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Steel Partners Holdings L.P. Reports Third Quarter 2016 Financial Results

November 7, 2016 at 4:40 PM EST

NEW YORK--(BUSINESS WIRE)--Nov. 7, 2016-- Steel Partners Holdings L.P. (NYSE:SPLP), a diversified global holding company, today announced operating results for the third quarter and nine months ended September 30, 2016. For a full discussion of the results, please see the Company's Form 10-Q as filed with the U.S. Securities and Exchange Commission, which can be found at www.steelpartners.com.

For the 2016 third quarter, Steel Partners reported revenues of $317.0 million, compared with $276.4 million for the same period of 2015. Income before taxes and equity method investments was $15.0 million in the third quarter of 2016, compared with $20.1 million in the same period of 2015. Net income attributable to the Company's common unitholders for the third quarter of 2016 was $10.8 million, or $0.41 per diluted common unit, compared with a net loss of $12.1 million, or $0.44 per diluted common unit, for the same period in 2015.

For the nine months ended September 30, 2016, revenues were $845.8 million, compared with $742.6 million for the same period of 2015. Income before taxes and equity method investments was $41.0 million in the first nine months of 2016, compared with $51.6 million in the same period of 2015. Net income attributable to the Company's common unitholders for the first nine months of 2016 was $22.0 million, or $0.83 per diluted common unit, compared with $76.9 million, or $2.78 per diluted common unit, for the same period in 2015.

"Revenue growth for the third quarter and year-to-date period principally reflected contributions from acquisitions in our Diversified Industrial segment," said Warren Lichtenstein, Executive Chairman. "We continue to explore accretive growth opportunities across our business segments, while streamlining our structure to effect and further enhance economies of scale."

Financial Summary

     
(in thousands, except per common unit)

Three Months Ended

September 30,

Nine Months Ended

September 30,

2016   2015 2016   2015
Revenue $ 317,013 $ 276,390 $ 845,835 $ 742,625
Costs and expenses 301,977   256,257   804,855   691,027  
Income before taxes and equity method investments 15,036   20,133   40,980   51,598  
Income tax provision 8,334 13,125 18,357 24,705
Income (loss) of associated companies, net of taxes 5,990 (21,066 ) 2,729 (17,237 )
Income from other investments - related party — — — 361
Income (loss) from investments held at fair value 377   (734 ) (80 ) 3,152  
Net income (loss) from continuing operations 13,069 (14,792 ) 25,272 13,169
Net income from discontinued operations —   195   —   87,018  
Net income (loss) 13,069 (14,597 ) 25,272 100,187
Net (income) loss attributable to noncontrolling interests (2,237 ) 2,454   (3,269 ) (23,320 )
Net income (loss) attributable to common unitholders $ 10,832   $ (12,143 ) $ 22,003   $ 76,867  
 
Net income (loss) per common unit - basic $ 0.41   $ (0.44 ) $ 0.83   $ 2.79  
Net income (loss) per common unit - diluted $ 0.41   $ (0.44 ) $ 0.83   $ 2.78  
 
 

Segment Results

     
(in thousands)

Three Months Ended

September 30,

Nine Months Ended

September 30,

2016   2015 2016   2015
Revenue:
Diversified industrial $ 274,327 $ 224,635 $ 722,399 $ 555,888
Energy 27,154 33,480 68,868 107,975
Financial services 15,368 18,226 53,777 45,886
Corporate and other 164   49   791   32,876  
Total $ 317,013   $ 276,390   $ 845,835   $ 742,625  
Income (loss) from continuing operations before income taxes:
Diversified industrial $ 12,646 $ 10,424 $ 37,499 $ 35,846
Energy (3,380 ) (11,171 ) (6,402 ) (34,184 )
Financial services 7,911 12,716 32,018 30,539
Corporate and other 4,226   (13,636 ) (19,486 ) 5,673  
Income (loss) from continuing operations before income taxes 21,403 (1,667 ) 43,629 37,874
Income tax provision 8,334   13,125   18,357   24,705  
Net income (loss) from continuing operations $ 13,069   $ (14,792 ) $ 25,272   $ 13,169  
Income (loss) from equity method investments:
Diversified industrial $ — $ (4,184 ) $ 8,078 $ 857
Energy 886 (8,153 ) 6,976 (4,818 )
Corporate and other 5,104   (8,729 ) (12,325 ) (12,915 )
Total $ 5,990   $ (21,066 ) $ 2,729   $ (16,876 )
 

About Steel Partners Holdings L.P.

Steel Partners Holdings L.P. is a diversified global 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 and youth sports.

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 2016 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, 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 U.S. Securities and Exchange Commission, including the Company's Form 10-K for the year ended December 31, 2015 and Form 10-Q for the quarterly period ended September 30, 2016, 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.

Source: Steel Partners Holdings L.P.

Investor contact:
PondelWilkinson Inc.
Roger S. Pondel, 310-279-5965
rpondel@pondel.com

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