HG Holdings, Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>HG Holdings, Inc. filed a 10-Q for Q1 2024, detailing investments and distributions.</b>

AI Summary

HG Holdings, Inc. (STLY) filed a Quarterly Report (10-Q) with the SEC on May 14, 2024. HG Holdings, Inc. reported its Q1 2024 results. The company has no unfunded commitments related to its investment in a limited partnership that invests in property catastrophe risk. Investments in the limited partnership have underlying assets with a duration of one year or less and can be redeemed or reinvested annually. Changes in net asset value of the limited partnership investment are included in Net investment income. The company distributed earnings related to non-controlling interest holders of Omega National Title of Florida, LLC and Omega National Title of Pensacola, LLC during Q1 2024.

Why It Matters

For investors and stakeholders tracking HG Holdings, Inc., this filing contains several important signals. The filing provides insight into HG Holdings' investment strategies, particularly its involvement in property catastrophe risk through a limited partnership. Details on distributions to non-controlling interest holders highlight the company's operational structure and financial relationships with subsidiaries.

Risk Assessment

Risk Level: low — HG Holdings, Inc. shows low risk based on this filing. The filing is a standard 10-Q report with no immediate red flags, indicating routine financial reporting.

Analyst Insight

Monitor future filings for updates on the performance of the limited partnership investment and any changes in distributions.

Key Numbers

• 2024-03-31 — Reporting Period End Date (10-Q filing)
• 2024-05-14 — Filing Date (10-Q filing)
• 2023-12-31 — Previous Period End Date (10-Q filing)
• 2023-01-01 — Prior Year Q1 Start Date (10-Q filing)

Key Players & Entities

• HG Holdings, Inc. (company) — Filer
• Omega National Title of Florida, LLC (company) — Subsidiary
• Omega National Title of Pensacola, LLC (company) — Subsidiary
• Standard & Poor's Rating Services (company) — Rating agency

FAQ

Risk Factors

• Investment Risks [medium — financial]: The company's investments, including those in limited partnerships and HC Series B Stock, carry inherent risks that could impact financial performance.
• Non-Controlling Interest Distributions [low — operational]: Distributions to non-controlling interest holders may affect the company's retained earnings and cash flow.

Industry Context

HG Holdings operates within the Real Estate Investment Trusts sector, focusing on investments that may include property catastrophe risk and title services.

Regulatory Implications

As a REIT, HG Holdings is subject to specific regulatory requirements and tax treatments governing its operations and investments.

What Investors Should Do

1. Review the detailed financial statements for specific revenue and expense figures.
2. Analyze the performance and valuation of the limited partnership investment in future filings.
3. Investigate the impact of distributions to non-controlling interests on the company's financial health.

Key Dates

• 2024-03-31: Quarterly Period End — End of the reporting period for the 10-Q filing.
• 2024-05-14: Filing Date — Date the 10-Q was officially filed with the SEC.

Glossary

REIT

Real Estate Investment Trust (HG Holdings is identified as a REIT, indicating its business structure and tax status.)

NAV

Net Asset Value (Used to measure the value of investments, particularly in the limited partnership.)

Year-Over-Year Comparison

This is the first 10-Q filing for the fiscal year 2024, providing an update on the company's financial position and operations as of March 31, 2024.

Key Financial Figures

• $0.02 — n stock of HG Holdings, Inc., par value $0.02 per share, were outstanding. 1 Table

Filing Documents

• stly20240331_10q.htm (10-Q) — 947KB
• ex_634403.htm (EX-31.1) — 14KB
• ex_634404.htm (EX-31.2) — 14KB
• ex_634405.htm (EX-32.1) — 4KB
• ex_634406.htm (EX-32.2) — 4KB
• 0001437749-24-016618.txt (&nbsp;) — 5940KB
• stly-20240331.xsd (EX-101.SCH) — 54KB
• stly-20240331_cal.xml (EX-101.CAL) — 53KB
• stly-20240331_def.xml (EX-101.DEF) — 365KB
• stly-20240331_lab.xml (EX-101.LAB) — 306KB
• stly-20240331_pre.xml (EX-101.PRE) — 391KB
• stly20240331_10q_htm.xml (XML) — 1012KB

– Financial Information

Part I – Financial Information 3

Consolidated Financial Statements (Unaudited)

Item 1. Consolidated Financial Statements (Unaudited) 3 Consolidated Balance Sheets – March 31, 2024 and December 31, 2023 3 Consolidated Statements of Operations – Three Months Ended March 31, 2024 and March 31, 2023 4 Consolidated Statements of Changes in Stockholders' Equity – March 31, 2024 and March 31, 2023 5 Consolidated Statements of Cash Flows – Three Months Ended March 31, 2024 and March 31, 2023 6

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 7

Management' s Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management' s Discussion and Analysis of Financial Condition and Results of Operations 21

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 24

Controls and Procedures

Item 4. Controls and Procedures 24

– Other Information

Part II – Other Information 25

Legal Proceedings

Item 1. Legal Proceedings 25

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 25

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 25

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 25

Other Information

Item 5. Other Information 25

Exhibits

Item 6. Exhibits 26

Signatures

Signatures 27 2 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Consolidated Fin ancial Statements

ITEM 1. Consolidated Fin ancial Statements HG HOLDINGS, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share data) March 31, December 31, 2024 2023 (unaudited) ASSETS Cash and cash equivalents $ 10,284 $ 10,247 Restricted cash 12,141 7,505 Investments Fixed income securities, held-to-maturity 3,123 3,122 Investments in limited partnerships 1,238 1,280 Investments in related parties 10,807 10,834 Accounts receivable 204 136 Interest and dividend receivables 283 293 Prepaid expenses 253 223 Property, plant and equipment, net 98 120 Lease assets 490 582 Goodwill 6,492 6,492 Intangible assets, net 249 267 Other assets 815 803 Total assets $ 46,477 $ 41,904 LIABILITIES Accounts payable $ 171 $ 400 Accrued salaries, wages and benefits 546 350 Escrow liabilities 12,088 7,454 Other accrued expenses 430 344 Reserve for title claims 350 313 Lease liabilities 500 590 Other liabilities 31 32 Total liabilities $ 14,116 $ 9,483 STOCKHOLDERS' EQUITY Common stock, $ 0.02 par value, 35,000,000 shares authorized as of March 31, 2024 and December 31, 2023, respectively; 2,861,547 shares issued and outstanding as of March 31, 2024 and December 31, 2023. 53 53 Additional paid-in capital 30,491 30,491 Retained earnings 1,896 1,894 Total stockholders' equity 32,440 32,438 Noncontrolling interests ( 79 ) ( 17 ) Total equity 32,361 32,421 Total liabilities and stockholders' equity $ 46,477 $ 41,904 The accompanying notes are an integral part of the consolidated financial statements. 3 Table of Contents HG HOLDINGS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (unaudited) Three Months Ended March 31, March 31, 2024 2023 Revenues: Net premiums written $ 1,239 $ 830 Commission revenue 165 499 Escrow and other title fees 542 609 Management fees from related parties 753 3 Total revenues 2,699 1,941

View Full Filing

View this 10-Q filing on SEC EDGAR