pleasure to be with you today to update you on our third quarter results and to discuss our recent acquisition of Big Lake Lumber.

Our third quarter revenue decreased 6.1% to $10.4 million, compared to $11.1 million in the third quarter of 2022. And our gross margin was also lower at 21.1% versus 27.7% in the same period last year. The primary driver for the revenue shortfall was the delay in large project starts, which have been adversely impacted by interest rates and macroeconomic uncertainty, causing sector-wide difficulty in securing project financing.