Q4 2020 SG Blocks Inc Earnings Call
Good afternoon. Thank you for joining us for our fourth-quarter and full-year earnings call with me. Today is Paul Galvin chief executive officer acting Chief Financial Officer. Press release detailing. Our results was issued this afternoon just after the market closed and is available on the company's website at ww.w before I turn the call over to Paul, Please remember that certain statements made during this presentation are forward-looking statements within the meaning of the private Securities litigation Reform Act of 1995 all statements other than statements of historical facts contained in this presentation including statements regarding the company's future operations and financial position business strategy and plans and objectives of management for future operations are forward-looking statements in some cases forward-looking statements can be identified by terminologies such as believes may estimates continue anticipates intends should plan expense predict potential for the negative of these terms or other similar expressions.
Wheel base these forward-looking statements largely on our current expectations and projections about future events and financial Trends and we believe may affect our financial condition results of operations business strategy and financial needs bank statements are subject to a number of risks and uncertainties and assumptions described including those set forth in our filings with the SEC which are available on our website at www.ge.com month. You should not rely upon forward-looking statements as predictions of future events. We cannot assure you the events and circumstances reflected in the forward-looking statements will be achieved or occur. Finally. This conference call is being webcast webcast is available in the investor relations section of our website now, I'll turn the call over to Paul.
Thank you, Steve. Let me begin with an apology for the delay in reporting. We pride ourselves on being on time every time with our filing. The last time we needed an extension to file annual report was literally twenty two years ago in nineteen ninety nine. It was unavoidable this quarter and we have implemented a plan that includes additional resources and redundancy to allow us to report on time regardless of any staff illnesses and other items. We may encounter.
Now to the news as she blocks had a record-breaking fourth quarter 2020 as well as a record-breaking gear in twenty-twenty. Our fourth-quarter gross revenue was approximately 7350000 dollars which would be 20 times greater than the revenue. We produced in the fourth quarter last year as well as the third quarter of 2020. In fact, our fourth quarter of was greater than the prior eight quarters combined those though these results reflect our efforts from that. Our team is talented hard-working and tireless today's results are the product of the seeds planted and harvested during the past eighteen months when we put our heads down and work collectively to turn around the company's trajectory. We thank our staff Consultants attorney life partners and board for the focused effort and the support of our mission. It is also work for memory that we have worked diligently to maintain a clean cap table structure and because of this month
SG blocks can report today.
That we continue to have no debt and a float of approximately 7.2 million shares.
Sgb x with the support of thinkequity a division of Fordham financial management capitalized the company in 2020 with an offering of six million shares of our common stock at a price of $2,000.50 per share. We intend to continue to use these funds to execute and grow are thriving business since then the company has successfully executed to serve cheese to raise Capital without issue without issuing additional shares subsequently to the year-end our cat subsidiary sublease a testing site to a government entity. Just an awesome. We applied for and were approved for an Oklahoma salary rebate of 5% from the Oklahoma quality jobs program. We anticipate 750000 to 1 million dollars from these strategies in 2021. We will now break down the activity in our sectors for the.
Manufacturing we acquired our Factory on September 23rd 2020 and have been implementing best practices in organizing a going forward work plan under New Jersey Fire Chief Operating Officer Bill Rogers sgb box has executed. It's option to acquire the 19-acre Eco site, which is scheduled to close in Q2 20 21. This will allow us manufacturing buildings, totaling an additional 175 thousand square feet to meet growing demand.
SG home has been launched from SG Echo and we now offer for housing prototypes with access to financing for qualified buyers. These homes will also be used in the projects developed by our SG development company, which we formed earlier this year. We expect to have a robust update on SG devco shortly, which would bring most exciting news.
Management at the factory is supported by a well skilled and industrious labor force, which is helping sgb blocks to reach New Heights at this time. Our labor force on the factory floor has almost tripled since the September acquisition in order to meet demand. We believe our decision to provide Health Care to SG Echo employees is helping us to attract and retain skilled labor. We do not anticipate any labor force shortages as we grow our facilities. We are thrilled with our decision to establish our manufacturing presence in a great state of, Oklahoma.
Medical testing just the pandemic sgb, X has implemented a massive and sustained effort to assist and deploy our technology the results include sgb x through subsidiary Clarity mobile Venture continues to provide much-needed high-quality point-of-care COVID-19 testing at LAX airport State. We believe this to be the same active clear lab on site at an international airport in the u.s. Sgb X continues to operate in Wayne County Michigan and its relationship with Memorial Health Care to prevent COVID-19 testing to at-risk populations and the General Public
additionally
Who are cats subsidiary we have and are awaiting the results of multiple rfps and proposals for point-of-care testing programs. Please note all operating expenses for cat are paid from the sublease Revenue still allowing for-profit thereafter.
The COVID-19 pandemic has further reinforced our confidence that our team is able to Pivot opportunistically within the healthcare space as needed for various ongoing testing and vaccinations, which will not end with COVID-19 our ambition and the medical vertical does not stop with COVID-19 testing. We are designing and preparing multiple specialty modules. We belong will need urgent demands and Community Health expect more to come on these activities later in the year.
SG development company SG developing for is a wholly-owned subsidiary sgb X and was formed in q1 20-21 with the express purpose of real property development, utilizing the technology of sgb x to further clarify will be a CO developer and owner of real estate development projects that deliver apartments and homes for sale.
The site selected represent the best of all the great sites we see through our website and broader ecosystem the homes and apartments will be manufactured by SG. So that project is fully integrated into the sgb X ecosystem many of the projects will utilize the products designed and manufactured through SG home to reduce design costs money, which savings can be passed on to buyers has announced a 225 apartment unit project known as Lago Vista on Lake Travis in South Austin, Texas. The land closing is scheduled for Q2 20 21 and the estimated manufacturing revenue from this project alone. SG Echo.
Is approximately 30 million dollars over 36 months.
Profit share from sales is anticipated in the range of five to seven million dollars over. The. The units are sold. Each project will have a third-party real estate investor a two-day manager so that we do not need to finance projects nor be distracted from our pursuit of manufacturing excellent expect further sgb updates for Thursday.
SG blocks commercial SG blocks has Twenty-One projects in our backlog representing 25.1 million dollars in sales of note. We have a design and delivery contracts linked to deploy their proprietary charging technology. We are designing sgb blocks branded infrastructure modules to host the equipment of others. We anticipate going to be in Q3 with this product. We are actively targeting the qsr our community military bases and government contracts. We are also investing significant time into relationship building with the Native American communities in Oklahoma and New Mexico who have great vision for their communities. And with whom it would be an honor to work.
of note
Direct Factory lead since acquiring SG Echo have been steady and qualified which has been a pleasant surprise again. We believe this is in response to the approach. We have taken with the Cassini now, I will hand it over to Gerald.
Thank you Paul beginning with the income statement for the fourth quarter 2020. We reported revenue of approximately 7.4 million dollars compared to approximately $337,000 for the fourth quarter of 2019. This increase was driven by approximately two point seven million dollars in construction Revenue agent and approximately 4.2 million dollar increase in Medical Revenue for the full year twenty-twenty. We reported revenue of approximately 8.8 million month compared to approximately 3 million dollars for 2019.
This increase was driven primarily by 8 approximately 4.2 million dollar increase and Medical Revenue and a approximately 1.3 million dollar increase in construction Revenue.
Gross profit in the fourth quarter of 2020 was approximately one point six million dollars compared to a gross profit of approximately $48,000 in the year-ago quarter the gross profit margin in the fourth quarter of 2020 was approximately 21.8% for the full year twenty-twenty gross profit was approximately 2.2 million dollars compared to a gross profit of approximately $677,000 in the prior-year the gross profit margin for twenty. Twenty one twenty 25.4%
Operating expenses in the fourth quarter of 2020 were approximately 3.1 million dollars compared to approximately four million dollars in the year ago quarter off. The decrease was primarily driven by Goodwill impairment charge taken in the fourth quarter 2019 of approximately 2.9 Million dollars that did not a reoccurring twenty-twenty partially offset by increased and payroll expense of approximately 1.1 million dollars and G&A expenses of approximately $700,000 for the full year twenty-twenty operating expenses were approximately 6.8 million dollars compared to approximately seven point four million dollars from 2019.
The decrease was primarily driven by the Goodwill impairment charge taken and 2019 that I just mentioned of approximately 2.9 Million partially offset by increases in payroll expense of approximately $600,000 due to non-cash stock compensation expense and onboarding Costco the new employees at the SG Echo plant and higher G&A expenses related to legal fees of approximately $500,000 Consulting fees of $520,000 off and post-acquisition expense cost of $500,000 related to the s g and Clarity mobile Venture for the fourth quarter 2020 our net loss attributed to Common shareholders.
was approximately
Point six million dollars or negative $0.19 per share compared to a net loss of a approximately 4.1 million dollars or negative $8.83 a share in the fourth quarter 2019 for the full year twenty-twenty our net loss attributed to Common shareholders was approximately four point seven million dollars wage or negative $0.79 per share compared to a net loss of approximately 6.9 million dollars or negative $22.85 per share and 2019 adjusted it even a loss for the fourth quarter 2020 was approximately $698,000 compared to a loss of $620,000 in the same quarter last year for twenty $20 adjusted ebit to Los was approximately 2.8 million dollars compared to the loss of two point nine million dollars.
2019
Turning to the balance sheet December 31st 2020. We had total assets of 26.9 million dollars compared to six point six million dollars at December 31st, 2019. We had cash and cash equivalents of approximately $13 as of December 31st, 2020 which compares to approximately 1.6 million dollars at December 31st, 2019 at this time as Paul noted. We had a strong and flexible capital structure with no debt and Thursday. We are capitalized to support our near-term working capital requirements now, I will turn the call back to Paul for closing comment.
Thank you Gerald in summary. We had a record twenty twenty and a very engaged first quarter with no intention of surrendering our hard-fought momentum at this time. We are not providing new Revenue guidance for 2021. Although it is Our intention to do so later this year. We do not anticipate that we will need to raise operating money off. You need to execute and continue to effectively grow which represents one of the companies major verticals into the future.
SG blocks is committed to hard work and excellence and we want nothing more than to deliver results for our valued shareholders. We appreciate our shareholders and investors who have a multitude of choices for their time their capital and their attention. We express our appreciation by working tirelessly each day and every day to maximize what we believe is a golden opportunity for SG blocks.
2020 was a year unlike any other in American history. The pandemic has left an indelible mark on the country soul. And in particular our ailing economy with many of us have had loved ones pass away or suffer from COVID-19. We have all seen businesses that we support before the close and many good people be out of work due to lack of their own we empathize with everyone who has been impacted. So drastically this also makes us uniquely grateful for the success and growth. We attach these most difficult times. We thank you for your time today and wish you a good night.
Thank you for joining us today. This concludes today's conference. You may disconnect your lines at this time.
Jeff
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