Harbor Custom Development, Inc. (Nasdaq: HCDI, HCDIP, HCDIW, HCDIZ)
(“Harbor,” “Harbor Custom Homes®,” or the “Company”), a real estate
company involved in all aspects of the land development cycle,
today announced its financial results for the second quarter and
six months ended June 30, 2023.
Second Quarter
2023 Financial Highlights Compared
to Second Quarter
2022
- Sales of $19.8 million compared to
$10.3 million
- Gross loss of $(2.9) million
compared to $(1.9) million
- Gross margin loss of (14.7)%
compared to (18.8)%
- Net loss of $(4.4) million compared
to $(4.5) million
- Basic loss per share of $(3.79)
compared to $(9.20)
- EBITDA loss of $(3.1) million
compared to $(4.9) million
- Adjusted EBITDA loss of $(3.0)
million compared to $(4.8) million
Six Months Ended June 30, 2023
Financial Highlights Compared to Six
Months Ended June 30, 2022
- Sales of $29.0 million compared to
$38.9 million
- Gross loss of $(5.0) million
compared to gross profit of $4.1 million
- Gross margin loss of (17.1)%
compared to gross margin 10.6%
- Net loss of $(9.2) million compared
to $(2.9) million
- Basic loss per share of $(10.95)
compared to $(10.01)
- EBITDA loss of $(7.7) million
compared to $(1.4) million
- Adjusted EBITDA loss of $(7.4)
million compared to $(0.9) million
“Despite a challenging real estate market, we
achieved notable successes in the second quarter. Sales increased
93% compared to the previous year, primarily due to the closing of
the first and smallest of our multifamily projects - Mills
Crossing. Additionally, we secured $10 million in gross proceeds
from our public offering with H.C. Wainwright & Co., and
partnered with Sound Capital to refinance phase one of Belfair
View. Our apartment communities are experiencing excellent lease-up
velocity, with Pacific Ridge and Wyndstone expected to reach rental
stabilization soon. Our luxury Texas homes have generated
significant interest, and our California lots are seeing
significant momentum,” said Jeff Habersetzer, Interim Chief
Executive Officer for Harbor.
Mr. Habersetzer continued, “I remain confident
in our progress toward achieving our objectives through our
continuous efforts to maximize our portfolio, improve operational
inefficiencies, and manage costs.”
Results for the Second
Quarter 2023Sales for the second quarter
2023 increased by 92.9% to $19.8 million, compared to sales of
$10.3 million for the second quarter 2022. This increase was
primarily due to the sale of the Mills Crossing townhomes in
Bremerton, Washington for $14.3 million and $1.9 million of lot
sales in California and Texas in the second quarter 2023, which
were partially offset by decreases in home sales of $6.1 million
and fee build revenue of $1.2 million. The decrease in home sales
was due to three fewer homes sold in Texas in the second quarter of
2023 and sale of the last two remaining homes in Washington in the
second quarter 2022. The fee build revenue continued to decrease as
the fee build projects neared completion.
Gross loss for the second quarter 2023 increased
to $(2.9) million compared to $(1.9) million for the second quarter
2022. Gross margin loss for the second quarter 2023 decreased to
(14.7)% compared to (18.8)% for the second quarter 2022. The $(1.0)
million increase in gross loss was primarily due to $4.7 million of
additional impairment losses recorded on the Pacific Ridge and
Darkhorse properties and decrease in home profit of $1.6 million or
14.4% gross margin decrease as compared to the second quarter 2022.
These were partially offset by $1.5 million gross profit at 10.2%
gross margin from the sale of Mills Crossing townhomes and
non-recurrence of significant losses from Harbor’s legacy fee build
projects in 2023. The gross margin improvement was due to the
increase in sales and non-recurrence of fee build losses, partially
offset by impairment charges.
Operating expenses for the second quarter 2023
were $2.4 million compared to $3.7 million for the second quarter
2022. The $(1.3) million decrease in operating expenses was
primarily due to a reduction of general and administrative costs.
The majority of the savings came from reductions of compensation
costs, depreciation, insurance expense, right of use expense, and
professional fees. Operating expenses as a percentage of sales for
the second quarter 2023 were 12.0% compared to 35.5% for the second
quarter 2022. The decrease in operating expenses as a percentage of
sales was primarily due to higher sales in the second quarter 2023
as compared to the second quarter 2022 and decrease in operating
expenses for the comparable periods.
For the second quarter 2023, net loss was $(4.4)
million compared to $(4.5) million for the second quarter 2022. Net
loss attributable to common stockholders for the second quarter
2023 was $(6.3) million or $(3.79) basic loss per share compared to
net loss attributable to common stockholders of $(6.4) million or
$(9.20) basic loss per share for the second quarter 2022.
EBITDA loss for the second quarter 2023
decreased from $(4.9) million in the second quarter 2022 to a loss
of $(3.1) million for the second quarter 2023. Adjusted EBITDA,
which excludes the impact of stock compensation and other
non-recurring costs, for the second quarter 2023 decreased to a
loss of $(3.0) million compared to $(4.8) million for the second
quarter 2022. For the second quarter 2023, Adjusted EBITDA loss as
a percentage of sales was (15.0)% compared to (46.5)% for the
second quarter 2022.
Results for the Six
Months Ended June 30, 2023Sales for the first half of 2023
decreased by (25.3)% to $29.0 million, compared to sales of $38.9
million for the first half of 2022. This decrease was primarily due
to decreases in sales of homes of $12.4 million, developed lots of
$4.7 million, entitled land of $4.5 million, and fee build of $3.7
million, partially offset by an increase in multi-family revenue of
$15.5 million. The decreases in sales of homes, developed lots, and
entitled land were mainly due to large prior year sales in
California and Washington that did not recur in the first half of
2023. The fee build revenue continued to decrease as the fee build
projects are nearing completion. The increases in multi-family
revenue were due to the sale of Mills Crossing townhomes for $14.3
million and $1.2 million of rental revenue from four multi-family
properties.
Gross profit (loss) for the first half of 2023
decreased to $(5.0) million compared to $4.1 million for the first
half of 2022. Gross margin (loss) for the first half of 2023 was
(17.1)% compared to gross margin of 10.6% for the first half of
2022. The $(9.1) million decrease in gross profit was primarily due
to decreases in entitled land gross profit of $(4.1) million,
developed lots gross profit of $(3.9) million, home gross profit of
$(3.2) million, and gross loss from multi-family of $(1.3) million,
partially offset by a decrease in fee build gross loss of $2.6
million. The (27.7)% decrease in gross margin was primarily driven
by non-recurrence of high margin land, developed lot, and home
sales, including a $2.9 million impairment loss related to the
Darkhorse property and a $3.2 million impairment loss incurred on
the Pacific Ridge apartment project. These gross margin declines
were partially offset by $(3.0) million gross loss due to cost
overruns with fee build projects in 2022 that did not recur in
2023, and $1.5 million gross profit from the sale of Mills Crossing
townhomes in the first half of 2023.
Operating expenses for the first half of 2023
were $5.3 million compared to $7.5 million for the first half of
2022. This $(2.2) million decrease in operating expenses is
primarily attributable to Harbor’s focused reduction in general and
administrative costs. Compensation costs, depreciation, insurance
expense, and professional fees were the largest contributors to the
cost savings of $(0.5) million, $(0.5) million, $(0.4) million, and
$(0.4) million, respectively. Other less significant cost savings
include a $(0.2) million right of use expense and $(0.1) million of
brokerage fees. Operating expenses as a percentage of sales for the
first half of 2023 were 18.3% compared to 19.3% for the first half
of 2022. The decrease in operating expenses as a percentage of
sales was primarily due to the decrease in operating expenses as
described above, partially offset by lower sales for the first half
of 2023 compared to the first half of 2022.
For the first half of 2023, net loss was $(9.2)
million compared to $(2.9) million for the first half of 2022. Net
loss attributable to common stockholders for the first half of 2023
was $(13.0) million or $(10.95) basic loss per share compared to a
net loss of $(6.8) million or $(10.01) basic loss per share for the
first half of 2022.
EBITDA for the first half of 2023 decreased
451.1% to a loss of $(7.7) million compared to $(1.4) million for
the first half of 2022. Adjusted EBITDA, which excludes the impact
of stock compensation and other non-recurring costs, for the first
half of 2023 decreased by 738.0% to a loss of $(7.4) million
compared to $(0.9) million for the first half of 2022. For the
first half of 2023, Adjusted EBITDA loss as a percentage of sales
was (25.6)% compared to (2.3)% for the first half of 2022.
About Harbor Custom Development,
Inc.Harbor Custom Development, Inc., is a real estate
development company involved in all aspects of the land development
cycle, including land acquisition, entitlements, construction of
project infrastructure, home and apartment building, marketing, and
sales of various residential projects in Western Washington’s Puget
Sound region; Sacramento, California; Austin, Texas; and Punta
Gorda, Florida. As a land developer and builder of apartment
buildings and single-family luxury homes, Harbor Custom
Development’s business strategy is to acquire and develop land
strategically based on an understanding of population growth
patterns, entitlement restrictions, infrastructure development, and
geo-economic forces. Harbor focuses on acquiring land with scenic
views or convenient access to freeways and public transportation to
develop and sell residential lots, new home communities, and
multi-story apartment properties within a 20- to 60-minute commute
of the nation’s fastest-growing metro employment corridors. For
more information on Harbor Custom Development, Inc., please visit
www.harborcustomdev.com.
Forward-Looking StatementsThis
press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. These statements relate
to, but are not limited to, expectations of future operating
results and financial performance, including GAAP and non-GAAP
guidance, and the calculation of certain key financial and
operating metrics, as well as assumptions relating to the
foregoing. Forward-looking statements are inherently subject to
risks and uncertainties, some of which cannot be predicted or
quantified. In some cases, you can identify forward-looking
statements by terminology such as “may,” “should,” “could,”
“expect,” “plan,” anticipate,” “believe,” “estimate, “predict,”
“target,” “project,” “intend,” “potential,” “would,” “continue,”
“ongoing,” or the negative of these terms or other comparable
terminology that concerns the Company’s expectations, strategy,
priorities, plans, or intentions. You should not put undue reliance
on any forward-looking statements. Forward-looking statements
should not be read as guarantees of future performance or results
and will not necessarily be accurate indications of the times at or
by which such performance or results may be achieved, if at all.
These forward-looking statements are subject to various risks and
uncertainties, including without limitation, changes in the real
estate industry such as continued increases in mortgage interest
rates or recessionary pressures in the local or national economies
where the Company operates which could dampen residential home
purchases, as well as those risks and uncertainties set forth in
the Company’s filings with the Securities and Exchange Commission.
Thus, actual results could be materially different. The Company
expressly disclaims any obligation to update or alter statements
whether as a result of new information, future events, or
otherwise, except as required by law.
Use of Non-GAAP Financial
MeasuresThis press release and the financial information
contained herein include EBITDA, Adjusted EBITDA, and Adjusted
EBITDA margin, which are financial measures that have not been
calculated in accordance with accounting principles generally
accepted in the United States, (GAAP) and are therefore referred to
as non-GAAP financial measures. The Company has provided
definitions for these non-GAAP financial measures and tables in the
schedules hereto to reconcile these non-GAAP financial measures to
the comparable GAAP financial measures.
The Company believes that these non-GAAP
financial measures provide valuable information regarding earnings
and business trends by excluding specific items that the Company
believes are not indicative of the ongoing operating results of its
business, providing a useful way for investors to make a comparison
of the Company’s performance over time and against other companies
in the industry.
The Company has provided these non-GAAP
financial measures as supplemental information to its GAAP
financial measures and believes these non-GAAP measures provide
investors with additional meaningful financial information
regarding its operating performance and cash flows. The Company’s
management and board of directors also use these non-GAAP measures
as supplemental measures to evaluate its business and the
performance of management, including the determination of
performance-based compensation, to make operating and strategic
decisions, and to allocate financial resources. The Company
believes that these non-GAAP measures also provide meaningful
information for investors and securities analysts to evaluate its
historical and prospective financial performance. These non-GAAP
measures should not be considered a substitute for or superior to
GAAP results. Furthermore, the non-GAAP measures presented by the
Company may not be comparable to similarly titled measures of other
companies.
Investor
RelationsIR@harborcustomdev.com866-744-0974
HARBOR CUSTOM DEVELOPMENT, INC. AND
SUBSIDIARIES |
D/B/A HARBOR CUSTOM HOMES |
CONDENSED CONSOLIDATED BALANCE SHEETS |
|
|
|
|
|
June 30, 2023 |
|
December 31, 2022 |
|
(unaudited) |
|
|
ASSETS |
|
|
|
Cash |
$ |
8,330,000 |
|
|
$ |
9,665,300 |
|
Restricted Cash |
|
597,600 |
|
|
|
597,600 |
|
Accounts Receivable, net |
|
815,200 |
|
|
|
1,707,000 |
|
Notes Receivable, net |
|
2,115,300 |
|
|
|
4,525,300 |
|
Prepaid Expense and Other Assets |
|
2,064,600 |
|
|
|
5,318,100 |
|
Real Estate |
|
212,072,600 |
|
|
|
205,478,200 |
|
Property and Equipment, net |
|
1,764,600 |
|
|
|
2,289,500 |
|
Right of Use Assets |
|
1,827,400 |
|
|
|
1,926,100 |
|
Deferred Tax Asset |
|
7,311,700 |
|
|
|
4,659,300 |
|
TOTAL ASSETS |
$ |
236,899,000 |
|
|
$ |
236,166,400 |
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’
EQUITY |
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
Accounts Payable and Accrued Expenses |
$ |
8,139,900 |
|
|
$ |
14,090,700 |
|
Dividends Payable |
|
3,807,400 |
|
|
|
634,700 |
|
Contract Liabilities |
|
378,300 |
|
|
|
497,400 |
|
Deferred Revenue |
|
51,200 |
|
|
|
52,000 |
|
Note Payable - Insurance |
|
73,200 |
|
|
|
378,500 |
|
Revolving Line of Credit Loan, net of Unamortized Debt Discount of
$0 and $0.6 million respectively |
|
18,359,700 |
|
|
|
24,359,700 |
|
Equipment Loans |
|
— |
|
|
|
2,057,100 |
|
Finance Leases |
|
— |
|
|
|
154,500 |
|
Construction Loans, net of Unamortized Debt Discount of $1.3
million and $1.9 million, respectively |
|
131,825,600 |
|
|
|
107,483,700 |
|
Construction Loans - Related Party, net of Unamortized Debt
Discount of $0 and $0.1 million, respectively |
|
— |
|
|
|
8,122,800 |
|
Right of Use Liabilities |
|
2,656,400 |
|
|
|
2,779,400 |
|
TOTAL LIABILITIES |
|
165,291,700 |
|
|
|
160,610,500 |
|
|
|
|
|
STOCKHOLDERS’ EQUITY |
|
|
|
Preferred Stock, no par value per share, 10,000,000 shares
authorized and 3,799,799 issued and outstanding at June 30, 2023
and December 31, 2022 |
|
62,912,100 |
|
|
|
62,912,100 |
|
Common Stock, no par value per share, 50,000,000 shares authorized
and 1,802,295 issued and outstanding at June 30, 2023 and 718,835
issued and outstanding at December 31, 2022 |
|
39,711,000 |
|
|
|
35,704,700 |
|
Additional Paid In Capital |
|
6,356,600 |
|
|
|
1,266,300 |
|
Retained Earnings (Accumulated Deficit) |
|
(37,372,400 |
) |
|
|
(24,327,200 |
) |
TOTAL STOCKHOLDERS’
EQUITY |
|
71,607,300 |
|
|
|
75,555,900 |
|
|
|
|
|
TOTAL LIABILITIES AND
STOCKHOLDERS’ EQUITY |
$ |
236,899,000 |
|
|
$ |
236,166,400 |
|
HARBOR CUSTOM DEVELOPMENT, INC. AND
SUBSIDIARIES |
D/B/A HARBOR CUSTOM HOMES |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited) |
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
For the Six Months Ended |
|
June 30, |
|
June 30, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
Sales |
$ |
19,844,500 |
|
|
$ |
10,286,400 |
|
|
$ |
29,025,600 |
|
|
$ |
38,867,400 |
|
|
|
|
|
|
|
|
|
Cost of Sales |
|
22,764,200 |
|
|
|
12,218,300 |
|
|
|
33,989,600 |
|
|
|
34,744,700 |
|
|
|
|
|
|
|
|
|
Gross Profit (Loss) |
|
(2,919,700 |
) |
|
|
(1,931,900 |
) |
|
|
(4,964,000 |
) |
|
|
4,122,700 |
|
|
|
|
|
|
|
|
|
Operating Expenses |
|
2,378,500 |
|
|
|
3,654,100 |
|
|
|
5,313,900 |
|
|
|
7,493,400 |
|
|
|
|
|
|
|
|
|
Operating Loss |
|
(5,298,200 |
) |
|
|
(5,586,000 |
) |
|
|
(10,277,900 |
) |
|
|
(3,370,700 |
) |
|
|
|
|
|
|
|
|
Other Income (Expense) |
|
|
|
|
|
|
|
Interest Expense |
|
(530,600 |
) |
|
|
(356,500 |
) |
|
|
(1,737,700 |
) |
|
|
(481,000 |
) |
Interest Income |
|
29,300 |
|
|
|
159,900 |
|
|
|
102,100 |
|
|
|
214,900 |
|
Gain (Loss) on Sale of Equipment |
|
25,800 |
|
|
|
(105,500 |
) |
|
|
(10,400 |
) |
|
|
(105,500 |
) |
Other Income |
|
22,900 |
|
|
|
400 |
|
|
|
33,800 |
|
|
|
8,500 |
|
Total Other Expense |
|
(452,600 |
) |
|
|
(301,700 |
) |
|
|
(1,612,200 |
) |
|
|
(363,100 |
) |
|
|
|
|
|
|
|
|
Loss Before Income Tax |
|
(5,750,800 |
) |
|
|
(5,887,700 |
) |
|
|
(11,890,100 |
) |
|
|
(3,733,800 |
) |
|
|
|
|
|
|
|
|
Income Tax Benefit |
|
(1,374,800 |
) |
|
|
(1,378,600 |
) |
|
|
(2,652,300 |
) |
|
|
(870,000 |
) |
|
|
|
|
|
|
|
|
Net Loss |
$ |
(4,376,000 |
) |
|
$ |
(4,509,100 |
) |
|
$ |
(9,237,800 |
) |
|
$ |
(2,863,800 |
) |
|
|
|
|
|
|
|
|
Net Loss Attributable to
Non-controlling interests |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(500 |
) |
Preferred Dividends |
|
(1,903,700 |
) |
|
|
(1,940,000 |
) |
|
|
(3,807,400 |
) |
|
|
(3,952,500 |
) |
|
|
|
|
|
|
|
|
Net Loss Attributable to
Common Stockholders |
$ |
(6,279,700 |
) |
|
$ |
(6,449,100 |
) |
|
$ |
(13,045,200 |
) |
|
$ |
(6,815,800 |
) |
|
|
|
|
|
|
|
|
Loss Per Share - Basic |
$ |
(3.79 |
) |
|
$ |
(9.20 |
) |
|
$ |
(10.95 |
) |
|
$ |
(10.01 |
) |
Loss Per Share - Diluted |
$ |
(3.79 |
) |
|
$ |
(9.20 |
) |
|
$ |
(10.95 |
) |
|
$ |
(10.01 |
) |
|
|
|
|
|
|
|
|
Weighted Average Common Shares
Outstanding - Basic |
|
1,657,709 |
|
|
|
701,215 |
|
|
|
1,191,752 |
|
|
|
680,740 |
|
Weighted Average Common Shares
Outstanding - Diluted |
|
1,657,709 |
|
|
|
701,215 |
|
|
|
1,191,752 |
|
|
|
680,740 |
|
HARBOR CUSTOM DEVELOPMENT, INC. AND
SUBSIDIARIES |
D/B/A HARBOR CUSTOM HOMES |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited) |
|
For the Six Months Ended June 30, |
|
|
2023 |
|
|
|
2022 |
|
CASH FLOWS FROM OPERATING
ACTIVITIES |
|
|
|
Net Loss |
$ |
(9,237,800 |
) |
|
$ |
(2,863,800 |
) |
Adjustments to reconcile net loss to net cash from operating
activities: |
|
|
|
Depreciation |
|
180,500 |
|
|
|
639,600 |
|
Amortization of right of use assets |
|
98,700 |
|
|
|
371,400 |
|
Loss on sale of equipment |
|
10,400 |
|
|
|
105,500 |
|
Provision for loss on contract |
|
74,200 |
|
|
|
1,034,900 |
|
Impairment loss on real estate |
|
6,289,000 |
|
|
|
— |
|
Stock compensation |
|
158,700 |
|
|
|
354,700 |
|
Amortization of revolver issuance costs |
|
640,300 |
|
|
|
182,900 |
|
Net change in assets and liabilities: |
|
|
|
Accounts receivable |
|
891,800 |
|
|
|
(849,100 |
) |
Contract assets |
|
— |
|
|
|
799,800 |
|
Notes receivable |
|
2,410,000 |
|
|
|
(8,874,400 |
) |
Prepaid expenses and other assets |
|
3,382,000 |
|
|
|
598,100 |
|
Real estate |
|
(11,271,800 |
) |
|
|
(31,424,100 |
) |
Deferred tax asset |
|
(2,652,300 |
) |
|
|
(870,000 |
) |
Accounts payable and accrued expenses |
|
(5,950,800 |
) |
|
|
5,047,300 |
|
Contract liabilities |
|
(193,200 |
) |
|
|
— |
|
Deferred revenue |
|
(800 |
) |
|
|
17,400 |
|
Payments on right of use liability, net of incentives |
|
(123,000 |
) |
|
|
191,400 |
|
NET CASH USED IN OPERATING
ACTIVITIES |
$ |
(15,294,100 |
) |
|
$ |
(35,538,400 |
) |
|
|
|
|
CASH FLOWS FROM INVESTING
ACTIVITIES |
|
|
|
Purchase of property and equipment |
$ |
— |
|
|
$ |
(1,741,500 |
) |
Proceeds on the sale of equipment |
|
254,300 |
|
|
|
195,800 |
|
NET CASH PROVIDED BY (USED IN)
INVESTING ACTIVITIES |
$ |
254,300 |
|
|
$ |
(1,545,700 |
) |
|
|
|
|
CASH FLOWS FROM FINANCING
ACTIVITIES |
|
|
|
Construction loans |
$ |
49,563,200 |
|
|
$ |
30,608,500 |
|
Payments on construction loans |
|
(25,879,700 |
) |
|
|
(8,817,000 |
) |
Financing fees construction loans |
|
(923,800 |
) |
|
|
(1,176,000 |
) |
Related party construction loans |
|
— |
|
|
|
7,458,400 |
|
Payments on related party construction loans |
|
(8,177,300 |
) |
|
|
(7,836,800 |
) |
Financing fees related party construction loans |
|
(75,000 |
) |
|
|
(10,100 |
) |
Revolving line of credit loan |
|
— |
|
|
|
20,288,900 |
|
Payments on revolving line of credit loan |
|
(6,640,300 |
) |
|
|
— |
|
Financing fees revolving line of credit loan |
|
— |
|
|
|
(1,097,700 |
) |
Payments on note payable - insurance |
|
(333,900 |
) |
|
|
(773,300 |
) |
Payments on equipment loans |
|
(2,057,100 |
) |
|
|
(1,133,000 |
) |
Payments on financing leases |
|
(74,800 |
) |
|
|
(38,000 |
) |
Preferred dividends |
|
(634,700 |
) |
|
|
(3,988,700 |
) |
Repurchase of common stock |
|
— |
|
|
|
(437,700 |
) |
Proceeds from common stock offering |
|
602,600 |
|
|
|
— |
|
Proceeds from pre-funded and common warrants offering |
|
8,335,300 |
|
|
|
— |
|
Proceeds from exercise of stock options |
|
— |
|
|
|
8,600 |
|
Proceeds from exercise of warrants |
|
— |
|
|
|
413,800 |
|
NET CASH PROVIDED BY FINANCING
ACTIVITIES |
$ |
13,704,500 |
|
|
$ |
33,469,900 |
|
|
|
|
|
NET DECREASE IN CASH AND
RESTRICTED CASH |
|
(1,335,300 |
) |
|
|
(3,614,200 |
) |
|
|
|
|
CASH AND RESTRICTED CASH AT
BEGINNING OF PERIOD |
|
10,262,900 |
|
|
|
26,226,800 |
|
|
|
|
|
CASH AND RESTRICTED CASH AT
END OF PERIOD |
$ |
8,927,600 |
|
|
$ |
22,612,600 |
|
HARBOR CUSTOM DEVELOPMENT, INC. AND
SUBSIDIARIES |
D/B/A HARBOR CUSTOM HOMES |
RECONCILIATION OF NET INCOME TO EBITDA AND ADJUSTED EBITDA
(Unaudited) |
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
For the Six Months Ended |
|
June 30, |
|
June 30, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
Net Income (Loss) |
$ |
(4,376,000 |
) |
|
$ |
(4,509,100 |
) |
|
$ |
(9,237,800 |
) |
|
$ |
(2,863,800 |
) |
|
|
|
|
|
|
|
|
Interest Expense - Cost of
Sales |
|
1,997,000 |
|
|
|
297,300 |
|
|
|
2,307,700 |
|
|
|
1,220,000 |
|
Interest Expense - Other |
|
530,600 |
|
|
|
356,500 |
|
|
|
1,737,700 |
|
|
|
481,000 |
|
Depreciation |
|
85,400 |
|
|
|
335,800 |
|
|
|
180,500 |
|
|
|
639,600 |
|
Amortization |
|
2,400 |
|
|
|
2,400 |
|
|
|
4,900 |
|
|
|
3,300 |
|
Tax Expense (Benefit) |
|
(1,374,800 |
) |
|
|
(1,378,600 |
) |
|
|
(2,652,300 |
) |
|
|
(870,000 |
) |
EBITDA |
$ |
(3,135,400 |
) |
|
$ |
(4,895,700 |
) |
|
$ |
(7,659,300 |
) |
|
$ |
(1,389,900 |
) |
|
|
|
|
|
|
|
|
Stock compensation |
|
75,400 |
|
|
|
112,300 |
|
|
|
158,700 |
|
|
|
354,700 |
|
Other non-recurring costs |
|
79,100 |
|
|
|
— |
|
|
|
84,100 |
|
|
|
150,200 |
|
Total Add backs |
|
154,500 |
|
|
|
112,300 |
|
|
|
242,800 |
|
|
|
504,900 |
|
Adjusted EBITDA |
$ |
(2,980,900 |
) |
|
$ |
(4,783,400 |
) |
|
$ |
(7,416,500 |
) |
|
$ |
(885,000 |
) |
EBITDA is defined as consolidated net income (loss) before
interest, taxes, depreciation, and amortization.
Adjusted EBITDA is defined as consolidated net income (loss)
before interest, taxes, depreciation, and amortization,
equity-based compensation expense and other non-recurring costs,
which are primarily related to restructuring costs and leadership
transitions, that are deemed to be transitional in nature or not
related to the Company’s core operations.
Adjusted EBITDA margin is Adjusted EBITDA as a percentage of
sales.
Harbor Custom Development (NASDAQ:HCDI)
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Harbor Custom Development (NASDAQ:HCDI)
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From Aug 2023 to Aug 2024