Sg Blocks, Inc. (SGBX) Misses Q1 EPS by 28c, Revenues Beat
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Sg Blocks, Inc. (NASDAQ: SGBX) reported Q1 EPS of ($0.23), $0.28 worse than the analyst estimate of $0.05. Revenue for the quarter came in at $8.9 million versus the consensus estimate of $8 million.
First Quarter 2021 Financial Highlights:
- Revenue for the first quarter 2021 is expected to be between $8.9 million and $9.2 million, compared to approximately $199,000 for the first quarter of 2020. The record revenue was achieved despite having several commercial projects that were previously announced being delayed directly and indirectly by the COVID-19 pandemic.
- Gross profit for the first quarter 2021 is expected to be between $0.9 million and $1.2 million, compared to a gross profit of approximately $46,000 in the first quarter 2020. The gross profit margin in the first quarter 2021 is expected to be between 10% and 13.6%, compared to a gross profit margin of approximately 23.1% for the first quarter 2020. The gross profit in the first quarter 2021 included a legacy contract commitment which started and completed in the first quarter that incurred a loss of approximately $1.0 million due to escalations in material pricing related to COVID-19 and indirect costs.
- Operating expenses for the first quarter 2021 is expected to be approximately $2.4 million, compared to approximately $795,000 in the first quarter 2020. Imbedded in the first quarter 2021 operating expenses are approximately $550,000 in one-time startup costs relating to the certification and opening of the Memorial Healthcare laboratory and the opening and subletting of the Chicago Area Testing facility, as well as due diligence and business development expenses on potential projects.
- For the first quarter 2021, net loss attributable to common shareholders is expected to between $2.0 million and $2.3 million, or negative ($0.23) to ($0.26) per share, compared to a net loss of approximately $747,000, or negative ($0.64) per share, in the first quarter 2020. The net loss attributable to common shareholders includes the following items:
- Approximately $500,000 in non-cash depreciation and amortization expenses, non-cash stock compensation expense and litigation expenses as explained in the adjusted EBITDA loss;
- Approximately $550,000 of one time startup expenses for all of the newly launched companies, and;
- Approximately $1.0 million loss due to a legacy contract commitment related to the SG Echo acquisition.
- Adjusted EBITDA loss for the first quarter 2021 is expected to be between $1.5 million and $1.8 million, compared to a loss of $527,000 in the first quarter 2020.
- At March 31, 2021, the Company had total assets of approximately $27.2 million, compared to approximately $26.9 million at December 31st, 2020.
- The Company had cash and cash equivalents of approximately $10.5 million as of March 31, 2021, compared to approximately $13.0 million at December 31, 2020.
“During the first quarter 2021, we maintained the momentum we established in 2020, achieving another quarter of record revenue, with continued activity across all of our verticals,” stated Paul Galvin, SG Blocks’ Chairman and Chief Executive Officer. “These results directly reflect the incredible effort of our team over the past several quarters to build a pipeline of strategic opportunities, aligning with best-in-class partners, and positioning our balance sheet to support the accelerating pace of activity.”
“Most exciting is our recent launch of SGB Development Corp., to co-develop and deliver homes and apartments for sale and rent, beginning with our first project, Lago Vista, in booming Austin, Texas. Our development projects should have multiple benefits, including a steady stream of manufacturing revenue for the Company, as well as a share of potential profits on sale. We are reviewing a number of exciting opportunities, and we look forward to communicating additional activity shortly.”
“In our other verticals, we brought to market a viable and cost-effective solution for point-of-care testing services to critical travel partners, health care providers, event hosts, and disadvantaged communities. Importantly, our vision in the medical vertical does not stop with COVID-19 testing. We are designing and preparing multiple specialty modules to meet urgent demands for community health for a variety of testing and health care delivery needs.”
Mr. Galvin concluded, “We are firing on all cylinders now, with significant projects underway that we believe can produce steady and growing revenue for the Company for many years to come. Also, we have established relationships with great partners which we believe will lead to additional projects and work for SG Blocks, allowing us to be selective, and pursue only the best opportunities. At this point, we know that words don’t matter, and we are focused on execution to truly capture the potential for the projects underway, meet our deadlines, and produce the expected benefits to the bottom line. Based on the above we anticipate being cash flow positive during the fourth quarter of 2021 and into 2022.”
For earnings history and earnings-related data on Sg Blocks, Inc. (SGBX) click here.
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