Sg Blocks, Inc. (SGBX) Reports Q4 Loss of $8.83, Revenues Miss

Sg Blocks, Inc. (NASDAQ: SGBX) reported Q4 EPS of ($8.83). Revenue for the quarter came in at $337 thousand versus the consensus estimate of $300 thousand.

Fourth Quarter 2019 Financial Highlights:

• Revenue of $337,000, as compared to $2.3 million in Q4 2018.
• Gross profit of $48,000, as compared to $123,000 in Q4 2018.
• Net loss of $4.1 million, or $(8.83) per basic and diluted share, inclusive of a non-cash goodwill impairment loss of $2.9 million related to the company’s goodwill carrying value, as compared to a net loss of $1.8 million, or $(8.35) per basic and diluted share, in Q4 2018.
• Adjusted EBITDA loss of $720,000, as compared to a loss of $1.6 million in Q4 2018. (See below for further discussion about the presentation of Adjusted EBITDA, a non-GAAP financial measurement).

Management Commentary

“We delivered another successful quarter of execution to finish 2019 with multiple new contracts and a strengthening of our balance sheet with the completion of financing transactions to support our near-term capital needs,” commented Paul Galvin, CEO of SG Blocks. “We strategically licensed our residential technology which is facilitating a reduction in our operating expenses and is expected to yield a significant royalty stream in 2020 and beyond. SG Residential is off to a strong start in the advancement of the Monticello Mews and Guayama projects both of which had land closings in 2019.”

Mr. Galvin concluded, “Looking ahead, we remain focused on implementing the residential license and directing our time and attention in the medical, education and disaster relief markets. Most recently, we made several products available to the COVID-19 pandemic. We continue to network and respond to inquiries for an array of products that can address needs created by this pandemic while monitoring the effect that the virus could have on our operations.

On February 5, 2020, the Company effected a 1-for-20 reverse stock split of its common stock. All share and per share amounts set forth in the consolidated financial statements have been retroactively restated to reflect the split effected in February 2020 as if it had occurred as of the earliest period presented.

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

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