KBS Builders Wins Two Maine Projects Totaling $4.6 Million
Star Equity Holdings, Inc. (Nasdaq: STRR) announced that its subsidiary, KBS Builders, Inc., has secured two contracts in Maine totaling $4.6 million. The first contract, worth $3.0 million, involves manufacturing 32 modules for 15 cottages in Northeast Harbor. The second contract, valued at $1.6 million, is for 8 modules to construct two buildings with 16 affordable housing units in Newcastle.
Manufacturing for the Northeast Harbor project began in September, while the Newcastle project is set to start in October. Both are expected to be completed by December, with occupancy planned for Spring 2025. CEO Rick Coleman highlighted KBS' strong position in the New England market and expressed optimism about increased demand for new construction projects following recent interest rate cuts.
Star Equity Holdings, Inc. (Nasdaq: STRR) ha annunciato che la sua sussidiaria, KBS Builders, Inc., ha ottenuto due contratti nel Maine per un totale di $4.6 milioni. Il primo contratto, del valore di $3.0 milioni, prevede la produzione di 32 moduli per 15 cottage a Northeast Harbor. Il secondo contratto, del valore di $1.6 milioni, riguarda 8 moduli per la costruzione di due edifici con 16 unità abitative a prezzo accessibile a Newcastle.
La produzione per il progetto di Northeast Harbor è iniziata a settembre, mentre il progetto di Newcastle è previsto per ottobre. Entrambi dovrebbero essere completati entro dicembre, con la prevista occupazione per la primavera del 2025. L'amministratore delegato Rick Coleman ha evidenziato la forte posizione di KBS nel mercato del New England e ha espresso ottimismo riguardo all'aumento della domanda per nuovi progetti di costruzione a seguito dei recenti tagli ai tassi d'interesse.
Star Equity Holdings, Inc. (Nasdaq: STRR) anunció que su subsidiaria, KBS Builders, Inc., ha asegurado dos contratos en Maine por un total de $4.6 millones. El primer contrato, por un valor de $3.0 millones, involucra la fabricación de 32 módulos para 15 cabañas en Northeast Harbor. El segundo contrato, valorado en $1.6 millones, es para 8 módulos para construir dos edificios con 16 unidades de vivienda asequible en Newcastle.
La fabricación para el proyecto de Northeast Harbor comenzó en septiembre, mientras que el proyecto de Newcastle está programado para comenzar en octubre. Ambos se espera que se completen para diciembre, con ocupación planificada para la primavera de 2025. El CEO Rick Coleman destacó la sólida posición de KBS en el mercado de Nueva Inglaterra y expresó optimismo sobre el aumento de la demanda de nuevos proyectos de construcción tras recientes recortes en las tasas de interés.
스타 주식 홀딩스, Inc. (Nasdaq: STRR)는 자회사 KBS 빌더스, Inc.가 메인에서 총 $4.6 백만의 두 계약을 확보했다고 발표했습니다. 첫 번째 계약은 $3.0 백만의 가치가 있으며, Northeast Harbor에 있는 15채의 오두막을 위해 32개의 모듈을 제조하는 것입니다. 두 번째 계약은 $1.6 백만의 가치로, Newcastle에서 16개의 저렴한 주택 유닛을 포함한 두 개의 건물을 건설하기 위한 8개의 모듈을 포함합니다.
Northeast Harbor 프로젝트의 제조는 9월에 시작되었고, Newcastle 프로젝트는 10월에 시작될 예정입니다. 두 프로젝트 모두 12월에 완료될 것으로 예상되며, 입주는 2025년 봄으로 계획되어 있습니다. CEO인 Rick Coleman은 KBS의 뉴잉글랜드 시장에서의 강한 입지를 강조하고 최근 금리 인하에 따른 신규 건설 프로젝트에 대한 수요 증가에 대한 낙관을 표현했습니다.
Star Equity Holdings, Inc. (Nasdaq: STRR) a annoncé que sa filiale, KBS Builders, Inc., a sécurisé deux contrats dans le Maine pour un total de $4.6 millions. Le premier contrat, d'une valeur de $3.0 millions, concerne la fabrication de 32 modules pour 15 cottages à Northeast Harbor. Le deuxième contrat, évalué à $1.6 million, porte sur 8 modules pour construire deux bâtiments avec 16 unités de logement abordable à Newcastle.
La fabrication pour le projet de Northeast Harbor a commencé en septembre, tandis que le projet de Newcastle doit débuter en octobre. Les deux projets devraient être achevés en décembre, avec une occupation prévue au printemps 2025. Le PDG Rick Coleman a souligné la position forte de KBS sur le marché de la Nouvelle-Angleterre et a exprimé son optimisme quant à l'augmentation de la demande pour de nouveaux projets de construction suite aux récentes baisses des taux d'intérêt.
Star Equity Holdings, Inc. (Nasdaq: STRR) gab bekannt, dass ihre Tochtergesellschaft KBS Builders, Inc. zwei Verträge in Maine im Gesamtwert von $4.6 Millionen gesichert hat. Der erste Vertrag, im Wert von $3.0 Millionen, umfasst die Herstellung von 32 Modulen für 15 Hütten in Northeast Harbor. Der zweite Vertrag, mit einem Wert von $1.6 Millionen, betrifft 8 Module zum Bau von zwei Gebäuden mit 16 Sozialwohnungen in Newcastle.
Die Produktion für das Projekt Northeast Harbor begann im September, während das Projekt Newcastle für Oktober geplant ist. Beide sollen bis Dezember abgeschlossen sein, mit einer geplanten Belegung im Frühjahr 2025. CEO Rick Coleman hob die starke Position von KBS auf dem Markt Neuenglands hervor und äußerte Optimismus hinsichtlich einer steigenden Nachfrage nach neuen Bauprojekten aufgrund der kürzlichen Zinssenkungen.
- KBS Builders secured two new contracts totaling $4.6 million
- Increased booked backlog due to upturn in demand for new construction
- Potential for market share growth in key segments like affordable housing and college dormitories
- Recent interest rate cuts may lead to increased demand for new construction projects
- None.
Insights
The
The CEO's comments on increasing demand and KBS' strong positioning in key market segments are encouraging. The focus on affordable housing and energy-efficient buildings aligns with current market trends and government initiatives, which could lead to sustained growth opportunities.
However, investors should note that while these contracts are positive, they are relatively short-term and the company will need to continue securing new projects to maintain momentum. The recent interest rate cuts mentioned could indeed stimulate more construction activity, but this remains to be seen in the broader economic context.
Overall, this news indicates potential for improved financial performance in the coming quarters, which could positively impact STRR's stock price if the company can capitalize on these opportunities and translate them into stronger financial results.
OLD GREENWICH, Conn., Oct. 02, 2024 (GLOBE NEWSWIRE) -- Old Greenwich, CT – October 2, 2024 - 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 two contracts totaling
Contract details are as follows:
$3.0 million contract to manufacture 32 modules for the construction of 15 one- and two-story cottages in Northeast Harbor, Maine. Manufacturing of these modules commenced in September, with delivery to be completed by December; the cottages are expected to be ready for occupancy by Spring 2025.$1.6 million contract to manufacture 8 modules for the construction of two multi-story buildings comprising 16 affordable housing units in Newcastle, Maine. Manufacturing of these modules is expected to commence in October, with delivery to be completed by December; the housing units are expected to be ready for occupancy by Spring 2025.
Rick Coleman, CEO of Star, noted, “The signing of these multi-million-dollar contracts exemplifies KBS’ reputation as Maine’s modular manufacturer of choice. The recent upturn in demand for new construction throughout New England and the Northeast has significantly increased their booked backlog. We are encouraged by the recent interest rate cuts, and we believe demand for new construction projects will increase gradually in the coming months. KBS’ strong modular manufacturing, technical, and delivery capabilities have positioned them well to gain market share in key segments such as affordable, workforce, energy-efficient, and veteran housing, as well as college dormitories and other multifamily buildings.”
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. 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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 total value of the two contracts KBS Builders won in Maine?
How many modules will KBS Builders manufacture for the Northeast Harbor project?
When are the housing units in Newcastle expected to be ready for occupancy?
What impact do recent interest rate cuts have on Star Equity Holdings (STRR)?
