Sg Blocks, Inc. (SGBX) Misses Q1 EPS by 44c

Sg Blocks, Inc. (NASDAQ: SGBX) reported Q1 EPS of ($0.64), $0.44 worse than the analyst estimate of ($0.20).

First Quarter 2020 Financial Highlights:

• Revenue of approximately $199,000, as compared to approximately $1.7 million in Q1 2019.
• Gross profit of approximately $46,000, as compared to approximately $544,000 in Q1 2019.
• Net loss of approximately $747,000, or $(0.64) per basic and diluted share, as compared to a net loss of approximately $491,000, or $(2.30) per basic and diluted share, in Q1 2019.
• Adjusted EBITDA loss of approximately $527,000, as compared to a loss of approximately $289,000 in Q1 2019. (See below for further discussion about the presentation of Adjusted EBITDA, a non-GAAP financial measurement).
• Subsequent to quarter end, completed a public offering in April of 2020 of 440,000 shares of common stock at an offering price of $4.25 per common share for aggregate net proceeds of approximately $1.5 million after deducting underwriting discounts and commissions and other expenses related to the offering.
• Subsequent to quarter end, completed a public offering in May of 2020 of 6,000,000 shares of common stock at an offering price of $2.50 per common share for aggregate net proceeds of approximately $13.475 million after deducting underwriting discounts and commissions and other expenses related to the offering.

Management Commentary

“During the first quarter we continued to build our pipeline of opportunities for the application of our container solutions and are moving forward aggressively to reach agreements with a number of new customers,” commented Paul Galvin, CEO of SG Blocks. “Most recently, we announced the launch of a distributorship agreement with Osang Healthcare Co., Ltd. We are encouraged by the momentum we are building for accelerating growth in 2020.”

Mr. Galvin concluded, “We are making great progress with an increasing number of prospects and expect production to accelerate and our business to really begin to scale as we move into the second half of the year. Active, ongoing discussions with customers in a number of different verticals, including healthcare, local government, education and financial services reinforce our optimism for our business to reach an inflection point in 2020.”

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

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