Sg Blocks, Inc. (SGBX) Misses Q3 EPS by 14c

Sg Blocks, Inc. (NASDAQ: SGBX) reported Q3 EPS of ($0.23), $0.14 worse than the analyst estimate of ($0.09). Revenue for the quarter came in at $185 thousand versus the consensus estimate of $4 million.

Management Commentary

“We believe the Company’s accomplishments in recent months have been pivotal in positioning SG Blocks for future profitability, lower capital requirements and the flexibility to focus more of the Company’s resources and efforts on new business development and lead generation for the benefit of future growth,” commented Paul Galvin, CEO of SG Blocks. “By designing and adopting a repeatable and scalable royalty model that licenses the Company’s residential platform, we expect the financial profile for the Company’s residential business will include lower operating costs and require significantly less cash investment, while also lowering the Company’s project-level execution risk. The signing of the Company’s first residential licensing agreement for Phase One of the Monticello project demonstrates the viability and soundness of this strategy and reduces the drag on the Company’s overall portfolio from residential projects. Based on the Company’s best estimates, we believe we are on a path to being cash flow positive in 2020. We expect the positive outcomes from this strategy to be more evident in the Company’s financial statements in the next two to three quarters as these projects progress.”

Mr. Galvin concluded, “On the commercial side of the Company’s business, we have a backlog of more than $17.8 million and a strong and growing pipeline of projects that is diverse both in size and scope. The margin profile of the Company’s commercial business remains solid and with the shoring up of the Company’s residential business model and completion of recent financing transactions to strengthen the Company’s balance sheet, we believe we are well-positioned to capitalize on new commercial and military opportunities.”

For earnings history and earnings-related data on Sg Blocks, Inc. (SGBX) click here.

You May Also Be Interested In

• Tesla plans 'flying' Roadster stunt at SpaceX Texas site as early as August
• Evogene chairman to address dissident shareholders on results call
• HeartCore Enterprises, Inc. (HTCR) Misses Q2 EPS by 185c