Safe & Green(US:SGBX)2022-11-15 03:49Financial Data and Key Metrics Changes - For Q3 2022, the company reported revenues of $4.1 million, representing a 612% increase from two years ago [30] - Revenue for the nine months ending September 30, 2022, was $20.3 million on a consolidated basis [30] - The construction segment generated $2.7 million in Q3, a 334% year-over-year increase from Q3 2021 [31] - The company has a total manufacturing pipeline valued at approximately $800 million, with an anticipated gross profit of $120 million based on a 15% margin [40] Business Line Data and Key Metrics Changes - The medical segment generated $1.4 million in Q3 and $11.7 million for the nine months ending September 30, 2022 [32] - The construction segment contributed 65% of revenues for the quarter, while the medical segment contributed 35% [32] - The revenue streams have diversified significantly from a previous concentration of 92% in the medical segment [33] Market Data and Key Metrics Changes - The modular construction market is expected to grow at a CAGR of 8% from 2022 to 2030, with a market size projected to increase from $138 billion in 2021 to $271 billion by 2030 [23] - The healthcare segment accounts for approximately 20% of market revenue within modular construction [25] Company Strategy and Development Direction - The company is focused on expanding its manufacturing footprint and capabilities to support a growing pipeline of projects [19][21] - The strategy includes building projects largely out of its own factories to maximize benefits and minimize transportation costs [41] - The company aims to reach a pipeline of 5,000 units on a year-over-year basis as it develops various phases of each project [43] Management's Comments on Operating Environment and Future Outlook - The company is optimistic about its long-term business plans, including entering the medical waste recycling industry [27] - Management expressed confidence in the company's ability to execute on contracts and expand revenue streams in 2023 [36][38] - The company is currently debt-free and has a strong cash position, allowing for continued share buyback programs [34][35] Other Important Information - The total appraised value of the company's real estate portfolio is $56.4 million, significantly higher than the conversion purchase price of $8 million [17] - The company has completed renovations on its second facility and is on track to begin module production in Q1 2023 [20] Q&A Session Summary Question: Concerns about revenue growth despite press releases - Management indicated that the $800 million backlog will be built out and earned over three to five years, and future revenue growth will depend on project execution [49][51] Question: Margins on SG Echo builds and SG Dev Corp - Management stated that SG Echo projects typically operate on an 18% to 20% margin, while SG Dev Corp projects will be delivered at a 15% margin for transparency [58]