Smith-Midland Reports First Quarter 2024 Financial Results

About this update from Smith-midland Corporation

Highest Quarterly Revenue of $16.8 Million ; Backlog of $64.6 Million MIDLAND, VA / ACCESSWIRE / 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. 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 . 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 , CFO540-439-3266 [email protected] Investor Relations: Steven Hooser or John Beisler Three Part Advisors, LLC 214-872-2710 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. 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. 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. Smith-Midland Corporation and Subsidiaries Condensed Consolidated Statements of Stockholders' Equity (unaudited)(in thousands, except share data) Common Stock Treasury Stock Additional Paid-in Capital Retained Earnings Total Shares Amount Shares Amount 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. 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. SOURCE: Smith-Midland Corporation View the original press release on accesswire.com

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