Q1 2025 Star Equity Holdings Inc Earnings Call

Okay.

Operator: Greetings, ladies and gentlemen, and welcome to Star Equity Holdings first quarter 2025 results conference.

Ladies and gentlemen, and welcome to Star Equity Holdings first quarter 2025 results conference call.

Operator: 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 statement. Please refer to Star Equity's most recent 10-K, 10-Q, and other filings for a more complete description of risk factors that could affect these projections.

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

Such forward looking statements involve certain risks and uncertainties that may cause.

Cause actual results to differ materially from those contained in the forward looking statements.

Please refer to stock what he's most recent 10-K 10-Q and other filings for a more complete description of risk factors that could affect these projections and assumptions.

Operator: The company assumes no obligations to update forward-looking statements as a result of new information, future events, or other events.

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

Operator: Please also note that this call to management may reference certain 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. As required by SEC rules and regulations, these non-GAAP majors are reconciled to their most recent completion.

Please also note that this call on this call management may reference certain 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 measures are reconciled to their most recent comparable.

GAAP financial measures in our earnings release issued this morning.

Operator: If you do not receive a copy of the earnings release and would like to receive one after the call, please contact Star Equity at 203-489-9500 or the Investor Relations Representative, Lena Catty of the Equity Group, at 212-489-9500. 836-9611.

Do not receive a copy of the earnings release and would like to receive one after the call. Please contact our equity at 20348, 990, 500, whereas Investor Relations representative Lena Kathy of the equity group at 2128.

369611.

Operator: Also this call is being broadcast live over the internet and can be accessed via Star Equity's website at www.starequity.com The link to the call replay will also be available on the company's website.

Also this call is being broadcast live over the Internet access via Star equities website at Www Dot sorry equity Dot com shortly.

Shortly after the call a replay will also be available on the company's website.

Richard Coleman: It is now my pleasure to introduce Rick Coleman, Chief Executive Officer of Star Equity. Thank you, operator. Good morning, everyone. We appreciate you joining us for our first quarter 2025 results conference call.

Speaker Change: It's now my pleasure to introduce Rick Coleman, Chief Executive Officer historically.

Yeah.

Speaker Change: Thank you operator, good morning, everyone. We appreciate you joining us for our first quarter 2025 results conference call.

Richard Coleman: On the call with me today are Jeff Eberwein, our Executive Chairman, and Dave Noble, our Chief Financial Officer. I'll start today by providing an overview of our recent business developments and financial highlights, then Dave will provide additional details on our consolidated financial results. Our first quarter revenue increased 41.7% over the first quarter of 2024, driven primarily by the inclusion of revenues from timber technologies acquired in May 2024, and partially from Alliance drilling tools acquired in March 2025. gross margin improved to 24.3% versus 17.3% in the same quarter last year, mainly due to higher revenues and the addition of timber technologies.

Speaker Change: On the call with me today are Jeff Eberwein, our executive Chairman and David <unk>, Our Chief Financial Officer.

Speaker Change: I'll start today by providing an overview of our recent business developments and financial highlights.

Speaker Change: Dave will provide additional details on our consolidated financial results.

Speaker Change: Our first quarter revenue increased 41, 7% over the first quarter of 2024.

Speaker Change: Driven primarily by the inclusion of revenues from timber technologies acquired in May 2024, and partially from alliance drilling tools acquired in March 2025.

Speaker Change: Gross margin improved to 24, 3% versus 17, 3% in the same quarter of last year, mainly due to higher revenues and the addition of timber technologies.

Speaker Change: Building solutions segment revenues increased by 32, 9% compared to the same quarter of 2024, we're still somewhat below our internal expectations, mainly due to commercial projects pushing into the second quarter.

Richard Coleman: Building Solutions segment revenues increased by 32.9% compared to the same quarter of 2024, we're still somewhat below our internal expectations, mainly due to commercial projects pushing into the second quarter. Also, residential demand at our Glenbrook business picked up later in the quarter than we anticipated. The progress made at KVS was somewhat offset by slower business activity at EBGL, which we believe is temporary. Overall, we've seen a significant uptick in customer interest and activity over the past couple of quarters. We're excited to note that our Building Solutions Division backlog, representing orders under contract, stood at a record $27.9 million at quarter end, compared to $14.8 million at the end of the first quarter of 2024.

Speaker Change: Also residential demand at our Glenbrook business picked up later in the quarter than we anticipated.

Speaker Change: Progress made at KBS was somewhat offset by slower business activity at a b G L, which we believe is temporary.

Speaker Change: Overall, we've seen a significant uptick and customer interest in activity over the past couple of quarters. We're excited to note. There are building solutions division backlog representing orders under contract should at a record $27 9 million at quarter end compared to 14 point.

Speaker Change: $8 million at the end of the first quarter of 2024.

Richard Coleman: This gives us high confidence in the division's full year 2025 outlook.

Speaker Change: This gives us high confidence in the divisions full year 2025 outlook.

Speaker Change: Another highlight of the quarter was the establishment of our energy services Division marked by our March acquisition of alliance drilling tools or ADT.

Richard Coleman: Another highlight of the quarter was the establishment of our Energy Services Division, marked by our March acquisition of Alliance Drilling Tools, or ADT. The audit of this business is complete and the integration into our holding company structure is proceeding smoothly. We're now focused on ADT's organic growth opportunities and on exploring opportunities to augment the division with additional acquisition.

Speaker Change: The audit of this business just completed and the integration into our holding company structure is proceeding smoothly.

Speaker Change: We're now focused on adt's organic growth opportunities and on exploring opportunities to augment the division with additional acquisitions.

Speaker Change: Now I'll turn the call over to Dave <unk>, our CFO to provide additional first quarter consolidated financial highlights Dave. Please go ahead.

David Noble: Now I'll turn the call over to Dave Noble, our CFO, to provide additional first quarter consolidated financial highlights. Dave, please go ahead. Thank you, Rick, and good morning.

Speaker Change: Thank you Rick and good morning, Let's now turn to Star equities consolidated financial results, which represented by our three operating divisions building solutions energy services and investments.

David Noble: Let's now turn to Star Equity's consolidated financial results, which are represented by our three operating divisions, Building Solutions, Energy Services, and Investments. In Q1 2025, gross profit was $3.1 million, up 99.2% versus Q1 of 2024. This was driven by increased revenue at KBS, as well as the addition of TT and ADT to our portfolio of companies. SG&A increased by $1.2 million, or 28.5% versus Q1 of 2024. This was driven largely by the inclusion of SG&A from TT and, to a lesser extent, ADT, as well as higher expenses related to M&A activity. SG&A as a percentage of revenue decreased to 40.7% compared to 44.9% in the first quarter of last year.

Speaker Change: In Q1, 2025 gross profit was $3 $1 million up 99, 2% versus Q1 of 2024. This was driven by increased revenue at KBS as well as the addition of T T and ADT.

Speaker Change: Our portfolio of companies.

Speaker Change: SG&A increased by $1 $2 million or 28, 5% versus Q1 of 2024. This was driven largely by the inclusion of SG&A from T T and to a lesser extent ADT as well as higher expenses related to M&A activity.

Speaker Change: SGA SG&A as a percentage of revenue decreased to 47% compared to 44, 9% in the first quarter of last year.

David Noble: SG&A excluding non-recurring items was 36% of revenue in Q1 compared to 37% in Q1 of 2024.

Speaker Change: SG&A, excluding nonrecurring items was 36% of revenue in Q1 compared to 37% in Q1 of 2024.

Speaker Change: Moving on to bottom line results for Star equity, we reported a net loss from continuing operations of $1 $2 million in Q1 of 2025.

David Noble: Moving on to bottom line results for Star Equity, we reported a net loss from continuing operations of $1.2 million in Q1 of 2025 compared to a net loss from continuing operations of $2.2 million in Q1 of 2024. Non-GAAP adjusted net loss from continuing operations in Q1 was $1.7 million, or $0.52 per share, compared to an adjusted net loss of $1.4 million, or $0.44 a share, in Q1 of 2024. Non-GAAP-adjusted EBITDA from continuing operations was a loss of $0.8 million in the quarter versus an adjusted EBITDA loss of $1.1 million in the same period last year.

Speaker Change: Compared to a net loss from continuing operations of $2 2 million in Q1 of 2024.

Speaker Change: non-GAAP adjusted net loss from continuing operations in Q1 was $1 $7 million or <unk> 52 per share compared to an adjusted net loss of $1 4 million or <unk> 44 cents a share in Q1 of 2024.

Speaker Change: non-GAAP adjusted EBITDA from continuing continuing operations was a loss of <unk> 8 million in the quarter versus an adjusted EBITDA loss of $1 1 million in the same period last year.

Speaker Change: Consolidated cash flow from operations for the first quarter of 2025 was an inflow of $6 million versus an outflow of $2 4 million in the first quarter of 2024.

David Noble: Consolidated cash flow from operations for the first quarter of 2025 was an inflow of $0.6 million versus an outflow of $2.4 million in the first quarter of 2024. The positive cash flow from operating activities is attributable to favorable results in our building solutions division, combined with strong accounts receivable collection.

The positive cash flow from operating activities is attributable to favorable results in our building solutions Division <unk>.

Speaker Change: Bind with strong accounts receivable collections.

Speaker Change: At the end of the third quarter, our consolidated unrestricted cash balance stood at $1 9 million.

David Noble: At the end of the third quarter, our consolidated unrestricted cash balance stood at $1.9 million compared to $4.0 million at the end of 2024. The difference is primarily driven by the upfront cash used to close the acquisition of ADT in March of 2025, plus associated transaction-related costs.

<unk> to 4.0 million at the end of 2024. The difference is primarily driven by the upfront cash used to close the acquisition of ADT and March two 2025, plus associated transaction related costs.

Speaker Change: Turning to our investments Division Division, our holdings and public equity Securities at the end of the quarter amounted to $3 1 million versus $3 4 million at year end 2024.

David Noble: Turning to our investments division, our holdings in public equity securities at the end of the quarter amounted to $3.1 million versus $3.4 million at year-end 2024. Our rollover equity investment and seller note receivable from the 2023 sale of Digirad to TTG, now called Catalyst, were valued at $1.3 million and $8.4 million respectively.

Speaker Change: Our rollover equity investment in seller note receivable from the 2023 sale of Digirad to T. T. G. Now called catalyst were valued at $1 3 million and $8 4 million respectively.

Rick Coleman: Now I'd like to turn the call back over to Rick for some additional comments.

Richard Coleman: Now I'd like to turn the call back over to Rick for some additional Thank you, Dave. Thank you. As I previously mentioned, we're encouraged by the recent momentum we're experiencing at our building solutions division, and by new growth opportunities at our energy services division, as well as the progress we've been making on the M&A front.

Rick Coleman: Thank you Dave.

Rick Coleman: Thank you.

Speaker Change: As I previously mentioned, we're encouraged by the recent momentum we're experiencing at our building solutions division and by new growth opportunities at our energy services Division as well as the progress we've been making on the M&A front.

Speaker Change: The Star equity Board and management team are fully focused on creating shareholder value through our targeted business development initiatives and we will continue to identify additional accretive opportunities at all our divisions.

Richard Coleman: The Star Equity board and management team are fully focused on creating shareholder value through our targeted business development initiatives. And we will continue to identify additional accretive opportunities at all our divisions.

Speaker Change: I'll now turn the call over to the operator for questions.

Operator: I'll now turn the call over to the operator for questions. Yes, thank you. We will now begin the question and answer session. To ask a question, you may press star then 1 on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the button. Any time your question has been addressed and you would like to withdraw it, please press star.

Yes. Thank you we will now begin the question and answer session.

Speaker Change: To ask a question you May press Star then one on your telephone keypad.

Speaker Change: If youre using a speakerphone please pick up your handset before pressing the keys.

Speaker Change: Your question is addressing you would like to withdraw it. Please press Star then two.

Speaker Change: At this time, we will pause momentarily to assemble the roster.

Operator: At this time, we will pause momentarily to assemble.

Speaker Change: Uh huh.

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

Theodore O'Neill: And the first question comes from Theodore O'Neill with Lickfield Hills. Oh, thanks. Hey, congratulations on the on the backlog. Question for you, I would have expected with the tariff situation that we've got that a whole host of the business would have Experiencing Delays. And so I was wondering if you could talk about sort of the dynamics. of the business between Edge Builder and building solutions that would cause Edge Builder to have cited for these pushouts, but not the rest.

Theodore O'Neill: Yeah, Thanks, Hey, congratulations on the on the backlog.

Theodore O'Neill: A question for you I would have expected with the tariff situation that we've got a whole host of.

Theodore O'Neill: The business would have.

Theodore O'Neill: Experiencing be experiencing delays.

Theodore O'Neill: And so I was wonder if you could talk about the sort of the dynamics in that.

Theodore O'Neill: The business between edge builder and <unk>.

Theodore O'Neill: Building solutions that would cause hedge builders they haven't.

Theodore O'Neill: And for these push outs, but not the rest of your business.

Rick Coleman: Rick do you want to take that.

Jeffrey Eberwein: Ricky want to take that?

Jeff: Yeah. This is Jeff.

Jeffrey Eberwein: Theo, this is a Jeff in Connecticut. So, EdgeBuilder, it was really more company specific. There was a really large project that had started and then just for project specific reasons, it had a two-month pause right in the middle of Q1, but then it got back on track and we'll recognize the revenue, finish that project, recognize the revenue in Q2. Additionally, if you think about where our businesses are located, so EdgeBuilder is in the Minneapolis area and KBS is in Maine. You know, we did have a pretty severe winter or at least compared to the previous years.

Jeff: Jeff and in Connecticut, So etch builder it was really more company specific.

Jeff: There was a really large project that had started.

Jeff: And then just for project specific reason reasons. It it had a two month pause right in the middle of Q1, but then it got back on track and we'll recognize the revenue finished that project recognize that revenue in Q2.

Additionally, if you think about where our businesses are located so etch builders in the Minneapolis area and <unk>.

Jeff: K B S. As in is in Maine.

Jeff: We did have a pretty.

Jeff: Severe winter or at least.

Jeff: <unk> to the previous years, and we hate to talk about weather as an excuse but there were a weather related delays and the nature of those two businesses that theyre very project oriented and.

Jeffrey Eberwein: And we hate to talk about weather as an excuse, but there were weather related delays and. The nature of those two businesses is that they're very project oriented and You know, nothing got canceled. We just had some things that shifted from Q1 to Q2. So it's just a shift in one quarter.

Jeff: You know nothing got canceled we just had some things that shifted.

Jeff: From a.

Jeff: Q1 to Q2 and.

Jeff: So it was just a shift in in one quarter.

Jeff: Okay, and and I and I understand because we talked about this in the last quarter that there are ways that you can mitigate the tariff impact, but I'm just I'm just curious if you're seeing any other sort of early signs of any of the projects being sort of like.

Unknown Speaker: Okay, and, and, and I, and I understand, because we talked about this in the last quarter, that there are ways that you can mitigate tariff impact. But I'm just, I'm just curious, if you are seeing any other sort of early signs of any of the projects being sort of like Unknown Speaker put on hold while we wait and see what happens with the with price.

Jeff: I'll put on hold while we wait and see what happens with the with pricing.

Jeff: No I would I'll take that one Jeff we really arent things are actually looking fairly positive for us.

Unknown Speaker: No, I'll take that one, Jeff. We really aren't. Things are actually looking fairly positive for us. I think there was such a backlog of construction demand built up over time while people were reacting to the interest rate environment and other economic factors that things have to get built. And so those projects are now moving forward. Our backlog is strong and we don't see any signs that that's a temporary situation. We are paying close attention to that, you know, we're monitoring inputs like lumber and OSB and Lumber, you know, hasn't it's gone up some but but not as much as it as it has in the past in springtime.

Jeff: I think there is such a backlog of construction.

Jeff: Demand built up over time, while people were reacting to the interest rate environment and other economic factors that.

Jeff: Things have to get built and so those projects are now moving forward.

Jeff: Backlog is strong and we don't see any signs that the.

Jeff: That's a temporary situation.

Jeff: Okay Alright.

Jeff: We are paying yeah, we are paying close attention to that you know we're monitoring.

Jeff: Inputs like lumber and OSB.

Jeff: And.

Jeff: Lumber.

Jeff: It hasn't it's gone up some but not as much as it is it has in the past and in spring time and Theres been some press about.

Unknown Speaker: And, you know, there's been some press about on the residential side. construction of new homes has slowed down a bit. We're not really that exposed to construction of new homes. We have a modest amount of exposure there, but we are watching those things. But as Rick said, in the We then the massive run up in interest rates we had in the 2022 2023 timeframe that combined with financing getting harder to come by. There were a lot of projects that just got paused, not canceled. In a severe recession, you see projects get outright canceled and we didn't really see any of that.

Jeff: On the residential side.

Jeff: Construction of new homes is has slowed down a bit we're not really that exposed to construction of new homes.

Jeff: We have a modest amount of exposure there, but we are watching those things, but as Rick said and.

Rick Coleman: Then the massive run up and interest rates, we had in the 2022 2023 time frame.

Rick Coleman: That combined with the financing getting harder to come by.

Rick Coleman: There were a lot of projects that just got caused them not canceled.

Rick Coleman: You know in a severe recession, you see projects get outright cancelled and we didn't really see any of that but we had I'd say about six quarters. There were projects just kept getting shifted to the right caused not started.

Unknown Speaker: But we had, I'd say about six quarters there where projects just kept getting shifted to the right, paused, not started. And then it was like someone flicked a switch and Q4 of last year, a lot of those projects that had been on hold for a long time started to go into production. And you can see it in our backlog numbers, which we think, I mean, that's what gives us confidence in the coming quarters is all those projects that have been turned into signed contracts that are on our production schedule.

Rick Coleman: And then it was like someone flipped a switch in Q4 of last year a lot of those projects that had been on hold for a long time started to go into production and you can see it in our backlog numbers, which we think I mean, that's that's what gives us confidence and in the coming quarters is are all of those.

Rick Coleman: <unk> that have been turned into signed contracts that are on our production schedule.

Rick Coleman: Okay. Thanks very much.

Unknown Speaker: Thanks very much. Thank you.

Speaker Change: Thank you and then last question comes from Tate Sullivan with Maxim Group.

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

Speaker Change: Okay. Thank you Yeah I saw your alliance drilling financials.

Unknown Speaker: I saw your Alliance drilling financials in the in the 8K yesterday and just noticed the gross profit margin 2024 of around 56% versus, I mean, the first quarter of closing a little above third or about 35%. Is that just based on intra quarter? Is it lower gross profit business or changes since 2024 in Alliance?

Speaker Change: In the 8-K yesterday and just noticed the gross profit margin in 2020 for around 56% versus.

Speaker Change: The first quarter of closing a little above third or about 35% is that just based on intra quarter or is it a lower gross profit business or changes since 2024 and alliance.

Speaker Change: Stuck there.

Bill: Bill do you know.

Speaker Change: I think it's really just a function of what happened during the quarter.

Unknown Speaker: David Noble, Richard Coleman, Unknown Executive, Unknown Attendee, Star Equity Gross Margin Business, and sort of a function of the activity coming and ramping up into our. Results.

Speaker Change: So I don't think it has I think there are lines of that.

Speaker Change: High gross margin business.

Speaker Change: <unk>.

Speaker Change: It just sort of a function of.

Speaker Change: The activity coming in ramping up into our.

Speaker Change: Results, yet and Tate I would I would add.

Unknown Speaker: Yeah, and Tate, I would, I would add. You know, we, in general, we look for businesses that have high margin. Low Maintenance CapEx, and what we like about Alliance Drilling are those two characteristics, as well as their cost.

Speaker Change: We in general we look for businesses that have.

Speaker Change: High margins.

Speaker Change: Low maintenance Capex and what we what we like about our alliance drilling or are those those two characteristics.

Speaker Change: As well as there their cost.

Speaker Change: As a percentage of a total project is really really small but its mission critical so that's a pretty good characteristic for a for a small business and that's one of the things that attracted us to it was a it was a.

Unknown Speaker: as a percentage of a total project is really, really small, but it's mission critical. So that's a pretty good characteristic for a small business. And that's one of the things that attracted us to it was the consistently high margins of that business.

Speaker Change: Distantly high margins that that business has.

Speaker Change: And another thing that jumped out to me was the equipment rental revenue.

Unknown Speaker: Another thing that jumped out to me was the equipment rental revenue as a percent of total revenue. Are the rental terms in the businesses that Align have one to two to three months or can they be longer?

Speaker Change: As a percent of total revenue.

Speaker Change: Is the are the rental terms in the businesses at alliance had wanted to monthly two to three months or maybe longer.

Unknown Speaker: Or if you can talk about that. Yeah, no, it's more project based. And this equipment, if you think about what they do, which is drilling oil and gas wells, but they also do geothermal mining, water wells, the equipment gets shoot up, used up pretty, pretty quickly. So they, they have a pretty high rental rate. And it usually is based on Unknown Speaker On the project, you know, it can be a set amount per day or it can be an amount per foot drilled or even a set amount per hour. And the equipment after a project is done comes back to the shop and gets refurbished.

Speaker Change: Yeah, no. It's more it's more project based and this this equipment. If you think about what they do which is.

Speaker Change: Drilling oil and gas wells, but they also do geothermal mining water wells the equipment gets shoot.

Speaker Change: Shoot up used up pretty pretty quickly. So they are they have a pretty high.

Speaker Change: Rental rate and it usually is based on.

On the project you know it can be a set amount per day or it can be.

Speaker Change: And amount per foot drilled or even a set amount per hour.

Speaker Change: And the equipment. After a project is done comes back to the shop and get gets refurbished and it can only be used it depends on the piece of equipment, maybe five to 10 times before it's at the end of its useful life.

Unknown Speaker: And it can only be used, it depends on the piece of equipment, maybe five to 10 times before it's at the end of its useful life. So, it's a little bit like a razor blade. kind of business.

Speaker Change: So it's a little bit like a like a razorblade kind.

Speaker Change: Kind of business.

Speaker Change: And then.

Unknown Speaker: and then on the table that you show there, your revolving credit facilities. including one Austin ADT Assume Alliance.

Speaker Change: If I may on the table that you show there your revolving credit facilities, including one Austin ADT assume alliance is it a similar type of facility to the edge builder facility or Eric can.

Unknown Speaker: Is it a similar type of facility to the EdgeBuilder facility or can you just talk about? Unknown Speaker Yeah, yeah, that's a similar facility. I mean, we did Two facilities to support the acquisition of ADT. One is a small term loan on the fixed assets, and that was just $600,000. The second piece is a revolver that has a $3 million limit, but it's based on borrowing-based certificates that are filed periodically, very similar to, like you said, EdgeBuilder. And we drew about half of that to finance the initial acquisition, but there's headroom still remaining on that facility.

Speaker Change: Can you talk about that.

Dave: Dave wants to say Oh, yeah, Yeah, that's a similar facility I mean, we did.

Dave: Two facilities to support the acquisition of ADT, you want as a a small term loan on.

Dave: On the fixed assets and that was just $600000. The second piece is a revolver that has a $3 million limit, but it's based on a borrowing base certificates that are filed periodically very similar to like you said edge builder and we drew about half of that to finance the initial acquisition, but there's there's headroom still.

Dave: On that facility.

Dave: Okay. Thank you.

Unknown Speaker: Okay, thank you.

Dave: Yeah.

Dave: Thank you.

Operator: Thank you, and this concludes our question and answer session.

Rick Coleman: A question and answer session I would like to turn the conference back over to Rick Coleman for any closing comments.

Richard Coleman: I would like to turn the conference back over to Rick Coleman for the closing. Thank you, operator. Thanks, everyone for your time today. We do appreciate your interest and your continued feedback and support. So please don't hesitate to contact us. We're excited about the steps that we're taking on your behalf and look forward to updating you as our story develops.

Rick Coleman: Thank you operator, thanks, everyone for your time today, we do appreciate your interest and your continued feedback and support so please don't hesitate to contact US. We're excited about the steps that we're taking on your behalf and look forward to updating you as our story develops.

Speaker Change: Thank you for joining star equity Holdings first quarter Conference call. Today's call is being recorded and will be available on the investors section of our website Www Dot star equity Dot com.

Operator: Thank you for joining Star Equity Holdings first quarter conference. This call has been recorded and will be available on the investor section of our website, www.starequity.com.

Rick Coleman: [music].