0001654954-19-012438.txt : 20191107 0001654954-19-012438.hdr.sgml : 20191107 20191107083016 ACCESSION NUMBER: 0001654954-19-012438 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20191107 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20191107 DATE AS OF CHANGE: 20191107 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SMITH MIDLAND CORP CENTRAL INDEX KEY: 0000924719 STANDARD INDUSTRIAL CLASSIFICATION: CONCRETE PRODUCTS, EXCEPT BLOCK & BRICK [3272] IRS NUMBER: 541727060 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-13752 FILM NUMBER: 191198246 BUSINESS ADDRESS: STREET 1: ROUTE 28 STREET 2: P O BOX 300 CITY: MIDLAND STATE: VA ZIP: 22728 BUSINESS PHONE: 5404393266 MAIL ADDRESS: STREET 1: RT 28 STREET 2: PO BOX 300 CITY: MIDLAND STATE: VA ZIP: 22728 8-K 1 smid-20190930_8kpr.htm FORM 8-K Document
 

 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
 
 

 FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
 
 
 
 

Date of Report (Date of Earliest Event Reported): November 7, 2019
 
 
 
 

SMITH-MIDLAND CORPORATION
(Exact Name of Registrant as Specified in Charter)
 
 
 
 

 
 
 
 
Delaware
(State or Other Jurisdiction of Incorporation)
1-13752
(Commission File Number)
54-1727060
(I.R.S. Employer Identification Number)

P.O. Box 300, 5119 Catlett Road
Midland, Virginia 22728
(Address of principal executive offices)
 
 
 
 

 (504) 439-3266
(Registrant’s telephone number, including area code)
 
 
 
 
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
  
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13 (a) of the Exchange Act. ☐
 



 
 
 
 
ITEM 2.02
Results of Operations and Financial Condition

On November 7, 2019 Smith-Midland Corporation issued a press release announcing its financial results for the quarter ended September 30, 2019.
 
A copy of the press release is attached hereto as Exhibit 99.1.
 
 
 
 
ITEM 9.01
FINANCIAL STATEMENTS AND EXHIBITS

(d)           Exhibits

 
 
 
Exhibit No
Exhibit Description
Press release, dated November 7, 2019

The information filed as an exhibit to this Form 8-K is being furnished in accordance with Item 2.02 and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of such section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.


 



 
SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
 
Date: November 7, 2019
 
 
SMITH-MIDLAND CORPORATION
 
 
 
By: /s/ Adam J. Krick
 
Adam J. Krick
Chief Financial Officer

 

 
 EX-99.1 2 smid-20190930_ex991.htm PRESS RELEASE Exhibit
 
 

Exhibit 99.1
Smith-Midland Announces Third Quarter 2019 Results

Third Quarter 2019 Highlights
●
Net income and EPS 10% higher than third quarter 2018
●
Revenues increased 38% over third quarter 2018
●
G&A expenses down 14% compared to prior year
●
Executed $2.2 million agreement to increase barrier rental fleet
●
Backlog of $28.5 million as of November 1, 2019
 
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 September 30, 2019.
 
Third Quarter 2019 Results
The Company reported third quarter revenues of $13.2 million for 2019 and $9.5 million for 2018, an increase of $3.7 million, or 38%. The pre-tax income for the third quarter of 2019 was $0.8 million compared to pre-tax income of $0.7 million in 2018, an increase of $0.1 million. The Company had net income for the third quarter of 2019 in the amount of $0.6 million compared to net income of $0.5 million in 2018, an increase of $0.1 million. The basic and diluted income per share was $0.11 for the third quarter 2019, while the basic and diluted income per share was $0.10 for the third quarter 2018.
 
Nine Month 2019 Results
The Company reported nine month revenues of $34.2 million for 2019 and $28.5 million for 2018, an increase of $5.7 million, or 20%. The pre-tax income for the first nine months of 2019 was $1.5 million compared to pre-tax income of $1.1 million in 2018, an increase of $0.4 million. The Company had net income for the first nine months of 2019 in the amount of $1.2 million compared to net income of $0.8 million in 2018, an increase of $0.4 million. The basic and diluted income per share was $0.23 for the first nine months of 2019, while the basic and diluted income per share was $0.16 and $0.15, respectively, for the first nine months of 2018.
 
CEO Commentary
Ashley Smith, CEO stated, “The Company generated positive earnings during the third quarter 2019, which keeps us on pace for another solid year. The gross profit margin percentage decreased during the third quarter 2019 due to the significant increase in shipping and installation revenues, which historically have lower margins than product sales. Comparatively, the third quarter 2018 included production of higher margin products than 2019. The change in margin was offset by the reduction of general and administrative costs which are constantly evaluated in the execution of our corporate strategy.
 
 “Production at the new manufacturing facility in North Carolina commenced during September 2019. Subsequent to the end of the quarter, the Company successfully closed on the debt financing for the facility in the amount of $2.2 million. We anticipate the full move to the new plant to be completed by the end of 2020. We are looking forward to continued success in North Carolina while meeting increased customer demand.
 
“The Federal Highway Administration (FHWA) issued a sunset date of December 31, 2019 for new highway crash test standards. Our J-J Hooks MASH TL3 freestanding barrier meets the new FHWA requirements and has been approved in 35 states, including the states of Virginia, North Carolina, and South Carolina, where our three manufacturing facilities are located. We are anticipating long-term positive trends, with all existing highway barrier in the United States expected to be replaced over the next 10 years.”
 
Mr. Smith concluded, “We continue to execute on our strategic plan and position the business to take advantage of positive market fundamentals that support sustainable, long-term growth in construction spending, including increased infrastructure investment in the markets we serve, and prospects for increased federal surface transportation spending. As we look forward to 2020, the fundamentals of our business remain strong with continuous bidding in our two main end markets of infrastructure and high-rise building construction.”
 
Balance Sheet and Liquidity
As of September 30, 2019, the Company had cash and investments totaling $2.2 million, reflecting significant capital expenditures for the increase in manufacturing facilities. Accounts receivable balances were $12.1 million at September 30, 2019, with a substantial amount collected following the period end. Total outstanding debt on notes payable was $4.5 million at September 30, 2019. Subsequent to the period end, the Company successfully closed on the debt financing of the North Carolina expansion project, increasing the total outstanding debt by $0.7 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