Steel Partners Holdings Reports Third Quarter Financial Results and Declares Quarterly Distribution on its Series A Preferred Units
Third Quarter 2021 Highlights
- Revenue totaled $392.1 million, an increase of 18.7%, as compared to the same period in the prior year
- Net income from continuing operations was $22.1 million
- Net income attributable to common unitholders was $22.3 million, or $0.92 per diluted common unit
- Adjusted EBITDA* was $72.5 million; Adjusted EBITDA margin* was 18.5%
- Net cash provided by operating activities of continuing operations was $43.9 million
- Adjusted free cash flow* was $56.4 million
- Total debt at quarter-end was $263.4 million; net debt,* which includes, among other items, pension and preferred unit liabilities, and marketable securities and long term investments, totaled $278.9 million
YTD 2021 Highlights
- Revenue totaled $1.1 billion, an increase of 12.5%, as compared to the same period in the prior year
- Net income from continuing operations was $102.9 million
- Net income attributable to common unitholders was $102.5 million, or $3.63 per diluted common unit
- Adjusted EBITDA* was $196.6 million; Adjusted EBITDA margin* was 18.0%
- Net cash provided by operating activities of continuing operations was $58.9 million
- Adjusted free cash flow* totaled $110.4 million
NEW YORK–(BUSINESS WIRE)–Steel Partners Holdings L.P. (NYSE: SPLP), a diversified global holding company, today announced operating results for the third quarter ended September 30, 2021.
Q3 2021 |
| Q3 2020 |
| ($ in thousands) |
| YTD 2021 |
| YTD 2020 |
$392,113 |
| $330,333 |
| Revenue |
| $1,093,039 |
| $971,916 |
22,098 |
| 34,667 |
| Net income (loss) from continuing operations |
| 102,875 |
| (1,795) |
22,300 |
| 35,559 |
| Net income (loss) attributable to common unitholders |
| 102,491 |
| (26,753) |
72,491 |
| 69,285 |
| Adjusted EBITDA* |
| 196,631 |
| 146,657 |
18.5% |
| 21.0% |
| Adjusted EBITDA margin* |
| 18.0% |
| 15.1% |
5,631 |
| 4,546 |
| Purchases of property, plant and equipment |
| 19,556 |
| 15,581 |
56,405 |
| 40,583 |
| Adjusted free cash flow* |
| 110,398 |
| 135,805 |
* | See reconciliations to the nearest GAAP measure included in the financial tables. See “Note Regarding Use of Non-GAAP Financial Measurements” below for the definition of these non-GAAP measures. |
“Our businesses delivered outstanding results that continue to be above our pre-pandemic levels of revenue, EBITDA, and cash flow,” said Executive Chairman Warren Lichtenstein. “Our management team is focused on ensuring we have a stable supply chain as well as recruiting and retaining top talent so that we can continue to provide quality products and services to our customers and create value for all our stakeholders.”
Results of Operations | ||||||||||||||||
Comparison of the Three and Nine Months Ended September 30, 2021 and 2020 (unaudited) | ||||||||||||||||
(Dollar amounts in table and commentary in thousands, unless otherwise indicated) | Three Months Ended |
| Nine Months Ended | |||||||||||||
| 2021 |
| 2020 |
| 2021 |
| 2020 | |||||||||
Revenue | $ | 392,113 |
|
| $ | 330,333 |
|
| $ | 1,093,039 |
|
| $ | 971,916 |
| |
Cost of goods sold | 252,819 |
|
| 220,633 |
|
| 712,101 |
|
| 637,705 |
| |||||
Selling, general and administrative expenses | 80,405 |
|
| 67,399 |
|
| 223,793 |
|
| 215,466 |
| |||||
Asset impairment charges | — |
|
| — |
|
| — |
|
| 617 |
| |||||
Interest expense | 5,089 |
|
| 6,988 |
|
| 16,059 |
|
| 23,337 |
| |||||
Realized and unrealized losses (gains) on securities, net | 21,453 |
|
| (969 | ) |
| 40,232 |
|
| 25,515 |
| |||||
All other expense (income), net | 1,136 |
|
| (8,724 | ) |
| (32,180 | ) |
| 35,608 |
| |||||
Total costs and expenses | 360,902 |
|
| 285,327 |
|
| 960,005 |
|
| 938,248 |
| |||||
Income from continuing operations before income taxes and equity method investments | 31,211 |
|
| 45,006 |
|
| 133,034 |
|
| 33,668 |
| |||||
Income tax provision | 6,428 |
|
| 13,533 |
|
| 56,435 |
|
| 9,043 |
| |||||
Loss (income) of associated companies, net of taxes | 2,685 |
|
| (3,194 | ) |
| (26,276 | ) |
| 26,420 |
| |||||
Net income (loss) from continuing operations | $ | 22,098 |
|
| $ | 34,667 |
|
| $ | 102,875 |
|
| $ | (1,795 | ) |
Revenue
Revenue for the three months ended September 30, 2021 increased $61,780, or 18.7%, as compared to the same periods last year, due to higher sales volume across all segments, primarily due to the economic recovery from COVID-19.
Revenue for the nine months ended September 30, 2021 increased $121,123, or 12.5%, as compared to the same period last year, due to higher sales volume across all segments, primarily due to the economic recovery from COVID-19.
Cost of Goods Sold
Cost of goods sold for the three months ended September 30, 2021 increased $32,186, or 14.6%, as compared to the same period last year, due to increases in the Diversified Industrial and Energy segments. The increases in the Diversified Industrial and Energy segments in the three months ended September 30, 2021 were primarily due to the higher sales volume discussed above.
Cost of goods sold for the nine months ended September 30, 2021 increased $74,396, or 11.7%, as compared to the same period last year, due to increases in the Diversified Industrial and Energy segments. The increases in the Diversified Industrial and Energy segments in the nine months ended September 30, 2021 were primarily due to the higher sales volume discussed above.
Selling, General and Administrative Expenses
Selling, general and administrative expenses (“SG&A”) for the three months ended September 30, 2021 increased $13,006, or 19.3%, as compared to the same period last year, primarily driven by higher sales volume.
SG&A for the nine months ended September 30, 2021 increased $8,327, or 3.9%, as compared to the same period last year, primarily due to the impact of higher sales volume as discussed above, partially offset by an environmental reserve charge of $14,000 in the Diversified Industrial segment related to a legacy, non-operating site during the 2020 period.
Asset Impairment Charges
No impairment charges were recorded in the three or nine months ended September 30, 2021. During the first quarter of 2020, as a result of COVID-19 related declines in our youth sports business within the Energy segment, intangible assets of $617, primarily customer relationships, were fully impaired.
Interest Expense
Interest expense for the three months ended September 30, 2021 decreased $1,899, or 27.2%, as compared to the same period last year. The decrease for the three months ended September 30, 2021 was primarily due to lower interest rates and lower average debt levels, as compared to the same period of 2020.
Interest expense for the nine months ended September 30, 2021 decreased $7,278, or 31.2%, as compared to the same period last year. The lower interest expense for the nine months ended September 30, 2021 was primarily due to lower interest rates and lower average debt levels compared to the same period of 2020.
Realized and Unrealized (Gains) Losses on Securities, Net
The Company recorded losses of $21,453 for the three months ended September 30, 2021, as compared to gains of $969 in the same period of 2020 and losses of $40,232 for the nine months ended September 30, 2021, as compared to losses of $25,515 in the same period of 2020. These gains and losses were primarily due to unrealized gains and losses related to the mark-to-market adjustments on the Company’s portfolio of securities in both periods, as well as a realized loss on the sale of securities in the first half of 2020.
All Other Expense (Income), Net
All other expense, net totaled $1,136 for the three months ended September 30, 2021, as compared to All other income, net that totaled $8,724 in the same period of 2020. The income from the 2020 period was due primarily to a net improvement in the (benefit from) provision for loan losses.
All other income, net totaled $32,180 for the nine months ended September 30, 2021, is primarily comprised of: (1) a $19,740 one-time dividend from Aerojet, (2) a pre-tax gain of $8,096 on the sale of OMG’s Edge business and (3) a pre-tax gain of $6,646 on the sale of an idle facility in the Joining Materials business. All other expense, net totaled $35,608 for the nine months ended September 30, 2020 was primarily comprised of provisions for loan losses.
Income Tax Provision
The Company’s tax provision represents the income tax expense or benefit of its consolidated subsidiaries that are taxable entities. Significant differences between the statutory rate and the effective tax rate include partnership losses for which no tax benefit is recognized, the change in unrealized gains on investments, changes in deferred tax valuation allowances and other permanent differences. The Company’s consolidated subsidiaries have recorded deferred tax valuation allowances to the extent that they believe it is more likely than not that the benefits of certain deferred tax assets will not be realized in future periods.
The Company recorded income tax provisions of $6,428 and $13,533 for the three months ended September 30, 2021 and 2020, respectively, and income tax provisions of $56,435 and $9,043 for the nine months ended September 30, 2021 and 2020, respectively. The Company’s effective tax rate was 20.6% and 30.1% for the three months ended September 30, 2021 and 2020, respectively, and was 42.4% and 26.9% for the nine months ended September 30, 2021 and 2020, respectively. The higher effective tax rate for the nine months ended September 30, 2021 is primarily due to an increase in U.S. tax expense related to unrealized gains on investments. Excluding the impact of the unrealized gains on investments, the estimated annual effective tax rate is expected to be approximately 27%.
Loss (Income) of Associated Companies, Net of Taxes
Loss from associated companies, net of taxes, was $2,685 for the three months ended September 30, 2021, as compared to income from associated companies, net of taxes, of $3,194 to the same period of 2020. The change is primarily due to the absence of increases in the fair value of Aviat common stock in 2021 and unfavorable changes in the fair value of the Company’s investments in STCN preferred stock and common stock in the three months ended September 30, 2021.
Income from associated companies, net of taxes was $26,276 for the nine months ended September 30, 2021, as compared to a loss from associated companies, net of tax of $26,420 in the same period of 2020. The improvement is primarily due to favorable changes in the fair value of the Company’s investment in STCN common stock.
Purchases of Property, Plant and Equipment (Capital Expenditures)
Capital expenditures for the third quarter of 2021 totaled $5,631, or 1.4% of revenue, as compared to $4,546, or 1.4% of revenue, in the third quarter of 2020. Capital expenditure for the nine months ended September 30, 2021 totaled $19,556, or 1.8% of revenue, as compared to $15,581, or 1.6% of revenue for the same period of 2020.
Additional Non-GAAP Financial Measures
Adjusted EBITDA was $72,491 for the three months ended September 30, 2021, as compared to $69,285 in the same period of 2020. Adjusted EBITDA increased by $3,206, primarily due to improved profitability from Diversified Industrials and Energy segments as a result of higher sales volume, partially offset by lower profitability from the Financial Service segment driven by benefit from lower provision for loan losses from the 2020 period . Adjusted free cash flow was $56,405 versus $40,583 for the same period in 2020.
Adjusted EBITDA was $196,631 for the nine months ended September 30, 2021, as compared to $146,657 in the same period of 2020. Adjusted EBITDA increased by $49,974 primarily due to improved profitability from both Diversified Industrial and Energy Segments as a result of higher sales volume, as well as from the Financial Services segment driven by lower financial interest expense and lower provision for loan losses. Adjusted free cash flow was $110,398 versus $135,805 for the same period in 2020.
Liquidity and Capital Resources
As of September 30, 2021, the Company had $403.5 million in available liquidity under its senior credit agreement, as well as $16.6 million in cash and cash equivalents, excluding WebBank cash, and approximately $256.6 million in marketable securities and long-term investments.
As of September 30, 2021, total debt was $263.4 million, a decrease of approximately $70.7 million, as compared to December 31, 2020. As of September 30, 2021, net debt totaled $278.9 million, a decrease of approximately $76.0 million, as compared to December 31, 2020. Total leverage (as defined in the Company’s senior credit agreement) was 1.5x as of September 30, 2021 as compared to 2.4x as of December 31, 2020.
Quarterly Cash Distribution on Series A Preferred Units
On November 11, 2021, the Company’s board of directors declared a regular quarterly cash distribution of $0.375 per unit, payable December 15, 2021, to unitholders of record as of December 1, 2021, on its 6% Series A Preferred Units, no par value (“Series A Preferred”).
Any future determination to declare distributions on its units of Series A Preferred, and any determination to pay such distributions in cash or in kind, or a combination thereof, will remain at the discretion of Steel Partners’ board of directors and will be dependent upon a number of factors, including the company’s results of operations, cash flows, financial position, and capital requirements, among others.
About Steel Partners Holdings L.P.
Steel Partners Holdings L.P. (www.steelpartners.com) is a diversified global holding company that owns and operates businesses and has significant interests in various companies, including diversified industrial products, energy, defense, supply chain management and logistics, direct marketing, banking and youth sports.
(Financial Tables Follow)
Consolidated Balance Sheets (unaudited)
(in thousands, except common units) | September 30, 2021 |
| December 31, 2020 | |||||
ASSETS |
|
|
| |||||
Current assets: |
|
|
| |||||
Cash and cash equivalents | $ | 132,743 |
|
| $ | 135,788 |
| |
Marketable securities | — |
|
| 106 |
| |||
Trade and other receivables – net of allowance for doubtful accounts of $3,590 and $3,368, respectively | 202,730 |
|
| 164,106 |
| |||
Receivables from related parties | 3,151 |
|
| 2,073 |
| |||
Loans receivable, including loans held for sale of $159,241 and $88,171, respectively, net | 504,407 |
|
| 306,091 |
| |||
Inventories, net | 169,697 |
|
| 137,086 |
| |||
Prepaid expenses and other current assets | 45,884 |
|
| 58,053 |
| |||
Total current assets | 1,058,612 |
|
| 803,303 |
| |||
Long-term loans receivable, net | 746,204 |
|
| 2,183,017 |
| |||
Goodwill | 148,028 |
|
| 150,852 |
| |||
Other intangible assets, net | 124,337 |
|
| 138,581 |
| |||
Deferred tax assets | 16,983 |
|
| 66,553 |
| |||
Other non-current assets | 40,620 |
|
| 42,068 |
| |||
Property, plant and equipment, net | 213,737 |
|
| 228,992 |
| |||
Operating lease right-of-use assets | 28,249 |
|
| 29,715 |
| |||
Long-term investments | 256,615 |
|
| 291,297 |
| |||
Total Assets | $ | 2,633,385 |
|
| $ | 3,934,378 |
| |
LIABILITIES AND CAPITAL |
|
|
| |||||
Current liabilities: |
|
|
| |||||
Accounts payable | $ | 133,032 |
|
| $ | 100,759 |
| |
Accrued liabilities | 77,390 |
|
| 69,967 |
| |||
Deposits | 292,357 |
|
| 285,393 |
| |||
Payables to related parties | 1,474 |
|
| 4,080 |
| |||
Short-term debt | 34 |
|
| 397 |
| |||
Current portion of long-term debt | 11,206 |
|
| 10,361 |
| |||
Other current liabilities | 47,430 |
|
| 46,044 |
| |||
Total current liabilities | 562,923 |
|
| 517,001 |
| |||
Long-term deposits | 197,156 |
|
| 70,266 |
| |||
Long-term debt | 252,201 |
|
| 323,392 |
| |||
Other borrowings | 668,392 |
|
| 2,090,223 |
| |||
Preferred unit liability | 148,895 |
|
| 146,892 |
| |||
Accrued pension liabilities | 139,783 |
|
| 183,462 |
| |||
Deferred tax liabilities | 2,112 |
|
| 2,169 |
| |||
Long-term operating lease liabilities | 20,386 |
|
| 21,845 |
| |||
Other non-current liabilities | 36,595 |
|
| 39,906 |
| |||
Total Liabilities | 2,028,443 |
|
| 3,395,156 |
| |||
Commitments and Contingencies |
|
|
| |||||
Capital: |
|
|
| |||||
Partners’ capital common units: 21,235,338 and 22,920,804 issued and outstanding (after deducting 16,598,557 and 14,916,635 units held in treasury, at cost of $257,547 and $219,245), respectively | 772,614 |
|
| 707,309 |
| |||
Accumulated other comprehensive loss | (172,832 | ) |
| (172,649 | ) | |||
Total Partners’ Capital | 599,782 |
|
| 534,660 |
| |||
Noncontrolling interests in consolidated entities | 5,160 |
|
| 4,562 |
| |||
Total Capital | 604,942 |
|
| 539,222 |
| |||
Total Liabilities and Capital | $ | 2,633,385 |
|
| $ | 3,934,378 |
|
Consolidated Statements of Operations (unaudited)
(in thousands, except common units and per common unit data) | Three Months Ended |
| Nine Months Ended | |||||||||||||
| 2021 |
| 2020 |
| 2021 |
| 2020 | |||||||||
Revenue: |
|
|
|
|
|
|
| |||||||||
Diversified Industrial net sales | $ | 306,471 |
|
| $ | 274,420 |
|
| $ | 860,719 |
|
| $ | 787,138 |
| |
Energy net revenue | 45,862 |
|
| 22,378 |
|
| 119,716 |
|
| 75,282 |
| |||||
Financial Services revenue | 39,780 |
|
| 33,535 |
|
| 112,604 |
|
| 109,496 |
| |||||
Total revenue | 392,113 |
|
| 330,333 |
|
| 1,093,039 |
|
| 971,916 |
| |||||
Costs and expenses: |
|
|
|
|
|
|
| |||||||||
Cost of goods sold | 252,819 |
|
| 220,633 |
|
| 712,101 |
|
| 637,705 |
| |||||
Selling, general and administrative expenses | 80,405 |
|
| 67,399 |
|
| 223,793 |
|
| 215,466 |
| |||||
Asset impairment charges | — |
|
| — |
|
| — |
|
| 617 |
| |||||
Finance interest expense | 1,790 |
|
| 2,537 |
|
| 6,649 |
|
| 9,446 |
| |||||
Provision for (benefit from) loan losses | 437 |
|
| (9,684 | ) |
| (1,845 | ) |
| 30,706 |
| |||||
Interest expense | 5,089 |
|
| 6,988 |
|
| 16,059 |
|
| 23,337 |
| |||||
Realized and unrealized losses (gains) on securities, net | 21,453 |
|
| (969 | ) |
| 40,232 |
|
| 25,515 |
| |||||
Other income, net | (1,091 | ) |
| (1,577 | ) |
| (36,984 | ) |
| (4,544 | ) | |||||
Total costs and expenses | 360,902 |
|
| 285,327 |
|
| 960,005 |
|
| 938,248 |
| |||||
Income from continuing operations before income taxes and equity method investments | 31,211 |
|
| 45,006 |
|
| 133,034 |
|
| 33,668 |
| |||||
Income tax provision | 6,428 |
|
| 13,533 |
|
| 56,435 |
|
| 9,043 |
| |||||
Loss (income) of associated companies, net of taxes | 2,685 |
|
| (3,194 | ) |
| (26,276 | ) |
| 26,420 |
| |||||
Net income (loss) from continuing operations | 22,098 |
|
| 34,667 |
|
| 102,875 |
|
| (1,795 | ) | |||||
Discontinued operations |
|
|
|
|
|
|
| |||||||||
Gain (loss) from discontinued operations, net of taxes | 7 |
|
| (21 | ) |
| 135 |
|
| (2,602 | ) | |||||
Net gain (loss) on deconsolidation of discontinued operations | — |
|
| 1,161 |
|
| — |
|
| (21,787 | ) | |||||
Net gain (loss) from discontinued operations, net of taxes | 7 |
|
| 1,140 |
|
| 135 |
|
| (24,389 | ) | |||||
Net income (loss) | 22,105 |
|
| 35,807 |
|
| 103,010 |
|
| (26,184 | ) | |||||
Net loss (income) attributable to noncontrolling interests in consolidated entities (continuing operations) | 195 |
|
| (248 | ) |
| (519 | ) |
| (569 | ) | |||||
Net income (loss) attributable to common unitholders | $ | 22,300 |
|
| $ | 35,559 |
|
| $ | 102,491 |
|
| $ | (26,753 | ) | |
Net income (loss) per common unit – basic |
|
|
|
|
|
|
| |||||||||
Net income (loss) from continuing operations | $ | 1.06 |
|
| $ | 1.38 |
|
| $ | 4.69 |
|
| $ | (0.10 | ) | |
Net income (loss) from discontinued operations | — |
|
| 0.05 |
|
| 0.01 |
|
| (0.98 | ) | |||||
Net income (loss) attributable to common unitholders | $ | 1.06 |
|
| $ | 1.43 |
|
| $ | 4.70 |
|
| $ | (1.08 | ) | |
Net income (loss) per common unit – diluted |
|
|
|
|
|
|
| |||||||||
Net income (loss) from continuing operations | $ | 0.92 |
|
| $ | 0.72 |
|
| $ | 3.63 |
|
| $ | (0.10 | ) | |
Net income (loss) from discontinued operations | — |
|
| 0.02 |
|
| — |
|
| (0.98 | ) | |||||
Net income (loss) attributable to common unitholders | $ | 0.92 |
|
| $ | 0.74 |
|
| $ | 3.63 |
|
| $ | (1.08 | ) | |
Weighted-average number of common units outstanding – basic | 21,018,615 |
|
| 24,874,281 |
|
| 21,816,833 |
|
| 24,844,114 |
| |||||
Weighted-average number of common units outstanding – diluted | 27,672,551 |
|
| 52,067,382 |
|
| 30,715,447 |
|
| 24,844,114 |
|
Consolidated Statements of Cash Flows (unaudited)
(in thousands) | Nine Months Ended September 30, | |||||||
| 2021 |
| 2020 | |||||
Cash flows from operating activities: |
|
|
| |||||
Net income (loss) | $ | 103,010 |
|
| $ | (26,184 | ) | |
Gain (loss) from discontinued operations | 135 |
|
| (24,389 | ) | |||
Net income (loss) from continuing operations | 102,875 |
|
| (1,795 | ) | |||
Adjustments to reconcile net income from continuing operations to net cash provided by operating activities: |
|
|
| |||||
(Benefit from) provision for loan losses | (1,845 | ) |
| 30,706 |
| |||
(Income) loss of associated companies, net of taxes | (26,276 | ) |
| 26,420 |
| |||
Realized and unrealized losses on securities, net | 40,232 |
|
| 25,515 |
| |||
Gain on sale of Edge business | (8,096 | ) |
| — |
| |||
Gain on sale of property, plant and equipment | (6,646 | ) |
| — |
| |||
Derivative gains on economic interests in loans | (3,819 | ) |
| (3,692 | ) | |||
Deferred income taxes | 45,679 |
|
| 4,714 |
| |||
Depreciation and amortization | 45,192 |
|
| 48,735 |
| |||
Non-cash lease expense | 7,650 |
|
| 6,890 |
| |||
Equity-based compensation | 1,116 |
|
| 589 |
| |||
Asset impairment charges | — |
|
| 617 |
| |||
Other | (340 | ) |
| 3,619 |
| |||
Net change in operating assets and liabilities: |
|
|
| |||||
Trade and other receivables | (42,365 | ) |
| (1,995 | ) | |||
Inventories | (34,428 | ) |
| 4,137 |
| |||
Prepaid expenses and other assets | 12,199 |
|
| (1,041 | ) | |||
Accounts payable, accrued and other liabilities | (1,174 | ) |
| 7,967 |
| |||
Net (increase) decrease in loans held for sale | (71,070 | ) |
| 144,844 |
| |||
Net cash provided by operating activities – continuing operations | 58,884 |
|
| 296,230 |
| |||
Net cash provided by (used in) operating activities – discontinued operations | 135 |
|
| (1,649 | ) | |||
Total cash provided by operating activities | 59,019 |
|
| 294,581 |
| |||
Cash flows from investing activities: |
|
|
| |||||
Purchases of investments | (9,018 | ) |
| (7,256 | ) | |||
Proceeds from sales of investments | 24,667 |
|
| 2,327 |
| |||
Proceeds from maturities of investments | 8,292 |
|
| 32,995 |
| |||
Loan originations, net of collections | 782,032 |
|
| (2,022,276 | ) | |||
Proceeds from sales of loans | 530,969 |
|
| — |
| |||
Purchases of property, plant and equipment | (19,556 | ) |
| (15,581 | ) | |||
Proceeds from sale of property, plant and equipment | 6,979 |
|
| 3,067 |
| |||
Proceeds from sale of Edge business | 16,000 |
|
| — |
| |||
Acquisition, net of cash acquired | — |
|
| (3,500 | ) | |||
Other | 182 |
|
| — |
| |||
Net cash provided by (used in) investing activities – continuing operations | 1,340,547 |
|
| (2,010,224 | ) | |||
Net cash provided by (used in) investing activities – discontinued operations | — |
|
| — |
| |||
Net cash provided by (used in) investing activities | 1,340,547 |
|
| (2,010,224 | ) | |||
Cash flows from financing activities: |
|
|
| |||||
Net revolver repayments | (63,013 | ) |
| (26,948 | ) | |||
Repayments of term loans | (7,697 | ) |
| (8,181 | ) | |||
Purchases of the Company’s common units | (38,302 | ) |
| — |
| |||
Repayments of other borrowings | (2,476,640 | ) |
| — |
| |||
Proceeds from other borrowings | 1,056,749 |
|
| 2,159,721 |
| |||
Distribution to preferred unitholders | (7,225 | ) |
| (40,000 | ) | |||
Deferred finance charges | — |
|
| (1,474 | ) | |||
Net increase (decrease) in deposits | 133,854 |
|
| (365,859 | ) | |||
Net cash (used in) provided by financing activities – continuing operations | (1,402,274 | ) |
| 1,717,259 |
| |||
Net cash used in financing activities – discontinued operations | — |
|
| — |
| |||
Net cash (used in) provided by financing activities | (1,402,274 | ) |
| 1,717,259 |
| |||
Net change for the period | (2,708 | ) |
| 1,616 |
| |||
Effect of exchange rate changes on cash and cash equivalents | (337 | ) |
| 182 |
| |||
Cash, cash equivalents and restricted cash at beginning of period | 135,788 |
|
| 137,948 |
| |||
Cash, cash equivalents and restricted cash at end of period | $ | 132,743 |
|
| $ | 139,746 |
|
Supplemental Balance Sheet Data (September 30, 2021 unaudited)
(in thousands, except common and preferred units) | September 30, |
| December 31, | |||||
| 2021 |
| 2020 | |||||
Cash and cash equivalents | $ | 132,743 |
|
| $ | 135,788 |
| |
WebBank cash and cash equivalents | 116,103 |
|
| 117,553 |
| |||
Cash and cash equivalents, excluding WebBank | $ | 16,640 |
|
| $ | 18,235 |
| |
Common units outstanding | 21,235,338 |
|
| 22,920,804 |
| |||
Preferred units outstanding | 6,422,128 |
|
| 6,422,128 |
|
Supplemental Non-GAAP Disclosures (unaudited)
Adjusted EBITDA Reconciliation: |
|
|
|
|
|
|
| |||||||||
|
|
|
|
|
|
|
| |||||||||
(in thousands) | Three Months Ended |
| Nine Months Ended | |||||||||||||
| 2021 |
| 2020 |
| 2021 |
| 2020 | |||||||||
Net income (loss) from continuing operations | $ | 22,098 |
|
| $ | 34,667 |
|
| $ | 102,875 |
|
| $ | (1,795 | ) | |
Income tax provision | 6,428 |
|
| 13,533 |
|
| 56,435 |
|
| 9,043 |
| |||||
Income from continuing operations before income taxes | 28,526 |
|
| 48,200 |
|
| 159,310 |
|
| 7,248 |
| |||||
Add (Deduct): |
|
|
|
|
|
|
| |||||||||
Loss (income) of associated companies, net of taxes | 2,685 |
|
| (3,194 | ) |
| (26,276 | ) |
| 26,420 |
| |||||
Realized and unrealized losses (gains) on securities, net | 21,453 |
|
| (969 | ) |
| 40,232 |
|
| 25,515 |
| |||||
Interest expense | 5,089 |
|
| 6,988 |
|
| 16,059 |
|
| 23,337 |
| |||||
Depreciation | 10,417 |
|
| 10,999 |
|
| 31,240 |
|
| 33,085 |
| |||||
Amortization | 4,576 |
|
| 5,256 |
|
| 13,952 |
|
| 15,650 |
| |||||
Non-cash asset impairment charges | — |
|
| — |
|
| — |
|
| 617 |
| |||||
Non-cash pension expense | (1,433 | ) |
| 1,257 |
|
| (4,434 | ) |
| 2,432 |
| |||||
Non-cash equity-based compensation | 399 |
|
| 333 |
|
| 1,116 |
|
| 589 |
| |||||
Other items, net | 779 |
|
| 415 |
|
| (34,568 | ) |
| 11,764 |
| |||||
Adjusted EBITDA | $ | 72,491 |
|
| $ | 69,285 |
|
| $ | 196,631 |
|
| $ | 146,657 |
| |
|
|
|
|
|
|
|
| |||||||||
Total revenue | $ | 392,113 |
|
| $ | 330,333 |
|
| $ | 1,093,039 |
|
| $ | 971,916 |
| |
Adjusted EBITDA margin | 18.5 | % |
| 21.0 | % |
| 18.0 | % |
| 15.1 | % |
Contacts
Investor Relations
Jennifer Golembeske
212-520-2300
[email protected]