Exhibit
Exhibit
99.1
Smith-Midland Announces First Quarter 2019 Results
First Quarter 2019 Highlights
●
Revenues of $10.2
million
o
Increase of $1.1
million, or 12%, over the first quarter 2018
●
Gross Margin of
$2.2 million, or 21.8%
●
Net Income of $0.3
million
o
Increase of $0.7
million over the first quarter 2018
o
Increase of $0.14
per share over the first quarter 2018
●
Current Backlog of
$31.2 million
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 ended March 31,
2019.
First Quarter 2019 Results
The
Company reported first quarter revenues of $10.2 million for 2019
and $9.1 million for 2018, an increase of $1.1 million, or 12%. The
pre-tax income for the first quarter of 2019 was $0.4 million
compared to a pre-tax loss of $0.6 million in 2018, an increase of
$1.0 million. The Company had net income for the first quarter of
2019 in the amount of $0.3 million compared to a net loss of $0.4
million in 2018, an increase of $0.7 million. The basic and diluted
income per share was $0.06 for the first quarter 2019, while the
basic and diluted loss per share was $0.08 for the first quarter
2018.
CEO Commentary
Ashley
Smith, CEO stated, “I am pleased to announce positive
earnings for the first quarter 2019 of $0.06 per share, an increase
of $0.14 per share over the first quarter 2018. The increase in
sales of our proprietary products including SlenderWall and
Easi-Set buildings, combined with the reduction of operating
expenses, helped drive the improvement to the bottom-line earnings
for the first quarter 2019 over the prior year. There was also a
positive impact from barrier rentals as we are now recognizing
revenue and net income for the deferred buy-back contract. The
Company will continue recognizing the deferred income through 2022,
increasing bottom line profits each quarter and year.
“Our
strategic efforts to gain market share in the high-rise building
construction market with SlenderWall continue to be on track with
the recent hiring of a regional sales manager. The initial efforts
are starting in the northeastern region of the United States, which
is designed to drive product sales for the Company and royalty
revenues through licensee production. As industry trends move
toward off-site modular construction, which is also combined with
current labor shortages on job-sites, the proprietary product
SlenderWall fits the growing market demand in which we continue to
target.
“The
Company’s capital expenditure plan for 2019 continues to
outlay for expansion and quality improvement. We are anticipating
to spend $1.5 million on yard development and expansion at the
Midland, VA plant to increase storage capacity for the planned
production volume requirements mainly associated with the large
soundwall projects in the current backlog. In addition, the Company
is seeking to obtain additional land at the Midland, Virginia plant
to plan for long-term growth and success. The Company also expects
to spend $1.0 million at the Columbia, SC plant on manufacturing
equipment to support the quality initiative, as we continue to
concentrate on improvement efforts. In addition, we continuously
seek new opportunities in the barrier rental market to expand our
fleet and product offerings.
“Construction
of our newest manufacturing facility in North Carolina is still
scheduled for completion, and to begin production, during the third
quarter 2019. The project remains within the $3.3 million budget,
with total financing expected to stay at $2.0 million or lower. The
Company has successfully utilized cash for a portion of the plant
construction through positive operating cash flows. Plant capacity
in North Carolina will be more than doubling, and the Company
continues to bid on larger contracts to be manufactured in the new
plant.”
Balance Sheet and Liquidity
As of
March 31, 2019, the Company had cash and investments totaling $4.2
million. Accounts receivable decreased to $9.5 million at March 31,
2019. Total outstanding debt on notes payable was $4.8 million,
which includes debt associated with the North Carolina expansion of
$1.5 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