Business
SMG Industries, Inc. Reports Financial Results for Fiscal Year 2018
SMG Industries, Inc. Reports Financial Results for Fiscal Year 2018.
About this update from Smg Industries, Inc.
[{"type":"text","content":"Oilfield Services Company Reports 79% Increase in Annual Revenues of $4.42 millionHOUSTON, TX / ACCESSWIRE / April 1, 2019 / SMG Industries, Inc. (the "Company") (OTCQB: SMGI), a growth-oriented oilfield services company operating in the Southwest United States today reported financial results for the full year ended December 31, 2018.Fiscal 2018 Highlights Revenue increased 79% to $4,422,436 in 2018, from $2,465,897 for the year 2017 Gross Profit increased 62% to $1,653,061 from $1,019,987 year over year Gross Margin for the fiscal year 2018 was 37.4% Net loss for 2018 of $1,143,379 includes acquisition expenses and other one-time costs compared to 2017 Net Loss of $731,080 Total Assets grew to $3,526,447 in 2018 from $855,413 in 2017 Acquired over 800 bottom hole assembly tools (SMG Oil Tools acquisition) in October 2018 Acquired Momentum Water Transfer Services, a frac water business, in December 2018 Expanded direct sales in the Permian Basin of West Texas and service footprint in the Eagle Ford shale of South Texas to meet market activity and customer demandsThe Company's fourth quarter 2018 revenues of $1,230,005 represents a sequential increase of approximately 18% from the Company's third quarter 2018. Fiscal year 2018 annual revenues increased 79% to $4,422,436 in 2018 compared to fiscal 2017.Gross margin for 2018 was $1,653,061, or 37.4% of revenues, compared to $1,019,987, or 41.4% in fiscal 2017. Gross margin contribution increased by $633,074 year over year, however, as a percentage of sales it declined resulting from one-time expenses in the fourth quarter 2018 associated with the deal costs of the oil tools rental inventory and frac water businesses acquired. Net Loss for 2018 was $1,143,379, which includes acquisition cost of $98,505 (of which $39,600 is shown in cost of goods sold), stock compensation charges of $81,657, non-cash depreciation expenses of $94,943, amortization of deferred financing costs of $178,267, impairment expense of $22,907 and interest expenses of $310,030. This compares to a Net Loss of $731,080 in 2017.The Company currently anticipates additional growth for fiscal year 2019 resulting from the full year contribution of its recent December 2018 acquisition of Momentum Water Transfer Services along with its other business lines.Mr. Matthew Flemming, CEO of SMG, stated "SMG In...