Smith-Midland Corporation
10.8.2021 13:32:37 CEST | ACCESS Newswire | Press release
Royalty Income Strongest Quarter in Company History
MIDLAND, VA / ACCESSWIRE / August 10, 2021 / Smith-Midland Corporation (NASDAQ:SMID) provider of innovative, high-quality proprietary and patented precast concrete products and systems today announced second quarter results for 2021.
Second Quarter 2021 Highlights
- 68 percent increase in royalty income, the strongest quarter in Company history
- 30 percent increase in core fleet barrier rental revenues
- Rental barrier fleet expansion to 300,000 linear fleet by year end 2021
- Received Platinum Safety Award from Associated Builders and Contractors (ABC)
"I am pleased to announce another great quarter and first half of 2021 as we execute against our long-term growth plans. As stated last quarter, we had a tremendous number of one-time special projects during Q1 which drove stronger than typical results. Moving into Q2, the strength in the rental business remains robust. As we continue driving a higher mix of barrier rental business by increasing our core rental fleet and proactively shifting our customers to barrier rentals versus sales, we will continue to drive higher margins. Our second quarter 2021 royalty income posted historic gains; a notable 68 percent increase compared to last year. We expect to see additional royalty income growth in future quarters related to the approval of our patented JJ-Hooks interlocking highway barrier system in the California market that we announced in February of this year," said Ashley Smith, Chief Executive Officer. Our focus on sales for our lightweight proprietary SlenderWall cladding system is yielding results and we are happy to see those efforts gaining traction. I also wanted to mention how proud I am of our team's receipt of the Platinum Safety Award from Associated Builders and Contractors. Disciplined execution and emphasizing our lean manufacturing methodologies as we grow is key. Management and the Board remain closely aligned with our shareholders and look to continuously drive long term shareholder value," concluded Smith.
Second Quarter 2021 Results
The Company reported 2021 second quarter revenues of $12.3 million compared to $10.5 million for second quarter 2020. Operating income for second quarter 2021 increased to approximately $1.3 million compared to $573,000 in second quarter 2020. Net income increased from $441,000 for the second quarter 2020 compared to $985,000 for the second quarter 2021. Earnings per share increased from $0.09 in second quarter 2020 to $0.19 second quarter 2021.
Six Month 2021 Results
The Company reported $27.5 million in revenue for the six-months ended June 30, 2021 compared to $20.3 million during the same period in 2020. Operating income for the first half of 2021 increased to $5.1 million from $532,000, reflecting an increase of approximately 855 percent over the same period of last year. Net income for the first half of 2021 totaled $3.9 million compared to $403,000 in the first half of 2020, an 856 percent improvement. Earnings per share increased 825 percent to $0.74 for the six months ended June 30, 2021 compared to $0.08 in the same period of 2020.
Product Sales
Smith-Midland reports revenue in two categories: products sales and service revenue. Product sales for second quarter 2021 totaled $7.2 million compared to $6.7 million second quarter 2020. The Company's architectural panel sales for the second quarter 2021 posted an increase of 63 percent year-over-year. Soundwall revenue increased 9 percent from $2.2 million to $2.4 million. Building sales and utility sales saw a 10 percent and 21 percent increase, respectively.
Service Revenue
Barrier rentals posted a solid increase of 30 percent during the second quarter of 2021. The Company is prepared to meet barrier rental demand by increasing the rental fleet to 300,000 linear feet by the end of 2021. Smith-Midland will manufacture the barrier and expects the $1.0 million investment to pay off quickly. Royalty income improved an impressive 68 percent compared to second quarter 2020. The royalty increase is primarily attributed to increases in licensee production of the Company's proprietary, interlocking JJ-Hooks highway barriers. Smith-Midland's licensee expansion into California with the Company's patented and proprietary product offerings is expected to further elevate royalty income moving forward. Service revenues totaled $5.1 million for second quarter 2021 compared to $3.8 million in the prior year reflecting a 35 percent increase overall.
Balance Sheet and Liquidity
As of June 30, 2021, Smith-Midland's cash and investments totaled $14.4 million compared to $5.6 million in the second quarter 2020. Accounts receivable equaled $11.8 million while debt at the end of the second quarter 2021 totaled $4.5 million. Smith-Midland's PPP loan of approximately $2.7 million was forgiven in full subsequent to the end of the second quarter 2021. Capital spending declined year-over-year to $926,000 compared to $2.3 million in 2020.
Macro Environment and Outlook
Smith-Midland is currently experiencing many favorable tailwinds with the transition to MASH TL3 barrier, and certainly the U.S. Infrastructure bill would be impactful for our business; however, the Company is not immune from macro challenges. Many U.S. businesses are being impacted by logistical and supply chain disruption. Overall, Smith-Midland is well positioned and has been proactive by increasing raw material inventories to ensure the Company is able to meet customer demand. The Company's barrier rental business remains very strong, and Smith-Midland is accelerating sales for the light weight, proprietary SlenderWall cladding system. Backlog was approximately $26.0 million recorded as of August 2, 2021, compared to $25.6 million at the same time in 2020. Smith-Midland's innovative, patented proprietary products are well positioned to drive the Company into the future. Smith-Midland will continuously leverage lean manufacturing methodologies to optimize operations.
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 utilities industries. Management and the board own approximately 20 percent of SMID stock, aligning with shareholder values.
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, the risk that the coronavirus outbreak may adversely affect future operations, product demand, the impact of competitive products and pricing, capacity and supply constraints or difficulties, general business and economic conditions, out debt exposure, 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.
Contact:
Media Inquiries:
AJ Krick, CFO
540-439-3266
investors@smithmidland.com
Investor Relations:
Steven Hooser or Deidra Roy
Three Part Advisors, LLC
214-872-2710
SMITH-MIDLAND CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)
June 30, 2021 (Unaudited) | December 31, 2020 | |||||||||
ASSETS | ||||||||||
Current assets | ||||||||||
Cash | $ | 13,194 | $ | 8,764 | ||||||
Investment securities, available-for-sale, at fair value | 1,243 | 1,228 | ||||||||
Accounts receivable, net | ||||||||||
Trade - billed (less allowance for doubtful accounts of approximately $400), including contract retentions | 11,826 | 9,798 | ||||||||
Trade - unbilled | 636 | 742 | ||||||||
Inventories, net | ||||||||||
Raw materials | 1,295 | 643 | ||||||||
Finished goods | 1,448 | 1,551 | ||||||||
Prepaid expenses and other assets | 558 | 615 | ||||||||
Total current assets | 30,200 | 23,341 | ||||||||
Property and equipment, net | 18,612 | 18,602 | ||||||||
Deferred buy-back lease asset, net | 3,818 | 4,237 | ||||||||
Other assets | 287 | 319 | ||||||||
Total assets | $ | 52,917 | $ | 46,499 | ||||||
SMITH-MIDLAND CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)
June 30, 2021 | December 31, 2020 | |||||||||
| (Unaudited) | ||||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||
Current liabilities | ||||||||||
Accounts payable - trade | $ | 2,944 | $ | 1,866 | ||||||
Accrued expenses and other liabilities | 577 | 875 | ||||||||
Deferred revenue | 2,617 | 1,774 | ||||||||
Accrued compensation | 1,496 | 1,318 | ||||||||
Accrued income taxes | 1,045 | 470 | ||||||||
Deferred buy-back lease obligation | 1,195 | 1,203 | ||||||||
Operating lease liabilities | 87 | 85 | ||||||||
Current portion of PPP loan | 2,692 | - | ||||||||
Current maturities of notes payable | 556 | 740 | ||||||||
Customer deposits | 833 | 569 | ||||||||
Total current liabilities | 14,042 | 8,900 | ||||||||
Deferred revenue | 1,423 | 600 | ||||||||
Deferred buy-back lease obligation | 3,196 | 3,790 | ||||||||
Operating lease liabilities | 167 | 211 | ||||||||
Notes payable - less current maturities | 3,959 | 4,196 | ||||||||
PPP loan - less current portion | - | 2,692 | ||||||||
Deferred tax liability | 2,457 | 2,461 | ||||||||
Total liabilities | 25,244 | 22,850 | ||||||||
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; 5,326,595 and 5,279,411 issued and 5,202,158 and 5,202,158 outstanding, respectively | 53 | 52 | ||||||||
Additional paid-in capital | 6,576 | 6,405 | ||||||||
Treasury stock, at cost, 40,920 shares | (102 | ) | (102 | ) | ||||||
Retained earnings | 21,146 | 17,294 | ||||||||
Total stockholders' equity | 27,673 | 23,649 | ||||||||
Total liabilities and stockholders' equity | $ | 52,917 | $ | 46,499 | ||||||
SMITH-MIDLAND CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(in thousands, except per share data)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
Revenue | ||||||||||||||||
Product sales | $ | 7,243 | $ | 6,699 | $ | 14,662 | $ | 13,550 | ||||||||
Barrier rentals | 1,182 | 907 | 6,958 | 1,650 | ||||||||||||
Royalty income | 692 | 413 | 1,112 | 681 | ||||||||||||
Shipping and installation revenue | 3,190 | 2,431 | 4,791 | 4,394 | ||||||||||||
Total revenue | 12,307 | 10,450 | 27,523 | 20,275 | ||||||||||||
Cost of goods sold | 8,993 | 8,073 | 18,488 | 16,297 | ||||||||||||
Gross profit | 3,314 | 2,377 | 9,035 | 3,978 | ||||||||||||
Operating expenses | ||||||||||||||||
General and administrative expenses | 1,340 | 1,230 | 2,665 | 2,282 | ||||||||||||
Selling expenses | 696 | 574 | 1,291 | 1,164 | ||||||||||||
Total operating expenses | 2,036 | 1,804 | 3,956 | 3,446 | ||||||||||||
Operating income (loss) | 1,278 | 573 | 5,079 | 532 | ||||||||||||
Other income (expense) | ||||||||||||||||
Interest expense | (56 | ) | (57 | ) | (98 | ) | (113 | ) | ||||||||
Interest income | 10 | 9 | 19 | 17 | ||||||||||||
Gain on sale of assets | 42 | 30 | 88 | 66 | ||||||||||||
Other income | 39 | 16 | 33 | 20 | ||||||||||||
Total other income (expense) | 35 | (2 | ) | 42 | (10 | ) | ||||||||||
Income (loss) before income tax expense (benefit) | 1,313 | 571 | 5,121 | 522 | ||||||||||||
Income tax expense (benefit) | 328 | 130 | 1,269 | 119 | ||||||||||||
Net income (loss) | $ | 985 | $ | 441 | $ | 3,852 | $ | 403 | ||||||||
Basic and diluted earnings (loss) per common share | $ | 0.19 | $ | 0.09 | $ | 0.74 | $ | 0.08 | ||||||||
Weighted average number of common shares outstanding: | ||||||||||||||||
Basic | 5,202 | 5,184 | 5,202 | 5,184 | ||||||||||||
Diluted | 5,218 | 5,184 | 5,214 | 5,184 | ||||||||||||
SMITH-MIDLAND CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(in thousands)
| Six Months Ended June 30, | ||||||||
| 2021 | 2020 | |||||||
Cash flows from operating activities: | ||||||||
Net income (loss) | $ | 3,852 | $ | 403 | ||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||||
Depreciation and amortization | 1,318 | 1,180 | ||||||
Gain (loss) on sale of assets | (88 | ) | (66 | ) | ||||
Unrealized (gain) loss on investment securities available for sale | (11 | ) | (3 | ) | ||||
Allowance for doubtful accounts | 15 | 68 | ||||||
Stock compensation | 172 | - | ||||||
Deferred taxes | (4 | ) | 3 | |||||
(Increase) decrease in | ||||||||
Accounts receivable - billed | (2,043 | ) | 1,898 | |||||
Accounts receivable - unbilled | 106 | (192 | ) | |||||
Inventories | (549 | ) | 134 | |||||
Prepaid expenses and other assets | 73 | (101 | ) | |||||
Refundable income taxes | - | 136 | ||||||
Increase (decrease) in | ||||||||
Accounts payable - trade | 1,078 | (62 | ) | |||||
Accrued expenses and other liabilities | (298 | ) | 186 | |||||
Deferred revenue | 1,666 | (6 | ) | |||||
Accrued compensation | 178 | (190 | ) | |||||
Accrued income taxes | 575 | - | ||||||
Deferred buy-back lease obligation | (602 | ) | (555 | ) | ||||
Customer deposits | 264 | (251 | ) | |||||
Net cash provided by (used in) operating activities | 5,702 | 2,582 | ||||||
Cash flows from investing activities: | ||||||||
Purchases of investment securities available-for-sale | (13 | ) | (15 | ) | ||||
Purchases of property and equipment | (926 | ) | (2,326 | ) | ||||
Proceeds from sale of fixed assets | 88 | 71 | ||||||
Net cash provided by (used in) investing activities | (851 | ) | (2,270 | ) | ||||
Cash flows from financing activities: | ||||||||
Proceeds from long-term borrowings | - | 5,426 | ||||||
Repayments of long-term borrowings | (421 | ) | (2,416 | ) | ||||
Dividends paid on common stock | - | (282 | ) | |||||
Net cash provided by (used in) financing activities | (421 | ) | 2,728 | |||||
Net increase (decrease) in cash | 4,430 | 3,040 | ||||||
Cash | ||||||||
Beginning of period | 8,764 | 1,364 | ||||||
End of period | $ | 13,194 | $ | 4,404 | ||||
Supplemental Cash Flow information: | ||||||||
Cash payments for interest | $ | 98 | $ | 113 | ||||
Cash payments for income taxes | $ | 713 | $ | 1 | ||||
SOURCE: Smith-Midland Corporation
View source version on accesswire.com:
https://www.accesswire.com/659013/Smith-Midland-Reports-Second-Quarter-2021-Financial-Results
To view this piece of content from www.accesswire.com, please give your consent at the top of this page.
About ACCESS Newswire
Subscribe to releases from ACCESS Newswire
Subscribe to all the latest releases from ACCESS Newswire by registering your e-mail address below. You can unsubscribe at any time.
Latest releases from ACCESS Newswire
LinkShadow is Positioned in the Visionaries Quadrant in the 2026 Gartner(R) Magic Quadrant(TM) for Network Detection and Response (NDR)23.5.2026 17:00:00 CEST | Press release
Recognized for Vision. Driven by Innovation. Advancing AI-powered network detection and response through connected intelligence, contextual visibility, and modern cyber defense. ATHENS, GA / ACCESS Newswire / May 23, 2026 / LinkShadow has been positioned in the Visionaries Quadrant of the 2026 Gartner® Magic Quadrant™ for Network Detection and Response. We are recognized for our completeness of vision and ability to execute. We believe this recognition highlights a differentiated approach to NDR that is redefining how organizations detect and respond to modern network threats. As cyber threats grow more sophisticated and fast moving, security teams are challenged by fragmented visibility, overwhelming alert volumes, and limited context. LinkShadow addresses these challenges through a distinct strategy that combines AI driven analytics with deep contextual awareness and real time correlation across network activity. This enables organizations to move beyond isolated alerts and toward a
LiberNovo Summer Kickoff Across Europe: A Five-Day Flash and Two Show Floors22.5.2026 11:00:00 CEST | Press release
HONG KONG, HK / ACCESS Newswire / May 22, 2026 / LiberNovo's Summer Kickoff Flash opens Friday, May 22 across the EU (9:00 CEST) and UK (8:00 BST) and runs five days. LiberNovo Omni ships in a regional bundle with €651 off in the EU and £549.50 off in the UK. Verified students and educators can stack another 5% on top. What's in the Bundle EU: LiberNovo Omni paired with the StepSync footrest and a matching StepSync Mat. €1,066 flash, regular €1,717, or 38% off. UK: LiberNovo Omni paired with the StepSync footrest and an Eye Mask. £969.50 flash, regular £1,519, or 36% off. Designed Around Motion LiberNovo Omni adapts to the body in real time. Three features handle the work: Bionic FlexFit Backrest. Eight independent panels follow the spine through every shift in posture, instead of one rigid surface pushing back. Automatic armrests. They track with the chair's recline so you don't reset them between positions, and they slide back into the base when you scoot under the desk so they don't
GA-ASI Completes First Flight of MQ-9B With AEW Pods21.5.2026 17:00:00 CEST | Press release
New Development Effort Will Enable Airborne Early Warning Capability for MQ-9B SAN DIEGO, CA / ACCESS Newswire / May 21, 2026 / General Atomics Aeronautical Systems, Inc. (GA-ASI) flew its MQ-9B Remotely Piloted Aircraft for the first time with Airborne Early Warning (AEW) pods. The much-anticipated AEW capability is being provided through a partnership with Saab. Once the AEW sensor, named LoyalEye, is made available to MQ-9B operators and new customers, it will deliver persistent and cost-effective air surveillance capabilities in regions where it is currently unavailable. GA-ASI conducted a validation flight of MQ-9B using AEW radar pods on May 19 from GA-ASI's Desert Horizon flight operations facility in Southern California using a company-owned aircraft. The flight signaled the first step in a development process that is expected to take several months and culminate with a full-capability demonstration later this year. GA-ASI and Saab announced their partnership last year with the
AI Trading Changing Stock, Gold, and Forex Trading Market: Funds Coin's Multi-Agent Trading Update Dominates20.5.2026 11:00:00 CEST | Press release
DENVER, CO / ACCESS Newswire / May 20, 2026 / Ten years ago, algorithmic trading was the exclusive territory of investment banks and hedge funds. Today, a retail trader with $100 and a smartphone can access the same class of automated execution that once required a team of quants and millions in infrastructure. That's not an exaggeration. It's the shift that's quietly reshaping stock and forex markets, and AI trading agents are at the center of it. The Old Way Is Breaking Down Manual trading made sense when markets moved slowly enough for humans to keep up. That world no longer exists. Forex markets process over $7 trillion in daily volume. Crypto trades around the clock across hundreds of exchanges. Stock prices react to news in milliseconds. The information moves faster than any individual trader can process, and emotions, such as fear, greed, and hesitation, make an already difficult job even harder. The traders who thrived in this environment were either exceptionally disciplined o
Karbon-X and Evertrak Sign Letter of Intent to Advance Infrastructure-Linked Plastic Waste Reduction Credit Initiative19.5.2026 19:45:00 CEST | Press release
Proposed initiative would evaluate the potential generation of Verra-aligned Plastic Waste Reduction Credits for approximately 200,000 railroad ties made from recycled plastic currently installed across railroad infrastructure in North America. CALGARY, AB / ACCESS Newswire / May 19, 2026 / Karbon-X Corp. (OTCQB:KARX) ("Karbon-X" or the "Company"), a vertically integrated climate solutions company operating across compliance and voluntary environmental markets, today announced the signing of a Letter of Intent with Evertrak LLC ("Evertrak"), the leading manufacturer of Glass Fiber Reinforced Composite (GFRC) railroad ties made from recycled plastic, to explore an infrastructure-linked Plastic Waste Reduction Credit ("PWRC") initiative under Verra's Plastic Waste Reduction (PWR) Standard. Across North America, 20 million railroad ties made from wood are replaced annually. Approximately 4-6 million of those ties are less than 12 years old. Safe, resilient, and efficient railroad infrastr
In our pressroom you can read all our latest releases, find our press contacts, images, documents and other relevant information about us.
Visit our pressroom