KBS Builders Awarded $3.2 Million Contract for Multifamily Construction Project in Maine
Star Equity Holdings (STRR) announced that its subsidiary, KBS Builders, has secured a $3.2 million contract for a multifamily housing project in Maine. The contract involves manufacturing 40 modules to construct five 4-unit townhouse condominiums in Lincoln County, with production starting in January and delivery scheduled for Q2 2025.
This contract represents the second of two potential contracts worth over $5 million mentioned in Star's Q3 2024 earnings release, following the previously announced $2.1 million Vermont project. The CEO highlighted this win as strengthening KBS' market position in New England and their ability to address the region's housing shortage.
Star Equity Holdings (STRR) ha annunciato che la sua controllata, KBS Builders, ha ottenuto un contratto di 3,2 milioni di dollari per un progetto di edilizia residenziale multifamiliare nel Maine. Il contratto prevede la produzione di 40 moduli per costruire cinque condomini a schiera di 4 unità nella Contea di Lincoln, con produzione che inizierà a gennaio e consegna prevista per il secondo trimestre del 2025.
Questo contratto rappresenta il secondo di due contratti potenziali del valore superiore ai 5 milioni di dollari menzionati nel comunicato sugli utili del terzo trimestre 2024 di Star, dopo il progetto del Vermont precedentemente annunciato del valore di 2,1 milioni di dollari. Il CEO ha sottolineato che questa vittoria rafforza la posizione di mercato di KBS nel New England e la loro capacità di affrontare la carenza di abitazioni nella regione.
Star Equity Holdings (STRR) anunció que su subsidiaria, KBS Builders, ha asegurado un contrato de 3.2 millones de dólares para un proyecto de vivienda multifamiliar en Maine. El contrato implica la fabricación de 40 módulos para construir cinco condominios adosados de 4 unidades en el Condado de Lincoln, comenzando producción en enero y con entrega programada para el segundo trimestre de 2025.
Este contrato representa el segundo de dos contratos potenciales por un valor superior a 5 millones de dólares mencionados en el comunicado de ganancias del tercer trimestre de 2024 de Star, seguido por el proyecto de Vermont previamente anunciado por 2.1 millones de dólares. El CEO destacó esta victoria como un fortalecimiento de la posición de KBS en el mercado de Nueva Inglaterra y su capacidad para abordar la escasez de viviendas en la región.
Star Equity Holdings (STRR)는 자회사인 KBS Builders가 메인주에서 다세대 주택 프로젝트를 위한 320만 달러 계약을 체결했다고 발표했습니다. 이 계약은 링컨 카운티에 4유닛 타운하우스 콘도미니엄 5개를 건설하기 위해 40개의 모듈을 제조하는 내용을 포함하며, 생산은 1월에 시작되고 배송은 2025년 2분기로 예정되어 있습니다.
이 계약은 Star의 2024년 3분기 실적 발표에서 언급된 500만 달러 이상의 두 가지 잠재적 계약 중 두 번째로, 이전에 발표된 210만 달러의 버몬트 프로젝트에 이어 이루어진 것입니다. CEO는 이 성과가 KBS의 뉴잉글랜드 시장 내 입지를 강화하고 지역의 주택 부족 문제를 해결할 수 있는 능력을 높였다며 강조했습니다.
Star Equity Holdings (STRR) a annoncé que sa filiale, KBS Builders, a remporté un contrat de 3,2 millions de dollars pour un projet de logements multifamiliaux dans le Maine. Le contrat implique la fabrication de 40 modules pour construire cinq condominiums en rangée de 4 unités dans le comté de Lincoln, avec un début de production en janvier et une livraison prévue pour le deuxième trimestre 2025.
Ce contrat représente le second de deux contrats potentiels d'une valeur supérieure à 5 millions de dollars mentionnés dans le communiqué de résultats du troisième trimestre 2024 de Star, après le projet du Vermont précédemment annoncé d'une valeur de 2,1 millions de dollars. Le PDG a souligné cette victoire comme un renforcement de la position de marché de KBS en Nouvelle-Angleterre et leur capacité à répondre à la pénurie de logements dans la région.
Star Equity Holdings (STRR) hat angekündigt, dass ihre Tochtergesellschaft KBS Builders einen 3,2 Millionen-Dollar-Vertrag für ein Mehrfamilienhausprojekt in Maine gesichert hat. Der Vertrag umfasst die Herstellung von 40 Modulen zur Konstruktion von fünf 4-Einheiten-Stadthaus-Wohnungen im Lincoln County, mit Produktionsbeginn im Januar und voraussichtlicher Lieferung im zweiten Quartal 2025.
Dieser Vertrag stellt den zweiten von zwei möglichen Verträgen dar, die im Wert von über 5 Millionen Dollar erwähnt wurden, in Star's Q3 2024 Ergebnisveröffentlichung, nach dem zuvor angekündigten 2,1 Millionen Dollar Projekt in Vermont. Der CEO hob diesen Gewinn hervor, da er die Marktposition von KBS in Neuengland stärkt und ihre Fähigkeit zeigt, die Wohnraummangelproblematik in der Region anzugehen.
- Secured new $3.2 million contract for multifamily housing project
- Successfully converted sales pipeline into booked backlog
- Completed booking of over $5 million in potential contracts referenced in Q3 2024
- None.
Insights
The <money>$3.2 million</money> contract secured by KBS Builders represents a notable development for Star Equity Holdings, particularly given its market cap of <money>$7.37 million</money>. The deal accounts for approximately <percent>43%</percent> of the company's market capitalization, making it a substantial revenue driver. Combined with the recently announced <money>$2.1 million</money> Vermont project, these contracts total <money>$5.3 million</money>, demonstrating strong commercial momentum in the New England market.
The 40-module project targeting Lincoln County addresses a important market need, as Maine faces a severe housing shortage with vacancy rates at historic lows. The modular construction approach typically reduces build time by <percent>30-50%</percent> compared to traditional construction methods, while offering better quality control through factory production. The Q2 2025 delivery timeline suggests efficient production scheduling and could positively impact the company's 2025 financial performance.
The contract's value relative to Star Equity's market capitalization indicates material financial impact. The backlog conversion demonstrates improved operational execution and could enhance investor confidence in the company's ability to capitalize on its pipeline. With housing starts in New England remaining below historical averages and strong demand persisting, this positions KBS Builders to potentially secure additional contracts in the region.
The sequential timing of contract announcements (<money>$2.1 million</money> in December followed by <money>$3.2 million</money> in January) suggests strengthening business momentum. For a small-cap company, building a robust order backlog is important for predictable revenue streams and operational planning. The project's Q2 2025 completion timeline indicates potential revenue recognition patterns that could positively impact quarterly results throughout 2025.
OLD GREENWICH, Conn., Jan. 07, 2025 (GLOBE NEWSWIRE) -- Star Equity Holdings, Inc. (Nasdaq: STRR; STRRP) (“Star” or the “Company”), a diversified holding company, announced today that its wholly owned subsidiary, KBS Builders, Inc. (“KBS”), has signed a
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Rick Coleman, CEO of Star, noted, “This project marks another multifamily housing win for us in Maine and further solidifies KBS’ strong reputation and market position in New England. We are pleased with the recent pace at which we have been converting large commercial projects from our sales pipeline into booked backlog.”
Mr. Coleman added, “We believe our location and expertise uniquely position us to address the shortage of housing in New England and allow us to provide best-in-class construction solutions for our customers.”
About Star Equity Holdings, Inc.
Star Equity Holdings, Inc. is a diversified holding company currently composed of two divisions: Building Solutions and Investments.
Building Solutions
Our Building Solutions division operates in three businesses: (i) modular building manufacturing; (ii) structural wall panel and wood foundation manufacturing, including building supply distribution operations; and (iii) glue-laminated timber (glulam) column, beam, and truss manufacturing.
Investments
Our Investments division manages and finances the Company’s real estate assets as well as its investment positions in private and public companies.
Forward-Looking Statements
“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements in this release that are not statements of historical fact are hereby identified as “forward-looking statements” for the purpose of the safe harbor provided by Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking Statements include, without limitation, statements regarding (i) the plans and objectives of management for future operations, including plans or objectives relating to acquisitions and related integration, development of commercially viable products, novel technologies, and modern applicable services, (ii) projections of income (including income/loss), EBITDA, earnings (including earnings/loss) per share, free cash flow (FCF), capital expenditures, cost reductions, capital structure or other financial items, (iii) the future financial performance of the Company or acquisition targets and (iv) the assumptions underlying or relating to any statement described above. Moreover, forward-looking statements necessarily involve assumptions on the Company’s part. These forward-looking statements generally are identified by the words “believe”, “expect”, “anticipate”, “estimate”, “project”, “intend”, “plan”, “should”, “may”, “will”, “would”, “will be”, “will continue” or similar expressions. Such forward-looking statements are not meant to predict or guarantee actual results, performance, events, or circumstances and may not be realized because they are based upon the Company's current projections, plans, objectives, beliefs, expectations, estimates and assumptions and are subject to a number of risks and uncertainties and other influences, many of which the Company has no control over. Actual results and the timing of certain events and circumstances may differ materially from those described above as a result of these risks and uncertainties. Factors that may influence or contribute to the inaccuracy of forward-looking statements or cause actual results to differ materially from expected or desired results may include, without limitation, the substantial amount of debt of the Company and the Company’s ability to repay or refinance it or incur additional debt in the future; the Company’s need for a significant amount of cash to service and repay the debt and to pay dividends on the Company’s preferred stock; the restrictions contained in the debt agreements that limit the discretion of management in operating the business; legal, regulatory, political and economic risks in markets and public health crises that reduce economic activity and cause restrictions on operations (including the recent coronavirus COVID-19 outbreak); the length of time associated with servicing customers; losses of significant contracts or failure to get potential contracts being discussed; disruptions in the relationship with third party vendors; accounts receivable turnover; insufficient cash flows and resulting lack of liquidity; the Company's inability to expand the Company's business; unfavorable changes in the extensive governmental legislation and regulations governing healthcare providers and the provision of healthcare services and the competitive impact of such changes (including unfavorable changes to reimbursement policies); high costs of regulatory compliance; the liability and compliance costs regarding environmental regulations; the underlying condition of the technology support industry; the lack of product diversification; development and introduction of new technologies and intense competition in the healthcare industry; existing or increased competition; risks to the price and volatility of the Company’s common stock and preferred stock; stock volatility and in liquidity; risks to preferred stockholders of not receiving dividends and risks to the Company’s ability to pursue growth opportunities if the Company continues to pay dividends according to the terms of the Company’s preferred stock; the Company’s ability to execute on its business strategy (including any cost reduction plans); the Company’s failure to realize expected benefits of restructuring and cost-cutting actions; the Company’s ability to preserve and monetize its net operating losses; risks associated with the Company’s possible pursuit of acquisitions; the Company’s ability to consummate successful acquisitions and execute related integration, as well as factors related to the Company’s business including economic and financial market conditions generally and economic conditions in the Company’s markets; failure to keep pace with evolving technologies and difficulties integrating technologies; system failures; losses of key management personnel and the inability to attract and retain highly qualified management and personnel in the future; and the continued demand for and market acceptance of the Company’s services. For a detailed discussion of cautionary statements and risks that may affect the Company’s future results of operations and financial results, please refer to the Company’s filings with the Securities and Exchange Commission, including, but not limited to, the risk factors in the Company’s most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. This release reflects management’s views as of the date presented.
All forward-looking statements are necessarily only estimates of future results, and there can be no assurance that actual results will not differ materially from expectations, and, therefore, you are cautioned not to place undue reliance on such statements. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events.
| For more information contact: | |
| Star Equity Holdings, Inc. | The Equity Group |
| Rick Coleman | Lena Cati |
| CEO | 212-836-9611 / lcati@equityny.com |
| 203-489-9508 | Katie Murphy |
| admin@starequity.com | 212-836-9612 / kmurphy@equityny.com |
FAQ
What is the value and scope of STRR's new KBS Builders contract in Maine?
When will STRR's KBS Builders complete the delivery of the Maine housing project?
How much total contract value has STRR's KBS Builders secured from their Q3 2024 pipeline?
What type of housing units will STRR's KBS Builders construct in Lincoln County?
