Brampton, Ontario--(Newsfile Corp. - August 28, 2024) - Urban Infrastructure Group Inc. (TSXV: UIG), a leading stage-one concrete and drainage infrastructure construction group, specializing in large scale new residential housing developments, announces its financial results for the three and nine months ended June 30th, 2024. All financial information is provided in Canadian dollars unless otherwise indicated.
Ungad Chadda, CEO of UIG, stated, "As we communicated at the end of May, the very well publicized halt in the low rise residential new home construction market has continued to prevail as at June 30th, 2024. 'Per Global News reports on the CMHC figures, the number of housing starts in the first half of 2024 has lagged behind the previous year, while June saw a 44-per cent drop year-on-year.' As a direct result of this industry-wide slowdown, Urban's Q3 results commensurately reflect this inability for developers in Ontario to get shovels-in-the-ground during the quarter."
On a much more bullish note, the leading indicators of a return to work has been very evident at Urban. More specifically, Urban's unaudited July revenues have come in virtually as high as the revenues booked in all of Q3. In addition, the current Bid Pipeline sits at $17M+ and the Contracted Pipeline currently sits at $6M. Urban defines Bid Pipeline as all tenders or RFP's that Urban has been invited to bid on and for which the Company has submitted a bid. Contracted Pipeline is defined as the subset of the Bid Pipeline that has been confirmed as awarded by the customer to Urban.
Urban is weathering the storm and is well positioned, with its skilled labour force, commitment to excellence and impeccable track record and brand, to capitalize on the recovery that appears to already be under way. An anticipated 3rd interest rate cut in September will act as a further catalyst for the recovery leg in this cycle.
Management Commentary on the First Nine Months of Fiscal 2024:
The Company recorded net loss of $2,213,949 ($0.06 per share) for the nine-month period ended June 30, 2024 as compared to net income of $1,353,606 ($6,768 per share) for the nine-month period ended June 30, 2023. The decrease in net income is the result of decreased revenue in the three quarters of 2024. The cost of sales for the nine-month period ended June 30, 2024, were $3,201,889 compared to $7,142,155 for the nine-month period ended June 30, 2023. The decrease in revenues was a result of an industry-wide, well-documented slowdown in the residential building market. Notable expense items are referenced below:
Listing fees $1,552,153 (nine months 2023 - $Nil). This expense item reflects the non-cash cost of the RTO Transaction with DP, which provided the Company with its TSX-V listing in March 2024.
Professional fees $489,870 (nine months 2023 - $131,475). Professional fees in 2024 increased significantly versus 2023, also reflecting the cost of the RTO Transaction with DP, which provided the Company with its TSX-V listing in March 2024.
The Company is of the view, based on recently awarded contracts and jobs that have been commenced, that between September through January, Urban will not only execute on the already awarded $6M in contracts but also add to the pipeline figure of $17M+ and to the awarded contract subset.
Three and Nine Months Ended June 30, 2024 Financial Highlights:
The Company's key financial results for the three and six months ended June 30, 2024, are as follows:
| Canadian Dollars | For the three months ended | For the nine months ended | ||||||||||
| June 30, 2024 | June 30, 2023 | June 30, 2024 | June 30, 2023 | |||||||||
| Total revenue | 661,984 | 2,867,211 | 4,164,756 | 9,573,652 | ||||||||
| Gross margin | (342,826 | ) | 632,238 | 962,867 | 2,431,497 | |||||||
| Total Expenses | 496,981 | 409,755 | 3,095,615 | 644,355 | ||||||||
| Net comprehensive income (loss) | (860,373 | ) | 219,541 | (2,164,288 | ) | 1,353,606 | ||||||
| Weighted average number of common shares outstanding | 104,512,916 | 200 | 36,751,724 | 200 | ||||||||
| Basic and diluted loss per common share | (0.01 | ) | 1,098 | (0.06 | ) | 6,768 | ||||||
Access to Materials
Urban has filed its Q3/24 unaudited interim financial statements and MD&A with Canadian securities regulators. This press release should be read together with our Q3/24 unaudited interim financial statements and MD&A. These documents may be accessed through www.sedarplus.ca
About Urban Infrastructure Group
Urban Infrastructure Group Inc. (TSXV: UIG) is a leading concrete and drainage infrastructure construction group engaged in the earliest stage of the construction process - known as Stage One. Urban Infrastructure Group specializes in large-scale, master-planned residential communities, with partners and customers behind some of Ontario's most significant residential development projects.
Connect with UIG: https://urbaninfrastructuregroup.com/
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Contact:
Bill Mitoulas
Investor Relations
T: +1.416.479.9547
E: bill@urbaninfrastructuregroup.com
CAUTIONARY NOTES
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Information
This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain acts, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company, as the case may be, to be materially different from those expressed or implied by such forward-looking information. Some of these risks are described under the "Caution on Forward-Looking Information" section and "Risk Factors" section of the MD&A. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by these statements. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
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SOURCE: Urban Infrastructure Group Inc.
