EX-99.1 2 smid_ex991.htm PRESS RELEASE smid_ex991.htm

 

EXHIBIT 99.1

 

Smith-Midland Reports First Quarter 2024 Financial Results

 

Highest Quarterly Revenue of $16.8 Million; Backlog of $64.6 Million

 

MIDLAND, VA – June 11, 2024 – Smith-Midland Corporation (NASDAQ: SMID) a provider of innovative, high-quality proprietary and patented precast concrete products and systems today announced its first quarter results for the period ended March 31, 2024.

 

First Quarter 2024 Summary (compared to prior-year quarter)

 

 

·

 Revenue increased 30 percent to $16.8 million

 

·

 Product sales increased 30 percent to $10.8 million

 

·

 Service revenue increased 31 percent to $6.0 million

 

·

 Operating income of $1.5 million, compared to $54,000

 

·

 Net income of $1.1 million, or $0.22 and $0.21 per basic and diluted share, respectively, compared to $80,000 or $0.02 per basic and diluted share

 

·

 Started construction to double the size of its North Carolina plant

 

“We are off to a strong start in 2024, posting a 30 percent increase in revenue from the prior-year quarter and our highest quarterly revenue,” said Ashley Smith, Chairman and Chief Executive Officer of Smith-Midland. “The increase was primarily driven by increased production of our soundwall and utility products and increased shipping and installation. We are experiencing a strong demand for our utility vaults in response to the continued growth of data centers. Our prospects for the remainder of the year remain very favorable, thanks to the inflow of infrastructure funding expected in the latter half of 2024 at the state and local level, as well as our backlog. We remain well-positioned to deliver strong growth and create long-term value for our shareholders.”

 

First Quarter 2024 Results

 

The Company reported 2024 first quarter revenues of $16.8 million compared to revenues of $12.8 million in the first quarter of 2023. Product sales for the quarter were $10.8 million, a 30 percent increase from the prior-year quarter. Service revenue, which includes barrier rentals, royalty income and shipping and installation, increased 31 percent from the prior-year quarter to $6.0 million.

 

Gross profit increased to $3.9 million compared to $2.2 million in the prior year quarter due to the higher revenue base. Gross margin for the quarter improved by 480 basis points from the previous year’s quarter to 23%, due primarily to higher production volume and better fixed cost absorption.

 

Operating income for the quarter was $1.5 million compared to $54,000 in the prior-year quarter. Net income for the first quarter was $1.1 million, or $0.22 and $0.21 per basic and diluted share, respectively, compared to net income of $80,000, or $0.02 per basic and diluted share in the first quarter of 2023.

 

 
1

 

 

Product Sales

 

Total product sales for the first quarter of 2024 were $10.8 million compared to $8.2 million in the prior-year quarter. Soundwall sales were $3.0 million compared to $1.0 million in the first quarter of 2023. The increase is primarily related to higher production volumes, specifically at the North Carolina and South Carolina plants. Miscellaneous wall sales increased to $1.8 million from $1.2 million in the prior-year quarter due to increased production volumes at the Virginia and South Carolina plants. Utility product sales increase to $1.7 million for the first quarter of 2024 compared to $275,000 in the prior-year quarter. Barrier sales were $1.7 million compared to $2.8 million in the first quarter of 2023.

 

Service Revenue

 

Service revenue, which is comprised of royalty income, barrier rental revenue, and shipping and installation totaled $6.0 million, compared to $4.6 million in the first quarter of 2023. Shipping and installation revenue increased 48 percent from the previous year quarter to $4.5 million. The increase is mainly attributable to the shipping and installation of SlenderWall and architectural panels that were previously produced throughout 2023. Royalty income totaled $575,000 compared to  $411,000 in the first quarter of 2023, due to higher barrier production volumes by the Company’s licensees. Barrier rental revenue for the first quarter of 2024 was $893,000 compared to $1.1 million in the prior-year quarter due to a shift towards longer-term rental projects from short-term rental projects.

 

Balance Sheet and Liquidity

 

As of March 31, 2024, Smith-Midland's cash totaled $6.8 million compared to cash totaling $9.2 million at the end of 2023. Account receivables totaled $20.1 million and debt totaled $5.6 million as of March 31, 2024. Capital spending totaled $1.8 million for the first quarter of 2024.

 

Macro Environment and Outlook

 

The Company anticipates increased sales volume for the full year of 2024 compared to 2023. Infrastructure initiatives across the United States is expected to drive greater bidding activity and a subsequent increase in backlog for its portfolio of patented, proprietary, and custom products. Backlog was approximately $64.6 million as of May 2024 compared to $51.4 million in backlog one year prior. The majority of the backlog is anticipated to be fulfilled within 12 months; however, some projects will have a multi-year timeline. The Company remains focused on long-term strategic growth initiatives to drive shareholder value.

 

About Smith-Midland

 

Smith-Midland develops, manufactures, licenses, rents, and sells a broad array of precast concrete products and systems for use primarily in the construction, transportation, and utility industries.

 

Smith-Midland Corporation has three manufacturing facilities in: Midland, VA, Reidsville, NC, and Columbia, SC, and a J-J Hooks® Safety Barrier rental firm, Concrete Safety Systems. Easi-Set Worldwide, a wholly owned subsidiary of Smith-Midland Corporation, licenses the production and sale of Easi-Set products, including J-J Hooks and SlenderWall®, and provides diversification opportunities to the precast industry worldwide. For more information, please call (540) 439-3266 or visit www.smithmidland.com.

 

 
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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, our material weaknesses in internal controls, inflationary factors including potential recession, general business and economic conditions, our debt exposure, our high level of accounts receivables, 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.

 

Company Contact:

Stephanie Poe, CFO

540-439-3266

investors@smithmidland.com

 

Investor Relations:

Steven Hooser or John Beisler

Three Part Advisors, LLC

214-872-2710

 

 
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Smith-Midland Corporation

and Subsidiaries

 

Condensed Consolidated Balance Sheets

(in thousands, except share and per share data) 

 

ASSETS

 

March 31, 2024

(Unaudited)

 

 

December 31,

2023

 

Current assets

 

 

 

 

 

 

Cash

 

 $ 6,801

 

 

 $ 9,175

 

Accounts receivable, net

 

 

 

 

 

 

 

 

       Trade - billed (less allowances of approximately $953 and $806, respectively), including contract retentions

 

 

 20,055

 

 

 

 17,209

 

Trade - unbilled

 

 

 637

 

 

 

 525

 

Inventories, net

 

 

 

 

 

 

 

 

Raw materials

 

 

 2,939

 

 

 

 2,329

 

Finished goods

 

 

 4,012

 

 

 

 2,821

 

Prepaid expenses

 

 

 1,246

 

 

 

 1,266

 

 

 

 

 

 

 

 

 

 

Total current assets

 

 

 35,690

 

 

 

 33,325

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

 28,826

 

 

 

 27,680

 

 

 

 

 

 

 

 

 

 

Other assets

 

 

 337

 

 

 

 343

 

 

 

 

 

 

 

 

 

 

Total assets

 

 $ 64,853

 

 

 $ 61,348

 

 

The accompanying notes are an integral part of the condensed consolidated financial statements.

 

 
4

 

 

Smith-Midland Corporation

and Subsidiaries

 

Condensed Consolidated Balance Sheets

(in thousands, except share and per share data)

(continued)

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

March 31, 2024

(Unaudited)

 

 

December 31,

2023

 

Current liabilities

 

 

 

 

 

 

Accounts payable - trade

 

 $ 6,944

 

 

 $ 7,336

 

Accrued expenses and other liabilities

 

 

 1,900

 

 

 

 831

 

Deferred revenue

 

 

 3,217

 

 

 

 2,717

 

Accrued compensation

 

 

 871

 

 

 

 1,203

 

Accrued income taxes 

 

 

 831

 

 

 

 473

 

Operating lease liabilities

 

 

 34

 

 

 

 43

 

Current maturities of notes payable

 

 

 640

 

 

 

 636

 

Customer deposits

 

 

 2,950

 

 

 

 2,779

 

 

 

 

 

 

 

 

 

 

Total current liabilities

 

 

 17,387

 

 

 

 16,018

 

 

 

 

 

 

 

 

 

 

Deferred revenue

 

 

 5,572

 

 

 

 4,424

 

Operating lease liabilities 

 

 

 —

 

 

 

 2

 

Notes payable - less current maturities

 

 

 4,931

 

 

 

 5,092

 

Deferred tax liability

 

 

 1,650

 

 

 

 1,651

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

 

 29,540

 

 

 

 27,187

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity

 

 

 

 

 

 

 

 

Preferred stock, $.01 par value; authorized 1,000,000 shares, none issued and outstanding

 

 

 —

 

 

 

 —

 

Common stock, $.01 par value; authorized 8,000,000 shares; 5,349,599 and 5,349,599 issued and 5,308,679 and 5,308,679 outstanding, respectively

 

 

 54

 

 

 

 54

 

Additional paid-in capital

 

 

 7,819

 

 

 

 7,814

 

Treasury stock, at cost, 40,920 shares

 

 

 (102 )

 

 

 (102 )

Retained earnings

 

 

 27,542

 

 

 

 26,395

 

 

 

 

 

 

 

 

 

 

Total stockholders' equity

 

 

 35,313

 

 

 

 34,161

 

 

 

 

 

 

 

 

 

 

Total liabilities and stockholders' equity

 

 $ 64,853

 

 

 $ 61,348

 

 

The accompanying notes are an integral part of the condensed consolidated financial statements.

 

 
5

 

 

Smith-Midland Corporation

and Subsidiaries

 

Condensed Consolidated Statements of Income

(unaudited)

(in thousands, except per share data)

 

 

 

Three Months Ended March 31,

 

 

 

2024

 

 

  2023

 

Revenue

 

 

 

 

 

 

Product sales

 

 $ 10,752

 

 

 $ 8,242

 

Barrier rentals

 

 

 893

 

 

 

 1,120

 

Royalty income

 

 

 575

 

 

 

 411

 

Shipping and installation revenue

 

 

 4,536

 

 

 

 3,069

 

 

 

 

 

 

 

 

 

 

Total revenue

 

 

 16,756

 

 

 

 12,842

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

 

 12,845

 

 

 

 10,676

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

 3,911

 

 

 

 2,166

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

General and administrative expenses

 

 

 1,549

 

 

 

 1,350

 

Selling expenses

 

 

 853

 

 

 

 762

 

 

 

 

 

 

 

 

 

 

Total operating expenses

 

 

 2,402

 

 

 

 2,112

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

 

 1,509

 

 

 

 54

 

 

 

 

 

 

 

 

 

 

Other income (expense)

 

 

 

 

 

 

 

 

Interest expense

 

 

 (60 )

 

 

 (64 )

Interest income

 

 

 8

 

 

 

 6

 

Gain on sale of assets

 

 

 3

 

 

 

 82

 

Other income

 

 

 44

 

 

 

 25

 

 

 

 

 

 

 

 

 

 

Total other income (expense)

 

 

 (5 )

 

 

 49

 

 

 

 

 

 

 

 

 

 

Income (loss) before income tax expense (benefit)

 

 

 1,504

 

 

 

 103

 

 

 

 

 

 

 

 

 

 

Income tax expense (benefit)

 

 

 357

 

 

 

 23

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

 $ 1,147

 

 

 $ 80

 

 

 

 

 

 

 

 

 

 

Basic earnings (loss) per common share

 

 $ 0.22

 

 

 $ 0.02

 

Diluted earnings (loss) per common share

 

 $ 0.21

 

 

 $ 0.02

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding:

 

 

 

 

 

 

 

 

Basic

 

 

 5,309

 

 

 

 5,256

 

Diluted

 

 

 5,350

 

 

 

 5,290

 

 

 The accompanying notes are an integral part of the condensed consolidated financial statements.

 

 
6

 

 

Smith-Midland Corporation

and Subsidiaries

 

Condensed Consolidated Statements of Stockholders’ Equity

(unaudited)

(in thousands, except share data)

 

 

 

Common

Stock

 

 

Treasury

Stock

 

 

Additional

Paid-in

 

 

Retained

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Earnings

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, December 31, 2023

 

 

 5,349,599

 

 

 $ 54

 

 

 

 (40,920 )

 

 $ (102 )

 

 $ 7,814

 

 

 $ 26,395

 

 

 $ 34,161

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restricted stock issued

 

 

 —

 

 

 

 —

 

 

 

 —

 

 

 

 —

 

 

 

 —

 

 

 

 —

 

 

 

 —

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Vesting of restricted stock

 

 

 —

 

 

 

 —

 

 

 

 —

 

 

 

 —

 

 

 

 5

 

 

 

 —

 

 

 

 5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

 

 —

 

 

 

 —

 

 

 

 —

 

 

 

 —

 

 

 

 —

 

 

 

 1,147

 

 

 

 1,147

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, March 31, 2024

 

 

 5,349,599

 

 

 $ 54

 

 

 

 (40,920 )

 

 $ (102 )

 

 $ 7,819

 

 

 $ 27,542

 

 

 $ 35,313

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, December 31, 2022

 

 

 5,345,189

 

 

 $ 53

 

 

 

 (40,920 )

 

 $ (102 )

 

 $ 7,440

 

 

 $ 25,664

 

 

 $ 33,055

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adoption of ASU 2016-13

 

 

 —

 

 

 

 —

 

 

 

 —

 

 

 

 —

 

 

 

 —

 

 

 

 (63 )

 

 

 (63 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Vesting of restricted stock

 

 

 —

 

 

 

 —

 

 

 

 —

 

 

 

 —

 

 

 

 85

 

 

 

 —

 

 

 

 85

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

 

 —

 

 

 

 —

 

 

 

 —

 

 

 

 —

 

 

 

 —

 

 

 

 80

 

 

 

 80

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, March 31, 2023

 

 

 5,345,189

 

 

 $ 53

 

 

 

 (40,920 )

 

 $ (102 )

 

 $ 7,525

 

 

 $ 25,681

 

 

 $ 33,157

 

 

  The accompanying notes are an integral part of the condensed consolidated financial statements.

 

 
7

 

 

Smith-Midland Corporation

and Subsidiaries

 

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(in thousands)

 

 

 

Three Months Ended

March 31,

 

 

 

2024

 

 

2023

 

Cash flows from operating activities:

 

 

 

 

 

 

Net income (loss)

 

 $ 1,147

 

 

 $ 80

 

Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

 641

 

 

 

 594

 

(Gain) loss on sale of property and equipment

 

 

 (352 )

 

 

 (82 )

Allowance for credit losses

 

 

 147

 

 

 

 92

 

Stock compensation

 

 

 5

 

 

 

 85

 

Deferred taxes

 

 

 (1 )

 

 

 1

 

(Increase) decrease in

 

 

 

 

 

 

 

 

Accounts receivable - billed

 

 

 (2,993 )

 

 

 (1,800 )

Accounts receivable - unbilled

 

 

 (112 )

 

 

 (1,544 )

Inventories

 

 

 (1,801 )

 

 

 (1,173 )

Prepaid expenses

 

 

 20

 

 

 

 (70 )

Refundable income taxes

 

 

 —

 

 

 

 2

 

Increase (decrease) in

 

 

 

 

 

 

 

 

Accounts payable - trade

 

 

 (392 )

 

 

 624

 

Accrued expenses and other liabilities

 

 

 1,069

 

 

 

 (54 )

Deferred revenue

 

 

 1,648

 

 

 

 59

 

Accrued compensation

 

 

 (332 )

 

 

 (148 )

Accrued income taxes 

 

 

 358

 

 

 

 22

 

Customer deposits

 

 

 171

 

 

 

 1,757

 

Net cash provided by (used in) operating activities

 

 

 (777 )

 

 

 (1,555 )

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Purchases of property and equipment

 

 

 (1,795 )

 

 

 (1,164 )

Proceeds from the sale of property and equipment

 

 

 355

 

 

 

 82

 

Net cash provided by (used in) investing activities

 

 

 (1,440 )

 

 

 (1,082 )

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Repayments of long-term borrowings

 

 

 (157 )

 

 

 (153 )

Net cash provided by (used in) financing activities

 

 

 (157 )

 

 

 (153 )

Net increase (decrease) in cash

 

 

 (2,374 )

 

 

 (2,790 )

Cash

 

 

 

 

 

 

 

 

Beginning of period

 

 

 9,175

 

 

 

 6,726

 

End of period

 

 $ 6,801

 

 

 $ 3,936

 

 

 

 

 

 

 

 

 

 

Supplemental Cash Flow Information: 

 

 

 

 

 

 

 

 

Cash payments for interest 

 

 $ 60

 

 

 $ 64

 

Cash payments for income taxes 

 

 $ —

 

 

 $ —

 

 

 

 

 

 

 

 

 

 

Non-Cash Investing Activity:

 

 

 

 

 

 

 

 

Capital expenditures in accounts payable

 

 $ 2,099

 

 

 $ 2,052

 

 

The accompanying notes are an integral part of the condensed consolidated financial statements.

 

 
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