TACOMA, Wash., Aug. 14, 2023 (GLOBE NEWSWIRE) -- 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 Quarter2023 Financial Highlights Compared to Second Quarter2022
- 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 Quarter2023
Sales 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, 2023
Sales 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 Statements
This 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 quanti?ed. 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 Measures
This 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 Relations
IR@harborcustomdev.com
866-744-0974
| 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.
