Safe & Green Holdings Reports Record Growth in Manufacturing Sales Pipeline; Projects Becoming Cash Flow Positive in the First 100 Days of 2024
December 08 2023 - 8:45AM
Business Wire
Reports reduction of over $2.5 million in
additional annualized expenses expected to be realized in 2024
Safe & Green Holdings Corp. (NASDAQ: SGBX) (“Safe &
Green Holdings” or the “Company”), a leading developer,
designer, and fabricator of modular structures for residential,
commercial, and point-of-care medicine, today reported record
growth in the Company’s manufacturing sales pipeline and that it
projects that the Company will achieve positive cash flow within
the first 100 days of 2024.
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Safe & Green Holdings’ Modular
Manufacturing Facility (Photo: Business Wire)
Paul Galvin, Chairperson and CEO of Safe & Green Holdings
stated, “I am pleased to report we are witnessing unprecedented
growth in our manufacturing sales pipeline. Given this projected
growth, as well as the scalability of our manufacturing operations,
and aggressive cost reductions to focus on our most profitable
operations, we expect the Company to not only turn cash flow
positive within the first 100 days of 2024, but begin generating
meaningful cash flow throughout the balance of the year and beyond.
This has truly been a team effort, from our management team to our
employees in the factories."
“Based on an assessment of the current sales pipeline alone, we
expect to achieve a factory utilization rate of more than 90% over
the next two years,” continued Mr. Galvin. “Additionally, starting
in 2026 and over a seven year period, we expect our SG Echo
manufacturing subsidiary to generate meaningful revenue from the
$800 million of planned development projects at Safe and Green
Development Corporation (“SG DevCo”), of which Safe & Green
Holdings is a majority owner. These projects are expected to
utilize SG Echo’s full manufacturing capacity, even if no further
projects were introduced.”
Tricia Kaelin, Chief Financial Officer of Safe & Green
Holdings commented, “Given the robust and growing pipeline within
our SG Echo manufacturing operations, we are now suspending certain
medical projects and implementing a reduction in payroll and
consulting fees for the medical division, which we expect will
further reduce our annualized operating expenses by $2.5 million in
2024 and enable us to generate meaningful positive cash flow. We
continue to look for ways to further reduce costs and increase
profitability."
About Safe & Green Holdings Corp.
Safe & Green Holdings Corp., a leading modular solutions
company, operates under core capabilities which include the
development, design, and fabrication of modular structures, meeting
the demand for safe and green solutions across various industries.
The firm supports third-party and in-house developers, architects,
builders, and owners in achieving faster execution, greener
construction, and buildings of higher value. The Company’s
subsidiary, Safe and Green Development Corporation, is a leading
real estate development company. Formed in 2021, it focuses on the
development of sites using purpose-built, prefabricated modules
built from both wood and steel, sourced from one of SG Holdings’
factories and operated by the SG Echo subsidiary. For more
information, visit https://www.safeandgreenholdings.com/ and follow
us at @SGHcorp on Twitter.
Safe Harbor Statement
Certain statements in this press release constitute
"forward-looking statements" within the meaning of the federal
securities laws. Words such as "may," "might," "will," "should,"
"believe," "expect," "anticipate," "estimate," "continue,"
"predict," "forecast," "project," "plan," "intend" or similar
expressions, or statements regarding intent, belief, or current
expectations, are forward-looking statements. These forward-looking
statements are based upon current estimates and assumptions and
include statements regarding the Company achieving positive cash
flow within the first 100 days of 2024, realizing a reduction of
over $2.5 million in additional annualized expenses in 2024,
witnessing unprecedented projected growth in the Company’s
manufacturing sales pipeline, making aggressive cost reductions to
focus on the Company’s most profitable operations, the Company
beginning to generate meaningful cash flow throughout the balance
of 2024 and beyond, achieving a factory utilization rate of more
than 90% over the next two years, SG Echo generating meaningful
revenue starting in 2026 and over a seven year period from the $800
million of planned development projects at Safe and Green
Development Corporation, the development projects utilizing SG
Echo’s full manufacturing capacity, implementing a reduction in
payroll and consulting fees for the medical division and continuing
to look for ways to further reduce costs and increase
profitability. These forward-looking statements are subject to
various risks and uncertainties, many of which are difficult to
predict that could cause actual results to differ materially from
current expectations and assumptions from those set forth or
implied by any forward-looking statements. Important factors that
could cause actual results to differ materially from current
expectations include, among others, the Company’s ability to reduce
its annualized operating expenses by $2.5 million in 2024 and
generate meaningful positive cash flow as planned, the Company’s
ability to achieve a factory utilization rate of more than 90% over
the next two years, SG Echo’s ability to generate meaningful
revenue starting in 2026 and over a seven year period from the
planned development projects at Safe and Green Development
Corporation, the Company’s ability to further reduce costs and
increase profitability, the Company’s ability to maintain
compliance with the NASDAQ listing requirements, and the other
factors discussed in the Company’s Annual Report on Form 10-K for
the year ended December 31, 2022 and its subsequent filings with
the SEC, including subsequent periodic reports on Forms 10-Q and
8-K. The information in this release is provided only as of the
date of this release, and we undertake no obligation to update any
forward-looking statements contained in this release on account of
new information, future events, or otherwise, except as required by
law.
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Investor Relations:
Crescendo Communications, LLC (212) 671-1020
sgbx@crescendo-ir.com
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