Exhibit
Exhibit
99.1
Smith-Midland Announces Fourth Quarter and Full Year 2018
Results
Fourth Quarter 2018 Highlights
●
Revenues of $11.7
million
o
Increase of $1.7
million, or 17%, over the fourth quarter 2017
o
$1.2 million
increase in deferred buy-back revenue (not included in
revenues)
o
$1.0 million
increase in deferred buy-back asset (not included in
expenses)
●
Gross Margin of
$3.5 million, or 29.8%
●
Net Income of $0.9
million
o
Increase of $0.5
million, or 145%, over the fourth quarter 2017
o
Increase of $0.10
per share over the fourth quarter 2017
Full Year 2018 Highlights
●
Revenues of $40.2
million
o
$6.6 million
increase in deferred buy-back revenue (not included in
revenues)
o
$5.3 million
increase in deferred buy-back asset (not included in
expenses)
●
Gross Margin of
$10.5 million, or 26.1%
●
Net Income of $1.7
million
●
Total Assets $41.4
million
o
Increase of $12.2
million, or 41.8%, over December 31, 2017
●
Current Backlog of
$31.1 million
o
Increase of $1.6
million, or 5.4%, over same time last year
MIDLAND, VA. – Smith-Midland Corporation (the Company)
(OTCQX: SMID), which develops, manufactures, licenses, rents, and
sells a broad array of precast concrete products for use primarily
in the construction, transportation and utilities industries, today
announced results for the quarter and full year ended December 31,
2018.
Fourth Quarter 2018 Results
The
Company reported fourth quarter revenues of $11.7 million for 2018
and $10.0 million for 2017, an increase of $1.7 million, or 17%.
The pre-tax income for the fourth quarter of 2018 was $1.2 million
compared to pre-tax income of $0.1 million in 2017, an increase of
$1.1 million. The Company had net income for the fourth quarter of
2018 in the amount of $0.9 million compared to net income of $0.4
million in 2017, an increase of $0.5 million. The basic and diluted
income per share was $0.17 for the fourth quarter 2018, while the
basic and diluted income per share was $0.07 for the fourth quarter
2017.
Full Year 2018 Results
The
Company reported total revenue of $40.2 million for 2018 compared
to $41.7 million for 2017, a decrease of $1.5 million, or 3.6%. The
Company reported pre-tax income of $2.3 million for 2018 compared
to pre-tax income of $3.7 million for 2017, a decrease of $1.4
million. The Company reported net income of $1.7 million in 2018,
compared to net income of $2.7 million in 2017, a decrease of $1.0
million. The basic and diluted income per share was $0.33 for 2018,
while the basic and diluted income per share was $0.53 for
2017.
CEO Commentary
Ashley
Smith, CEO stated, “The Company had significant earnings
improvement in the fourth quarter 2018 of $0.17 per share. The
guaranteed buy-back deferral on our largest barrier order ever
continues to impact current earnings as the deferred buy-back
revenue balance increased to $6.6 million and the deferred buy-back
asset balance increased to $5.3 million, which impacted pre-tax net
income for the year by $1.3 million. Moving forward, the Company
will be recognizing the deferred income through 2022, increasing
bottom line profits each year.
“During
the fourth quarter the Company received a new barrier rental order,
in which the Company produced and started delivering 47,004 linear
foot of rental barrier for a large infrastructure project in
southeastern Virginia. This job is expected to be fully delivered
in the first quarter of 2019, with revenue and earnings being
recognized over the 36 month leasing period. The Company continues
to grow the barrier rental fleet while adding product offerings,
such as barrier installation and resetting, crash cushions, and
safety accessories to provide a full-service safety barrier rental
package to highway contractors. To support the additional barrier
rental fleet, the Company has built a 4 acre storage and repair
yard near the Midland, VA plant where the rental division, Concrete
Safety Systems, operates the barrier rental fleet.
“Total
Assets for the Company grew this year to $41.4 million at December
31, 2018 from $29.2 million at December 31, 2017, an increase of
$12.2 million, or 41.8%, while only increasing outstanding debt on
notes payable by $1 million. The continued reinvestment back into
the Company prepares for the expected year over year sales growth
with the high probability of accelerated infrastructure projects in
our markets.
“Construction
of our newest manufacturing facility in North Carolina is slightly
behind schedule due to construction and weather delays, as it
continues to remain within the $3.3 million budget. We now expect
production to begin at the new facility in the third quarter 2019.
With plant capacity in North Carolina more than doubling, we
continue to bid on larger contracts to be manufactured in the new
plant.”
Balance Sheet and Liquidity
As of
December 31, 2018, the Company had cash and investments totaling
$3.1 million. Accounts receivable increased to $12.3 million at
December 31, 2018 with large billings occurring near the end of the
fourth quarter, all of which are expected to be collected in the
normal payment cycle. Total outstanding debt on notes payable was
$4.5 million, which includes debt associated with the North
Carolina expansion of $1.0 million. The increase in total
outstanding debt on notes payable is mainly attributed to our
execution of the North Carolina expansion strategy to support the
growing demand in our markets.
About Smith-Midland
Smith-Midland
develops, manufactures, licenses, rents, and sells a broad array of
precast concrete products for use primarily in the construction,
transportation and utilities industries.
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, general business and economic conditions, out debt
exposure, 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.
For
more complete information on Smith-Midland Corporation, visit the
Company’s web site at SMITHMIDLAND.com. The “Investor
Relations” area will include the Company’s
Form
10-K.
Media
Inquiries:
AJ
Krick, CFO
540-439-3266
investors@smithmidland.com
Sales
Inquiries:
info@smithmidland.com