SGBX - Earnings call transcript Q3 2021 | Safe & Green Holdings Corp.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day and welcome to SG Blocks Third Quarter 2021 Earnings Conference Call and Webcast. [Operator Instructions] As a reminder, today’s conference is being recorded. At this time, I would like to turn the conference over to Stephen Swett of Investor Relations. Please go ahead.

Stephen Swett

Good afternoon. joining our for earnings quarter all call. you us third for XXXX Thank are and SG Galvin, and me Paul With today Chairman Acting Financial Gerald Chief Chief Officer of Blocks. Sheeran, Officer Executive our results closed www.sgblocks.com. market available A press is release was this after and website afternoon company’s the issued on the just at detailing

position, Litigation XXXX. turn I made financial to meaning negative this and statements such of are presentation may, over predict, the during similar this estimates, In facts and statements. within some of the of remember objectives cases, should, contained other the of future expressions. potential continue, forward-looking or please anticipates, as regarding presentation, Before Paul, management believes, call Reform intend, be Private historical of including Securities and plan, terminologies operations for business statements expect, these operations forward-looking All the by the statements forward-looking strategy that future or are Act can statements in certain company’s statements terms plans identified

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

or statements as and achieved occur. reflected cannot you events assure forward-looking be should circumstances You We not forward-looking the that upon predictions of events. statements future rely in the will

Investor in our website. section and Finally, the this webcast of is conference webcast Relations is available call the being

to turn the will I over Paul. Now, call

Paul Galvin

million, In we enormous and our XX from first $XX.X the to have the quarter, September Thank staggering on of past results. revenue line strong drive the X,XXX% transformation as indicative you, months. in totaled last half Year-to-date approximately record year we a through increase built continue revenue top we undertaken Steve. third

our In revenue in revenue fact, year-to-date recorded since our for June than listing NASDAQ is our XXXX. now total annual higher XXXX on

our identified as we space of SG long-term We bring projects DevCo. are pipeline and and on manufacturing inside our activate announced excited for new future short-term

QX, fourth to being continue to based quarter As upon XXXX. into and revenue conditions flow operations we we we of record head positive our expect current the during increase and cash anticipate

USA build our engagements announced In recent platform. at we growth we modular significant and vertical, our Industries across the Looking projects with to activities, our exclusive business structures support in and saw to commercial design years. Street Food their ATCO progress and entire coming plans

and HX Native units deployed events, has food healthcare We These all and service during affordable recently to and event testing XXXX infrastructure deploy services manufacturing leased for years. SG sites, communities rent, the meet projects, hubs X will which prototype ensure team time, sponsors to X,XXX mobile approximately units our bases, who housing third military border facility these CLIA-certified our our the are residential In accommodate for a will to space DevCo an represents be in of testing national control or sale amenity delivery. our gross complete American space X we requirements in campuses, support and crossing, the flow anticipate of tirelessly revenue much-needed In manufacturing healthcare well total, fully and work and of mobile manufacturing plans which for build vertical, on includes the expand to two laboratories right delivery $XXX demand. information Dorian, has we the announced on brand quarter provide with site, to due projects, Oklahoma. to the point-of-care country production contractually our to the and our growing diligence transportation XXXX. redeployed can and across additional anywhere and pipeline reservations. continues for onsite, sports as activate as potential to over be and to units these million this internal to we marinas. X pipeline and of ability the projects At Subsequent Waldron next and

our In lines a large well building Oklahoma, as land capacity will to XXX units in purchase further to more the approximately addition, of a manufacturing into of revenue we corset. entered bring each two We This to would annualized large output. on Xx a build anticipate, Durant, will which contract tract manufacturing us allow current facility, workforce in of on increasing on million rental produce basis. an $XX units line its average, same our capacity million to as $XX

dedicated broadened provide team and uncertainty should direction chain flexibility avoid the greater future, unforeseen and and to in our manufacturing Additionally, challenges in supply the pandemic. experienced footprint including the the of

XXX,XXX common we the purchase million approximately and investments consistent been common will Several stock available for of X.XXX strategic and private material be of which stable, a any include: to of problems; raise associated to and Our with of provide experienced the authority. is projects, public shares investor, third, case in support warrants a both benefits to Durant, our were institutional offering raised funds and raised capital of stock experience $XX.X X,XXX,XXX additional workforce and shares great stock, X which years. our second, has which price growth the a appreciate greatly to past aggregate October, the shares has common ongoing key up used committed an presence sold local the and proceeds should be state net and supply chain with which to for additional help of in support; new the stability purchase support in capital to first, government potential Oklahoma pursuant we million. funds share concurrent offering In in from of to pre-funded completed resulted and securing we been warrants

months. in last We over $X have million funded approximately our XX the projects

drive and manufacturing fees, expect for development depreciation lease. ultimately revenue, investments from growth We income sale asset will or these

stability. agreements vertical. place we key executives Henderson James to of with the September, to the we deepen brings significant to announced continue hiring as XXXX, relationships James employment the to development put deep We business third our for within team. as sales ensure industry. And medical of our medical the lead have subsequent quarter In and long-term in experience well

of deeper said, goal with team requires have business and we management of verticals, within As results. the driving our opportunity bottom our consistent the growth industry and tremendous in with all specialists revenue a line

part an Structures one-stop and August, activities more the and units solutions modular provider infrastructure integrated in in rollout housing, Now, Logistics, with vertical of let energy, Beginning the commercial to we with engagement of our ATCO a of fleet as announced throughout U.S. national me detail. our each recent XX vertical, discuss its transportation produce a in

expect over fourth We are XXXX delivering in years. units and next these to starting continue units the quarter production X the on first

bringing for focus food economic this years Importantly, a and Street and USA business sustainable together were establishes its by Food to independent come. the our local that a on kitchen. Food expected long-term to production of modular In national USA’s growth lead which owner-operated food continued of September, we believe entrepreneurship, markets is we ATCO, in manages small manufacturer street start to relationship with is selected halls. exclusive Street rollout

out southern which year. next in the we The rolled first to be location U.S., expect planned is

at process, the services engineering build after and significant Waldron and repeat our And To as We Living are delivered a recently we project. prototype. a built rollout be we have of that projects for order These recurring value providing the roster manufacturing design, facility. sizable architectural clients announced consulting business. are engineering Mo end, we our anticipate to

working on which we medical and federal growing and QX hope expect a and distant our We our services are additional our working space on have national them strong continue large multiple announce future. unit. presence and we from particularly our results in In to are not deployed the during to units, military announcements we units generate for too LAX testing to XXXX brand, vertical, the in

and Lab to health D-Tec solution point-of-care highly be care. proven to has much-needed access iconic as a Our to provide cost-effective functional flexible

medical quarter, approximately services consistent million, is the enduring third deep revenue and $X.XX and the For and need demonstrates services. our testing our totaled which for

medical the and labs and September, for deploy be we our test fully and point-of-care build plans the potential certified CLIA labs always diseases testing. various healthcare mobile much intermodal have is to to extend mobile further. capacity infections. beginning announced and In this goals will in However, the vertical The for

including will We and units for customers. only simplified operate billing end-to-end providing various these solutions, staffing

are success far a faster better volume great solutions, immediate which the interest our points is position thus with in deep While there have unique is support. we and and partners, delivery to for we demand believe and seen immense, a of care broad of we imbalanced

year revenue projects. higher totaled manufacturing the quarter, unit, were we as than the unannounced commenced quarter Turning third $XXX,XXX to manufacturing third our last approximately XX% for

six remaining of quarters. outside projects As of the the of gross $X.X representing quarter, course we were contract for manufacturing legacy over our in two revenues million potential projects under

acquisition continue facility do and projects dealing across within of last COVID We and our from cleaning the late disruptions to chain. from the up the challenging inherited year legacy with work ongoing supply our

and $X.X million XXXX chain the our have accrued prior Everglade related quarter, loss largest changes supply related the we from of quarter hospitality an scope projects. issues resulted these loss was The project During booked additional increases. where to of to legacy in cost

our production in commitments our in which XXXX. we honored of plan to have QX We out partner have legacy

the these to far in achieve transition projects. in year our focus projects execution on this announced manufacturing future projects continued margins year, We no than so critical. be XX% to less and diligent Importantly, manufacturing on remain and we coming will have on expectation remain active budget, time confident the and

remain in diversifying by on turning and projects. our project flow revenue the our of with capacity, income, sharing sales. execute Now profit manufacturing fees activity, manufacturing and key and keeping development facilities growth announced to we from to to profitability near quarter, our providing These base potential third asset continued steady projects visible our our long-term

will our summarize is condominium quickly an large XXXX. up Travis currently a current completion two the Site of and XXX, second well in in second amenities me of three-bedroom on XXXX pipeline. as date Texas, Lake and early quarter Lago consist to quarter work to as anticipated of marina as commence expected building. planned, with Let project Austin, in units Vista

minority the of anticipate million $X to as interest community XX% our gross a million We square units for venture manufacturing project will are housing revenue will be development the in life as Berry sale expect MSA. Georgia foot affordable XXX,XXX and that community about the units known XXX within Norman sold. be We unit, a approximately over own The the of $XX capture the in in Atlanta East Point, interest Village. the in

The the in manufacturing planning our New Monticello located to fees. well to has outdoor We construction redemption projected currently and initial $X.XX XXX the XXXX. a a [indiscernible] and we scheduled including is a December and of York of The in distribution revenue as yield and interest process with with carried region amenities, development will entitled spaces. planned, in project with payments be upon $XXX,XXX delivered units XXXX control gym third this two-bedroom as are green multifamily one development company of project as share the quarter completion townhomes units clubhouse, Mews, approximately in project million a earn and completion.

site a project in we XX% Company, has produce Georgia. Mary’s, XXXX waterfront in units initial of JDI all LLC the commence third develop parcel the right XXXX. equity acre St. of for is modular throughout purchased contractual ecosystem. The a expected modular expected in Georgia quarter Blocks to to quarter third X,XXX downtown with $X Finally, to million interest Limited a units SG Liability non-dilutable our deliveries historic in work the the Cumberland

to over Gerald. call the turn I’ll Now

Gerald Sheeran

Paul. you, Thank

were with the of income quarter third of quarter Turning compared to compared $XXX,XXX impacted profit profit beginning losses statement, quarter approximately the due XXXX $X.X for quarter for to approximately to Gross Gross XXXX. in the million third was XXXX the the for XXXX. the for $XXX,XXX Operating third $XXX,XXX XXXX. $X.X company negatively million the $X.X was of the to third the third ECHO of compared recognized related the to in approximately XXXX XXXX financials, the contracts. million approximately the quarter approximately revenue in to accrued third was legacy quarter of quarter third of approximately expenses

quarter the expense, disruptions approximately and to projects accrued September legacy $X.XX Paul explained had share impacted quarter attributed September in compensation loss or approximately company on loss of shareholders litigation million million manufacturing to The that EBITDA compared to supply For $X.XX net chain common third approximately net in expenses was and of compared related $XX.X the or common been negative delays stock have per disposal attributed million depreciation shareholders loss total third asset approximately and $X.X XXXX negative and net non-cash the million and expense, per to the adjusted XX, XXXX. mentioned. a at $XX previously continued share XX, approximately the amortization items, following included loss to non-cash $XXX,XXX of $X.X as At by COVID-related XXXX. and million certain $X.XX XXXX, that losses assets loss

sheet, capital proceeds as of have at June of XXXX, structure strong which the cash time, XX, approximately balance requirements. compared flexible we recent had approximately to this at our from our and The XXXX, company million Turning $X.X include $X.X financing. to does a XX, September to cash support the million and equivalents not near-term

million also approximately outstanding. of has development totaling Subsequent $X million. end and approximately warrants of issued stock At the shares issued shares quarter X.X had into both offering acquisition approximately shares position to million approximately from million been concurrent purchase this of October, XX quarter investments the the for end, of our Pro have debt Over of cash company’s and stock offering, exercise and proceeds. public the past common currently million million X.X using X.X outstanding. with and to in private projects the of we deployed shares land strategic million $X $XX.X and stock offering months, warrants, we common the net stock pre-funded in we approximately XX of common we approximately forma in

the to back Now Paul. I’ll call turn

Paul Galvin

Thank XXXX year on been front. third and quarter you, for continued Blocks the our momentous every Gerald. a transformative and SG progress has

growth We of pipeline of we where a a revenue have spent point can and to years getting control diversified us the where projects from consistent create we delivery. strong means

heading successful established Clarity SG the the aligned have end DevCo a into Ventures, great we partners and momentum and are customers with We year. through of Mobile strong

workforce our ability development We emphasis will are expand We to our that and the to with projects consistent on grateful for made our the record and USA. results in forward the look work projects an bring.

medical investors those Our shareholders and is that We follow our growth. for poised continued and our stock. now vertical thank

pace our efforts relentless of prepared are and the also for grateful completes consultants, sustained Directors. of We our remarks. and staff, Board attorney This partners

to We now questions. call the will open your Operator?

Operator

a [Operator Private Investor. Instructions] go The Spencer first from Please question Lehman, is ahead.

Spencer Lehman

Hi.

deal about EV anything and mention you did – wanted Just the your with Blink?

Gerald Sheeran

update relationship The also that in they kind no Blink to on and where of is existing have to a is should working SG modular on that on a there in time, of relationship. and a ourselves, this their supplier bring And line quarter. with At out the potentially on designer Blink closely announced the more fashion. fourth could them product that are we them we Blocks ways come deploy working

Spencer Lehman

passage an of Do that Yes. the with to feel this be Blocks? you get SG build area infrastructure could for exciting

Paul Galvin

things and that with infrastructure concur some I that EV products the responsive. Yes, other an addressing inventory can of require and of that kind we idea be that ideas investment will any in have

Spencer Lehman

you. Thank Alright.

Paul Galvin

Thank you. Okay.

Operator

of next line the ASG ahead. Blocks. is with moment, question Sperber Cliff One go [ph] Please from

Cliff Sperber

Positive, the but the share the the that company more what progress is price is doing is making? I of reflective wondering company am so all

Paul Galvin

and cash continue we are going fundamentals Hi for and is innately being create drive are Well, question. Cliff, the value. growth revenue hard something of quarter, feel achieved to we the what messaging, thanks that continue the work in your fourth with. do positive just shareholder trying we flow company It’s like to to to and

the And strong we booking time and going focused firm. to And a we for investing in closings quarter getting are We first the some just year and now, to done on and effort revenue. great stock. be the IR ending are evangelize have

Cliff Sperber

price like are really the Good. what reflective you Thank stock, feel seems – of don’t has the great certainly action potential you. a I of because a – I and guys that way, isn’t evangelizing think same that has suspect investors X you it like lot the building. company in

thank So, you.

Paul Galvin

that. Thank appreciate you. I

Operator

question Joseph go of Your is line Farm ahead. with the Joseph Ken from Markets. [ph] Please next

Ken Joseph

in position. me Hi book the way there. the look history price like But close of to at up the good into I down work. could And $XXX analyzing I of high? future was stock why stock the so roughly financials, the market value. I is to I there. from back how you like where gone the that I company I is see price was up. haven’t why XXXX, cap then a of see And looked it now. climb can the I in pipeline could the when it’s tell it But back back see

Paul Galvin

closing any we XXXX, apply what people start track and efforts and is to trading this three our the now trading the all of and have been am other the million would year-over-year-over-year, since referring steadily as you we revenue is this consistent to years the not done year. that which, I of market quarters and see growing can particular three activity the kind ‘XX for to right In you the of represents where outlier $XX greater that of right or year, approached indicated, build Gerald quarters combined day of price. our will have NASDAQ an and sum first than point through our team

looking forward we to are So, upon. building

Gerald Sheeran

Yes.

is just to And make for Okay. X on split. price a that based a note, stock reverse XX

Ken Joseph

Thank you.

Paul Galvin

day. a You’re good welcome. Have

Operator

the Private [Operator ahead. line next go Instructions] [indiscernible] Investor. question Your Please from of is

Unidentified Analyst

dealing Blink? to plans Why charging The to do any question with you the the are you in regarding station was future them in Blink. build already – have asked helping

Paul Galvin

on other products information Yes. this then quarter. have that fulfill and we and hopefully fourth that will is base. themselves deploy we And And Blink that is Blink their for some the working everybody during are will with from discuss units there there customer

do of for to the build investor we it our charging believe do we comes our think and EV hopefully, at technology when some landscape be question a highways development. deploying referenced, and provides infrastructure people As forefront our previous will and to adoption, someday, that incentives the across technologies we

Unidentified Analyst

have Do that time? prior had noticed this dealing them. you negotiating contract you any done any have with at I them or business with contract

Paul Galvin

No, now. I reference would nothing

Unidentified Analyst

you. Alright. Okay. Thank

Operator

line is go Lehman, ahead. Investor. There a Spencer Private the from follow-up of a Please

Spencer Lehman

to situation, about as Well, problems? I containers? that to container that’s helping you hurting want as any Is current you or you the creating access do ask whether far

Paul Galvin

a lot visibility no question hear products. we one Good we or getting container-based on Right and containers having about. issue have now,

the with And about We steel group down we close build delivery chain chain and road a in projects on also on eye our impact And gauge right and a working keeping could supply light and the a now, managing wood and supply nice modular. right payments. are on increment. are our our months hence, situation our we issues that six now looking have

Spencer Lehman

Thank you.

Operator

Investor. next go line Please David the question from Puttnam, Your is Private ahead. a of

David Puttnam

the great. Yes. it’s was Corps I home curious Dev increases see is you going with prices. a long-term? pipeline, SG Where large which in know I

impact do and do you And prices curious see allowing housing the affordable kind offer the you housing? greater of of obviously, that work the rising opportunity down Just guys for road? even

Paul Galvin

exit especially areas. as to is We the affordable spiking country’s expand know, and the desperate to as of for it, and the all workforce in certain especially product. definitely a rental There we people is are need as cost committed homes, enter helping housing

look to end those at have with potentially at fleet. day, very a great up distributions everything want committed rental operations products sell with and to And as backs shareholders. to we of that are to do. some We money do have form the money the to building the we we that some So, do we will support much

So, approaching how are we that’s it.

David Puttnam

Okay. Thank you.

Operator

at questions other Paul time. to this no back Mr. Galvin. it turn are there I will And

Paul Galvin

We everybody’s thank Well, and today, joining. time everybody for you, appreciate thank night. Steve that, Gerald, you and attention nice and wish and for a

Operator

and That your does now you for participation disconnect call conclude conference today. thank We the lines. for you your can

Safe & Green (SGBX) 16 Nov 212021 Q3 Earnings call transcript