SGBX - Earnings call transcript Q2 2018 | Safe & Green Holdings Corp.

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Operator

Good day and welcome to the SG Blocks Second Quarter 2018 Conference Call and Webcast. Today's conference is being recorded. At this time, I would now like to turn the conference over to Chris Tyson, Managing Director of MZ North America. Sir, please go ahead.

Chris Tyson

Thank you and good afternoon. you Blocks' taking call. second thank us to to SG for quarter like all time for join I'd XXXX conference

website hosts and Company’s Paul Mr. Mr. a business Officer. today Executive will provide Your and cover X detailing crossed the which company’s wires Officer; customer Paul partner announcements, the Galvin, discuss will Mahesh on results will sgblocks.com. and financial results. available and afternoon these President at Chief the PM while update, Mahesh Chief A Eastern Financial is press release this Shetty, are the

open Following floor management’s prepared comments, we questions. will the for

plans operations Before act in management, can In of statements business this to continue, XXXX. position, than objectives other of I the expressions. management plan, and anticipate, private historical the financial by please contained forward-looking intend, operations are identified certain the statements terms be cases, future All for within contained including statements statements believe, some potential call presentation these other turn of in release this the statements such should, regarding or terminology strategy meaning reform may, remember facts and future negative litigation over or predict, as our similar of estimate, statements. that forward-looking forward-looking and expect, are of statements securities

with and Commission, available risks, set in described those are statements are forth Securities of financial results events about at uncertainties number have subject trends We conditions, current our Exchange filings and various business that forward-looking affect based these financial to forward-looking and assumptions needs. financial future which www.sec.gov. of our These believe on and projections a strategy SEC, statements expectations largely we our and including the may operations,

occur. but as and business You GAAP. circumstances or events substitute should assure non-GAAP results will not in be presentation considered non-GAAP that financial measures. uses addition in measures you upon assessing should We in also the Blocks cannot certain SG operations. be non-GAAP not reflected with the its considered and that in achieved statements financial This measures statements these a Reference measures includes accordance financial predictions of should forward-looking events. financial forward-looking future be to rely presented GAAP are for to

call Finally, like webcast Investor call website Relations in conference the is I Paul being this is to time, at is available turn would The Galvin. of link At webcast. yours. section this over the the www.sgblocks.com. floor Paul, to our

Paul Galvin

quarter SG to financial Thank you, second results Blocks and Chris welcome XXXX the call. conference

will in built X,XXX by complete beverage and The Coast foot these million in almost park square notable second food square highlighted on project a and in when food foot believe square X,XXX a including projects affordable beverage a quarter XXXX revenue. projects XX,XXX West of win the We $XX was foot venue South housing Orlando. and Carolina, deliver

not site two did a delay site, architecture our on talent have sourcing on material Grimshaw addition firm revenue due single and get our a with pipeline our planning, to readiness unanticipated project progress Architects, the announced We partnership approval, initiated strategic We progress numbers, In of needed made firm. and and additional added site variable, work. work the projected globally large in project for in the school a large additional our with an HOLA cost. QX location, at primarily renowned financing backlog

we call margin. was when this very in As signed expected project we previous have earnings indicated low

cash track or item. of company from is to project expect flow QX than to HX However XXXX punch better both the with breakeven XXXX doubled The and QX. list more in be to Revenue an on a final we complete substantially on the be QX in exception basis.

the through our the project, projects XXXX. other HOLA second margin have XX% all averaged from quarter on Aside of

products SG the Under for Architects, terms and hold signing award Services SG into architectural current into to of One partnership to its utilization on offering. award-winning with of of for margins design design key its exclusive component Blocks accomplishment winning Modular new their Grimshaw premier allow and the the as incorporate backlog incorporate In Master across current return, will agreement, key Agreement quarter and global Grimshaw's structures an an history design of We extends this projects. container-based expect a Blocks' is with the international during will its our and industrial pipeline projects portfolio. those partner Grimshaw and opportunities. design practice. Grimshaw future architecture

nationally we look both possible create Blocks' and highest with more future footprint to Grimshaw working scale work global expand the container-based on standards we of larger, As the facilities forward excellence. and on of that a projects, SG set impactful to

We our mutual as assessing are as pipeline to opportunities currently completed. RFPs well be

newly locale. are Our projects in announced use diverse and size,

a see high the West to of Southeast, level U.S. continue We the Coast of South interest from and

increased XX, feet $XXX.X million square XXXX June or XX projects. approximately XXX,XXX backlog unique across of approximately Our to as

including the PR we the successful institutional front, Heart Kathy and above. dozen outlets, tour we News. mentioned and Business leading five investors well the project Los brand our coverage as TV-based radio project extensive construction Journal print Angeles on with held the as outlets approximately FOX on Finally Time, I Ireland a a second media that of with happy and during our garnered of quarter, am site to this ambassador, for California LA Business on report

conjunction we prospective SG to It site interest certainly business, the Blocks a media for website. on grateful we of shareholders the customers HOLA of Our received would within on full encourage the coverage site a increased in the in have event, our has including we media the been media and HOLA I the tour. date. overview Relations Investor continued side driver the tour from and commercial all recognition sections are video. corporate construction view immensely inbound In with comprises footage first our our to completed

including excited stands more couldn't multifamily from the our humanitarian pipeline hospitality about United States residential, now and which residential, opportunities, schools million forward be over move and abroad. As $XXX of I we at

adoption to turn the the across country. as proposition continue value some as see We traditional from announced call over construction industry developers the Mahesh in the previously compared compelling. projects Shetty. to very is will I our our construction believe of now momentum We model to inbound our gaining requests remains replicate of to President,

Mahesh Shetty

revenue the you, second second Thank on up increase $X primarily quarter The million months contract from of approximately million XX million. three XXXX. quarter June amount the within compared as June This revenue compared in quarter XXXX in that included million second recognized result in of in progress XXXX, additional the Revenue in Paul. completed in or of on XXXX to totaled to $X.X revenue of work X.X ended of being a were the XXX% was of $X.X XX, progress projects XXXX. of a

XX to As engineering the at We $X.X those XX June is million XXXX, architect construction element in Paul projects projects because mentioned significantly increase believe compared the be is going $XXX.X earlier, at of backlog construction June of million and encouraging of backlog totaled XXXX. higher. in particularly to

XXXX approximately primarily totaled profit XXXX. XX% gross per the margin XX% in margin the second related feet amount June Gross quarter margin expenses. $XX,XXX increased and $X.X as legacy second gross project Operating profit amount quarter by additional due or negatively the of costs headcount, compared the unanticipated quarter a to second the XXXX. $X.X on the contract a of percentage in second professional The increase quarter of was second XXXX. of contract expenses in QX million, in the and basic quarter expenses quarter a of in margins million in the affected was and XXXX. as -- of of $X.X approximately of compared in XXXX XX, percentage compared loss X% Gross the of quarter XXX,XXX of square million share the business a as profit $X.X of The $X.XX fees second in in in to $X.X quarter XXXX, operating XXXX. backlog. $XXX,XXX As profit from our diluted second XXXX $X.X second XXXX to loss million, we increased in of second in to Net revenue in of XX to to average revenue travel totaled had net the development for projects a of decreased of XXXX million in excluding quarter at of million the

million a the $X.XX financial release $X.XX today six period ended loss full quarter For period the reconciliation in to month at our tables XXXX, X.X second million million $X.XX six-month the capital. in with compared well from EBITDA form in issued the loss compared filed result ended press the at June totaled operation of to quarterly XXXX of GAAP report as a the decrease a be end totaled non-GAAP from XX, a XX, XXXX. found in SEC. in XX, on adjusted XXXX A today $X.X to XXXX financials $X.X a XX can XX-Q changes of December cash the million June and was Cash of at June decrease million million working as

million a June targeted outstanding. will low in XXXX. carry-forward second summary, million in XXXX back shares The we stable Paul? X.X had We of to approximately call The company legacy in positioning carry-forward as in significant architectural fourth now are loss As diluted subject operating to including in limitations. margin projects design, XXXX, to margin XX%, the -- transition million engineering quarters of revenue million and SG $XX pipeline In the to approximately subsequent debt, sheet, annual be and $XXX.X flow also commence X.X approximately turn entered of losses, over operating XXXX of cash has progress and record company's visibility, expect XXXX. Blocks a burden net shares and net a backlog quarter of tax modular basic and to the million, future upon quarter phases. XX we forwards the delivery operating for to with new we projects Based company years. performance breakeven $XXX of no date, the that encompass expect loss of and and expires carry of over may The fully balance construction reduce which we from reach beyond. a I'll project Paul.

Paul Galvin

Thank Since schedule pipeline and year, operations, on on year, reach executing projects. public areas, which backlog in last These of we schedule current achieving revenue topline opportunities, our XX% we positive are growing cash believe on margin our primary to this non-legacy we on is drive initial a our consistent offering focused Mahesh. which you, are include occurring, is flow for XXXX. backlog with which to profile on three

the continue a operation. look goal result, to platform believe we operating to of achieving expand closer flow to and than are for positive new We our ever ways that cash innovative as sustainable

today's and we continues quarters margin are indication high topline growth projects future. of upcoming grow a setting significant clear backlog up to the Our deliver are and results of believe to revenue that

future. talk let's about So the

XX of He all business. The hired accelerated industry Grimshaw. to referral will strong ensure modular to has to on of our brings an also design, including the we method Block. expertise project receiving of our of construction. overseen elevated and XXXX and our are regarding backlog Operation. opportunities the recently participating backlog, aspect of SG construction level Scott efficiently and industry inbound as off of appointment Scott is Vice new we Scott's elements Due rapidly management. President potential construction architectural all of of recent third this are through we Hill growing construction to testament activity we quarter platform of is including the a start in project as is growing partnership, construction expert experience scale a years his leading facilities believe and Hill an our utilizing conversion interest our management number sustainable the

quarter in car contract a Coast in project Southwest several an engineering container-based affordable XX,XXX first and on beverage square during the In garage fact, X,XXX Orlando secured projects construction and contract in and States of that month for procurement housing and marginalized on new XXXX. fully of the parks the food foot we progress the a delivery recently initiated was container West United July, for parking across services XXX and the architect in

XXXX. of all these of in note long of comprise duration of wins, For completion important all we anticipate new completed to these awards the project and will it's all to be

addition, strategic several to In our are footprint working addressable larger, initiatives expand we markets. on in

on We you those informed initiatives. keep will

never optimistic Blocks today. than SG I about long-term been of have growth our more prospects CEO As

testament new to deliver the operating today's approach. expand to ways another announcement believe continue to I and aggressive We is platform innovative our

achieving goal closer flow are We sustainable cash of operations. now than positive ever our to

open year-end revenue Our growth forward to on grow XXXX. of and Center the goal at Ribbon backlog Angeles projects of our fall for that topline We listeners, to institutional and investor are believe developing that this operator? sharing the Arts to Cutting. upcoming time, high-margin Heart call in upcoming conferences achieve continues Community Los fiscal At we and stated look significant our the from questions I'd will up several setting deliver our quarters to more story Recreation like up year to

Operator

Thank you.

a floor Paul closing will I'd session. Mr. back We have at Instructions] the this conducting question-and-answer no now for be We time. turn Galvin remarks. like to to questions over [Operator

Paul Galvin

us Thanks to everyone on for call joining our today.

have architectural, from dedicated could not We engineering evolving. sincere A throughout to international container-based marketing, many it people our who do of from manufacturing sales, our business We partners, development hard-working Block without SG and and constantly you. and thanks folks, all our to keep management you. solution

to us of address to We We operator? be would look our you, able your you happy or Lastly, up-to-date to Group. questions contact forward keeping MZ our the Firm if today, on progress please answer year as free weren’t to Thank them. unfolds. we Relations Investor all

Operator

This teleconference. today's does conclude

You may disconnect at your participation. Thank time. lines you for this your

Safe & Green (SGBX) 14 Aug 182018 Q2 Earnings call transcript