Business
Smith-Midland Announces Second Quarter 2020 Results
Company reports 600 basis point improvement in Gross Margin over the first quarter 2020, or 43%Earnings Per Share increases 50% compared to the prior year
About this update from Smith-midland Corporation
[{"type":"text","content":"Company reports 600 basis point improvement in Gross Margin over the first quarter 2020, or 43%Earnings Per Share increases 50% compared to the prior year second quarterBarrier Rental Revenue increases 56% over the prior year second quarterMIDLAND, VA / ACCESSWIRE / August 11, 2020 / 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, 2020.Second Quarter 2020 ResultsThe Company reported second quarter revenues of $10.5 million, a 4% decrease from the prior-year quarter. Gross margin for the quarter was 20%, an increase of 300 basis points from the second quarter of 2019. Pre-tax income for the second quarter of 2020 was $571,000 compared to pre-tax income of $374,000 in 2019, an increase of $197,000. Net income for the second quarter increased 53% to $441,000, as compared to net income of $288,000 in same quarter a year ago. Diluted earnings per share for the quarter were $0.09, compared to $0.06 in the second quarter of 2019.Six Months 2020 ResultsThe Company reported six month revenues of $20.3 million for 2020, a 3% decrease from the same period in the prior year. Pre-tax income for the first half of 2020 was $522,000 compared to pre-tax income of $813,000 in same period of 2019, a decrease of $291,000. Net income for the first half of 2020 was $403,000, compared to net income of $628,000 in first half of 2019. Diluted earnings per share were $0.08 for the first half of 2020, compared to $0.12 for the first six months of 2019.CEO Commentary\"We are pleased with our second quarter results, showing both an improvement to gross margin and net income despite the impact of the COVID-19 pandemic that we are facing,\" said Ashley Smith, President and CEO of Smith-Midland. \"The significant increase in rental revenue, which carries higher margins than product sales, helped improve gross margin by 600 basis points over the first quarter 2020 and contributed to our bottom-line. This improvement exemplifies the execution of our long-term strategy moving towards barrier rentals as compared to barrier sales.\"The Company was impacted during the second quarter due to the COVID-19 pandemic. Manufacturing ex...