SMG Industries, Inc. Reports Financial Results for Its First Quarter 2022

Rhea-AI Summary

SMG Industries, Inc. (OTCQB:SMGI) reported a strong first quarter in 2022 with revenues reaching $16.1 million, up 112% from $7.6 million in Q1 2021. This performance was driven by growth in its industrial transportation and heavy haul divisions. Gross profit improved to $1.46 million from a loss of $1.1 million year-over-year. SG&A expenses reduced to 15.2% of sales. Despite a net loss of $3.64 million, the company is focused on acquiring additional transportation assets to support growth.

Positive

• Revenue increased to $16.1 million, a 112% rise from Q1 2021.
• Gross profit improved to $1.46 million from a gross loss of $1.1 million in the prior year.
• SG&A expenses decreased to 15.2% of sales, compared to 19.9% in Q1 2021.
• Total assets grew to $32 million as of March 31, 2022.

Negative

• Net loss from continuing operations was $3.64 million, despite improvement from the prior year's loss.

Transportation Services Company Reports $16.1 million in Revenues for First Quarter 2022, an Increase of approximately 112% from Q1, 2021

HOUSTON, TX, May 18, 2022 (GLOBE NEWSWIRE) -- via NewMediaWire - SMG Industries, Inc. (the “Company”) (OTCQB:SMGI), a growth-oriented transportation services company focused on the domestic infrastructure logistics market, today reported financial results for its first quarter 2022 and released its 2022 Quarterly Report on Form 10-Q.

First Quarter 2022 Highlights

• Revenues increased to $16,181,053 for the quarter ending March 31, 2022, an increase of about 112% from $7,602,328 for the first quarter 2021, driven by higher sales in our industrial transportation division and the heavy haul division of infrastructure components including bridge  beams and compressors. Additionally, 5J Transportation’s flatbed division and 5J Logistics’ asset-light brokerage business contributed to increased growth which were not present in the year ago period,
• Gross profit was $1,455,948 for the first quarter 2022, compared to a gross loss of $1,098,180 in the year ago period. Higher sales covering more fixed costs within cost of sales generated a higher gross margin in Q1, 2022. The gross profit results included a non-cash depreciation expense of $1,357,401,
• Selling, general and administrative (SG&A) expenses improved to approximately 15.2% of sales for the first quarter 2022, compared to 19.9% for the first quarter 2021,
• Net loss from continuing operations for Q1, 2022 improved to $3,636,018, which included non-cash expenses of $1,357,401 for depreciation and $1,497,032 for deferred financing costs, compared to a net loss of $3,808,568 in the same period 2021,
• Total assets grew to $32,030,438 at March 31, 2022, and,
• The Company is eyeing transportation acquisitions to support its asset rich equipment profile and infrastructure transportation growth plans.  

During the first quarter ended March 31, 2022, the Company generated higher year over year quarterly growth benefiting from increased customer activity resulting in higher pricing and volumes. Not present during the first quarter 2021, the Company’s flatbed and brokerage divisions further diversified the Company’s transportation services offering and contributed to revenue growth.

Mr. Matt Flemming, Chairman of SMG, stated “We are pleased to report a 112% increase in revenues for the first quarter 2022 compared to Q1, 2021. The increased revenues and higher pricing generated a gross margin of about $1.45 million which includes a non-cash expense from depreciation of approximately $1.35 million. Compared to the year ago period, customer activity was also favorable as the economy recovered further from the COVID pandemic. Strategically, the Company’s asset rich equipment profile has assisted in its transportation diversification plans and motivates SMGI to source  accretive acquisitions to increase our growth.”

Further information is available, including financial statements, footnotes and management’s discussion and analysis of its financial results, in the Company’s Quarterly Report on Form 10-Q filed May 16, 2022, and its Annual Report on Form 10-K for the year ended December 31, 2021.

About SMG Industries, Inc.: SMG Industries is a growth-oriented transportation services company focused on the domestic infrastructure logistics market.  Through several of the Company’s wholly-owned subsidiaries branded as the 5J Transportation Group, it offers heavy haul, super heavy haul, hot shot and drilling rig mobilization services. 5J’s dimensional permitted jobs can support up to 500-thousand-pound loads which include cargo associated with wind energy, power generation components, bridge beams, compressors, and refinery and construction equipment.  SMG Industries, Inc. headquartered in Houston, Texas has facilities in Floresville, Hempstead, Henderson, Houston, Odessa, Palestine, Victoria, Texas and Fort Mill, South Carolina. Read more at www.SMGIndustries.com and  www.5J-Group.com.

Contact: Matthew Flemming, SMG Industries, Inc. +1-713-955-3497

SOURCE:  SMG Industries, Inc.

FAQ

What were SMGI's revenue results for Q1 2022?

SMGI reported revenues of $16.1 million for Q1 2022, an increase of 112% compared to Q1 2021.

How did SMGI's gross profit change in Q1 2022?

The gross profit for Q1 2022 was $1.46 million, a significant improvement from a gross loss of $1.1 million in Q1 2021.

What is the net loss reported by SMGI for Q1 2022?

SMGI reported a net loss from continuing operations of $3.64 million for Q1 2022.

How did SG&A expenses change for SMGI in Q1 2022?

SMGI's SG&A expenses were approximately 15.2% of sales in Q1 2022, down from 19.9% in the prior year.

What are SMGI's future growth plans?

SMGI is looking to acquire additional transportation assets to enhance its growth in the infrastructure logistics market.