Exhibit
Exhibit
99.1
Smith-Midland Announces Second Quarter 2019 Results
Six Month 2019 Highlights
●
Revenues of $21.0
million
●
Gross Margin of
$4.4 million, or 21%
●
Net Income of $0.6
million
Second Quarter 2019 Highlights
●
Revenues of $10.9
million
●
Gross Margin of
$2.2 million, or 20%
●
Net Income of $0.3
million
●
Current Backlog of
$27.6 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 June 30, 2019.
Six Month 2019 Results
The
Company reported six month revenues of $21.0 million for 2019 and
$19.0 million for 2018, an increase of $2.0 million, or 11%. The
pre-tax income for the first half of 2019 was $0.8 million compared
to pre-tax income of $0.4 million in 2018, an increase of $0.4
million. The Company had net income for the first half of 2019 in
the amount of $0.6 million compared to net income of $0.3 million
in 2018, an increase of $0.3 million. The basic and diluted income
per share was $0.12 for the first half of 2019, while the basic and
diluted income per share was $0.05 for the first half of
2018.
Second Quarter 2019 Results
The
Company reported second quarter revenues of $10.9 million for 2019
and $9.8 million for 2018, an increase of $1.1 million, or 10%. The
pre-tax income for the second quarter of 2019 was $0.4 million
compared to pre-tax income of $0.9 million in 2018, a decrease of
$0.5 million. The Company had net income for the second quarter of
2019 in the amount of $0.3 million compared to net income of $0.7
million in 2018, a decrease of $0.4 million. The basic and diluted
income per share was $0.05 for the second quarter 2019, while the
basic and diluted income per share was $0.14 for the second quarter
2018.
CEO Commentary
Ashley
Smith, CEO stated, “I am pleased to announce continued
positive earnings for the second quarter 2019. This brings the
earnings per share to $0.12 for the first six months of 2019
compared to $0.05 earnings per share for the first six months of
2018. There continues to be a positive impact to barrier rentals as
we recognize revenue and net income for the deferred buy-back
contract. Gross profit margins are lower during the first half of
2019 due to competitive pricing pressure, increased labor costs,
and increased shipping and installation which tend to have lower
margins than product sales, as compared to the first half 2018 when
we had higher margin jobs in production. We remain focused on
decreasing general and administrative costs to enhance bottom-line
performance.
“During
July 2019, the Company entered into an agreement to purchase over
100,000 linear feet of used highway safety barrier and
approximately 100 crash cushion attenuators. The purchase will
bring our rental fleet to nearly 300,000 linear feet of barrier and
creates the first major investment in crash cushions. With planned
highway construction and the continued use of Public Private
Partnerships in our market, the increased fleet and expanded
offerings will allow us to provide customers with turnkey
solutions.
“The
recent hiring of the new General Manager in South Carolina supports
our corporate vision for the plant to improve safety, quality,
delivery, and cost. His leadership, production, and technical
expertise will help us successfully navigate Smith-Columbia moving
forward.
“The
new manufacturing facility in North Carolina is near completion
with production set to commence in September 2019. The project is
within budget at $3.3 million, with only $1.5 million financed as
of June 30, 2019. The Company continues to successfully utilize
cash for a portion of the plant construction, and additional
capital expenditures, through positive operating cash flows. During
the transition to the new plant, the Company will be manufacturing
products out of both the new and old facilities in North Carolina
to meet customer demands.”
Balance Sheet and Liquidity
As of
June 30, 2019, the Company had cash and investments totaling $2.8
million, with the majority of cash being utilized to fund capital
expenditures, thus eliminating the need for additional debt
financing. Accounts receivable balances were $11.1 million at June
30, 2019, with a large amount collected subsequent to the period
end. Total outstanding debt on notes payable was $4.7
million.
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 website 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