Steel Partners Holdings L.P. Reports First Quarter 2014 Financial Results

Business Wire

NEW YORK--(BUSINESS WIRE)--

Steel Partners Holdings L.P. (SPLP) (“SPLP” or the “Company”), a global diversified holding company, today announced operating results for the first quarter ended March 31, 2014. They are summarized in the following paragraph. For a full discussion of the operating results, please read the Company's Form 10-Q, which can be found at www.steelpartners.com.

SPLP reported revenues of $214.2 million for the quarter, as compared to $183.5 million for the same period of 2013. Income before taxes and equity method investments was $11.8 million in the first quarter of 2014, as compared to $5.8 million in the same period of 2013. Net loss attributable to the Company's common unitholders for the first quarter of 2014 was $12.7 million, or $0.41 per diluted common unit, as compared to a net loss of $12.0 million, or $0.40 per diluted common unit, for the same period in 2013.

 

Financial Summary ($000s)

     
Three Months Ended March 31,
2014     2013
Revenues $ 214,217 $ 183,462
Costs and Expenses   202,419     177,673  
Income before taxes and equity method investments   11,798     5,789  
Income tax provision 2,680 648
Loss of associated companies, net of taxes (18,258 ) (10,368 )
(Loss) Income from other investments - related party (2 ) 1,069
Loss from investments held at fair value   (2,446 )   (9,278 )
Net loss from continuing operations (11,588 ) (13,436 )
Income from discontinued operations   42     5,424  
Net loss (11,546 ) (8,012 )
Income attributable to noncontrolling interests   (1,160 )   (3,938 )
Net loss attributable to common unit holders $ (12,706 ) $ (11,950 )
 
Net loss per common unit - basic $ (0.41 ) $ (0.40 )
Net loss per common unit - diluted $ (0.41 ) $ (0.40 )
 

Segment Results ($000s)

     
Three Months Ended March 31,
2014     2013
Revenue:
Diversified industrial $ 161,847 $ 148,956
Energy 45,159 26,351
Financial services 6,966 6,309
Corporate   245     1,846  
Total $ 214,217   $ 183,462  
Income (loss) from continuing operations before income taxes:
Diversified industrial $ 9,055 $ 7,828
Energy 3,393 3,692
Financial services 4,078 3,756
Corporate   (25,434 )   (28,064 )
Loss from continuing operations before income taxes (8,908 ) (12,788 )
Income tax provision   2,680     648  
Net loss from continuing operations $ (11,588 ) $ (13,436 )
(Loss) Income from equity method investments:
Diversified industrial $ 690 $ 129
Energy (1,433 )
Corporate   (17,517 )   (9,428 )
Total $ (18,260 ) $ (9,299 )
 

About Steel Partners Holdings L.P.

Steel Partners Holdings L.P. is a global diversified holding company that engages in multiple businesses through consolidated subsidiaries, associated companies and other interests. It owns and operates businesses and has significant interests in leading companies in various industries, including diversified industrial products, energy, defense, supply chain management and logistics, banking, food products and services, oilfield services, sports, training, education, and the entertainment and lifestyle industries.

Forward-Looking Statements

This press release may contain certain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that reflect SPLP's current expectations and projections about its future results, performance, prospects and opportunities. Forward-looking statements are based on information currently available to the Company and are subject to a number of risks, uncertainties and other factors that could cause its actual results, performance, prospects or opportunities in 2014 and beyond to differ materially from those expressed in, or implied by, these forward-looking statements. These factors include, without limitation, SPLP's subsidiaries need for additional financing and the terms and conditions of any financing that is consummated, their customers' acceptance of its new and existing products, the risk that the Company and its subsidiaries will not be able to compete successfully, and the possible volatility of the Company's unit price and the potential fluctuation in its operating results. Although SPLP believes that the expectations reflected in its forward-looking statements are reasonable and achievable, any such statements involve significant risks and uncertainties and no assurance can be given that the actual results will be consistent with the forward-looking statements. Investors should read carefully the factors described in the “Risk Factors” section of the Company's filings with the SEC, including the Company's Form 10-K for the year ended December 31, 2013 for information regarding risk factors that could affect the Company's results. Except as otherwise required by federal securities laws, SPLP undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changed circumstances or any other reason.

Contact:
Investor contact:
Steel Partners Holdings GP Inc.
James F. McCabe, Jr., 212-520-2300
Chief Financial Officer
jmccabe@steelpartners.com
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