smid-20191231_ex991
Exhibit
99.1
Smith-Midland Announces Fourth Quarter and Full Year 2019
Results
➢
Record
Full Year Revenues
➢
Five
Consecutive Years of Positive Earnings
Fourth Quarter 2019 Highlights
●
Revenues of $12.4
million, an increase of $0.7 million, or 6%, over fourth quarter
2018
●
North Carolina
expansion project completed and operational
●
Backlog of $30.9
million, growth of 8% since the third quarter 2019
Full Year 2019 Highlights
●
Full Year Record
Revenues of $46.7 million, a 16% increase over 2018
●
General &
Administrative Expenses decreased 14% compared to 2018
●
EPS of $0.38, a 15%
increase over 2018
●
Five consecutive
years of positive earnings
MIDLAND, VA. – Smith-Midland Corporation (the Company)
(OTCQX: SMID), a leader in the precast concrete industry, 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, 2019.
Fourth Quarter 2019 Results
The
Company reported fourth quarter revenues of $12.4 million for 2019
and $11.7 million for 2018, an increase of $0.7 million, or 6%. The
pre-tax income for the fourth quarter 2019 was $1.0 million
compared to pre-tax income of $1.2 million in 2018, a decrease of
$0.2 million, reflecting a high margin special project in 2018. The
Company had net income for the fourth quarter of 2019 in the amount
of $0.8 million compared to net income of $0.9 million in 2018, a
decrease of $0.1 million. The basic and diluted income per share
was $0.15 for the fourth quarter 2019, while the basic and diluted
income per share was $0.17 for the fourth quarter
2018.
Full Year 2019 Results
The
Company reported revenues of $46.7 million for 2019 and $40.2
million for 2018, an increase of $6.5 million, or 16%. The pre-tax
income for 2019 was $2.5 million compared to pre-tax income of $2.3
million in 2018, an increase of $0.2 million. The Company had net
income for 2019 in the amount of $2.0 million compared to net
income of $1.7 million in 2018, an increase of $0.3 million. The
basic and diluted income per share was $0.38 for 2019, while the
basic and diluted income per share was $0.33 for 2018, an increase
of 15%.
COVID-19 Update
Ashley
Smith, CEO, stated, “While we remain extremely excited about
our long-term future, the main goal during this time of uncertainty
is creating a safe and secure environment for our associates,
customers, and communities. There is limited forward-looking
visibility, and our expectations are tempered by the fact that we
do not know what will happen, or the future impact to our business,
from COVID-19. As the pandemic is quite profound and impactful, we
hope it proves to be temporary with minimal
disruption.”
Currently,
all locations are fully operational, with minimal supply chain
disruption and the industry is classified as an essential business.
Also, as of today, the Company has an unused $4.0 million line of
credit.
CEO Commentary
Mr.
Smith said, “During this tough time, we look back at 2019 and
are pleased with our performance, which includes record-setting
revenues, strong growth in EPS, and five consecutive years of
positive earnings. The first quarter of 2020 has started off slower
than expected due to lower production caused by short-term delays
in customer approval of drawings, but we anticipate 2020 to be
another solid financial year for the Company. Notwithstanding the
current volatile situation, we currently see continued strong
demand in our infrastructure and commercial construction end
markets in the near term.
“January
1, 2020 marked the Federal Highway Administration’s deadline
that requires new precast concrete barrier to be MASH (Manual for
Assessing Highway Safety devices) crash tested and approved. Over
the next 7-10 years, all existing precast concrete barrier will be
phased out and replaced with MASH approved barrier. We continue to
be an industry leader in precast concrete barrier development and
strive to gain market share through licensing and production, as we
currently have MASH approval in 32 states and over 40 licensed
producers ready to start production immediately.
“As
the new North Carolina manufacturing facility became fully
operational in the fourth quarter of 2019, we continue to push and
drive current backlog at the facility to move toward full capacity
by the end of 2020. The ability to double revenues at the location
increases production capacity by 15% for the Company as a
whole.
“During
2019, the Company was able to increase its barrier rental fleet by
43% to 250,000 linear feet of barrier. We also added over 75 crash
cushion attenuators, expanding our rental opportunities. This high
margin division of our business is anticipated to be a major
contributor to increasing margins in the future. We are still on
track for our rental fleet to exceed 500,000 linear feet in the
next three years.
“SlenderWall™,
the light-weight panel system, continues to gain even more market
acceptance and was used this past year in two of the largest
projects in company history. We are seeing project inquiries from
across North America and are currently working with potential new
licensed producers in those markets. Additional value-added
offerings associated with SlenderWall™, such as preinstalled windows and
spray foam insulation, are also gaining traction in the commercial
end market with trends moving to offsite, modular
construction.”
Mr.
Smith concluded, “Notwithstanding the COVID-19 pandemic, and
the limited visibility we have on its impact to our short-term
financial results, we are committed to doing everything within our
control to protect the best interests of our associates, customers,
supply chain, and shareholders as we work our way through this
pandemic.”
Balance Sheet and Liquidity
As of
December 31, 2019, the Company had cash and investments totaling
$2.5 million, reflecting significant capital expenditures for the
increase in manufacturing facilities. Accounts receivable balances
were $12.7 million at December 31, 2019. Total outstanding debt on
notes payable was $5.0 million at December 31, 2019. The $4.0
million line of credit had no outstanding balance as of December
31, 2019.
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. Management and the Board
owns approximately 20% of SMID stock, aligning with shareholder
values.
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, the risk that the coronavirus outbreak may
adversely affect future operations, 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