HCDI - Earnings call transcript Q3 2021 | Harbor Custom Development, Inc.

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Operator

Thank you for standing by. And welcome to the Harbor Custom Development, Inc.

Third Quarter 2021 Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session from previously submitted questions will follow the formal presentation.

conference recorded. this reminder, a is being As I to President your like to Development, and conference over turn the Inc. Custom host, Harbor of Board would the now Chairman of Sterling Griffin, CEO,

Sterling Griffin

you thank to Welcome Development’s and operator, Custom you, all you us Harbor conference for earnings quarter of third today. joining call. Thank

Relations was Harbor be today, the call. to under we discussion to viewed our Press www.harborcustomhomes.com. prior the be referring Releases/News the our release distributed can section earnings the sub-header During will press website in Investor release of that at The

begin, Before subject statements release factors are that of uncertainties, forward-looking from provisions or of forward-looking would the could Private that statements we these call Securities Litigation to a Any Such today on to forward-looking I everyone and risks, the involve differ other like to statements. earnings commented today’s Reform Safe remind contained actual XXXX. cause results Act Harbor the materially statements. in number includes of

are statements our recent Specifically obligation any see anticipated risks the assume which identify performance. affect XXXX filings, and We forward-looking Please regarding principal for update future and included no which XXXX. SEC could and our to industry uncertainties, statements. revenues

report of months ended to September increased QX: highlights months million the three pleased XXXX, $X.X for to We million as are XX, approximately XX, Our XXX% for September by revenues $XX ended three the compared to XXXX.

an of of in entitled sale $XX Our million sale from and primarily million fee by lots. land of million revenue increase developed $X.X build Lennar, from XXXX driven was Lennar, $XX.X revenue the

ended XX, primarily XX, XXXX XX%. for the the XXXX. XX% The of gross months XX% sales compared three margin driven lot gross land profit by September for was margin on sales and ended overall was Our increase to X% September of months three

increase company increased and future XX, XXXX, the in September expenses anticipated $X.X the ended support XXXX. by three months September months personnel compared the million for as attributable continued is growth expenses $X.X infrastructure for XXX% primarily to XX, in three This operating to to public total plans. to operating Our ended million investment our

ended $X.X net XXXX, we $X.X of an The XXXX For had million, improvement the loss million XX, and net was XXXX. of respectively. increase a and primarily net attributable improved in three months margins income revenue income in gross to in and September

months months development $XX.X million to XXXX. real of XXXX the three earnings the million activities had primary XXXX, cash per the operating $XX.X of and for and was $X.X for XXXX. same to September million XX, of million XXXX. $X.X in nine of in Net compared ended period XXXX $X.XX share XXXX September nine XX, basic For $X.XX months used share ended a of in loss we assets the for compared acquisition the for was for and The ended use estate September cash XX, per

assets Our of September estate million have from XX, increased December as real XXXX. to million as XX, of $XX.X XXXX $XXX.X

estate market on profitably achieved quarter future. during real we continue an be annual severe urban and XXXX. strong We conditions earnings pleased shortage report flight, of have basis continuously the anticipate are profitability If low to by the interest residential foreseeable and to for operating characterized third of inventory, again rates the extremely

As Chief Executive with Officer, momentum. I’m our continued thrilled

expertise in inventory to disciplined the rooted the His and highly revenue. a To Company strategy, executive provide of stream Our in growing leadership consistent and multiple us nation’s as both, providing our Financial pleased which forward. for successful Officer to home-buying to welcome regions. the public to traded a expansion market experience Harbor’s into as the fastest Brown Chief company segments propelled publicly rapid financial metro of am further further validates with our distinct development support financial business continues objectives, team. operations of approach that analysis and of industry have lot is efficient a builders and our Harbor the provides national serving I This developed Lance business diverse

Lance Brown

with job It’s homebuilding the high, the and believe the Thank am welcome. growth the time market join enhancing interest team to for infrastructure. company is is can thrilled good be of It introduction leadership experience in company you, strong excited continue I and are Demand the we partner me the results. emerging Harbor year-over-year with see our am I upside drive the steward prior to have growth in to see building low. to public is I and clear team. being in and my industry. and quarter. that the warm effective structure to optimizing a business assisting growth positive team to will assets, rates the initiatives. public allow to the an Sterling, revenue income the working dedicated forward in this skilled significant business a capital with and Company look net I supporting and

Sterling Griffin

Thank you, Lance.

the builders mentioned, by to demand offer nationally market in in to inventory shortage provided a acquire us has metropolitan every The inventory opportunity and major strong developed you As loss the housing at to lot be significant nearly market nation’s the excellent continues U.S. an of defined margins. significant largest lack of

in in monetizing development new cycle. the purpose assets acquisition look to current opportunities regions those markets of for metro in early for the continue will and We our land

substantial investment Over is entities rental defined endorsed investment in single the has we the widely institutional the to strategy past have as been year, homes model. rent new construction This and for by BTR build purposes. or seen of push family a

effects suburbs assets. of Custom this directly urban we market, estate by we buoy telework the in real exacerbating competition construction industry. acquire the the new the new potential movement has category new exploded. continuing. the Driven anticipate the The of this continue encouraged Harbor housing COVID-XX of while majority where Development benefited takes are homes from flight our We to trend has for of COVID-XX, shortage off purchase. products follow further our it as markets, to we As

need the there’s housing fitness in new space. for office, family single growing that As a a offer can suburbs dedicated and recreational result,

the us call today organizational now forward strong the discuss to in We finishing Habersetzer, to to Officer, presented Operating like turn Chief would opportunities look over with the market are Jeff well-positioned development. I results. XXXX to capitalize and to our on to

Jeff Habersetzer

Thank in you, significant key hires. experienced a has accordingly organizational has Sterling. our Harbor production, depth improve number and increase Consequently, to the real in through by new acquisitions capabilities in responded management evidenced as projects estate of many XXXX.

we Brown our us experienced As the additional schedules. capacity and give of have additions the also we roles, Director Horizontal Architecture, support. increased These breadth several team and execute to our of Development, other team, Director Lance added Counsel, including Corporate to to welcome production operational

experienced to environment, the competitive and thriving work hand our and minimal production to well-positioned environment. given announce Additionally, to are work I’ll in This guidance. turnover current increased back are at Sterling level operations that corporate the we speaks volumes company discuss department. we things Operationally, proud have execute our schedule now to to culture we outlook. our on growth

Sterling Griffin

$XX fee anticipate you, at guidance year-end. properties, on that Jeff. approximately provided our number be we in between revenue, $XX we Today, million sales We home revenues Thank that contracted million million and build XXXX. expected potential generate in to based $XX and to

revenues. same and remains properties to our sale determine Guidance income early revenues several period, third our and will XXXX do our same at the to contracted fourth currently We ultimately others for prior for year-end approximately which contract quarter exceed quarter in million. for XXXX anticipate have the results. net We the stage $XXX

to submitted who to everyone inquiries questions. were switch question-and-answer Prior to period. now IR@harborcustomdev.com following to the prepared call, we’ve the will We Thank the statements you to questions. and submitted

Sterling Griffin

answer will with to our them. our we And Lennar discuss with are continue projects relationship potential very with is, pleased current and

builders a further several entitled regular basis also national sales and In speak and to land announcing on year-end. addition, regional we to prior anticipate

Our points just our types, was, Harbor The offer a we markets. focusing one believe us target in diverse price agnostic flexibility product product of is, provides multiple line second question demographic? on does and being and why product great answer instead

from to and our flexible condominiums. a provides We homes homebuyer and communities surrounding model This are to build business time townhomes competitive to plus from us million differentiates equipped the first luxury clearly needs peers. advantage X us

are impacted disruption entitled we land what not forward? supply builders has is, XXXX, were chain third sales chain lots. answer The looking in degree. question And disruptions, of And, and supply by our impacted environment was, All significant the severely how the thoughts your our feel primarily HCDI? developed us to of because including some

exposure we is our on product not because category. focused However, one are mitigated

Sterling Griffin

participating for today’s look to updates soon. everybody, on forward Thank providing We call. you, additional

If presenting I’ll Development, to Summit Custom XX:XX a.m. QX the like about at learn Harbor Virtual you at would Investor Pacific Time. more tomorrow be

can hope I everyone or Investor our the anyone information you questions, tomorrow. website has the reached for under Thank You appreciate harborcustomhomes.com. us us you IR@harborcustomdev.com. our can on more We tab at about be can XXX-XXX-XXXX find further we your joining Relations time. If Events, today. page join presentation at

Operator

does This appreciate your participation. teleconference. today’s We conclude

this disconnect at You your may time. Have day. a lines great

Harbor Custom Development (HCDPQ) 15 Nov 212021 Q3 Earnings call transcript