My City Builders, Inc.

My City Builders, Inc. Annual Report - Plain-English Investor Summary
What you need to know about their 2023 performance

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1. What They Do & This Year’s Performance

My City Builders designs and builds critical infrastructure for cities—schools, roads, apartments, parks—working mostly with local governments and developers. This year, they completed 18 major projects (up from 15 in 2022) and secured a landmark $90 million contract to revitalize a downtown area in Texas. Growth is happening, but not without hiccups.

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2. Money Talk: Revenue Up, Profits Down

• Revenue: $520 million (12% increase from 2022).
• Profit: $38 million (5% drop from last year due to rising supply chain costs).
• Growth Mix: Their traditional construction business grew just 3% (vs. 8% in 2022), but they’re making early bets on solar-powered infrastructure.

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3. Biggest Wins & Challenges

✅ Wins:

• Landed the Texas downtown redevelopment deal ($90 million).
• Won “Most Sustainable Builder” award (boosts credibility).
• Reduced debt by 20% ($210 million total debt now).

🚧 Challenges:

• Lumber/steel costs spiked 18%, squeezing profits.
• Lost a major airport bid to a competitor.
• Worker shortages delayed 3 projects.

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4. Financial Health Snapshot

• Cash Reserves: $65 million (covers 6 months of operations).
• Debt: Improved to $210 million (down from $260 million in 2022).
• Stress Test: They could weather a 6-month downturn, but prolonged cost increases would strain them.

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5. Top Risks to Watch

• Permit Delays: Projects face longer approval times due to zoning/environmental rules.
• Hidden Costs: Liability for pollution cleanup at old sites (even if they didn’t cause it).
• Government Budgets: Cities may delay projects if tax revenues dip.
• Leadership Uncertainty: Interim part-time CEO/CFO in place—could slow big decisions.

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6. How They Stack Up Against Competitors

• Growth: Outpacing traditional builders but lagging behind tech-savvy rivals.
• Reputation: Higher trust scores due to sustainability focus.
• Profit Margins: Lower than competitors—slow to adopt cost-saving tech.

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7. Leadership & Strategy Shifts

• Interim Leadership: Still searching for full-time CEO/CFO.
• New Focus: 20% of 2024 budget allocated to solar projects and eco-friendly upgrades.
• Hiring Freeze: Paused hiring for non-solar roles.

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8. 2024 Goals & Forecast

• Margin Boost: Plans to use cheaper recycled materials to improve profits.
• Upcoming Projects: Nevada “smart neighborhood” and 2 wind farms (permits pending).
• Forecast: 8-10% revenue growth if material costs stabilize and permits arrive on time.

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9. External Factors That Matter

• Green Incentives: Federal grants for eco-projects could boost their solar push.
• Interest Rates: Higher borrowing costs might make cities postpone projects.

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Bottom Line for Investors
✅ Strengths: Steady growth, strong cash reserves, and a smart pivot toward sustainable projects.
⚠️ Risks: Rising costs, permit delays, and part-time leadership add uncertainty.
🔮 Outlook: Moderately risky with long-term potential if green infrastructure demand grows as expected.

Verdict: Like a house in a transitioning neighborhood—solid foundation but needs updates. Worth watching if you’re bullish on eco-friendly urban development.

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Always do your own research or consult a financial advisor before investing.