Safe & Green Holdings Reports 21% Year-Over-Year Increase in Manufacturing Revenue for Q2 2023; Strategic Initiatives Expected to Provide Non-Dilutive Funding Demonstrating Strength of Balance Sheet and Supporting Accelerated Growth
Received SEC approval and record date of August 21, 2023, for SG DevCo spin-off; expects Nasdaq listing date shortly
Company to host conference call today, August 14th, at 8:00 AM Eastern Time (details below)
Recent Highlights:
- Planned SG DevCo spin-off receives SEC approval with a record date of 8/21/2023 on NASDAQ
-
Closed first tranche of a bridge loan with a European-based entity for gross proceeds of approximately
; funding commitment provides for up to$1.45 million in gross proceeds$2 million -
SG Echo to deliver and install three additional Domino’s Quick Serve Restaurant (QSR) units in
Oregon on behalf of Noble Food Group, a franchisee for Domino’s - SG Echo awarded a multi-million-dollar contract to supply additional modular units to a long-standing private infrastructure solutions client
- Planned McLean Manufacturing facility now in the design phase of the project
- Magnolia Residential 800-unit project has progressed to the architectural and engineering design phase
-
Secured a new purchase order, in excess of
, from a long-time, private customer within the$2 million U.S. military and federal space - Purchased the Waldron facility with non-dilutive funding
-
Reduced operational cash burn by
over 6 months$2M
"In the second quarter of 2023, the Company achieved a
“I am pleased to report we are progressing with the planned spin-off of SG DevCo into an independently listed Nasdaq company and have a record date of August 21, 2023. SG DevCo currently has a project pipeline in excess of
Tricia Kaelin, Chief Financial Officer of Safe & Green Holdings commented, “During the second quarter, we focused on leveraging our solid asset base to secure non-dilutive financing, thus reducing our dependence on the equity markets for growth. Through a series of strategic initiatives, we expect to raise millions in non-dilutive capital, including the planned sale of our
Mr. Galvin continued, “The Company is building out its production capacity to support growth among existing as well as new clients. Additionally, we are implementing advanced technologies and streamlined processes to enhance our operating efficiencies across all our manufacturing facilities. This targeted approach is aimed at optimizing production workflows, minimizing waste, and increasing productivity. This not only positions the Company to meet growing demand, but also reflects our ongoing commitment to innovation, quality, and excellence in all facets of our operations.”
“In response to the escalating demand for our modular solutions, we are excited that the McLean Manufacturing facility, our third manufacturing hub, has officially entered the design phase. This expansive property covers an impressive 1.1 million square feet, of which approximately 120,000 square feet are specifically designated for the new manufacturing operation. The remainder of the space has been thoughtfully planned to accommodate a variety of functions in the near future, including distribution, cold storage, and industrial use. The Company is currently in the process of recruiting talent and seeking partnerships for this facility. Situated on a 114-acre site owned by the Company, the McLean Manufacturing Facility will be located next to the Magnolia Residential project. It will support the development of 800 residential units at the Magnolia Residential project as well as serve SG Echo's manufacturing requirements in
“Within Safe & Green Medical, our goal is to establish a national presence through various clinics and labs that are tailored to meet the specific needs of local communities. Our collaboration with The Peoples Health Care and Teamsters Local 848 continues to progress and we are on schedule to deliver four modules before the end of the year. Moreover, we are working on an exciting medical project to provide a Native American tribe with a comprehensive, more cost-effective, accurate, and less invasive integrated healthcare approach compared to traditional clinical diagnostic laboratory and imaging models. This innovative project is quickly taking shape under the capable leadership of Delphine O'Rourke, Safe & Green Medical's recently appointed President & Chief Executive Officer. Under her direction, we are moving forward rapidly, and units are expected to be delivered and operating in the fourth quarter of 2023. Our efforts in this area underscore our commitment to transforming healthcare delivery through advanced technology and responsive community engagement.”
Mr. Galvin concluded, “With the pandemic now behind us, Safe & Green has not only returned to its core competencies but has evolved into a vertically integrated developer and manufacturer of modular structures. The Company’s non-COVID-related revenue has seen substantial growth over the past several years, increasing from
Financial Results for the Three Months Ended June 30, 2023
Revenue for the second quarter of 2023 was
Total gross profit for the second quarter of 2023 was
Operating expenses for the second quarter of 2023 were
The net loss attributable to common shareholders was approximately
The Company’s Adjusted EBITDA loss for the second quarter ended June 30, 2023, was approximately
Three Months Ended |
Three Months Ended |
||||||
30-June-23 |
30-June-22 |
||||||
Net loss attributable to common stockholders of Safe & Green Holdings Corp |
$ |
(5,555,524) |
|
$ |
(1,415,360) |
|
|
Addback interest expense |
523,971 |
|
73,126 |
|
|||
Addback interest income |
(9,454) |
|
(10,979) |
|
|||
Addback depreciation and amortization |
|
160,455 |
|
|
156,731 |
|
|
EBITDA (non-GAAP) |
(4,880,552) |
|
(1,196,482) |
|
|||
Addback litigation expense |
- |
|
53,391 |
|
|||
Addback stock issued for services |
|
47,500 |
|
|
|
- |
|
Addback stock compensation expense |
|
2,544,262 |
|
|
631,076 |
|
|
Adjusted EBITDA (non-GAAP) |
$ |
(2,278,790) |
|
$ |
(512,015) |
|
At June 30, 2023, and December 31, 2022, the Company had a cash balance and short-term investments of
The Company’s complete financial results will be available in the Company’s Form 10-Q, which will be with the Securities and Exchange Commission and will be available on the Company’s website.
Conference Call
Safe & Green Holdings will hold its conference call today, August 14th, at 8:00 AM Eastern Time.
Dial-in information:
-
Toll-free dial-in number (
U.S. ): +1 888-506-0062 - International dial-in number: +1 973-528-0011
- Access code: 233545
Live and replay webcast links:
- Direct link: August 28 https://www.webcaster4.com/Webcast/Page/2935/48921
- IR website: https://ir.safeandgreenholdings.com/news-events/ir-calendar
Telephone replay (available through August 28, 2023):
-
Toll-free dial-in number (
U.S. ): +1 877-481-4010 - International dial-in number: +1 919-882-2331
- Access code 48921
About Safe & Green Holdings Corp.
Safe & Green Holdings Corp., a leading modular solutions company, operates under core capabilities which include the development, design, and fabrication of modular structures, meeting the demand for safe and green solutions across various industries. The firm supports third party and in-house developers, architects, builders and owners in achieving faster execution, greener construction, and buildings of higher value. Safe and Green Development Corporation is a leading real estate development company. Formed in 2021, the company focuses on the development of sites using purpose built, prefabricated modules built from both wood & steel, sourced from one of Safe & Green Holdings factories and operated by SG Echo. For more information, visit www.safeandgreenholdings.com.
Safe Harbor Statement
Certain statements in this press release constitute "forward-looking statements" within the meaning of the federal securities laws. Words such as "may," "might," "will," "should," "believe," "expect," "anticipate," "estimate," "continue," "predict," "forecast," "project," "plan," "intend" or similar expressions, or statements regarding intent, belief, or current expectations, are forward-looking statements. These forward-looking statements are based upon current estimates and assumptions and include statements regarding plans to spin-off the Company’s real estate development subsidiary SG DevCo into an independently-listed Nasdaq company, plans to design and construct the McLean Manufacturing Facility, plans to complete the Magnolia Residential 800 unit project, plans to deliver and install three additional Quick Serve Restaurant (QSR) units in
View source version on businesswire.com: https://www.businesswire.com/news/home/20230814478457/en/
Investor Relations:
Crescendo Communications, LLC
(212) 671-1020
sgbx@crescendo-ir.com
Source: Safe & Green Holdings Corp.