Harbor Custom Development, Inc. Downsizes Land Development Infrastructure Division - Reducing Head Count by 56%
March 06 2023 - 8:30AM
Harbor Custom Development, Inc. (Nasdaq: HCDI, HCDIP, HCDIW, HCDIZ)
(“Harbor,” “Harbor Custom Homes®,” or the “Company”), an innovative
real estate company involved in all aspects of the land development
cycle, today announced the Company has downsized its land
development infrastructure division, reducing the Company’s total
head count by 56% since Q3 while selling off $7.5 million in heavy
equipment that was previously utilized by the land development
infrastructure division.
“By materially downsizing our fee build
horizontal division and wrapping up our quarry operations, we have
significantly reduced a considerable drag on our earnings and
refocused the Company’s efforts on our core strengths of
permitting, land entitlement, and vertical construction of
single-family homes, townhomes, and multi-family units,” said
Sterling Griffin, President and CEO of Harbor Custom Development,
Inc.
Lance Brown, Chief Financial Officer of Harbor
Custom Development, Inc., added, “The sale of the equipment has
reduced our annual cash outlay on loans and lease payments
associated with this equipment by more than $2 million
annually. The Company also eliminated approximately $1.1
million in annual depreciation expense associated with the sale.
Downsizing the land development infrastructure division and
wrapping up our fee build projects and quarry operations is a good
outcome for us as these projects had a negative impact on our 2022
cash flows and financial results.”
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 apartments, 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.
Forward-Looking StatementsCertain
statements in this press release constitute “forward-looking
statements” within the meaning of the federal securities laws.
Words such as “may,” “might,” “could,” “should,” “believe,”
“expect,” “anticipate,” “estimate,” “continue,” “predict,”
“forecast,” “project,” “plan,” “intend,” “potential,” and similar
expressions, and statements regarding intent, belief, or current
expectations, are forward-looking statements. These forward-looking
statements are based upon current estimates and assumptions. While
the Company believes these forward-looking statements are
reasonable, undue reliance should not be placed on any such
forward-looking statements, which are based on information
available to us on the date of this release. These forward-looking
statements are subject to various risks and uncertainties,
including without limitation those 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.
Investor RelationsHanover
InternationalIR@harborcustomdev.com 866-744-0974
Harbor Custom Development (NASDAQ:HCDIW)
Historical Stock Chart
From Sep 2024 to Oct 2024
Harbor Custom Development (NASDAQ:HCDIW)
Historical Stock Chart
From Oct 2023 to Oct 2024