Harbor Custom Development, Inc.

Thank you for standing by and welcome to the Harbor Custom Development Inc. fourth quarter and full year 2021 earnings conference call. At this time, all participants are on a listen-only mode. A question and answer session from previously submitted questions will follow the formal presentation. As a reminder, this conference is being recorded. I would now like to introduce today's presenters, Sterling Griffin, CEO, President and Chairman of the Board, and Lance Brown, Chief Financial Officer. I will now turn the conference over to Mr. Brown.

Thank you, Operator, and thank you all for joining us today. Welcome to Harbor Custom Development's fourth quarter and full year 2021 earnings conference call. During our discussion today, we will be referring to our earnings press release and presentation that were made available prior to the call. The release and presentation can be found in the investor relations section of the Harbor website at www.harborcustomhomes.com. Before we begin, I would like to remind everyone that today's call includes forward-looking statements. Any forward-looking statements contained in the earnings release or discussed today are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve a number of risks, uncertainties, and other factors that could cause actual results to differ materially from these forward-looking statements. specifically included our statements regarding our industry and our outlook for 2022. Please see our recent SEC filings, which identified the principal risks and uncertainties which could affect future performance. We assume no obligation to update any forward-looking statements. In addition, we will be discussing or providing certain non-GAAP financial measures today, including EBITDA, adjusted EBITDA, and adjusted EBITDA margins. Please see the appendix of our earnings presentation for a reconciliation of these non-GAAP measures to their most direct comparable GAAP measure. I would now like to turn the call over to Sterling.

Thank you, Lance, and thanks to everyone for joining the call today. We appreciate your interest in Harbor Custom Development. I want to begin by recognizing all our employees for the strong performance they delivered in 2021. Their continued dedication to the business contributed to the impressive performance throughout the year and allowed us to finish with significant momentum. The strength of our unique business model was on full display throughout the year with a 44% increase in revenue on a year-over-year basis. We benefited from strong pricing and demand conditions during 2021, despite broader industry challenges, including supply chain disruptions, labor shortages, and other inflationary pressures. While these challenges are expected to persist in the near term, we have successfully navigated these obstacles as evidenced by our financial results. With inventory levels at or near historic lows, we expect to benefit from continued strong pricing throughout 2022. Our distinct business plan of serving multiple segments of the home buying market within a 20 to 60 minute commute of some of the nation's fastest growing regions continues to provide us with a consistent stream of revenue. Our expertise allows for a diversified product strategy that enables us to better serve a wide range of buyers, adapt quickly to changing market conditions, and optimize performance. We are equipped to build to the surrounding community's needs, including single-family homes, townhomes, condominiums, and apartments. This flexibility allows us to target a wide and diverse range of customers. Our portfolio of land, lots, home plans, and finishing options coupled with the historic low inventory of residential and multifamily housing in our geographic areas provides an opportunity for us to increase revenue and overall market share. In addition to our single-family residential projects, we plan to build and sell townhomes, condominiums, and apartments, and anticipate the commencement or continuation of land development and construction projects on 10 multifamily sites, including Bridgeview Trails, Broadmoor Commons, Mills Crossing, Punta Gorda, Tanglewild, Olympic Sunset, Pacific Ridge, Windstone, Mira, and Westry Village in 2022. In addition to our diverse product portfolio, we continue to expand geographically. Western Washington remains our largest market, but we have operations in Texas, Florida, and California. We have grown our real estate assets, lot, and unit counts across the entire portfolio. In an effort to strategically control the expanding needs of our corporate team, We signed a lease on October 5th, 2021 for a new office space in Tacoma, Washington, and expect to relocate our headquarters there in the second quarter of 2022. The new office space is designed with a hybrid workforce in mind and takes into account employment trends that arose after the COVID-19 pandemic. We continue to demonstrate strong and consistent growth, delivering increased revenues each year of operation. For the years ended December 31st, 2021 and December 31st, 2020, our total revenues were 72.4 million and 50.4 million respectively. As of December 31st, 2021 and December 31st, 2020, our backlogs of fully executed contracts for the sale of developed residential lots and single family homes were 13.7 million and 9.1 million respectively. Our fee bill backlog as of December 31st, 2021 and December 31st, 2020 were 10 million and zero respectively. Our financial condition continues to improve. We made significant progress during 2021 to strengthen our balance sheet and finish the year with 26.2 million in cash, up from 2.4 million the previous year. We continue to invest in our business to drive shareholder value. Subsequent to year end, we announced the closing of a revolving credit facility of 25 million with Bank United. The facility provides us with the liquidity and financial flexibility to build on our already strong foundation and pursue further growth initiatives. I am confident that the continued demand in the single and multifamily housing markets, strength of our balance sheet, and our unique business model makes us well positioned to deliver a strong performance in 2022 and beyond. I will now turn the conference call over to Lance Brown, our Chief Financial Officer, to further discuss our financial results.