Harbor Custom Development Inc. (NASDAQ:HCDI) has posted first-quarter results that saw its revenue jump 106% year-over-year on the back of sustained demand from buyers.
For the period ended March 31, 2022, the Tacoma, Washington-based real estate developer reported consolidated net sales of $28.6 million, compared to $13.9 million in the corresponding period a year earlier.
Harbor Custom attributed the increase to higher home sales of $5.5 million, entitled land sales of $4.5 million, fee build revenues of $2.7 million, and sales of developed lots of $2.1 million.
The company logged a gross profit of $6.1 million, compared to $0.6 million in 1Q 2021. Gross margin expanded to 21.2% during the quarter, compared to 4.4% in the same period a year earlier, up 16.8% driven primarily by significant margins from the sale of entitled land, noted the company.
Harbor Custom reported a net income of $1.6 million during the quarter, reversing a loss of $1.5 million in 1Q 2021. The firm narrowed its basic earnings per share (EPS) loss to $0.03 from a loss of $0.12 in the comparable quarter a year earlier.
The firm’s adjusted EBITDA, or earnings before interest, taxes, depreciation, and amortization, came in at $3.9 million, compared to $0.2 million in 1Q 2021.
In a statement accompanying the numbers, Harbor Custom CEO Sterling Griffin said: “We again achieved a new quarterly record for top line sales coming in at $28.6 million, continuing the momentum from 2021.”
“Our unique and flexible business model enabled us to achieve top line revenue growth of 106.0% on a year-over-year basis through the sale of entitled land, developed lots, single-family homes and fee build income.”
Griffin noted that the company’s “diverse revenue stream” further validates “our distinct business plan of monetizing our real estate assets at the most opportune time during the development life cycle.”
Based on its strong 1Q results, Harbor Custom reiterated its previously announced 2022 revenue guidance of approximately $160 million and adjusted EBITDA guidance of $20 million.
Harbor will host a conference call on May 12, 2022, at 9.30am PT (12.30pm ET) to elaborate on the results and the company’s outlook.
Investors can join the conference call by dialing 1-877-407-0789, while international callers may dial 1-201-689-8562), and refer to “Harbor” or conference ID: 13729493.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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