Nucor earnings beat by $0.08, revenue fell short of estimates
OLD GREENWICH, CT – Star Equity Holdings, Inc. (NASDAQ:STRR), a company specializing in electromedical and electrotherapeutic apparatus with a market capitalization of $6.94 million, has announced the implementation of new annual bonus plans for senior employees of its subsidiaries, KBS Builders, Inc. (KBS) and EdgeBuilder, Inc., along with Glenbrook Building Supply, Inc. (collectively, EGBL). The announcement comes at a challenging time for the company, which according to InvestingPro data, reported negative EBITDA of $9.67 million in the last twelve months. The announcement was made following the approval by the company’s Board of Directors on February 13, 2025.
The 2025 KBS Bonus Plan and the 2025 EGBL Plan are designed to establish an annual bonus pool that will be determined based on the achievement of adjusted EBITDA targets. These targets are set based on the historical three-year average of pre-bonus adjusted EBITDA achievement, increased by 15%, which corresponds to a 5% average annual growth. This ambitious target comes as the company’s revenue growth stands at 2.22%, based on InvestingPro data. The bonus pool will start accruing when 80% of the adjusted EBITDA target is reached.
Under the new plans, bonuses up to $25,000 will be paid in cash. Amounts exceeding this threshold will be distributed with two-thirds in cash and one-third in shares of the company’s Series A Cumulative Perpetual Preferred Stock, which will vest over a three-year period. The company also reserves the right to adjust the bonuses under the plans to reflect specific circumstances.
Thatcher Butcher, President of KBS and a named executive officer of Star Equity Holdings, is eligible to receive bonuses under the 2025 KBS Bonus Plan. The plans are effective starting with the year 2025, signaling a strategic move to incentivize and potentially retain key personnel within the company’s subsidiaries.
This strategic decision by Star Equity Holdings reflects a focused effort to align the interests of its senior employees with the financial goals of the company, encouraging the achievement of growth targets and rewarding performance with a mix of cash and stock incentives. According to InvestingPro, which provides comprehensive analysis of over 1,400 US stocks, the company maintains a healthy current ratio of 2.05, indicating strong short-term liquidity despite current profitability challenges. InvestingPro subscribers can access 10 additional key insights about STRR’s financial health and market position.
The information regarding these new compensatory arrangements is based on a press release statement filed with the Securities and Exchange Commission.
In other recent news, Star Equity Holdings has finalized a series of significant real estate transactions. The company recently concluded the sale of its Prescott, Wisconsin property to LTI8000 LLC, which was then sold to DWG Capital Partners (WA:CPAP), LLC. These transactions resulted in net proceeds of approximately $24,562 for Star Equity Holdings.
Simultaneously, the company’s subsidiary, Edgebuilder, entered into a 20-year leaseback agreement with Pine St. Industrial Partners, LLC and TenNine Holdings, Inc., affiliates of DWG. Under this agreement, Edgebuilder will pay a monthly base rent of $19,067 and cover all expenses associated with the Prescott Premises.
This leaseback arrangement allows Star Equity Holdings to continue operations at the Prescott Premises while benefiting from the capital generated through the sale. These are recent developments, and the details of these transactions are outlined in the company’s documents filed with the SEC.
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