Toronto, Ontario–(Newsfile Corp. – January 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, announce its financial results for the 2024 fiscal year. All financial information is provided in Canadian dollars unless otherwise indicated.
The Consolidated Financial Statements and Management Discussion and Analysis (“MD&A”) for the year ended September 30, 2024, are available on the Company’s SEDAR profile at www.sedarplus.ca.
Ungad Chadda, CEO of UIG stated, “We are very pleased to report our full year results to the market. Fiscal 2024 was a tremendously difficult year in the Ontario construction industry. As we have been reporting over the past year, 2024 saw low-rise construction starts in the master-plan community space come to a virtual stop. Notwithstanding, the weak market for most of the year which drove lower revenues and some margin compression, we are proud of our accomplishments this year in terms of successfully listing the company on TSXV as well as raising capital and assembling a top-notch board of directors. I want to take this opportunity to thank all our stakeholders for their support this past year and to look forward to fiscal 2025 – a year which we are very optimistic will continue the recovery in our business that we saw in Q4. Coupled with what appears to be a certainty that interest rate levels in Canada this year will provide stimulus to our business, we are optimistic that the health of our developer customers and Ontario homebuyers will continue to improve to the benefit of UIG and its loyal shareholders.”
Management Commentary on the Audited 2024 Fiscal Year, Ended September 30, 2024:
The 2024 year saw a significant downturn in construction activity. The Company recorded net loss of $2,523,322 ($0.05 per share) for the year ended September 30, 2024, as compared to net income of $1,647,887 ($8,374 per share) for the year ended September 30, 2023. The decrease in net income is the result of decreased revenue in the 2024 fiscal year. A one-time, non-cash, $2.0 million “listing fee” related to the Company’s RTO transaction was also a significant component of the 2024 loss. As per note #4 in the audited year-end financial statements entitled Reverse Takeover Transaction, the “listing expense” is principally a non-cash expense that is calculated by subtracting the identifiable assets of the CPC shell (Deal Pro), which were nominal, from the total fair value of the shares, options and warrants that were allocated to the former shareholders of Deal Pro as part of the purchase price. Thus, the one-time “listing expense” of approx. $2.0M in 2024.
Revenues for the year ended September 30, 2024 were $5,381,874 as compared to revenue of $12,276,877 for the year ended September 30, 2023.
The decrease in revenues was a result of an industry-wide, well-documented slowdown in the residential building market. Many in the 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 including the two ½ point cuts 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 labour 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 a optimistic indicator that there is a thawing-out of the deep freeze which saw our low rise residential developer clients struggle mightily to get shovels in the ground this year. Additional support is anticipated via additional rate cuts in 2025.
Audited Twelve Months Ended September 30, 2024 – Financial Highlights:
The following table sets forth selected financial information from the Company’s audited financial statements for each of the two most recently completed year ends.
YEARS ENDED
September 30, 2024
September 30, 2023
September 30, 2022
Total revenue
$5,381,874
$12,276,877
$7,648,330
Net comprehensive income (loss)
($2,523,322)
$1,674,887
$251,260
Earnings per share (basic and diluted)
$(0.05)
$8,374
$1,256
Management Commentary on the Three Months Ended September 30, 2024:
The Company recorded a net loss of $309,373 ($0.00 per share) for the three-month period ended September 30, 2024 as compared to net income of $294,281 ($1,471 per share) for the three-month period ended September 30, 2023. The loss in the 2024 quarter is mostly the result of decreased revenue in the September 2024 quarter.
Revenues for the three-month period ended September 30, 2024 rebounded to $1,217,118 as compared to revenue of $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.
Historic Quarterly Results Financial Highlights:
The following table sets forth selected financial information from the Company’s quarterly financial statements.
Quarter Ended
Revenue
Gross Margin
Expenses
Net Income
Earnings Per Share
Average Shares
2024-09-30
$1,217,118
$74,318
$827,257
$(309,373
)
$(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
2,178,924
(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
422,866
294,281
1,471
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
2,785
200
2022-12-31
3,783,793
898,104
303,063
586,869
2,934
200
Access to Materials:
Urban has filed its Consolidated Fiscal Year End 2024 Financial Statements and MD&A with Canadian securities regulators. This press release should be read together with our Consolidated Fiscal Year End Audited 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.
Bill Mitoulas Investor Relations T: +1.416.479.9547 E: [email protected]
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.
