Harbor Custom Development, Inc. Downsizes Land Development Infrastructure Division - Reducing Head Count by 56%
TACOMA, Wash., March 06, 2023 (GLOBE NEWSWIRE) -- 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 Statements
Certain 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.
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