Smith-midland Corporation · NASDAQ:SMID
Smith-midland — Investor Presentation (August 2019)
18 slides from Smith-midland's investor presentation, Aug 28, 2019
Slide 1: Investor Presentation August 2019
Ris PA idl SMITH-MIDLAND’ EXCELLENCE IN PRECAST CONCRETE Investor Presentation August 2019 OTCQX: SMID
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT These slides and the accompanying oral presentation contain forward-looking statements. All statements other than statements of historical fact contained in this presentation, including statements regarding the future financial position of Smith-Midland Corporation (“SMID” or t
Slide 3: Company Overview
COMPANY OVERVIEW Innovative precast concrete manufacturer Founded 1960, headquartered in Midland, Virginia Leader in highway & infrastructure products Innovative commercial construction building products #3 3 Production facilities servicing NY to FL ‘ c Shares Outstanding 5.1 million Market Cap $40
Slide 4: Proprietary Products
PROPRIETARY PRODUCTS Easi-Set Concrete Building: SoftSound Absorptive Noise Wall
Slide 5: Customized Products
CUSTOMIZED PRODUCTS Design/manufacture custom products to meet customers’ needs, primarily for: Security Decorative Military Training
Slide 6: Strategically Located Manufacturing Plants
STRATEGICALLY LOCATED MANUFACTURING PLANTS oe ecmee Virginia ag : es 45 acres, 59K sf y /_ reaches NY to = NC/WV North Carolina 9 acres, 7K sf © reaches NC to TN/KY (Expanding in 2019) —. South Carolina 39 acres, 29K sf reaches NC to , FL/AL
Slide 7: North Carolina Expansion
NORTH CAROLINA EXPANSION New 15K+ sf facility on 46 acres Expected to open September 2019 To support increased demand in the infrastructure market Low capital cost — budgeted $3.3 million
Slide 8: Concrete Safety Barrier Rental Division
CONCRETE SAFETY BARRIER RENTAL DIVISION Construction » Highway Event Security 180K linear foot rental fleet vr... 2022 Buy-Back agreement for over 200K linear feet will create largest fleet of new Mash TL3 Safety Barrier in themarket place
Slide 9: Licensing
od % ; i ie os "2 LICENSING Belgium MP New Tealand Tinidad &Tobago ¥y i » 60+ Licenses Worldwide » 4-6% Royalty Fee Income » Award-Winning Products » Innovative Product Design
Slide 10: Investment Highlights
INVESTMENT HIGHLIGHTS Proprietary Products Licensed Worldwide - J-J Hooks — Most widely used and accepted highway safety barrier connection with over 14 million linear feet produced and installed worldwide ~ SlenderWall — Innovative light-weight precast cladding incorporating industry leading design
Slide 11: Market Drivers
MARKET DRIVERS Increased Infrastructure Spending - Highway projects being accelerated through Public Private Partnerships (P3s) » VA, NC, & MD are leading states utilizing P3s - SC increased gas tax to fund road improvements - States continue adding to infrastructure budgets above current levels » N
Slide 12: Revenue by Category
Royalties = Rentals ™ Services = Product Sales (in millions) *2018 — Excludes $6.6M in Product Sales Deferred dueto)Buy-Back Obligation SMITH-MIDLAND
Slide 13: Balance Sheet
BALANCE SHEET 12/31/2014 12/31/2015 12/31/2016 12/31/2017 12/31/2018 Current Assets, $ 11,936 13,508 15,872 19,032 21,596 Total Assets y 18,850 24,052 29,225 41,369 Current Liabilities 4,528 5,060 7,834 11,711 Total Debt § 3,933 3,533 4,503 Total Liabilities 9,809 12,020 22,522 Shareholders Equity 1
Slide 14: Income Statement
INCOME STATEMENT 12/31/2014 12/31/2015 12/31/2016 12/31/2017 12/31/2018 $ 22,471 $ 29,204 $ 40,050 $ 41,717 $ 40,220 18,625 22,094 29,701 30,253 29,730 3,846 7,110 10,349 11,464 10,490 Operating Expenses 5,198 5,533 6,013 7,749 8,274 Operating Income (Loss) (1,352) 1,577 4,336 3,715 2,216 Other Expe
Slide 15: Months Ended June 30
Months Ended June 30, 2019 S$ 21,041 $ 18,958 16,663 14,391 4,378 ‘ 4,567 Operating Expenses 4,209 lOperating Income lOther Expenses (Income) (Income. Statemenviiii thousands, except EPS) 2019 CapEx $2.0 Million Total Debt $4.7 Million SMITH-MIDLAND 15
Slide 16: Return on Invested Capital
RETURN ON INVESTED CAPITAL sd Aw North Carolina Expansion - $3.3 million investment - 2X production capacity - Full production expected mid 2020 ~ Prime location to better serve customers - 8-12 year anticipated return on investment - Current facility to remain operational Barrier Rental Fleet » Inv
Slide 17: Management Team
MANAGEMENT TEAM Ashley Smith, President & CEO Mr. Ashley Smith, third generation business owner, has been an integral part of Smith-Midland’s success since 1985. Ashley remains active as a leader on several industry committees including the internationally recognized trade association, National Prec
Slide 18: Contact
540-439-3266 investors@smithmidland.com www.SmithMidland.com