Highlights:
- Revenue for Q2 2025 was $1M compared to prior year Q2 revenue of $1.536M
- Revenue for the six months ended was $2.4M compared to $3.5M for the same period in 2024
- Reduction in head office operating expense through staffing optimization
- Streamlined, industry focused leadership changes:
- Gary Alves, Founder and President assumes the position of Chief Executive Officer
- Steve Kaszas joins the board and Luca Filice appointed Chief Operating Officer
Toronto, Ontario--(Newsfile Corp. - May 28, 2025) - Urban Infrastructure Group Inc. (TSXV: UIG) ("urban" or the "Company"), a leading stage-one concrete and drainage infrastructure construction group, specializing in large scale new residential housing developments, announces its financial results for three and six months ended March 31, 2025. 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 and six months ended March 31, 2025, are available on the Company's SEDAR profile at www.sedarplus.ca.
Gary Alves stated, "Urban continues to execute on its core business, while increasing its focus on diversification and vertical integration. While the current market conditions are challenging for the home construction industry as a whole, for those who are nimble and innovative there are opportunities. We at Urban remain committed to our core values of quality, trust and customer focus while at the same time embracing the change. Additionally, I am excited about the most recent addition of Luca Filice to the role of C.O.O. Luca brings a wealth of experience and industry relationships across both the construction and financial sectors. I am working closely with Luca on several initiatives that we look forward to sharing in due course."
Management Commentary on the Second Quarter of Fiscal 2025
The Company recorded a net loss of $367,745 ($0.00 per share) for the three-month period ended March 31, 2025 as compared to net loss of $1,863,622 ($0.32 per share) for the three-month period ended March 31, 2024. The decrease in net loss is mostly the result of the one-time go-public expense in the March 2024 quarter, the vast majority of which was a non-cash expense.
Revenues for the three-month period ended March 31, 2025 decreased to $1,003,322 as compared to revenue of $1,536,307 for the three-month period ended March 31, 2024. The cost of sales for the three-month period ended March 31, 2025, were $877,343 compared to $1,213,023 for the three-month period ended March 31, 2024. The decrease in revenues was a result of a seasonally slow period during the winter months exacerbated by 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 assess the interest rate environment and economic conditions. As a result of these delays, our sales for the quarter were down significantly from the prior year comparative period. That said, we continue to have a strong pipeline of contracted jobs but without the near-term certainty on when these industry delays will moderate. 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 belief is that a Bank of Canada rate cut in June would be a positive development.
Shareholder Meeting Results
Urban would also like to announce the voting results from its annual and special meeting of shareholders of the Company (the "Meeting"), which was held on Tuesday May 27, 2025. All meeting matters put before the shareholders of the Company, and as more fully described in the Company's Notice of Annual and Special Meeting of Shareholders and Management Information Circular, dated April 17, 2025, were approved by the requisite majority of votes cast at the Meeting.
A total of 82,252,630 common shares of the Company were voted at the Meeting, representing approximately 78.71% of the total issued and outstanding common shares of the Company as of the record date of the Meeting.
Appointment of Officers
The Company is pleased to announce that the following individuals have been appointed officers of the Company:
Gary Alves - Chief Executive Officer
Luca Filice -Chief Operating Officer
John Ross - Chief Financial Officer
Grant of Stock Options
Urban also announces that it has granted effective May 27, 2025, an aggregate of 2,000,810 options to directors and/or officers of the Company, with such options being exercisable at a price of $0.10 per share until May 27, 2031.
The grant of options is subject to the approval and requirements of the TSX Venture Exchange.
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.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/253792
SOURCE: Urban Infrastructure Group Inc.
