Star Equity (STRR) investor relations material

Platform and outlook

• Three formerly public microcaps have been combined into a multi-industry platform; a fourth merger was signed in August, with closing expected at year-end after the S-4 filing.

• TTM revenue was $225 million and EBITDA was $6 million; management targets $400 million revenue and $40 million EBITDA by 2030 without further acquisitions.

• Management expects revenue from current businesses to grow more than 10% annually and targets $40 million EBITDA by 2030.

• Management said the target could imply roughly $10 per share in earnings; the stock price was around $10 at the event.

Operating businesses

• Building Solutions provides factory-built homes, walls, lumber yards, design services and engineered wood products; prefab construction share rose from 3% pre-COVID to 7% today.

• Building Solutions is at a cyclical low; growth initiatives and a return to normal business conditions are seen as upside drivers.

• Business Services’ Hudson provides outsourced recruitment, staffing and HR services; its global ranking rose from ninth two years ago to third, with AI integration supporting share gains.

• Energy Services rents mission-critical drilling tools and has diversified into geothermal, carbon capture, hydrogen, helium, mining and water-well drilling.

Harte Hanks and portfolio actions

• Harte Hanks’ S-4 projections show $150 million revenue and $7.5 million EBITDA; management estimates $10 million of cost reductions and says the deal could add $15 million EBITDA without issuing shares.

• Harte Hanks revenue stabilized in the latest quarter; S-4 projections show modest growth, and fulfillment logistics is viewed as a business to invest in and grow.

• Management plans to strengthen leadership and invest in Harte Hanks’ other two businesses, while remaining open to transactions if another buyer sees greater strategic value.

• Hudson EBITDA is depressed by $3 million-$4 million from investments; management sees a return to $20 million EBITDA in the coming years, a level achieved previously.