In the premarket trading session, at the last check, SG Blocks Inc. (SGBX) stock had surged by 2.62% to $3.13. SGBX stock closed the previous session at $3.05. The stock volume traded 0.26 million shares. In the past week, SGBX stock shed -2.24%. In the past three and six months, the SGBX stock shed -54.34%and added 29.79%. SG Blocks is currently valued at $26.23 million and has 8.62 million outstanding shares.
What you need to know about SG Blocks Inc.
SG Blocks, Inc. is a metal fabrication company that specifically focuses on the design and fabrication of container-based structures. SG Blocks, Inc. started in 2007 and is based in Brooklyn, New York. The company targets the market of the United States and Canada.
The company’s services majorly converts metals for other uses into building construction material; this includes redesigning, reusing, and transforming containers and heavy steel cargo into green building blocks for commercial, industrial, and residential building construction. SGBX converts the metal into purpose-built modules or prefabricated steel framework for infrastructure.
To diversify its service portfolio, the company provides consulting and construction management services for the usage of fabricated metal in construction projects. The client base of the company includes developers, builders, architects, and landowners.
SG blocks is going strong with its balance sheet and operations despite COVID-19 setback
During the primary quarter 2021, the organization kept up the momentum set up from 2020, accomplishing another quarter of record revenue, with continued activity across all of the metrics and fundamentals of operations. In light of the financial result, the company has positioned its balance sheet to help boost its operational activities. The Company’s backlog excludes any undertakings identified with recently launched SG Development Corp. along with the ongoing clinical and medical testing.
SG Blocks as of late has been planning and setting up various forte modules to satisfy dire needs for community health for an assortment of testing and medical services delivery needs; this includes the Covid-19 testing. The Company reported on Friday that it is working with Stone Clinical Laboratories to bring COVID-19 testing to Miami’s South Beach territory, for the benefit of Food Network’s yearly Wine and Food Festival.
The organization is moving from the re-appropriation and outsourcing plan of action and incorporating in-house manufacturing services. SG Blocks has various legacy project commitments that will be finished at a cash loss in 2021, going ahead, the Company hopes to fabricate future projects at an edge of around 15%.
The organization has launched SGBDevCo this year which is expected to deliver a large group of advantages to SG Blocks, including continuing to make close to 100% ability to give a consistent and noticeable progression of manufacturing income, participation in project fees, and expected benefit from asset sales.
SG Blocks is growing its manufacturing footprint to keep up with the increased demand along with which it had reported in January 2021, another 10,300 square foot building expansion at its SG Echo producing office in Durant, Oklahoma.
The financial status of the company drives the momentum from 2020 into 2021
The company observed strong financial results along with only a minor financial hiccup in some of its portfolios, directly and indirectly, due to the COVID-19 pandemic; delaying of several commercial projects. Despite that, it still achieved record revenue and expectation of revenue for the first quarter 2021 to be between $8.9 million and $9.2 million. SGBX stock reported between $0.9 million and $1.2 million expectation for gross profit in Q1 2021. Operating expense in Q1 is expected to be $2.4 million compared to $795000 in the prior year same period.
Net attributable loss to common shareholders is expected to be negative $0.23-$0.26 per share as compared to a net loss of negative $0.64 per share in Q1 2020. The cash and equivalents is $10.5 million, $2.5 million less than Q1 2020 but based on the rest of the balance sheet and operation momentum, SGBX stock expects being cash flow positive during Q4 of 2021 and into 2022.