Q3 2023 Star Equity Holdings Inc Earnings Call

Speaker 1: Restaurant.

Hello Rich.

Yes.

And there'll be revenue screening, ladies and gentlemen, and welcome to the Star equity holding Inc. Third quarter 2023 results conference call.

Speaker 2: Greetings, ladies and gentlemen, and welcome to the Star Equity Holding Inc. 3rd quarter, 2023 Results Conference Call.

Speaker 2: Please be advised that discussions on today's column include forwarding statements.

Please be advised the discussions on today's call may include forward looking statements.

Speaker 2: such for the statements of all certain risks and uncertainties that could cause actually also different material from those contained in the for looking statement.

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.

Speaker 2: Please refer to Star Equity's most recent 10K and 10Q filings for more complete description of risk factors that could affect these projections and assumptions.

Please refer to start equities, most recent 10-K and 10-Q filings for a more complete description of risk factors that could affect these projections and assumptions.

Speaker 2: Company assumes no obligation to update for looking statements as a result of new information, future events, or other ones.

The company assumes no obligation to update our forward looking statements as a result of new information future events or otherwise.

Speaker 2: Please also note that on this call management, we reference non- GAAP financial measures, including EBITDA, Adjusted EBITDA, Adjusted Net Income, and Adjusted Erning for Share, which are all financial measures not recognized under US Gap. As required by SEC rules and regulations, these non- GAAP financial measures are a reconcile to the most comparable GAAP financial measures in our earnings release issued this morning.

Please also note that on this call management will be referencing non-GAAP financial measures, but 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.

They should this morning.

Speaker 2: If you did not receive a copy of the earnings release and would like to, like went after the call, please contact start equity at 203-489-9500 or its investor relations representative, Lena Katty of the equity group, at 212-836-9611.

If you did not receive a copy of the earnings release and would like to make one after the call. Please contact star equity at 203489.

9500, or its Investor Relations representative Lena copy of the equity group at 2128369611.

Speaker 2: Also, this calls being broadcast live over the internet. It may access that Star Equities website via www.starequity.com.

Also this call is being broadcast live over the Internet you may.

Accessed historically as website via Www Dot star equity dotcom.

Speaker 2: Shortly after the call, a replay will be available on the company's website. It's time for the questions to use Rick Coleman, Chief Executive Officer.

Shortly after the call a replay will be available on the company's website, it's our pleasure to introduce Rick Coleman, Chief Executive officer of historically.

Speaker 3: Thank you, operator. Good morning, everyone. Thanks for joining us for our third quarter, 2023 Results Conference call. With me today are Executive Chairman Jeff Everline and our Chief Financial Officer, Dave Noble.

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.

Speaker 3: It's a pleasure to be with you today to update your third quarter results and to discuss our recent acquisition of Big Lake Lumber.

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 six 1% to $10 4 million compared to $11 1 billion in the third quarter of 2022.

Speaker 3: 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 of last year.

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 delayed large projects starts which have been adversely impacted by interest rates and macroeconomic uncertainty, causing sector wide difficulty in securing project financing.

Speaker 3: It's important to note that in general, we're not seeing large-project cancellations, but rather delays and starts, as well as project timeline extensions.

It is important to note that in general we're not seeing large project cancellations, but rather delayed that starch as well as project timelines expansions.

Speaker 3: Year-to-date, our gross margin increased to 28.6% versus 17.7% in the first nine months of last year. Resulting in 29.9% higher gross profit, despite lower revenue.

Year to date, our gross margin increased to 28, 6% versus 17, 7% in the first nine months of last year, resulting in 29, 9% higher gross profit despite lower revenue.

Speaker 3: And we maintain our mid-20s or higher gross margin target for our construction division.

And we maintain our mid twenty's or higher gross margin target for our construction division.

Speaker 3: Sustained execution quality has contributed to the division's ability to maintain pricing levels and combined with management's ability to scale our workforce to meet demand. These factors have contributed to the division's gross margin improvement.

Sustained execution quality has contributed to the division's ability to maintain pricing levels and combined with management's ability to scale our workforce to meet demand. These factors have contributed to the division's gross margin improvement.

Speaker 3: We remain confident in the division's ability to continue delivering good results based on stronger signed backlog and a significantly stronger sales opportunity pipeline that at this time last.

We remain confident in the division's ability to continue delivering good results based on a stronger signed backlog in a significantly stronger sales opportunity pipeline that this time last year.

Despite economic headwinds across the construction space at large our reputation as a reliable and high quality partner in the markets. We serve gives us a unique and sustainable position, which we will continue to leverage as the construction sector regained strength.

Speaker 3: Despite economic headwinds across the construction space at large, our reputation as a reliable and high-quality partner in the markets we serve gives us a unique and sustainable position which we will continue to leverage as the construction sector regains strength.

Speaker 3: We also continue to target niche markets where we feel our experience and reputation give us a sustainable competitive advantage. These include affordable and workforce housing, educational buildings and dormitories, and environmental and sustainable housing.

We also continue to target niche markets, where we feel our experience and reputation gives us a sustainable competitive advantage.

This includes affordable and workforce housing.

<unk> buildings in dormitories and environmentally sustainable housing.

Speaker 3: Based on our sales opportunity, pipeline, and construction backlog, we do believe demand in all of these sectors will remain strong.

Based on our sales opportunity pipeline and construction backlog, we believe demand in all of these sectors will remain strong.

We also have continued conviction in the ongoing growth of factory build construction in the United States, which according to the modular building Institute. Most recent report now accounts for 6% of all new construction starts in North America, having tripled from 2% in 2015.

Speaker 3: We also have continued conviction in the ongoing growth of factory build construction in the United States, which according to the modular building institutes, most recent report, now accounts for 6% of all new construction starts in North America, having tripled from 2% in 2015.

Speaker 3: Finally, consistent with our stated acquisition goals, we completed the acquisition of Big Lake Lumber, a Minneapolis-based building supply center and lumber yard on October 31st.

Finally, consistent with our stated acquisition goals, we completed the acquisition of Big Lake Lumber Minneapolis based building supply center and Lumberyard on October 31.

Speaker 3: Big Lake will be integrated into Glenbrook Building Supply, the Building Supply and Lumberyard portion of our end-builder construction business.

Big Lake will be integrated into Glenbrook building supply the building supply and lumberyard portion of our edge builder construction business.

Speaker 3: We believe this complimentary bolt-on transaction establishes Glynbrook as a strong regional player in the Twin Cities market.

We believe this complementary bolt on transaction establishes glenbrook as a strong regional player in the twin cities market.

Speaker 3: Additionally, we expect the addition of big late to immediately diversified Lenbrook's revenue mix by adding more single-family residential business where we had historically been weighted more heavily in the commercial sector.

Additionally, we expect the addition of Big Lake to immediately diversified land Brooks revenue mix by adding more single family residential business, where we had historically been weighted more heavily in the commercial sector.

Speaker 3: We believe Bidlake also presents opportunities for margin centuries, synergies, and the establishment of potential new product lines.

We believe big like also presents opportunities for margin salaries synergies and the establishment potential new product launch.

Speaker 3: This acquisition represents an important step in the execution of our overall growth strategy, which includes organic construction division expansion, bolt-on acquisitions, acquisitions in new industries, and thoughtfully exploring new opportunities at our investments division.

This acquisition represents an important step in the execution of our overall growth strategy, which includes organic construction division expansion bolt on acquisitions.

Physicians in new industries, and thoughtfully exploring new opportunities at our investments Division.

Speaker 3: Now I'll turn the call over to Dave Noble, our CFO , to provide additional third quarter consolidated financial highlights. Dave, go ahead.

Now I will turn the call over to Dave Noble our CFO to provide additional third quarter consolidated financial highlights Dave go ahead.

Speaker 3: Thank you, Rick, and good morning. Let's now turn to star equity's consolidated financial results. I would like to note that due to the sale of our healthcare business on May 4th, all results in historical comparisons relate only to continuing operations, which includes construction and investments. Did your ad health have now reported as part of our discontinued operations?

Thank you Rick and good morning, Let's now, let's now turn to Star equities consolidated financial results I would like to note that due to the sale of our health care business on May 4th all results in historical comparisons relate only only to continuing operations, which includes construction and investments Digirad health is now reported as part of our.

Discontinued operations in.

Speaker 2: In Q3 2023, SGNA increased by 10.9% versus Q3 2022. This was mainly due to transactions costs related to the sale of DIGERAD, as well as increased activity in our investments division.

In Q3, 2023, SG&A increased by 10, 9% versus Q3 2022.

This was mainly due to transactions costs related to the sale of Digirad as well as increased activity in our investments division.

Speaker 3: Moving on to bottom line results for Star Equity, we generated a net loss from continuing operations of 2.4 million in Q3 compared to a net loss from continuing operations of $1 million in Q3 of 2022.

Moving on to bottom line results for Star equity, we generated a net loss from continuing operations of $2 4 million in Q3 compared to a net loss from continuing operations of $1 million in Q3 of 2022.

Speaker 3: Non-GAP adjusted net loss from continuing operations in Q3 was 0.2 million compared to an adjusted net loss of 0.3 million in Q3 of 2022.

non-GAAP adjusted net loss from continuing operations in Q3 was <unk> 2 million compared to an adjusted net loss of <unk> 3 million in Q3 of 2022.

Speaker 3: Nongap adjusted EBITDA from continuing operations was essentially at break even at minus $14,000 in Q3 versus a positive .6 million in Q3 of 2022.

non-GAAP adjusted EBITDA from continuing operations was essentially at breakeven at minus $14000 in Q3.

Versus a positive $6 million in Q3 of 2022.

For the year to date period non-GAAP adjusted EBITDA from continuing operations improved to minus $50000 essentially breakeven from minus $1 million in year to date 2022.

Speaker 3: For the year-to-date period, non-gap adjusted EBITDA from continuing operations improved to minus $50,000, essentially break even, from minus $1 million in year-to-date 2022.

Speaker 3: On a standalone basis before public company costs, our construction division generated non-gap adjusted EBITDA of 0.8 million Q3 down from 1.8 million in Q3 of 2022. However, a year-to-date non-gap adjusted EBITDA from construction was 3.7 million, which is up from 3.5 million in year-to-date 2022.

On a standalone basis before public company costs, our construction division generated non-GAAP adjusted EBITDA, a point $8 million in Q3 down from $1 8 million in Q3 of 2022.

Our year to date non-GAAP adjusted EBITDA from construction was $3 7 million, which is up from $3 5 million and year to date 2022.

Speaker 3: Consolidated cash flow from continuing operations for Q3 was an inflow of 0.8 million versus an outflow of 3.2 million in Q3 of 2022. This cash flow increase was driven primarily by a decline in working capital needs.

Consolidated cash flow from continuing operations for Q3 was an inflow of point $8 million versus an outflow of $3 2 million in Q3 of 2022. This cash flow increase was driven primarily by a decline in working capital needs.

Speaker 2: For the year-to-date period, consolidated cash flow from continuing operations was an inflow of 2.7 million compared to an outflow of 0.2 million in the prior year period.

For the year to date period consolidated cash flow from continuing operations was an inflow of $2 7 million compared to an outflow of <unk> 2 million in the prior year period.

As of September 32023, our consolidated balance sheet and liquidity remains strong as a result of the sale of our health care business on May 4th we had just <unk> 5 million in interest bearing debt and our consolidated unrestricted cash balance stood at $27 million at the end of Q3.

Speaker 3: As of September 30, 2023, our consolidated balance sheet and liquidity remain strong. As a result of the sale of our healthcare business on May 4th, we had just $0.5 million in interest-bearing debt, and our consolidated unrestricted cash balance stood at $20.7 million at the end of Q3. Now I'd like to turn it back to Rick.

Now I'd like to turn it back to Rick for some additional remarks.

Speaker 3: Thank you, Dave. You're welcome. The big lake lumber, thank you, Dave. The big lake lumber acquisition represents an important step in executing on our discipline growth plan, following May's transformative digi-red health divest.

Thank you David Rick the big like longer. Thank you, Dave the big like lumber acquisition represents an important step in executing on our disciplined growth plan following made as transformative Digirad health divestiture.

Speaker 3: The Sari Equity Board and Management Team are fully focused on creating additional shareholder value through our Tariot Business Development Initiatives and will look to continue.

<unk> Board and management team are fully focused on creating additional shareholder value through our targeted business development initiatives and will look to continue.

Speaker 3: looking for additional accretive acquisition opportunities for construction division, as well as new potential platforms for growth.

Looking for additional accretive acquisition opportunities or construction division as well as new potential platforms for growth.

Speaker 3: We look forward to sharing more details with shareholders as our plans evolve. Now I'll turn the call over.

We look forward to sharing more details with shareholders as our plans evolve.

Now I'll turn the call over to the operator for questions.

Speaker 2: Yes, thank you. At this time, we will begin the question and answer session. To ask a question, you will press star or then one on your touchstone phone.

Yes. Thank you at this time, we will begin the question and answer session to ask a question you May Press Star then one on your Touchtone phone.

Speaker 2: If you are using a speaker phone, please pick up your handset before press.

If you are using a speaker phone please pick up your handset before pressing the case just.

Speaker 2: Would you like a question, please, press star then two. At this time, we will pause momentarily to assemble the roster.

Australia a question. Please press Star then two at this time, we will pause momentarily to assemble the roster.

Speaker 2: And the first question comes from Theodore O'Neill with the Killed Heels Research.

And the first question comes from Theodore O'neill with Litchfield Hills Research.

Speaker 3: Thanks very much. First question on a big lake. Is this a one-off opportunity like a retiring founder, or is there more opportunity in the lumber business?

Oh, thanks, very much our first question.

On a big like is this a one off opportunity like a retiring retiring founder or are there or is there more opportunity in the lumber business in general.

I'd say, it's the latter.

Speaker 3: I'd say that's the latter. In fact, the owner of the business and the entire team are staying as part of the integrated operation with Glenbrook. So we're really excited about having them. They represent a growth opportunity for us. We feel like there are great synergies between the two businesses. And we've structured the deal that we have in such a way that everyone's incented to move the business forward.

In fact, the <unk> the owner of the business and the entire.

Our team are staying as part of the integrated operation with Wedbush.

We're really excited about having them.

They represent a growth opportunity for us.

There are great synergies between the two businesses and restructure.

The deal that we have in such a way that everyone's incentive to move the business forward.

Okay are you, giving out any guidance.

Speaker 4: Okay, are you giving at any guidance on how this would add to revenue going forward?

Guidance on how this would add to revenue going forward.

Speaker 3: I know we have to provide it again. Day you want to venture? Yeah.

No we haven't provided any guidance.

Dave do you want to eventually yes.

Speaker 5: Yeah, this is Jeff.

Yeah. This is a this is Jeff.

Speaker 5: You know, the business goes up and down. We disclosed in our 8K what the purchase price was, which was 3.3 million. We do see the business doing around 10 million of revenue with around a 10% evidom margin. And we're hopeful that we can grow it.

You know that.

The business goes it goes up and down.

We disclosed in our 8-K.

The purchase price was which was a $3 3 million.

We we do see the business doing around $10 million of revenue.

With around at 10% EBITDA margin and we're hopeful that we can grow it and that there'll be some synergies by combining this business with the with the Glenbrook business.

Speaker 5: And that there'll be some synergies by combining this business with the Glenbrook business.

Speaker 4: Okay, that's helpful Jeff. And Rick, you said in your prepared remarks that the market is better now than it was a year ago. Is that show up in your backlog and pipeline and what gives you the confidence that did?

Okay. That's helpful helpful. Jeff and Rick you said in your prepared remarks that the market is better now than it was a year ago does that show up in in your backlog and pipeline and what gives you the confidence that the business is better.

It's a it's both of those is our backlog and our pipeline I think I mentioned that our.

Speaker 3: It's both of those. It's our backlog and our pipeline. I think I mentioned that our...

Speaker 3: our pipeline of new business opportunities was significantly higher than it was this time last year. We chose those words carefully because we felt like significantly may not be strong enough. But there's a lot of pent up demand for business that has just been deferred over the last year or so.

Our pipeline of new business opportunities with significantly higher than it was this time last year.

We chose those words carefully because we felt like significantly may not be strong enough, but theres a lot of pent up demand or business.

It has just been deferred over the last year or so.

Speaker 3: and our backlog is strong of deals that are signed and ready to be built.

Our backlog is strong of deals that are signed and ready to be built.

Okay. Thanks very much.

Thank you and the next question comes from Tate Sullivan with Maxim Group.

Speaker 2: Thank you and the next question, concentrate all of them with the maximum group.

Hi, This is Justin Smyth paired Tate Sullivan and today. So my question is do you guys think starz outlook for that module or construction market within new England.

Speaker 6: This is Justin Smith for Tate's all of them in today. So my question is, do you think stars outlook for the module or construction market within New England? Is more positive than last year? It sounds like you guys do believe that, but you're able to get any more color on.

Is more positive than last year. It sounds like you guys do you believe that but youre able to get any more color on that please.

Speaker 3: Yeah, thank you for the question. We do think that there's much stronger than it was last year. Yeah, I'll look for 2024. We believe is going to exceed 2023 results, but we're making assumptions about what the macroeconomic environment will look like. At some point,

Yes. Thank you for the question. We do we do think that that is much stronger than it was last year the outlook for 2024.

We believe is going to exceed 2023 results.

But we're making assumptions about what the macroeconomic environment will look like.

At some point.

Speaker 3: the pent-up demand for building projects in general, but in particular, residential projects, has got to break through the barrier of the interest rate delays. We feel good about where we are. We feel good that our business is structured in a way and prepared to absorb an additional amount of construction activity.

Demand for.

Building projects in general, but in particular residential projects, it's got to breakthrough.

<unk> of the interest rate.

Delays, so we feel good about where we're where we are we feel good that our business is structured in a way and prepare to absorb an additional amount of construction activity.

Speaker 3: and we're just moving through the back log one deal at a time.

And we're just moving through the backlog one deal at a time.

Speaker 5: And this is a Jeff. This is Jeff. What I would add to that is...

And this is this is this is Jeff what I, what I would add to that is.

Speaker 5: And clearly over the last year we've had a massive increase in interest rates and nationwide and in the New England market. We have seen less

And clearly over the last year, we've had a massive increase in interest rates and nationwide and in the new England market.

We have seen a less.

Speaker 5: We have seen that impact demand for residential, but also commercial.

We have seen that impact demand for residential but also commercial and it's not just the higher rates, but on commercial projects, it's harder to get credit.

Speaker 5: And it's not just the higher rates, but on commercial projects, it's harder to get credit. And the way we have dealt with that is.

And the way we have dealt with that is.

Speaker 5: maintained our pricing discipline, really focused on efficiency operations, running the tightest ship we possibly can, and the biggest one is getting into new verticals.

Maintained our pricing discipline really focused on.

<unk> operations are running the tightest ship, we possibly can and the biggest one is getting into new verticals that are less macroeconomic dependent so we've announced a few of those a year ago, we built dormitories for a college in new England.

Speaker 7: that are less macroeconomic dependent. So we've announced a few of those, you know, a year ago, we built dormitories for college in New England. Earlier this year, we announced we were building...

Earlier this year, we announced we were building.

Speaker 7: some buildings for a school that needed to expand. There's a lot of projects out there for workforce housing. So we see a shortage in the market.

Some buildings for a school that needed to expand.

There's a lot of projects out there for workforce housing so we see a shortage in the market.

Speaker 7: And the market is starting to adjust to the higher rate environment.

And the market is as is starting to adjust to the higher rate environment.

Speaker 7: And we're also seeing greater adoption of modular, one of the things Enrich's prepared comments was at the modular housing institute.

And we're also seeing greater adoption of modular one of the things in Rex.

Prepared comments what was at the modular housing Institute.

Speaker 7: says that modular market share is 6% versus 2% before COVID. So we're just seeing more projects that are going modular in factory built and there's a lot of reasons for that. The number one is speed to completion, but also a lot of cases, lower cost, it's greener and better quality. So we're...

Says that modular modular as market share of 6% versus 2% before COVID-19.

So we're just seeing more more projects that.

Our going modular I E factory built and Theres a lot of reasons for that number one is our speed to completion.

But also a lot of it a lot of cases lower costs, it's greener.

And better quality.

So when when the markets.

Do come back that were kind of the regular markets.

Speaker 7: do come back to kind of the regular markets, we think we're a well-positioned to participate in increases in activity. So we're happy with how we've executed, given.

We think we're well positioned to participate and an.

And increases in activity. So we're happy with how we've executed given.

Speaker 7: given the slowdown in the overall market. And it's, as we've talked about, through finding some interesting niches that are less macroeconomic dependent. Okay.

Given the slowdown in the overall market and it's as we've talked about through finding some interesting niches that.

Or less macroeconomic dependent.

Okay. Thank you that was all very helpful.

Thank you and next question comes from Devin shoe with northwest capital.

Speaker 2: Thank you. And the next question comes from Devin Hsu with North First Capital.

Speaker 3: Hi. Thanks for taking my question. Could you characterize or would you be willing to characterize in terms of your backlog and pipeline maybe like a ballpark percentage type of growth you're seeing or how we could maybe think about that?

Hi, Thanks for taking my question could you characterize or would you be willing to characterize in terms of your backlog and pipeline.

Maybe like a ballpark percentage type of growth, you're seeing or how we can maybe think about that.

Speaker 3: Yeah, we actually wanted to do that on this call, but as we looked back at the statistics, we weren't 100% certain that we were measuring apples and apples, just due to the evolution of our systems at both of our construction businesses. But the pipeline is we're overseeing the most significant growth.

Yeah, we actually wanted to do that on this call, but as we look back at the statistics, we Werent, we were at 100% certain.

We were measuring apples and apples.

Just due to the evolution of our systems at both.

For our construction businesses, but the pipeline is where we're seeing the most significant growth.

Speaker 3: And again, I think that's just pent up demand, building, waiting for financing, waiting for credit, approval, as you've mentioned. So our backlog is where our near term opportunities are, of course, and we feel confident that we've got several months of backlog ready to be built. And then I guess.

And again I think that's just pent up demand building waiting for financing waiting for credit approval as Jeff mentioned.

So.

Our backlog is where our near term opportunities are of course.

We feel confident that we've got several months of backlog ready to be built.

Got it and then they kind of.

Speaker 3: unique macroeconomic versus pent-up demand environment.

Unique macro economic versus a pent up demand environment.

Speaker 3: How are conversations in terms of M&A going? Are buyers, are sellers more willing or how, what are you guys doing there?

Our conversations in terms of M&A.

And then ongoing either a buyer or sellers more willing or how.

How what are you guys right there.

Speaker 8: Well, I would say this we've looked at a number of different opportunities. You know, we've got access to...

Well I would say this we've looked at a number of different opportunities.

Get access to.

Speaker 8: hundreds and hundreds of opportunities and it's a bit challenging to weed through them all. Our priorities are, first of all, increasing shareholder value.

Hundreds and hundreds of opportunities that has been challenging to weak through the mall. Our priorities are first of all increasing shareholder value.

Speaker 8: But we're also looking for opportunities to expand both of our construction businesses through bolt-on opportunities.

But we're also looking for opportunities to expand both of our construction businesses through bolt on opportunities and at the same time looking for other growth acquisition, where we have either.

Speaker 8: And at the same time, looking for other growth acquisitions, where we have either specific experience on the corporate team.

Specific experience on the corporate team or where we see.

Speaker 8: or where we see a good fit with our existing businesses.

A good fit with our existing businesses.

Speaker 8: So we're continuing to weave through those and because of our holding company structure, we were able to look at a wide variety of alternatives.

So we're continuing to work through those.

And because of our holding company structure, we were able to look at a wide variety of alternatives in our investments division as well as in the core operating business.

Speaker 8: in our investments division as well as in the core operating business.

Speaker 3: Scott, I guess, could you characterize whether or not it's more of a buyer's market since maybe the last quarter or?

I guess could you characterize whether or not it's more of a buyer's market since maybe last quarter or.

Kind of nurtured.

Yes.

Speaker 8: Yeah, I know from what I've seen, it's very situational. There are a number of great opportunities where, as someone mentioned earlier, the founders are retiring and there's no one to pick up the ball and move the business forward. But there are also a number of opportunities where expectations

Yeah.

Yeah from what I've seen this very situational there are a number of great opportunities where as someone mentioned earlier. The founders are retiring and there is no one to pick up the ball and move the business forward, but there are also a number of opportunities where expectations.

Speaker 8: for pricing are just simply too high based on results in 2022 without regard to what the forward-looking environment is.

From a pricing or just simply too high based on results in 2022 without regard to <unk>.

Forward looking environment might be so we're being we're being very selective.

Speaker 8: So we're being very selective, trying to be value investors and at the same time balance that with our desire to grow the business.

Trying to be value investors and at the same time balance out with.

With our desire to grow the business.

Okay, great. Thank you.

Speaker 2: Thank you, and once again, please press star then 1 if you would like to ask a question.

Thank you and once again. Please press Star then one if you would like to ask a question.

Speaker 2: All right, this concludes the question and answer session. I would like to turn the floor to Rick Coleman for any closing comments.

Alright. This concludes our question and answer session I would like to turn the floor I recall him on for any closing comments.

Speaker 8: Thank you operator. Before concluding the call, I want to know if it was always available to take your call and discuss any additional questions you might have. So please don't hesitate to contact us. We'll continue to share our story with existing and potential investors in the coming weeks and months. And as always, we appreciate your interest as well as your continued feedback and support. Thank you.

Thank you operator before concluding the call I wanted to note that we are always available to take your call and discuss any additional questions. You might have so please don't hesitate to contact US we will continue to share our story with existing and potential investors in the coming weeks and months and as always we appreciate your interest as well as.

Your continued feedback and support.

Speaker 2: Thank you for joining the Star Equity Holdings third quarter conference call. Today's call has been recorded and will be available on the investor section of our website www.starequity.com.

Thank you for joining the Star equity Holdings third quarter conference call today cause call has been recorded and will be available on the investors section of our website Www Dot star equity Dot com.