Highlights:
- Master Plan Residential Development market conditions showing signs of improvement
- UIG Increases revenues on a quarter-over-quarter basis for the second consecutive quarter
- Management's sales efforts translated to an 84% revenue increase from Q3/F2024 to Q4/F2024 and increased again from Q4/F2024 to Q1/F2025 by 15%.
- UIG's ~$27M bid pipeline and ~$8.3M in current awarded contracts is an optimistic indicator
Toronto, Ontario--(Newsfile Corp. - February 28, 2025) - 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 First Quarter ended December 31st, 2024. All financial information is provided in Canadian dollars unless otherwise indicated.
The Consolidated Financial Statements and Management Discussion and Analysis ("MD&A") for the three months ended December 31, 2024, are available on the Company's SEDAR profile at www.sedarplus.ca.
Ungad Chadda, CEO of UIG stated, "Urban continues to execute on its core business, further increasing our focus and efforts on sales, customer relationships and new business development. We are very confident about our future prospects, both organic and inorganic, and remain laser focussed on costs, cash and working capital management. With ~$8.3M in current awarded contracts as of Q1 2025, the team is optimistic and firmly of the view of "when and not if" the low rise residential new construction activity resumes in earnest."
Management Commentary on the First Quarter of Fiscal 2025
The Company recorded a net loss of $289,648 for the three-month period ended December 31, 2024 as compared to net income of $559,707 for the three-month period ended December 31, 2023. The loss in the December 2024 quarter is mostly the result of decreased revenue in the quarter as compared to the quarters in 2023.
While December 2024 revenues are reduced as compared with the prior year period, revenues for the three-month period ended December 31, 2024 represented an increase on a successive quarterly basis (to $1,401,963 compared to $1,217,118 In the September 30, 2024 quarter and $661,984 for the three-month period ended June 30, 2024, as the construction market showed signs of a coming recovery).
Early indicators show that sales in the coming 12 months should accelerate from those in 2024. Gross margins should recover with increased sales and demand for construction services which should ease the pricing pressure that was present during 2024.
The year-over-year decrease in revenues was a result of an industry-wide, well-documented slowdown in the residential building market. Many in industry, media and elsewhere believe this has been caused primarily by developers delaying project launches as they assessed the interest rate environment and economic conditions. As a result of these delays, our sales for the period were down significantly from the prior year comparative period.
That said, we continue to have a strong pipeline of contracted jobs that are starting to move into the shovel-stage. Although we are not certain as to when these industry delays will fully moderate, we are seeing movement. The series of interest rate cuts in 2024 and those in early calendar 2025 are excellent signs that improved affordability will improve the supply-demand balance. We note that there are some early signs of projects starting back up and our crews getting busier, but it remains to be seen if this will take on some permanence.
Our ~$27M bid pipeline and our ~$8.3M in awarded contracts delivers an optimistic indicator that the market is recovering. Additional support is anticipated via additional rate cuts in 2025.
SUMMARY OF QUARTERLY RESULTS
The following table sets forth selected financial information from the Company's quarterly financial statements.
| Quarter | Gross | Net | Earnings | Average | ||||||||||||||||
| Ended | Revenue | Margin | Expenses | Income | Per Share | Shares | ||||||||||||||
| 2024-12-31 | $ | 1,401,963 | $ | 216,233 | $ | 496,474 | $ | (289,648 | ) | $ | (0.00 | ) | 104,512,916 | |||||||
| 2024-09-30 | 1,217,118 | 74,319 | 356,349 | (317,355 | ) | (0.00 | ) | 104,512,916 | ||||||||||||
| 2024-06-30 | 661,984 | (342,826 | ) | 546,642 | (910,034 | ) | (0.01 | ) | 104,512,916 | |||||||||||
| 2024-03-31 | 1,536,307 | 323,284 | 626,771 | (1,855,640 | ) | (0.32 | ) | 5,742,646 | ||||||||||||
| 2023-12-31 | 1,966,465 | 982,408 | 419,709 | 559,707 | 2,799 | 200 | ||||||||||||||
| 2023-09-30 | 2,703,225 | 1,198,884 | 422,867 | 281,613 | 1,408 | 200 | ||||||||||||||
| 2023-06-30 | 2,867,211 | 632,238 | 409,755 | 219,541 | 1,098 | 200 | ||||||||||||||
| 2023-03-31 | 2,922,648 | 901,155 | 341,291 | 559,864 | 2,799 | 200 |
As at the date of this MD&A, December 31, 2024 and September 30, 2024, the Company's outstanding share information is as follows:
| December 31, 2024 | September 30, 2024 | |||||||
| Common shares | - | 200 | ||||||
| Class A common shares issued and outstanding | 104,512,916 | 104,512,916 | ||||||
| Class B common shares issued and outstanding | 17,000,000 | 17,000,000 | ||||||
| Stock options issued and outstanding | 9,599,467 | 9,599,467 | ||||||
| Warrants issued and outstanding | 4,743,864 | 4,743,864 | ||||||
| Fully diluted common shares issued and outstanding | 135,856,247 | 135,856,247 |
Change in Directors
On December 9, 2024, the Company announced that Luca Filice joined the Board and Jennifer Labrecque had resigned from the Board. Mr. Filice's reputation and decades of construction experience in the construction community, along with his network of business partners in the excavation, forming, utilities and site servicing circles will strengthen the UIG Board. As a partner and General Manager leading the custom home building operations of PCMnow.com Inc., a Canadian custom home builder, based Oakville, Ontario, specializing in planning, design and turnkey construction services, Mr. Filice has built some of the finest luxury homes in southeast Oakville and surrounding areas. Notably, Mr. Filice has been the builder of choice for the annual Princess Margaret Lottery Home and other high value projects.
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/
# # #
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.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/242808
SOURCE: Urban Infrastructure Group Inc.
