Earnings Labs

Star Equity Holdings, Inc. (STRR)

Q4 2018 Earnings Call· Fri, Mar 1, 2019

$9.64

-2.53%

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Transcript

Operator

Operator

Welcome to the Digirad Corporations Fourth Quarter 2018 Earnings Call. At this time all participants are in a listen-only mode. A question-and-answer session will follow the presentation. [Operator Instructions] And as a reminder, this conference is being recorded. I would now like to turn the conference over to Matt Molchan. Thank you. Please go ahead.

Matt Molchan

Analyst · Ancora

Thank you, Brenda. Good morning. And thank you all for joining us today for our fourth quarter 2018 results conference call. My name is Matt Molchan and I am Digirad's President and CEO. Also on the call with me today is Digirad's Chairman of the Board, Jeff Eberwein and our COO and Interim Chief Financial Officer, David Noble. We will discuss the 2018 fourth quarter and full year financial results, provide an update on the company's strategy and comment on the company's outlook. A question and answer period will then follow. If you didn't receive a copy of our press release and would like one, please contact our office at 858-726-1600 after the call, and we'll be happy to get you one. Also, this call is being broadcast live over the Internet and may be accessed at Digirad's website via www.digirad.com. Shortly after the call, a replay will also be available on the Company's website. I'd like to remind everyone that certain statements made during this 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 events and financial performance to differ materially. Risks and uncertainties include, but are not limited to, business and economic conditions, technological change, industry trends, changes in the Company's market and competition. More information about the risks and uncertainties is available in the Company's filings with the U.S. Securities and Exchange Commission, including annual reports on Form 10-K,…

Operator

Operator

Thank you. [Operator Instructions] Our first questions are from the line of Michael Santelli with Ancora.

Michael Santelli

Analyst · Ancora

Hi, Gentlemen. Good morning.

Matt Molchan

Analyst · Ancora

Good morning.

Michael Santelli

Analyst · Ancora

A quick question. One is there any details on the ATRM acquisition or any update - any update there?

Jeff Eberwein

Analyst · Ancora

This is Jeff Eberwein, Chairman of the Board. So ATRM is very focused on getting its financials done and its SEC filings caught up and I think we'll see a lot of progress on that in Q2. So there'll be more information coming there.

Michael Santelli

Analyst · Ancora

Okay. And then with respect to capital allocation, last quarter I think you guys eliminated dividend and said something to the effect that you're going to use that capital to repurchase stock opportunistically. And I don't believe we've seen any activity to date, correct me if I'm wrong there, and why not?

Jeff Eberwein

Analyst · Ancora

Yeah. This is Jeff again. That's a good question. You know, we think our stock is at very, very attractive levels, but for us to be able to repurchase stock the window has to be open and the window has not been open.

Michael Santelli

Analyst · Ancora

From when you announced Q3 or when?

Jeff Eberwein

Analyst · Ancora

Well, the window hasn't been open for us to buy back stock.

Michael Santelli

Analyst · Ancora

Okay. When does the window open? Did the ATRM transaction keep the window closed for a while?

Jeff Eberwein

Analyst · Ancora

We approve the stock repurchase authorization, I think at the very end of October, beginning of November and there's two things - two big picture requirements for the window to be open. One is the whole earnings cycle and the window in general opens, I think it's two or three days after we report earnings and then it closes two weeks before the end of a quarter. So that's one factor. And then the second factor is there can't be any material non-public information that the company knows about that's not out in the marketplace. And if those two criteria are met then the company is able to buy back stock, either just are doing - buying in the market or putting in place a 10b5 plan.

Michael Santelli

Analyst · Ancora

Okay. So does the ATRM transaction that's kind of out there, does that come under one of those restrictions, i.e. material non-public information perhaps?

Jeff Eberwein

Analyst · Ancora

Only if there's undisclosed information that the board knows about. So the - what's been announced so far doesn't cause the window to be closed.

Michael Santelli

Analyst · Ancora

Okay. That's all. Thank you.

Matt Molchan

Analyst · Ancora

Thanks, Michael.

Operator

Operator

Thank you. [Operator Instructions] It seems we have no further questions. I would like to turn the call back over to management for any closing comments.

Matt Molchan

Analyst · Ancora

Thank you, Brenda. As always we appreciate all our shareholders and your continued feedback and support. We're looking forward to our next update call. Thank you.

Operator

Operator

Thank you. This concludes today's conference. You may disconnect your lines at this time. And thank you for your participation.