ST. CHARLES, Ill., April 16, 2019 (GLOBE NEWSWIRE) -- Sports Field Holdings, Inc. (OTCQB:SFHI), engaged in the design, engineering, construction, and construction management of athletic facilities and sports complexes through its FirstForm, Inc. wholly-owned subsidiary today announced financial results for the full-year ended December 31, 2018.
2018 Highlights Include:
- Completed construction of first track and field project in the Los Angeles Unified School District (LAUSD) – the second largest school district in the U.S.;
- Constructed first project in the New York City public schools district – the largest school district in the U.S.’
- The company was able to secure its initial construction bonding line for the first time in its history;
- Surfacing projects maintained a positive gross profit of approx. 14.5% on more than $5 million in revenue;
- Maintained strong sales backlog of over $9 million heading into 2019;
- Architecture and engineering business growing with several new contracts;
- All awarded contracts remain in backlog.
Jeromy Olson, Chief Executive Officer of Sports Field Holdings, Inc., said, “In 2018, we achieved a major milestone with the completion of our first large vertical construction project. The project was St. Joseph’s By-the-Sea High School (SJBTS) in Staten Island, NY. We are proud of the structure and the benefit that will be realized by all the great student-athletes at SJBTS. Significant losses, in accordance with GAAP accounting practices, were recognized in 2018. We incurred these losses for three main reasons: (1) the project was extended by 12 months, which added substantial delay costs; (2) our construction costs increased by over 17% during the same period; and (3) cost overruns occurred based on regional prices exceeding estimates.”
“The losses should be substantially offset by the acceptance of open change orders that should shift a significant amount of the revenue lost in 2018 into 2019. As this was the first vertical construction project of this magnitude for the company, we learned a great deal and have instituted measures to avoid similar issues on future projects.”
“Winning and constructing our first projects in both the Los Angeles Unified School District as well as the New York City public schools’ system is a significant achievement for Sports Fields Holdings,” continued Mr. Olson. “These two represent the largest school districts in the country with more than 2500 schools combined. We expect to do more business in these major districts in the coming years. We operate in large markets with a significant replacement cycle underway, and we are excited with the opportunities ahead.”
Mr. Olson concluded, “We are off to a solid start in 2019 with 5 projects currently under construction, and we anticipate improved revenues for the coming quarter and year. We now have excellent references in Los Angeles, New York and Miami that should serve us well in future bidding processes in those specific markets as well as other metropolitan areas. Our completed projects featuring Replicated Grass® and TerraSport® infill show very impressively and, we believe, represent an important competitive advantage.”
About Sports Field Holdings, Inc.
Sports Field Holdings, Inc., through its wholly owned subsidiary FIRSTFORM, Inc., is a product development, engineering and design-build construction company, engaged in the design, engineering, constructing, and construction management of athletic facilities, and sports complexes. Construction management of sports facilities and synthetic turf sales are the two primary lines of business. These lines of business can be categorized as design, development, and manufacturing of sports surfacing products and associated pre-engineered construction systems.
To learn more about Sports Field Holdings, Inc. please visit http//www.sportsfieldholdingsinc.com
Safe Harbor Statement
This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are intended to be covered by the "safe harbor" created by those sections. Any statements that are not historical facts contained in this press release are also "forward-looking statements" as that term is defined under the Private Securities Litigation Reform Act of 1995 (PSLRA). Such statements may be identified by words such as "expects," "plans," "projects," "will," "may," "anticipates," "believes," "should," "intends," "estimates," and other words of similar meaning. Such forward-looking statements are based on current expectations, involve known and unknown risks, a reliance on third parties for information, transactions or orders that may be cancelled, and other factors that may cause our actual results, performance or achievements, or developments in our industry, to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties related to the fluctuation of global economic conditions, the performance of management and our employees, our ability to obtain financing or required licenses, competition, general economic conditions and other factors that are detailed in our Annual Reports on Form 10-K for the fiscal years ended December 31, 2018 and 2017, filed with the Securities and Exchange Commission (“SEC”), as well as our Quarterly Reports on Form 10-Q filed with the SEC, and in other documents we file with the SEC. We intend that all forward-looking statements be subject to the safe-harbor provisions of the PSLRA, Securities Act and Securities Exchange Act.
Contact: Sports Field Holdings, Inc.
Ed Capko
Investor Relations
815-942-4645