Reports reduction of over $2.5 million in additional annualized expenses expected to be realized in 2024
MIAMI–(BUSINESS WIRE)–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.
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.
Crescendo Communications, LLC