Smith-Midland Reports First Quarter 2024 Financial Results
Smith-Midland (NASDAQ:SMID) announced its Q1 2024 financial results, reporting a record quarterly revenue of $16.8 million, a 30% increase from the previous year's $12.8 million.
Product sales rose 30% to $10.8 million, while service revenue grew 31% to $6.0 million. Operating income surged to $1.5 million from $54,000, and net income increased to $1.1 million, or $0.22 per basic share, compared to $80,000, or $0.02 per share, in Q1 2023.
Gross profit improved to $3.9 million with a gross margin of 23%, up by 480 basis points due to higher production volumes. The company has also begun construction to double the size of its North Carolina plant.
Smith-Midland's backlog is strong at $64.6 million, and the company anticipates further growth driven by infrastructure funding expected later in 2024.
- Revenue increased by 30% to $16.8 million.
- Product sales grew 30% to $10.8 million.
- Service revenue increased 31% to $6.0 million.
- Operating income rose to $1.5 million from $54,000.
- Net income increased to $1.1 million, or $0.22 per basic share.
- Gross profit improved to $3.9 million.
- Gross margin increased by 480 basis points to 23%.
- Construction started to double the size of the North Carolina plant.
- Backlog increased to $64.6 million, up from $51.4 million.
- Strong demand for utility vaults driven by data center growth.
- Cash reserves decreased to $6.8 million from $9.2 million.
- Barrier sales declined to $1.7 million from $2.8 million.
- Barrier rental revenue fell to $893,000 from $1.1 million.
Insights
Smith-Midland Corporation has demonstrated exceptional growth in its latest financial results. The company reported a 30% increase in revenue to
An operating income of
The backlog of $64.6 million and the positive outlook rooted in infrastructure funding and robust demand for utility vaults offer a promising growth trajectory. However, from a liquidity standpoint, the reduction in cash from
The surge in demand for Smith-Midland’s utility products, particularly utility vaults, is noteworthy. This segment’s revenue rose to
Service revenue also saw a healthy increase, with shipping and installation revenue climbing
Smith-Midland’s commitment to doubling its North Carolina plant capacity signals a proactive stance towards meeting rising demand. This expansion could drive further revenue growth but may exert pressure on capital expenditures and short-term liquidity.
Highest Quarterly Revenue of
MIDLAND, VA / ACCESSWIRE / June 11, 2024 / Smith-Midland Corporation (NASDAQ:SMID) a provider of innovative, high-quality proprietary and patented precast concrete products and systems today announced its first quarter results for the period ended March 31, 2024.
First Quarter 2024 Summary (compared to prior-year quarter)
- Revenue increased 30 percent to
$16.8 million - Product sales increased 30 percent to
$10.8 million - Service revenue increased 31 percent to
$6.0 million - Operating income of
$1.5 million , compared to$54,000 - Net income of
$1.1 million , or$0.22 and$0.21 per basic and diluted share, respectively, compared to$80,000 or$0.02 per basic and diluted share - Started construction to double the size of its North Carolina plant
"We are off to a strong start in 2024, posting a 30 percent increase in revenue from the prior-year quarter and our highest quarterly revenue," said Ashley Smith, Chairman and Chief Executive Officer of Smith-Midland. "The increase was primarily driven by increased production of our soundwall and utility products and increased shipping and installation. We are experiencing a strong demand for our utility vaults in response to the continued growth of data centers. Our prospects for the remainder of the year remain very favorable, thanks to the inflow of infrastructure funding expected in the latter half of 2024 at the state and local level, as well as our backlog. We remain well-positioned to deliver strong growth and create long-term value for our shareholders."
First Quarter 2024 Results
The Company reported 2024 first quarter revenues of
Gross profit increased to
Operating income for the quarter was
Product Sales
Total product sales for the first quarter of 2024 were
Service Revenue
Service revenue, which is comprised of royalty income, barrier rental revenue, and shipping and installation totaled
Balance Sheet and Liquidity
As of March 31, 2024, Smith-Midland's cash totaled
Macro Environment and Outlook
The Company anticipates increased sales volume for the full year of 2024 compared to 2023. Infrastructure initiatives across the United States is expected to drive greater bidding activity and a subsequent increase in backlog for its portfolio of patented, proprietary, and custom products. Backlog was approximately
About Smith-Midland
Smith-Midland develops, manufactures, licenses, rents, and sells a broad array of precast concrete products and systems for use primarily in the construction, transportation, and utility industries.
Smith-Midland Corporation has three manufacturing facilities in: Midland, VA, Reidsville, NC, and Columbia, SC, and a J-J Hooks® Safety Barrier rental firm, Concrete Safety Systems. Easi-Set Worldwide, a wholly owned subsidiary of Smith-Midland Corporation, licenses the production and sale of Easi-Set products, including J-J Hooks and SlenderWall®, and provides diversification opportunities to the precast industry worldwide. For more information, please call (540) 439-3266 or visit www.smithmidland.com.
Forward-Looking Statements
This announcement contains forward-looking statements, which involve risks and uncertainties. The Company's actual results may differ significantly from the results discussed in the forward-looking statements. Factors which might cause such a difference include, but are not limited to, product demand, the impact of competitive products and pricing, capacity and supply constraints or difficulties, our material weaknesses in internal controls, inflationary factors including potential recession, general business and economic conditions, our debt exposure, our high level of accounts receivables, the effect of the Company's accounting policies and other risks detailed in the Company's Annual Report on Form 10-K and other filings with the Securities and Exchange Commission.
Company Contact:
Stephanie Poe, CFO
540-439-3266
investors@smithmidland.com
Investor Relations:
Steven Hooser or John Beisler
Three Part Advisors, LLC
214-872-2710
Smith-Midland Corporation
and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands, except share and per share data)
ASSETS | March 31, 2024 (Unaudited) | December 31, 2023 | ||||||
Current assets | ||||||||
Cash | $ | 6,801 | $ | 9,175 | ||||
Accounts receivable, net | ||||||||
Trade - billed (less allowances of approximately | 20,055 | 17,209 | ||||||
Trade - unbilled | 637 | 525 | ||||||
Inventories, net | ||||||||
Raw materials | 2,939 | 2,329 | ||||||
Finished goods | 4,012 | 2,821 | ||||||
Prepaid expenses | 1,246 | 1,266 | ||||||
Total current assets | 35,690 | 33,325 | ||||||
Property and equipment, net | 28,826 | 27,680 | ||||||
Other assets | 337 | 343 | ||||||
Total assets | $ | 64,853 | $ | 61,348 | ||||
The accompanying notes are an integral part of the condensed consolidated financial statements.
Smith-Midland Corporation
and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands, except share and per share data)
(continued)
LIABILITIES AND STOCKHOLDERS' EQUITY | March 31, 2024 (Unaudited) | December 31, 2023 | ||||||
Current liabilities | ||||||||
Accounts payable - trade | $ | 6,944 | $ | 7,336 | ||||
Accrued expenses and other liabilities | 1,900 | 831 | ||||||
Deferred revenue | 3,217 | 2,717 | ||||||
Accrued compensation | 871 | 1,203 | ||||||
Accrued income taxes | 831 | 473 | ||||||
Operating lease liabilities | 34 | 43 | ||||||
Current maturities of notes payable | 640 | 636 | ||||||
Customer deposits | 2,950 | 2,779 | ||||||
Total current liabilities | 17,387 | 16,018 | ||||||
Deferred revenue | 5,572 | 4,424 | ||||||
Operating lease liabilities | - | 2 | ||||||
Notes payable - less current maturities | 4,931 | 5,092 | ||||||
Deferred tax liability | 1,650 | 1,651 | ||||||
Total liabilities | 29,540 | 27,187 | ||||||
Stockholders' equity | ||||||||
Preferred stock, $.01 par value; authorized 1,000,000 shares, none issued and outstanding | - | - | ||||||
Common stock, $.01 par value; authorized 8,000,000 shares; 5,349,599 and 5,349,599 issued and 5,308,679 and 5,308,679 outstanding, respectively | 54 | 54 | ||||||
Additional paid-in capital | 7,819 | 7,814 | ||||||
Treasury stock, at cost, 40,920 shares | (102 | ) | (102 | ) | ||||
Retained earnings | 27,542 | 26,395 | ||||||
Total stockholders' equity | 35,313 | 34,161 | ||||||
Total liabilities and stockholders' equity | $ | 64,853 | $ | 61,348 | ||||
The accompanying notes are an integral part of the condensed consolidated financial statements.
Smith-Midland Corporation
and Subsidiaries
Condensed Consolidated Statements of Income
(unaudited)
(in thousands, except per share data)
| Three Months Ended March 31, | ||||||||
| 2024 | 2023 | |||||||
Revenue | ||||||||
Product sales | $ | 10,752 | $ | 8,242 | ||||
Barrier rentals | 893 | 1,120 | ||||||
Royalty income | 575 | 411 | ||||||
Shipping and installation revenue | 4,536 | 3,069 | ||||||
Total revenue | 16,756 | 12,842 | ||||||
Cost of sales | 12,845 | 10,676 | ||||||
Gross profit | 3,911 | 2,166 | ||||||
Operating expenses | ||||||||
General and administrative expenses | 1,549 | 1,350 | ||||||
Selling expenses | 853 | 762 | ||||||
Total operating expenses | 2,402 | 2,112 | ||||||
Operating income (loss) | 1,509 | 54 | ||||||
Other income (expense) | ||||||||
Interest expense | (60 | ) | (64 | ) | ||||
Interest income | 8 | 6 | ||||||
Gain on sale of assets | 3 | 82 | ||||||
Other income | 44 | 25 | ||||||
Total other income (expense) | (5 | ) | 49 | |||||
Income (loss) before income tax expense (benefit) | 1,504 | 103 | ||||||
Income tax expense (benefit) | 357 | 23 | ||||||
Net income (loss) | $ | 1,147 | $ | 80 | ||||
Basic earnings (loss) per common share | $ | 0.22 | $ | 0.02 | ||||
Diluted earnings (loss) per common share | $ | 0.21 | $ | 0.02 | ||||
Weighted average number of common shares outstanding: | ||||||||
Basic | 5,309 | 5,256 | ||||||
Diluted | 5,350 | 5,290 | ||||||
The accompanying notes are an integral part of the condensed consolidated financial statements.
Smith-Midland Corporation
and Subsidiaries
Condensed Consolidated Statements of Stockholders' Equity
(unaudited)
(in thousands, except share data)
Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Total | ||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Balance, December 31, 2023 | 5,349,599 | $ | 54 | (40,920 | ) | $ | (102 | ) | $ | 7,814 | $ | 26,395 | $ | 34,161 | ||||||||||||||
Restricted stock issued | - | - | - | - | - | - | - | |||||||||||||||||||||
Vesting of restricted stock | - | - | - | - | 5 | - | 5 | |||||||||||||||||||||
Net income (loss) | - | - | - | - | - | 1,147 | 1,147 | |||||||||||||||||||||
Balance, March 31, 2024 | 5,349,599 | $ | 54 | (40,920 | ) | $ | (102 | ) | $ | 7,819 | $ | 27,542 | $ | 35,313 | ||||||||||||||
Balance, December 31, 2022 | 5,345,189 | $ | 53 | (40,920 | ) | $ | (102 | ) | $ | 7,440 | $ | 25,664 | $ | 33,055 | ||||||||||||||
Adoption of ASU 2016-13 | - | - | - | - | - | (63 | ) | (63 | ) | |||||||||||||||||||
Vesting of restricted stock | - | - | - | - | 85 | - | 85 | |||||||||||||||||||||
Net income (loss) | - | - | - | - | - | 80 | 80 | |||||||||||||||||||||
Balance, March 31, 2023 | 5,345,189 | $ | 53 | (40,920 | ) | $ | (102 | ) | $ | 7,525 | $ | 25,681 | $ | 33,157 | ||||||||||||||
The accompanying notes are an integral part of the condensed consolidated financial statements.
Smith-Midland Corporation
and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(in thousands)
Three Months Ended March 31, | ||||||||
| 2024 | 2023 | |||||||
Cash flows from operating activities: | ||||||||
Net income (loss) | $ | 1,147 | $ | 80 | ||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||||
Depreciation and amortization | 641 | 594 | ||||||
(Gain) loss on sale of property and equipment | (352 | ) | (82 | ) | ||||
Allowance for credit losses | 147 | 92 | ||||||
Stock compensation | 5 | 85 | ||||||
Deferred taxes | (1 | ) | 1 | |||||
(Increase) decrease in | ||||||||
Accounts receivable - billed | (2,993 | ) | (1,800 | ) | ||||
Accounts receivable - unbilled | (112 | ) | (1,544 | ) | ||||
Inventories | (1,801 | ) | (1,173 | ) | ||||
Prepaid expenses | 20 | (70 | ) | |||||
Refundable income taxes | - | 2 | ||||||
Increase (decrease) in | ||||||||
Accounts payable - trade | (392 | ) | 624 | |||||
Accrued expenses and other liabilities | 1,069 | (54 | ) | |||||
Deferred revenue | 1,648 | 59 | ||||||
Accrued compensation | (332 | ) | (148 | ) | ||||
Accrued income taxes | 358 | 22 | ||||||
Customer deposits | 171 | 1,757 | ||||||
Net cash provided by (used in) operating activities | (777 | ) | (1,555 | ) | ||||
Cash flows from investing activities: | ||||||||
Purchases of property and equipment | (1,795 | ) | (1,164 | ) | ||||
Proceeds from the sale of property and equipment | 355 | 82 | ||||||
Net cash provided by (used in) investing activities | (1,440 | ) | (1,082 | ) | ||||
Cash flows from financing activities: | ||||||||
Repayments of long-term borrowings | (157 | ) | (153 | ) | ||||
Net cash provided by (used in) financing activities | (157 | ) | (153 | ) | ||||
Net increase (decrease) in cash | (2,374 | ) | (2,790 | ) | ||||
Cash | ||||||||
Beginning of period | 9,175 | 6,726 | ||||||
End of period | $ | 6,801 | $ | 3,936 | ||||
Supplemental Cash Flow Information: | ||||||||
Cash payments for interest | $ | 60 | $ | 64 | ||||
Cash payments for income taxes | $ | - | $ | - | ||||
Non-Cash Investing Activity: | ||||||||
Capital expenditures in accounts payable | $ | 2,099 | $ | 2,052 | ||||
The accompanying notes are an integral part of the condensed consolidated financial statements.
SOURCE: Smith-Midland Corporation
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FAQ
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