Safe & Green Holdings Corp (SGBX) 2023 Q3 法說會逐字稿

Greetings, and welcome to the Safe and Green Holdings third quarter 2023 business update conference call. (Operator Instructions) Please note this conference is being recorded. I will now turn the conference over to your host, Mr. Ted Ayvas Investor Relations. You may begin.

您好，歡迎參加安綠控股 2023 年第三季業務更新電話會議。 （操作員說明）請注意，本次會議正在錄製中。現在我將會議交給東道主泰德·艾瓦斯投資者關係部先生。你可以開始了。

Good afternoon and thank you for joining Safe and Green third quarter 2023 conference call and business update. On the call with us today is Paul Galvin, Chairperson and Chief Executive Officer, of Safe and Green Holdings Inc, and Tricia Kaelin, Chief Financial Officer of Safe and Green Holdings, Inc. earlier today, the company announced its operating results for the quarter ended September 30, 2023. The press release is posted on the company's website, www.safeandgreenholdings.com.

下午好，感謝您參加安全與綠色 2023 年第三季電話會議和業務更新。今天與我們通話的是 Safe and Green Holdings Inc. 董事長兼執行長 Paul Galvin 和 Safe and Green Holdings, Inc. 財務長 Tricia Kaelin。年9 月30 日。

In addition, the company has filed its quarterly report on Form 10-Q with the US Securities and Exchange Commission, which will be accessible on the company's website as well as the SEC's website at www.sec.gov. If you have any questions after the call or would like to arrange a one-on-one discussion with Mr. Galvin following the call, please contact Crescendo Communications at 212-617-1020.

此外，該公司已向美國證券交易委員會提交了 10-Q 表季度報告，該報告可在該公司網站以及 SEC 網站 www.sec.gov 上取得。如果您在通話後有任何疑問，或希望在通話後安排與 Galvin 先生進行一對一討論，請致電 212-617-1020 聯絡 Crescendo Communications。

Before I turn the call over to Paul, please remember that various remarks about future expectations, plans and prospects made on today's call constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995.

在我將電話轉給Paul 之前，請記住，今天的電話會議中有關未來預期、計劃和前景的各種言論均構成前瞻性陳述，旨在遵守1995 年《私人證券訴訟改革法案》中的安全港條款。

Safe and Green cautions that these forward-looking statements are subject to risks and uncertainties that may cause our actual results to differ materially from those indicated, including risks described in the company's filings with the SEC.

Safe and Green 警告稱，這些前瞻性聲明存在風險和不確定性，可能導致我們的實際結果與所示結果存在重大差異，包括公司向 SEC 提交的文件中描述的風險。

These forward-looking statements are subject to a number of risks and uncertainties which are described in the company's filings with the SEC. Any forward-looking statement made on this conference call speak only as of today's date, Tuesday, November 14, 2023. Safe and Green does not intend to update any of these forward-looking statements to reflect events or circumstances that occur after today.

這些前瞻性陳述受到公司向美國證券交易委員會提交的文件中所述的許多風險和不確定性的影響。本次電話會議中所做的任何前瞻性聲明僅代表今天（2023 年 11 月 14 日星期二）的情況。

With that being said, I am now pleased to introduce Paul Galvin, Chairperson and CEO of Safe and Green. Paul?

話雖如此，我現在很高興地介紹 Safe and Green 董事長兼執行長 Paul Galvin。保羅？

Thanks, Ted. Good afternoon, thank you to everyone for joining us today. I would like to begin by extending our sincere thanks to our investors for your continued commitment to and support of our vision. We are focused on creating long-term value for our shareholders and are clearly executing on our strategy.

謝謝，泰德。下午好，感謝大家今天加入我們。首先，我謹向我們的投資人表示誠摯的感謝，感謝你們對我們願景的持續承諾和支持。我們專注於為股東創造長期價值，並明確執行我們的策略。

During the third quarter of 2023, we experienced 70% year-over-year increase in manufacturing for construction revenue building on our recent momentum, we also celebrated a significant milestone event for Safe and Green Holdings, as we successfully spun off the company's real estate development subsidiary SG DevCo into an independent publicly traded company on NASDAQ under the symbol SGD.

2023 年第三季度，在我們最近的勢頭的基礎上，我們的建築業製造業收入同比增長了 70%，我們還慶祝了 Safe and Green Holdings 的一個重要里程碑事件，因為我們成功剝離了該公司的房地產開發子公司SG DevCo 成為一家在納斯達克上市的獨立上市公司，代號為SGD。

This significant achievement marks the successful conclusion of a two year journey. Our success was the fruit of continued dedication and tireless efforts of our entire team. Following the spinoff, Safe and Green Holdings retained a substantial 70% interest in SG DevCo with the balance of 30% going to you, our loyal shareholders.

這項重大成就標誌著兩年旅程的圓滿結束。我們的成功是整個團隊持續奉獻和不懈努力的成果。分拆後，Safe and Green Holdings 保留了 SG DevCo 70% 的大量股權，其餘 30% 歸您，我們忠實的股東擁有。

This is particularly noteworthy considering SG DevCo $74 million, third party fairness opinion. It's also important to note that we consolidate the financials of SG DevCo as the 70% owner of this business. Furthermore, SG DevCo maintains a shared services agreement with Safe and Green Holdings under this agreement, Safe and Green Holdings offers base services to SG DevCo for which it receives monthly compensation.

考慮到 SG DevCo 價值 7,400 萬美元的第三方公平意見，這一點尤其值得注意。同樣重要的是要注意，我們將 SG DevCo 的財務資料合併為該業務 70% 的所有者。此外，SG DevCo 與 Safe and Green Holdings 簽訂了共享服務協議，根據該協議，Safe and Green Holdings 向 SG DevCo 提供基礎服務，並每月收取報酬。

We anticipate ongoing and significant synergies with SG DevCo as it executes on plans to commence development of projects in the pipeline which are currently valued at more than $800 million and are expected to drive further manufacturing growth for SG Echo.

我們預計與 SG DevCo 會產生持續且顯著的協同效應，因為 SG DevCo 正在執行開始開發管道項目的計劃，這些項目目前價值超過 8 億美元，預計將進一步推動 SG Echo 的製造成長。

Additionally, our enthusiasm for the potential growth and future opportunities for both SG Holdings and SG DevCo our numerous, SG. Holdings goal is to develop 10,000 units within the next seven years in reaching the goal SG Holdings is projected to utilize almost the entirety of our manufacturing capacity.

此外，我們對 SG Holdings 和 SG DevCo 的潛在成長和未來機會充滿熱情，我們眾多的 SG。 SG Holdings 的目標是在未來七年內開發 10,000 台，以實現 SG Holdings 預計將利用我們幾乎全部製造能力的目標。

While acknowledging that market conditions may fluctuate, SG Holdings estimates that the returns from all the projects at this time will exceed $200 million over the lifetime of the project. With the expansion of current client relationships and the acquisition of new projects, including inter-company projects, we anticipate the necessity for multiple factory campuses and additional manufacturing capacity.

SG Holdings 承認市場狀況可能會波動，但預計目前所有項目的回報在專案生命週期內將超過 2 億美元。隨著當前客戶關係的擴大和新項目（包括公司間項目）的收購，我們預計需要多個工廠園區和額外的製造能力。

As a result, we are actively expanding the production capabilities of the company's manufacturing subsidiary SG Echo in order to support this growth. Moreover, SG Holdings is integrating state-of-the-art technologies and refining our processes to boost efficiency throughout all of our manufacturing facilities. Our strategic focus is on fine-tuning production processes, minimizing waste and increasing overall productivity in 2024.

因此，我們正在積極擴大公司製造子公司 SG Echo 的生產能力，以支持這一成長。此外，SG Holdings 正在整合最先進的技術並改善我們的流程，以提高我們所有製造設施的效率。我們的策略重點是在 2024 年微調生產流程、最大限度地減少浪費並提高整體生產力。

Our plan is to shift a portion of our business from lower priced high-volume projects with a higher price point and lower volume as a result of this pivot in strategy that we expect to see an improvement in cash flow. Most notably first quarter 2024. Walden facility located in Durant, Oklahoma is now up and running and provides the company with an additional 58,000 square feet of manufacturing space.

我們的計劃是將我們的部分業務從價格較低、銷售較低的項目轉移到價格較高、銷售較低的項目，因為我們預計現金流將會改善。最值得注意的是 2024 年第一季。

In fact, we believe that the Walden facility has the potential to generate up to $25 million in additional annualized revenue for SG Echo over the next 12-months. In addition, the McLean manufacturing facility, our third production facility has transitioned into the design phase once completed. This facility will provide the company with 120,000 square feet of additional manufacturing space.

事實上，我們相信 Walden 工廠有潛力在未來 12 個月內為 SG Echo 帶來高達 2,500 萬美元的額外年收入。此外，麥克萊恩製造工廠（我們的第三個生產工廠）完工後已進入設計階段。該工廠將為公司提供 120,000 平方英尺的額外生產空間。

Furthermore, the planning for our manufacturing facility in St. Mary's, Georgia is progressing smoothly. Once completed, this facility will serve the areas of Cumberland Island, Georgia, and Florida. Once all of our manufacturing facilities are operational, it is projected that our collective manufacturing space will encompass a sizable 1.1 million square feet.

此外，我們在喬治亞州聖瑪麗的製造工廠的規劃進展順利。建成後，該設施將為坎伯蘭島、喬治亞州和佛羅裡達州地區提供服務。一旦我們所有的製造設施投入運營，預計我們的集體製造空間將達到 110 萬平方英尺。

This extensive capacity will be instrumental in efficiently servicing the broadening spectrum of projects that the company is undertaking. Additionally, expanding our building capacity demonstrates our commitment to growth as well as our ability to scale up operations to meet the increasing demands of our diverse project portfolio.

這種廣泛的能力將有助於有效地為公司正在進行的不斷擴大的專案提供服務。此外，擴大我們的建設能力表明了我們對成長的承諾以及我們擴大營運規模以滿足多樣化專案組合日益增長的需求的能力。

Moreover, our enhanced capacity, better positions the company to deliver on a larger scale as we seek to strengthen and broaden our business footprint in all 50 states. We are also excited to share that SG Echo was recently awarded a multimillion dollar contract to supply an additional modular unit to a long-standing Private Infrastructure Solutions clients highlighting the quality of our work and ability to generate strong repeat business.

此外，隨著我們尋求加強和擴大我們在所有 50 個州的業務足跡，我們增強的能力使公司能夠更大規模地提供服務。我們也很高興地告訴大家，SG Echo 最近獲得了一份價值數百萬美元的合同，為長期的私人基礎設施解決方案客戶提供額外的模組化單元，這突顯了我們的工作質量和產生強勁重複業務的能力。

The company was recently selected by the tunnels to tower's foundation to construct a traveling modular home. The home called the Comfort Home Show model is designed to showcase the foundation's homeless Veteran Program. As a result of the success of the Comfort Home Show model, the company will be partnering with impact housing to construct three additional modular comfort homes for the tunnels to towers foundation in Houston, Texas.

該公司最近被通往塔樓地基的隧道選中來建造移動模組化房屋。這個名為「舒適之家展示」模式的房屋旨在展示基金會的無家可歸退伍軍人計劃。由於舒適家居展模型的成功，該公司將與抗衝擊住房合作，為德克薩斯州休斯頓的塔樓基礎隧道建造三座額外的模組化舒適住宅。

Additionally, the company announced the launch of the CORNERSTONE charitable foundation of 501(c)(3) organization focused on providing services around the world. The services will initially include affordable housing, health care and well-being services and locations, the provision of clean portable water and education.

此外，該公司還宣布成立 501(c)(3) 組織的 CORNERSTONE 慈善基金會，專注於在全球範圍內提供服務。這些服務最初將包括經濟適用房、醫療保健和福利服務和地點、提供乾淨的飲用水和教育。

We plan to leverage the relationship with CORNERSTONE by providing cost-effective modular solutions manufactured by SG Echo. Notably our first project, we are partnering with CORNERSTONE to construct a vocational school house in Cape Coast, Ghana as the part of Ghana's tomorrow project.

我們計劃利用與 CORNERSTONE 的關係，提供 SG Echo 製造的經濟高效的模組化解決方案。值得注意的是我們的第一個項目，我們正在與 CORNERSTONE 合作，在加納海岸角建造一所職業學校，作為加納未來計畫的一部分。

This relationship demonstrates the power of corporate and charitable partnerships to impact the future of communities worldwide. We are also excited to share the rebranding and rapid expansion of Safe and Green Medical Corporation, which is now known as Well Global Health, our health care services products and facilities offerings are revolutionizing the way preventative care, chronic condition management and education are accessed and experienced our state-of-the-art pre constructed modular eco-friendly wellness suites offer employers, health systems communities and beyond a comprehensive and personalized solution to the barriers that prevent people from staying healthy.

這種關係展示了企業和慈善夥伴關係影響全球社區未來的力量。我們也很高興與大家分享Safe and Green Medical Corporation 的品牌重塑和快速擴張，該公司現在更名為Well Global Health，我們的醫療保健服務產品和設施正在徹底改變預防性護理、慢性病管理和教育的獲取方式，以及體驗我們最先進的預製模組化環保健康套房，為雇主、衛生系統社區等提供全面、個人化的解決方案，消除阻礙人們保持健康的障礙。

Leveraging our health experience and modular capabilities. Our goal is to rapidly deploy our suites everywhere they are needed, led by Delphine O'Rourke, an industry leader and health law expert and the new President and CEO of Well Global Health.

利用我們的健康經驗和模組化能力。我們的目標是在產業領導者、健康法專家、Well Global Health 新任總裁兼執行長 Delphine O'Rourke 的領導下，在需要的地方快速部署我們的套件。

We provide an easily accessible, trusted, and comprehensive solution for preventative health and ongoing health and wellness. Our model solves the time distance and space barriers to care that are increasingly acute across the United States, while also providing innovative and engaging care experiences.

我們為預防性健康和持續健康提供易於獲取、值得信賴且全面的解決方案。我們的模式解決了美國各地日益嚴重的護理時間距離和空間障礙，同時也提供創新且引人入勝的護理體驗。

Safe and Green Holdings still owns the clear modular units previously used for the remote COVID-19 testing of passengers and employees at LAX airport and is actively seeking out the ideal opportunity to redeploy these modules.

Safe and Green Holdings 仍然擁有先前用於在洛杉磯國際機場對乘客和員工進行遠端 COVID-19 測試的清晰模組化單元，並正在積極尋找重新部署這些模組的理想機會。

Once the right opportunity is identified, the company will be capable of redeploying these modules within a two week timeframe. This Swift turnaround further demonstrates the versatility and adaptability offered by modular construction. We are excited about the numerous outstanding projects we are currently involved in our manufacturing for construction revenue has seen significant growth recently rising from $4.1 million in 2020 to over $12.7 million in 2022 and is on track to reach record levels in 2023.

一旦找到合適的機會，公司將能夠在兩週內重新部署這些模組。這種迅速的周轉進一步證明了模組化結構所提供的多功能性和適應性。我們對目前參與製造的眾多傑出項目感到興奮，建築收入近期顯著增長，從 2020 年的 410 萬美元增至 2022 年的 1,270 萬美元以上，並預計在 2023 年達到創紀錄的水平。

The direction we are heading is highly promising, and the outlook for Safe and Green is brighter than ever. Our business continues to expand, and we remain committed to prudently manage our expenses to maximize value for shareholders.

我們前進的方向充滿希望，安全和綠色的前景比以往任何時候都更加光明。我們的業務不斷擴大，我們仍然致力於審慎管理開支，為股東創造最大價值。

I would now like to turn the call over to Tricia Kaelin, Chief Financial Officer of Safe and Green, who will review the financial results for the three months ended September 30, 2023. Tricia?

我現在想將電話轉給 Safe and Green 財務長 Tricia Kaelin，她將審查截至 2023 年 9 月 30 日的三個月的財務業績。

Thanks, Paul. During the third quarter, we continued to focus on leveraging our robust asset base to secure non-dilutive financing, which we believe highlights the strength of our balance sheet. Furthermore, the company entered into a non-binding letter of intent to sell our Lago Vista site for $11.5 million, the proceeds of which will be invested as equity in a new joint venture with a premier real estate development firm.

謝謝，保羅。在第三季度，我們繼續專注於利用我們強大的資產基礎來確保非稀釋性融資，我們認為這凸顯了我們資產負債表的實力。此外，該公司還簽訂了一份不具約束力的意向書，以 1,150 萬美元的價格出售我們的 Lago Vista 地塊，所得收益將作為股權投資於與頂級房地產開發公司成立的新合資企業。

The joint venture plans to develop the site using SG. Echo's modular units. Lago Vista property was initially acquired by the company in 2021 for $3.5 million, demonstrating our ability to maximize the value of our assets. Moreover, we have reduced operating expenses by more than $2 million since the first quarter of 2023 which will be reflected in additional cost savings in 2024.

該合資企業計劃利用 SG 開發該場地。 Echo 的模組化單元。該公司最初於 2021 年以 350 萬美元收購了 Lago Vista 地產，證明了我們實現資產價值最大化的能力。此外，自 2023 年第一季以來，我們已減少了超過 200 萬美元的營運費用，這將反映在 2024 年的額外成本節省。

Now turning to our results for the quarter. Revenue for the third quarter of 2023 was $4.0 million compared to $4.1 million in the third quarter of 2022. The slight decrease was attributable to the lack of engineering services and medical revenue for the third quarter of 2023, which was partially offset by an increase in manufacturing for construction revenue. The manufacturing for construction segment generated $4.0 million in revenue, a 48% increase for the third quarter of 2023 compared to the same quarter of last year, which is a 70% increase year-over-year. For the nine-months ended September 30. Total gross profit for the third quarter of 2023 was negative $536,000 compared to negative $165,000 in the third quarter of 2022.

現在轉向我們本季的業績。 2023 年第三季的收入為400 萬美元，而2022 年第三季的收入為410 萬美元。成長所抵銷。建築製造領域的營收為 400 萬美元，2023 年第三季比去年同期成長 48%，較去年同期成長 70%。截至 9 月 30 日的九個月。

Operating expenses for the third quarter of 2023 were $2.4 million compared to $2.3 million for the third quarter of 2020, the third quarter of 2023 included significant expenses allocated to the build-out of SG DevCo and Safe and Green Medical Corp. Now known as Well Global Health that were not incurred for the same period last year.

2023 年第三季的營運費用為240 萬美元，而2020 年第三季的營運費用為230 萬美元，2023 年第三季包括分配給SG DevCo 和Safe and Green Medical Corp（現稱為Well）擴建的大量費用。

Net loss attributable to common shareholders was approximately $3.6 million for a $0.23 per share loss in the third quarter of 2023 compared to a net loss of $2.5 million for $0.18 per share loss in the third quarter of 2022 to the company's adjusted EBITDA loss for the third quarter ended September 30, 2023, with approximately $1.4 million as compared to adjusted EBITDA loss of approximately $1.5 million for the third quarter ended September 30, 2022.

2023 年第三季度，普通股股東應佔淨虧損約360 萬美元，每股虧損0.23 美元，而2022 年第三季度，公司第三季調整後EBITDA 虧損為250 萬美元，每股虧損0.18 美元。

As of September 30, 2023, the company had a cash balance of short-term investments of $713,000 compared to $600,000 at December 31, 2022. As of September 30, 2023, stockholders' equity was $6.4 million compared to $14.4 million as of September 30, 2022. The company believes it has sufficient cash and borrowing capacity to support near-term operations. I would now like to turn the call back over to Paul for closing remarks.

截至2023年9月30日，該公司的短期投資現金餘額為713,000美元，而2022年12月31日為600,000美元。日為1440萬美元，2022年。現在我想將電話轉回給保羅，讓他發表結束語。

Thanks, Tricia. We would like to offer our sincere thanks to all of you for joining us today. We are extremely proud of Safe and Greens accomplishments and are optimistic that we will continue our commitment to excellence and success. We look forward to providing you with updates on our progress in the coming weeks and wish everyone a good day. Thank you.

謝謝，特里西亞。我們衷心感謝大家今天加入我們。我們對安全和綠色成就感到非常自豪，並對我們將繼續致力於卓越和成功感到樂觀。我們期待在未來幾週內向您提供我們的最新進展，並祝大家有美好的一天。謝謝。

Thank you very much. This does conclude today's conference call. You may disconnect your phone lines at this time and have a wonderful rest of the day. Thank you for your participation.

非常感謝。今天的電話會議到此結束。此時您可以斷開電話線並享受一天的美好休息。感謝您的參與。