DRAD - Earnings call transcript Q2 2020 | Star Equity Holdings, Inc.

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Operator

Greetings and welcome, ladies and gentlemen, to the Digirad Corporation Second Quarter 2020 Results Conference Call.

As a reminder, certain statements made during the conference call including the question-and-answer period are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. These forward-looking statements include but are not limited to statements about the company's revenues, costs, and expenses, margins, operations, financial results, acquisitions, and other topics related to Digirad's business strategy and outlook. These forward-looking statements are based on current assumptions and expectations and involve risks and uncertainties that could cause actual results and financial performance to differ materially. Risks and uncertainties include but are not limited to business and economic conditions, technological change, industry trends, and changes in the company's market, and competition. risks the is U.S. the company's in about with filings information and available uncertainties the More current X-K Securities on release. reports and Form Exchange XX-K, on and Commission quarterly on including Form today's well as as annual reports reports press Forms XX-Q, information those conference should reports date only of in this and be statements and of morning's consolidated the with speak the financial on this notes discussed used The call conjunction included call. in as statements. no undertakes The obligation these forward-looking to company update earnings and results makes well today the references to as management In its comments, release in results. both as GAAP adjusted adjusted not The non-GAAP are results and include non-recurring do charges. which EBITDA compensation. adjusted depreciation, amortization, measure taxes, is Also that further excludes a non-GAAP stock-based and interest,

cash of cash believes basis is the Finally, flow analysis earnings paid reconciliation of provide non-GAAP taking these Investors non-GAAP a capital on which financial the operating GAAP thorough more find expenditures. reconciliations along of statements the and measure ongoing release. versus financial in Management performance. a with and a GAAP presentation free non-GAAP for measures subtracting cash results flow can

website. call, a the of Chairman now and of at Also If is Eberwein or the also Thank via replay receive you. after a this may introduce the Investor is call would It Lena after Internet to Digirad at over Shortly will company's live available be Digirad. website copy please Group didn't accessed the Digirad's XXX-XXX-XXXX my www.digirad.com. at of the and Jeff be pleasure on press its representative being broadcast Relations like The you Equity one, Cati release contact call XXX-XXX-XXXX.

begin. may You

Jeff Eberwein

all second for conference XXXX you, call. operator. quarter you for us joining today Good our Thank and morning results thank

& & September Chief & or divisions; today diversified our XXXX, Estate are company XXth, a Investments. holding David and call Operating Digirad HoldCo Real half Since two Matt results & data Noble. September Construction, XXXX. and for operational the closed our but the Construction the business Healthcare, with periods acquisition Investments, Molchan, On operational financial of XXXX corresponding financial been divisions Building include XXXX no Chief Digirad's first as in and has Financial two data since Estate ATRM QX and of operating divisions or Officer, and these Real in recorded are with CEO; me and Building newly created these three there

revenue, quarter XXXX, on of second value ultimately, our value continue and stockholder and acquisitions. earnings, investments the execute bolt-on both strategy through During increase HoldCo and to cash we enhancement initiatives growth flow, to internal

divisions disciplined to also complementary over business the new company businesses time acquisition holding We through expect create of our to structure.

In in overallotment projects to expansion raise the In assets gross XXXX, proceeds potential addition including continuing our opportunities, our strategy underwriters' nonstrategic of finance growth of the public and a $X.X able the company's completed we divestiture exercise of offering Construction especially we're common stock and May Building to of for million & the explore options. were division. commercial to

uncertainty and This services. accompanying As regarding a led as well our outbreak has the the was our previously COVID-XX in adversely the by impacted speed, demand for the the announced, economic recent as downturn. downturn of duration, reduction intensity outbreak business to

the divisions. to Turning

return our our to is sales In solid the growing. mid-March continue three and Healthcare hospitals of businesses, services. for our noticed and fleet pipeline offices started our the once Mobile customer a businesses pipelines. and route-based as We Our doctor offices with many maintain improve to density as non-emergency again reopened procedures. normal a late perform declined closed temporarily we hospitals all slow to revenue In June, growing base and doctor Healthcare increase client core of division Diagnostic Diagnostic prospective solid we aim businesses. Services scanning in In non-emergency steady operations reduced many to and but Imaging, utilization

We continue when needed and needed and and Ergo our to camera plus where cameras unique focus sale as our needed X-ACT of rental the on programs.

requirements commercial For for our and start-up for XX%. of for to Deliveries Building to year military in & and the are Construction but major $X.X a year projects, for employees projects the few contract million was completed a factory living contract higher delays is manufacture to rest two housing workforce To projects, be awarded increased a its back U.S. outlook before million all our KBS significant commercial QX, addition in previously experienced expected over we division, the due recently some strong. units by on recently to projects manufacturing veterans. COVID-XX these for KBS $X commercial meet Army these end. manufacture two the hired units furloughed

to pandemic continue address flexibility challenging continue improves. to strategy situation actions is while can Construction manage business its company in the double to our is Building KBS production growth and will the clients' the in situation Due expand capacity. mitigate division activity evolves. New workforce KBS. for of when confident the it plant COVID-XX to surrounding KBS's XXXX, Our environment, business effectively we've construction in the to which risk this vigilantly Oxford, they and and the England the & grows will would taken, Maine The reopening expected we commercial meet this further proactively retaining as If company monitoring needs as explore ability is for

it in Molchan. internal I'll please of on Assuming coming our go more our of business months, CEO, less With the be expect returns over year or to at XXXX Matt the our to the to ahead. Matt, half with to we beginning normal prior track projections that, Healthcare second the turn levels COVID-XX.

Matt Molchan

Healthcare as same COVID-XX our in between $XX.X offices of same result to the XXXX due several QX due pandemic. over division stopped the period year. procedures, performing the lower from was closed to by Revenue by million XX.X% XXXX scans Gross the to to were period was we non-life-threatening Jeff. pandemic in doctors' fell decreased year QX stated many Thanks, and This last as prior compared COVID-XX April tests and the period hospitals for June. profit which revenue reporting and XX.X% the

Diagnostic services the at in Healthcare. to for decrease services gross resulting impact revenue second COVID-XX gross the in and quarter a $X.X The decrease of compared million was last XX.X% in scans to and divisions decrease testing second margin compared Diagnostic XXXX revenue due year percentage quarter. a margin prior days was and Looking the from the year's of pandemic. the percentage $XX.X quarter XX.X% to million the primarily in within and and in

our business. and XX.X%, second business in gross compared camera and the in The increase margin same and primarily respectively Mobile Diagnostic Diagnostic the business pandemic $XX.X our $X.X Our put profit revenue to the of XX.X%, with of and XXXX quarter In was the XX.X%, quarter. second respectively in associated compared measures prior was support to Imaging for were year in in margin million respectively quarter-over-quarter gross the produced respectively margin Mobile and Imaging place. the business, prior due million public cost the associated was million the gross period decrease XXXX quarter for to second in of $X.X Healthcare COVID-XX million health XX.X%, decrease $X.X the Healthcare and The year. and revenue that to due gross

financial the ahead. Dave, highlights please for provide turning Noble second to our go I'm the Now CFO Dave call quarter. who additional will

David Noble

Matt. Thanks

Okay.

XXXX Building margin $X quarter & and respectively. and million were XX.X% gross revenue Second division Construction

division the that Construction corresponding no September the recorded Given & ATRM XX, occurred Real nor & Building from the Investments completion in data XXXX XXXX only was or with the Estate merger period of there division. financial on operational the from

mentioned XXXX consolidated was of QX, to mainly selling division to expenses recorded decreased three offset QX, the For million QX, in SG&A XXXX. as Building X.X% the travel-related Digirad from compared savings in from of which the a XXXX not was $X.X months division & due which Health Construction addition our by cost and I

we we further for also to continue outside our effort operations. and - internal streamline to During arena IT the quarter in in reduce services continue particularly an the HR costs contracted

per loss continuing We the net from common was This XXXXXXX in XXXX to of Moving share net compared to net adjusted continuing quarter line we to last continuing quarter quarter per second XXXXXXX completed second through and the XXXXXXX purchase operations stock or of on in to up of Non-GAAP operations income adjusted million. XXXX. of $X.X net shares. net adjusted $X.X additional for net our $X.X bottom million loss Of of the share shares adjusted $X.XX note income offering warrants $X.XX a a of compared QX year. in the the $XX,XXX XX, of of loss XXXX million. an XXXX or results had issuance operations to loss from public May on of second from a

XXXX number brought to million issued Subsequently exercised. XX overallotment been per Maxim common of share QX shares the period already by year Some stock of in EBITDA approximately pandemic. underwriter, X.XX resulting new last million and total of which $X.X to total second the modestly count. decrease Non-GAAP share offering option to the the have to Thus amounts June revenue our $X.X proceeds million. second on the from gross the of exercised the reflect in XXXX quarter of and in the for COVID-XX decreased the adjusted $X.X driven million for compared quarter down

free operating outflow quarter cash of inflow cash $X.X cash compared flow last $X.X of in million second cash and second free was the XXXX, the of was For quarter and million operating year. to $X.X of inflow million million $X.X

the maintain However, COVID. cash the in challenges above in just first free breakeven flow of despite we did half

includes in will PPP credit forgiven. June balance of outstanding facilities XX, on As XXXX this we million million, our funds $X.X was be $XX.X fully which but the anticipate

equivalents at all overall quarter. including cash the position million debt Our the was $XX.X end second of cash and net

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

Operator

Litchfield from first Theodore your question. Please [Operator Our O'Neill with the question proceed Research. comes Hills of line with Instructions]

Theodore O'Neill

that, the talk KBS. I'm of much. to tales of anecdotal on seeing you're shortages or talk whether supply hearing Thank you about chain? you kinds like or lumber. have ways very different Question mitigate anything Can about in that you spot

David Noble

some not we actually some in which We've COVID, Yes. price experienced seen to reflect increases due shortages certainly but shortages. production have

per We fairly now. labor right at a increased putting our actually the Jeff out capacity given mentioned, force And as week. of are full that operating number we're units we

not far, the So for so months. have disruptions chain few had supply prices increased significantly pretty we in lumber last but have

Jeff Eberwein

was time. funding, these commercial offering then that significant equity at ordering is, had quite And would the of we projects. signed lucky the other I add we shortly One bit that we And at May. thereafter, started material the because completed end we fortuitous of two thing up a

somewhat that's been so, surge the we beat entirely, helpful. And not but

Theodore O'Neill

that? behind -- the of delivering products the and you that here about by about the year. sense. point. -- What's coming Army the That's so in the of you've talked you a the Can good end Yes, Can makes before talk activity? bidding contract

David Noble

I incredibly continues happened But for it's to much mean, sales the too hard anything to pipeline, about no, robust second us. I'd be say quarter. Yeah. the activity that's after say,

much through lead We are go we the year. elsewhere. booked time people lead We're have pretty that short enough to times. monitoring don't want Obviously,

as it's suggesting that constantly we're necessary. we And ready year, need monitoring this do do and not And mentioned times, plant. so, do but to we if when this well, as to whether to that if lead reevaluate are second reduce to I'm opening we're that going it Jeff time even year, to

Theodore O'Neill

much. Thanks very Okay.

Operator

you. Thank

comes Bridge with your of Diamond question Please Jeff proceed next from question. Kobylarz Our the with line Capital.

Jeff Kobylarz

company. your said Can initial you with prepared at end Jeff, on just comments, said what didn't your outlook of hear comments? I you being that end mentioned correctly. repeat you the you the something your of Hi. track the at for about

Jeff Eberwein

in companies, frame, and February-March Sure. we budget Like lot the slowdown set the the year. throughout of beginning a we then, a And had time nationwide a struck COVID at of QX.

And And the a somewhat paper, officially to could companies, will year the moot of year, QX. out QX second play not of through things reinstating out second second And when the of pretty better the the than year. think similar they COVID. half full way better just not than stale although for we what half half QX. was budget after kind expect, most the we have We of still year half be our this the be look the the for but budget original but look year, it guidance think the on QX second if somewhat of we we're -- for so, became will

Jeff Kobylarz

you if for cash Great, you elaboration. and thanks could about, any year. can the And give that comment flow positive be general for

Jeff Eberwein

the We strongly, was $XXX,XXX. I be. we were, We in think will almost QX cash think, flow minus

was what kind months a on picking kind you now what of are the as really the did the that's, the to up. downturn, was be high-class QX high-class saw worst better. we given of a saw problem and and the and the at in quarter, much, only So, ago? worst problem Matt, versus worst-case up of the it in versus we a QX this sales affected you bit cash do was more is few look as Said up like business working comment what some quarter if of in we'll sales a will another June want COVID and better pick tied by more that but because strongly think lot think to you have seeing about capital. side the have what is so that progressed, what little way, scenarios. caveat a and Healthcare it The much I AR that's than incredibly inventory, And QX worst invest you're point maybe

Matt Molchan

Sure. Yeah. hit I end was worst May of when that were non-life threatening lot services A this of doctors' the A businesses. mid-March first mean -- I areas the of of April the as and it. lot scans obviously a at through and us operating mentioned Yeah. lot and in back our March, offices procedures of pulled where specifically. were we on hospitals, closed the worst

are working camera out of been the saw got in than is better that people mean definitely trying terms is in or that. that opened to And back sales rather of offices in amount of not in that I patients there, small business beginning impact point an to ever this our happen. time were of capital scans problem demand COVID-XX attack are figure at examinations during terms some as the as shutdowns up, those and that for coming as looking at offices like pre-COVID we open are by continuing a as of has pent-up robust well types So, to were what it the to saw scanning. we've expenditures since was impact business June we're areas COVID the And us. things experiencing in performed there amount we're different and But really trying than

are So busy. people

we their XXX servicing had brought quarter, second We're we the over division. as there our business and During our from furloughed We customers the mentioned people all them back. Healthcare and patients. out had running

David Noble

a what Dave. Jeff want this is of and just couple on Yeah, said. I add to other Matt points

not we're On the there. to going I revolver said, halfway growth side you working into think using as capital. be if some Jeff mean, even about KBS, our we're

significant got AR borrow as we've So AR finished grows, we and against inventory headroom goods.

So we've equivalents at the of you and and year if press of release, cash And $X.X that's $X have ago. versus look also lot of cash a of there. excess got we as million end liquidity million QX a our

at out So we're position seeing of KBS. far crisis come wave that some first real least better we've growth of a in at liquidity the and this got we've wise potential COVID

do feel I anything the feel be point. that's we cash mean, I pretty free in believe happen this second we So half. how should but comfortable. flow positive can And at I

Jeff Kobylarz

be? press was the in assets Great. elaboration. evaluating all All the noncore considering before what just for comment has might total that selling and selling right. Then Thanks it release that consideration assets. said many mentioned how and And lastly about you this can you're company about the

Jeff Eberwein

Yeah.

that if an MDSS the years has to service of business this is acquisition. but million we've and sensitive came ended I of in significant we buildings We sold ago, look had those was up million EBITDA quite those in to acquisition a guess, we little in And specifics. this for we think Fargo $X might selling past, And $X all XXXX all what few with all came had off. a that you a in the was our business in this I As to another an you the We buildings a is amount with then business, we at couple the Jeff. bit end believe area give range. that $X that the all businesses added million contracts million. sold using. weren't towards But off, That's then $X back about no going done and that up revenue, at it

that say those was we I come decide made And the as noncore. our do are time things it and at to just offering, time with the not it's our would that had we But anything. acquisitions, so So that it looking insignificant. you often around some we we ultimately -- at back offering to acquisitions that we refer did that wouldn't the things minimis, make the you just tells around equity equity filings if have we of de we and fact say disclosures that different did are

Jeff Kobylarz

Thanks That’s help. for great. the

Operator

Thank you.

the question from line Dillon of Hill comes Please your with Capital. next Marc questions. Our Nuccitelli with proceed

Marc Nuccitelli

moment, Hi you're for year guys. divisions that if back know just give be Jeff from a different I you could of this But I of as pre-COVID work to shape Healthcare the earlier pre-COVID any expectations, the in Thanks trying exogenous back especially kind impacts run for to we to half through rate? taking my barring about COVID, alluded at expect think division reluctant call. the do to to you environment. projections the

Jeff Eberwein

people's comfort you one? would It It should level mind to doctor's depends But shutdowns all at some that point. answering going on and appointments. Matt, out

Matt Molchan

Yeah.

we're so volume the is back, of other providing Healthcare. businesses, patients We're I our and volume all DIS that because correct. is businesses, got our Jeff services. demand. operating, we've pent-up up, business. mentioned, is through scanning areas back. just got we where and the business Those seeing as services I we the But our call things think down. we're The coming to people operating specifically for think there, aren't which we're Healthcare areas Certain Mobile

say business, capital So or is hospitals those that most that purchases the camera I to a our will services opened cameras. with about still Imaging to of – seem when be and which business one track. purchase we'd the on be proceed business, as have question our that, up budgets that would our capital Diagnostic would be to

what watching closely. that's So we're

contracts. support our out That's we lot cameras those didn't build we We already quarter good business, on for that second strong support normally us, believe. restrictions, I And maintaining the very associated the is costs of of saw some in warranty have camera cameras. post due sold. travel we've lot gains which Our since with of to able we cameras were would a to a obviously, fixing or those

So we remainder sales the camera business. as our but question do do see of in for a – the year we mark see Healthcare

Marc Nuccitelli

Okay.

as seeing activity? that higher also second you then we repairs, maybe Construction doing rate a and about activity real Maybe start but seeing this we the move think we as got in with that you run company quarter. you through and even But know just as where pre-COVID to in Certainly, are potentially Okay. where it's June returning early now when I in lumber far disrupted pre COVID home more time, we – lot the are than think July at staying people growth period about a can on short increasing, better segment or talked of just with see the EdgeBuilder. things home now? prices yet,

David Noble

markets. businesses mean, I the take say obviously they serve if different I separately we is, What related, they're Yeah. two but would

finish remember, Minneapolis, EdgeBuilder the was panel ago stronger is panels take structural our well And our if we out as it side, we looking pipeline last if at year than wall retail yard today a lumber first at a year, you had where manufacturing The to the wall commercial you're in time. have let's So results. manufacturing. the this great as

We're not very loose feel they a retail-oriented of right? I'm people And from going lumber travel, margins, that. home a side that kitchens. increasing say, They're prices it's price can't in decks. margin. for to is big affecting work, So contracts because do wood lot doing packaged to we we're robust. yard. stronger not of so better then – seeing If staying there's them because any about I doing And They're more. we than lumber buy position a projects retail concern, definitely lumber on that. ago good it's are it's those is kind the gets that the lot our a more but and we're liquidity doing cost-plus -- products are in and the year of price. And They're And have But with lumber. the on our side a

So regardless. we have margins that on good

looking So July. I start, a good had in June was and business, pretty it slow think but that

On the projects. commercial side, KBS we've these got two

Marc Nuccitelli

the I'm sorry. We EdgeBuilder. just – on

things that second $XX on year saying million disruptive, than you of rate? continue but look the you're know better of revenue. the half last did I your that So million, trend hopefully hoping, $XX is second should type quarter you're same if trend run

David Noble

say bit – think rate I are it's little commercial the could that, it's a know. it issue run rate in mean, let's to I the little maybe projects that run year early last is a better. the definitely lumpy. trend But

if month, sales that and a months we feel did of so delayed December revenue they good thought And move And two was that January not we activity. But pipeline very about can we the into ago. the thing. it kind get

about we now. it quite good So feel

of side, KBS side that. additional coming the are People things getting of mentioned, single-family seeing, we're Jeff we're inquiry amount and into a both projects on On doing. lot good multifamily the are scale the what tremendous projects. commercial sort a two We're of from that

so having, is of, production We're transom, far. I comes mentioned, the have over kind people don't we stuff As to in create schedule that for out push gaps to that our too pretty full.

on that in that look year. think of a basis would thought a rate So is this business first despite to the what it we half Jeff like as lot happened December, going run we said, in

good those feel well. very about doing So businesses We those businesses, are right now.

Marc Nuccitelli

know produce is capacity, or you for one it if on you dollar capacity I run either full and reminder, running look how in boxes a can myself how that you like? -- at or as the this amount, -- given many you many does you running can week if edification any what panels of that month. call look just a factory, you're at For full produce, rate Can on that when

David Noble

attainment it run not Yeah. can right? But challenges, have We without at is that we getting its XX. think --

Marc Nuccitelli

I'm boxes. sorry, XX

David Noble

week, XX we at. units, can run per

Jeff Eberwein

Right, so if little XXX take at in you -- factor vacation that's year. year, a a XX-week bit of

David Noble

Yeah.

Marc Nuccitelli

XXX price? units a and selling year average, what's the

David Noble

It's each a little over XX,XXX picking bit year. It's year-to-date. up

Marc Nuccitelli

Okay.

million So run would thing be if rate, you're saying that $XX was running humming?

David Noble

Yeah. That's correct.

Marc Nuccitelli

Okay. up guys, And is pushing you think open inquiry your other? the robust potentially you to potentially

David Noble

Yeah. challenge time scale permit. the the is, to take on projects mean I they is more commercial

couple And and so months. and a when sell going come very better a well. the are two we build prospect get now residential it, a homes had in, we visibility These qualify in It's very, it projects, sense. single-family that in commercial it, can online of

the getting was outside May. end One was mid-February. online the such. board. in going of issues, amount until kind expected through of And of those is across we and But business. designs But long-term about that it affordable we really work that feel workforce It good end the everything the game. takes to didn't very, to fine. multifamily very get it's time housing, mid strategy. of tremendous we're upping control. inquiry, housing, it it's the But permitting the And again, are Whether user. with housing, education-related, of a a in And excuse online get our But was me, -- housing,

very very and backlog. a pipeline robust a have robust We

Marc Nuccitelli

Okay.

create apologize I'm around, brackets conclusion, in trying to I taking here. so value some to just maybe But for just much shareholder going up So you're how put time. from

into EdgeBuilder $XX hopefully guess, a one million the the normal million I rate? if to is Looking you should million. returns type $XX obviously, trending line if calendar business of line, certainly rate, health say, out the pre-COVID, and plus, $XXX run I at run if $XX care XXXX, a the be and potentially if roughly looking million, KBS other running into all --

David Noble

Yeah.

sound, those think, I numbers right.

not of the can full we get upside at continue mean, if that is, get can the to open. second quickly think level And plant to we inquiry see capacity… running let's to KBS. at I a I we assume,

Marc Nuccitelli

Right.

David Noble

XX the the have to we boxes do if demand. capacity do week, we have …but a

Marc Nuccitelli

hopefully, it something it at What you're you leverage to operating revenue. of want looking at between from start should really be, look -- EBITDA so So pretty and there? at, you how and rate are $XXX here the much do XXXX, a margin total where Is looking kick the on expansion SG&A million you to run in?

David Noble

Well.

tremendous leverage. have I second we with side, of numbers in think costs, the now. for there's don't repeat need the to right not any those me to would plant all operating a open KBS But example, I fixed by means.

In we it. to already are own that carry plant. paying and fact

the the tremendous So, And than at capacity. pretty operations there they're leverage. on might But be there's they good think first. higher, first operating are a et EBITDA the net couple plant I of cetera. on positions senior second in folks I mean, margins -- full margins be would

Marc Nuccitelli

the should EBITDA Is XXXX? in was say under rate be blended a at that, So this scenario. going on XX% into a run basis, it calendar you safe company $XXX to a million doing least margin,

Jeff Eberwein

our to percent at look the look pretty & and had revenue at least we And year the for side from almost didn't million achieve XXXX, But because $X.X the that last it, good we year. would a Construction strongly forecast for that at business one was think to something Healthcare million EBITDA all $X.X around way the I like of Healthcare that XXXX margin own in hope your take just XXXX percent if very margin. generated and you we for margin, long. that Building came

Marc Nuccitelli

on you're a floor? So X%, saying X%

Jeff Eberwein

Yes.

Marc Nuccitelli

at hope you're other your too I and out I I getting why neck synergies, better. But would but...? you the saying I open here. understand stick was and gotten Well line Okay. some want to XX Yes. would much don't least if or you've know we be

Jeff Eberwein

Yes.

you're -- the and yes, Your doing math I it's that reasonable. understand

Marc Nuccitelli

Okay. And good that cash XXXX. -- is free looking -- if be a for into also flow that proxy out that would a good

Jeff Eberwein

Well, interest expense. have we do

bit little a have CapEx. We of

Marc Nuccitelli

side. Healthcare on CapEx

Jeff Eberwein

have And capital. Yes, on you then, side. the swings Healthcare in working

and capital year free pretty is pretty precision. pretty next the to But generates division hard company cash talking no that flow. working our with cash that flow and about So cash is contribution flow, million cash free Building the in predict range & generating last million $X healthy $X & example year would and really cash was produce Building and good Construction this a flow good flow free was Construction with scenario from division the to for for the we're

Marc Nuccitelli

nice to taxes. paying Right. I not a NOL, -- And you be guess guess forget any you have I in conclusion, so shouldn't

Jeff Eberwein

Operator Correct. XX

Marc Nuccitelli

Okay.

Thanks time. job. for Nice your guys. Okay

Jeff Eberwein

you. Thank

Operator

Thank you. comes question. Instructions] [ph] with of Please is [Operator Rothschild your the question private investor. from line Our proceed next David who

Unidentified Analyst

for taking you my question. Thank

Sort the question quarter. within did think Do here a you'd paying dividend you the be of on year? preferred last I

Jeff Eberwein

we to announce announce, specific will Well when we something it. have

So issued to the document, intention forgo it legal -- for out the wasn't -- to our of But and to dividends the at go right structure gate. preferred that allowed of the preferred dividends quarters. six that if look we're we you up defer

that to so hope long. go And we not

Matt Molchan

cumulative And note I it's too. would

be point, intention the some would to catch up. at So

Unidentified Analyst

patiently. waiting We're Okay.

Jeff Eberwein

You're right.

So they'll dividends aren't out paid be lost. the and eventually. accumulating They're just

Unidentified Analyst

Okay. Thank you.

Operator

for like are to at time closing Thank I no this you. comments. Ladies back turn there further floor the and to would Jeff gentlemen, questions.

Jeff Eberwein

follow-up we forward call. and for your in information next questions, our to joining our today press look is contact The Thanks everybody in quarterly And interest you our any updating have can release. to company. us if you us you on for contact And us.

Operator

you. and teleconference. gentlemen, this Ladies Thank today's concludes

Thank your for your this may time. lines participation. you You disconnect at

Star Equity (STRR) 13 Aug 202020 Q2 Earnings call transcript