HCDI - Harbor Custom downsizes land development infrastructure unit reduces headcount by 56%

2023-03-06 10:00:18 ET

• Harbor Custom Development ( NASDAQ: HCDI ) said Monday it downsized its land development infrastructure division by reducing its headcount by 56% since Q3 and selling off $7.5M in heavy equipment that was used by the unit.
• "By materially downsizing our fee build horizontal division and wrapping up quarry operations, we reduced a considerable drag on our earnings and refocused efforts on our core strengths of permitting, land entitlement, and vertical construction of single-family homes, townhomes, and multi-family units," said CEO Sterling Griffin.
• The sale of equipment reduced Harbor's ( HCDI ) annual cash outlay on loans and lease payments associated with this equipment by over $2M annually, CFO Lance Brown noted.
• Harbor ( HCDI ) also eliminated ~$1.1M in annual depreciation expense associated with the sale.
• Earlier, Harbor ( HCDI ) implemented a 1-for-20 reverse stock split .

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