Loading...
Docoh

Steel Connect (STCN)

Steel Connect, Inc. is a diversified holding company with two wholly-owned subsidiaries, IWCO Direct Holdings, Inc. and ModusLink Corporation, that serve the direct marketing and supply chain management markets, respectively.

Company profile

Ticker
STCN
Exchange
CEO
Ralph Scobie
Employees
Incorporated
Location
Fiscal year end
Former names
CMG INFORMATION SERVICES INC, CMGI INC, ModusLink Global Solutions Inc
SEC CIK
Subsidiaries
CMG Securities Corporation • CMG@Ventures, Inc. • CMG@Ventures Capital Corp. • CMG@Ventures Securities Corp. • CMGI@Ventures IV, LLC • @Ventures V, LLC • IWCO Direct Holdings, Inc. • IWCO, LLC • United Mailing, Inc. • Victory Envelope, Inc. ...
IRS number
42921333

STCN stock data

Calendar

14 Jun 22
16 Aug 22
31 Jul 23
Quarter (USD) Apr 22 Jan 22 Oct 21 Jul 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Jul 21 Jul 20 Jul 19 Jul 18
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 57.49M 57.49M 57.49M 57.49M 57.49M 57.49M
Cash burn (monthly) 4.26M 4.04M (no burn) 6.63M (no burn) 1.76M
Cash used (since last report) 15.22M 14.43M n/a 23.66M n/a 6.28M
Cash remaining 42.27M 43.06M n/a 33.83M n/a 51.21M
Runway (months of cash) 9.9 10.7 n/a 5.1 n/a 29.1

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
1 Jul 22 Jeffrey J Fenton Common Stock, $0.01 par value Grant Acquire A No No 0 18,682 0 471,406
1 Jul 22 Howard Jack L Common Stock, $0.01 par value Grant Acquire A No No 0 18,682 0 872,528
1 Jul 22 Glen M Kassan Common Stock, $0.01 par value Grant Acquire A No No 0 18,682 0 425,650
1 Jul 22 Warren G Lichtenstein Common Stock, $0.01 par value Grant Acquire A No No 0 18,682 0 1,595,599
1 Jul 22 Maria Molland Common Stock, $0.01 par value Grant Acquire A No No 0 18,682 0 189,134
46.3% owned by funds/institutions
13F holders Current Prev Q Change
Total holders 34 39 -12.8%
Opened positions 2 6 -66.7%
Closed positions 7 4 +75.0%
Increased positions 9 8 +12.5%
Reduced positions 9 9
13F shares Current Prev Q Change
Total value 36.08M 40.65M -11.2%
Total shares 27.97M 29.04M -3.7%
Total puts 0 37.6K EXIT
Total calls 25.7K 23.1K +11.3%
Total put/call ratio 1.6
Largest owners Shares Value Change
SPLP Steel Partners 18.18M $23.46M 0.0%
Renaissance Technologies 2.2M $2.84M -4.3%
Vanguard 1.9M $2.45M -0.4%
Gabelli Funds 1.51M $1.95M 0.0%
GBL Gamco Investors 1.04M $1.34M 0.0%
BLK Blackrock 1.02M $1.32M -1.3%
Bridgeway Capital Management 262.85K $339K -4.4%
BAC Bank Of America 243.5K $314K +43.4%
Geode Capital Management 232.62K $300K 0.0%
Cowen Investment Management 216.79K $280K +64.0%
Largest transactions Shares Bought/sold Change
Solas Capital Management 0 -867.74K EXIT
Defender Capital 0 -115.5K EXIT
Renaissance Technologies 2.2M -97.88K -4.3%
Cowen Investment Management 216.79K +84.63K +64.0%
BAC Bank Of America 243.5K +73.67K +43.4%
Susquehanna International 53.75K -68.07K -55.9%
Dimensional Fund Advisors 0 -42.85K EXIT
Squarepoint Ops 0 -27.73K EXIT
Dixon Hughes Goodman Wealth Advisors 132.92K +26.2K +24.5%
Citadel Advisors 10.25K -20.64K -66.8%

Financial report summary

?
Risks
  • The divestiture of our Direct Marketing segment may not achieve the intended benefits and changes our exposures to other risks and uncertainties.
  • Our future results of operations are solely dependent on the operations of our Supply Chain business segment and will differ materially from our previous results.
  • Changes in our relationships with significant clients, including the loss or reduction in business from one or more of them, could have a material adverse impact on our business.
  • If the demand for supply chain management services decline, or if we are unable or do not effectively integrate new or emerging industry trends into our services and offerings, our revenue and results of operations could be adversely affected.
  • Because most of our contracts do not contain minimum purchase requirements and we sell primarily on a purchase order basis, we are subject to uncertainties and variability in demand by clients, which could decrease revenue materially and adversely affect our financial results.
  • The COVID-19 pandemic has adversely affected, and is expected to continue to pose risks, to our business, results of operations, financial condition and cash flows, and other epidemics or outbreaks of infectious diseases may have a similar impact.
  • Our business is subject to intense competition.
  • Our operating results may fluctuate due to a number of factors, many of which are beyond our control, causing volatility in the price of our common stock.
  • The funds held for clients may be subject to credit risk, impairment, misappropriation or theft, and any such incident could result in harm to our clients and damage to our brand.
  • A decline in our key business sectors or a reduction in consumer demand generally could have a materially adverse effect on our business.
  • We must maintain adequate levels of inventory in order to meet client needs, which presents risks to our financial position and operating results.
  • We may have problems raising or accessing capital we need in the future.
  • We may encounter problems in our efforts to increase operational efficiencies.
  • Loss of essential employees or an inability to recruit and retain personnel could have a significant negative impact on our business.
  • We may not be able to identify, manage, complete and integrate acquisitions and achieve anticipated synergies and benefits.
  • We conduct business outside of the U.S., which exposes the Company to additional risks not typically associated with companies that operate solely within the U.S.
  • Our business in Mainland China faces specific risks.
  • The physical or intellectual property of our clients may be damaged, misappropriated, stolen or lost while in our possession, subjecting us to potential litigation and other adverse consequences.
  • A significant disruption in, or breach in security of, our technology systems could adversely affect our business.
  • Litigation pending against us could materially impact our business and results of operations.
  • We may be unable to realize the benefits of our net operating loss carry-forwards and other tax benefits (collectively, "NOLs").
  • There may be adverse effects on the value of your investment from our use of the Protective Amendment and Tax Plan.
  • We are subject to federal, state and foreign tax audits, which could result in the imposition of liabilities that may or may not have been reserved, and changes in our provision for income taxes.
  • We may be subject to state sales taxes that we have not paid, or collected from our customers or reserved for on our financial statements, which could materially and adversely affect our business, financial condition and operating results.
  • Changes in tax rates, laws or regulations, including U.S. government tax reform, could have a negative impact on the results of future operations.
  • Our failure to maintain compliance with Nasdaq’s continued listing requirements could result in the delisting of our common stock.
  • SPH Group Holdings LLC and its affiliates own a majority of the voting power of our capital stock and have significant influence over our corporate decisions.
  • Members of our Board also have significant interests in Steel Holdings and its affiliates, which may create conflicts of interest.
  • There can be no assurance that the proposed Merger between us and Steel Holdings will be approved and ultimately consummated.
  • Our Board may choose to effect a reverse split of the issued and outstanding shares of our common stock at the ratio of one-for-ten, the effects of which we cannot predict with certainty and which may be materially adverse to the value of your investment in our common stock.
  • RISKS RELATED TO OUR INDEBTEDNESS
  • Our indebtedness could restrict our operations and make us more vulnerable to adverse economic conditions.
  • Changes in reference interest rates could adversely affect our results from operations and financial condition.
  • An increase in our effective tax rate may adversely impact our results of operations.

Content analysis

?
Positive
Negative
Uncertain
Constraining
Legalese
Litigous
Readability
H.S. junior Avg
New words: accuracy, altered, analogy, assistance, backdrop, contingent, disinterested, dissenting, Eastern, enjoining, Excel, exercise, impeding, jointly, merge, rata, recession, restraining, slower, solicit, SP, superior, surviving, thousand, timeline, unaffiliated
Removed: accelerated, amortization, annually, approach, approximate, attrition, capable, constitute, creative, defer, deferral, discontinuation, discounted, division, executed, forecasted, incremental, insertion, landscape, mail, negotiation, obligated, omnichannel, paper, partially, planned, postal, print, prospectively, readily, September, shareholder, subjective, summary, terminal, test, tested, type, unexpected, withdrawn