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
Global Nurse Migration Patterns Shift as Europe, Southeast Asia Absorb Growing Share of International Nurses28.4.2026 16:00:00 CEST | Press release
TruMerit 2025 Nurse Migration Report reveals workforce inequities widening across regions. PHILADELPHIA, PA / ACCESS Newswire / April 28, 2026 / TruMerit™ (formerly CGFNS International) today released its 2025 Nurse Migration Report, revealing significant shifts in global nurse migration patterns and widening inequities in nursing workforce distribution across regions with vastly different healthcare needs. The report, which analyzes World Health Organization data and TruMerit's proprietary VisaScreen® application records, shows that international nurse migration flows are increasingly concentrated in regions with stronger healthcare infrastructure, while areas facing severe nursing shortages continue to lose ground in their ability to employ internationally educated nurses. Europe and Southeast Asia see sharp increases in international nurse employment. According to TruMerit's analysis of WHO nursing workforce data, Europe now employs internationally educated nurses at a rate represen
Tenstorrent Enables AI At Scale with Industry-Leading Performance Deployed on Novel Networked AI Architecture28.4.2026 15:00:00 CEST | Press release
Tenstorrent GalaxyTM Blackhole delivers general-purpose AI with native scale-out for winning performance in AI video generation and LLMs - prefill and decode. SANTA CLARA, CA / ACCESS Newswire / April 28, 2026 / Tenstorrent, the AI compute company led by CEO, Jim Keller, announces today general availability of Tenstorrent Galaxy Blackhole deployed at scale, delivering industry-leading general-purpose AI performance. Other solutions require bolting together separate accelerators across fragmented infrastructure. Tenstorrent's Networked AI delivers them natively - compute, memory, and networking unified into a single system optimized for real-world AI workloads. Leading Industry Performance, Affordable Prices General-purpose means leading performance on every workload defining modern AI, not specializing in one. Tenstorrent Galaxy tops video generation, large-context LLM inference in both prefill and decode, and the full range of model architectures shipping today. See it for yourself on
Kontent.ai Appoints Mark Greenaway as CEO to Drive the Next Phase of AI in Enterprise Content27.4.2026 08:00:00 CEST | Press release
BRNO, CZ / ACCESS Newswire / April 27, 2026 / Kontent.ai has appointed Mark Greenaway as Chief Executive Officer, as the company looks to scale its Agentic CMS and transform content operations for customers. Greenaway brings a track record of scaling businesses and leading high performing global teams with a focus on enterprise environments where content is both a marketing asset and a critical driver of growth, compliance, and customer experience. With this appointment, Kontent.ai founder Petr Palas returns to his position on the board at Kontent.ai and will continue to support the business he launched in 2022 as a successful spin out of Kentico. Kontent.ai recently launched their next generation of "Agentic CMS" with the launch of Expert Agents. These Agents are embedded directly into workflows to continuously handle operational tasks such as governance, search and generation engine (LLM) optimization, translation, and lifecycle management, work that typically requires significant ma
HrFlow.ai Secures 7 Million Dollars (Pre-Series A) to Become the Global Standard for Artificial Intelligence (AI) Applied to HR Data24.4.2026 01:40:00 CEST | Press release
PARIS, FR / ACCESS Newswire / April 23, 2026 / 1. Fundraising and Objectives HrFlow.ai, a pioneer in Artificial Intelligence applied to Human Resources data, announces its second fundraising round of $7M (pre-Series A) today. This financing brings the company's total capital raised to $10 million. This new capital injection is designed to accelerate the company's core mission: building the Data & AI infrastructure of the labor market. The round is led by 115K, La Banque Postale's venture capital fund, and EmergingTech Ventures (EmTech), alongside the company's existing investors including Xavier Niel (Free, Kima, Station F), Jean-Baptiste Rudelle (Criteo), Romain Niccoli (Pigment, Criteo), Franck Le Ouay (LIFEN, Criteo), Flavien Kulawik (KLB), Allen Penn (Uber), Dominique Vidal (Index Ventures), Thibaud Elzière (Hexa, Fotolia). Building on rigorous execution and proven capital efficiency since its first funding round of $2.3M in 2018, HrFlow.ai now generates a margin of approximately 2
Datavault AI Further Expands IP Portfolio with New Patent Issuance and Notices of Allowance22.4.2026 16:00:00 CEST | Press release
Builds on December 2025 Content Licensing Patents and Carbon Credit Tokenization Grant; Strengthens IP Moat Across Data Valuation, Virtual Funding, and Tokenized Tax Prep PHILADELPHIA, PA / ACCESS Newswire / April 22, 2026 / Datavault AI Inc. ("Datavault AI" or the "Company") (NASDAQ:DVLT), a leader in AI-driven data monetization, credentialing, digital engagement, and real-world asset ("RWA") tokenization technologies, today announced the issuance of U.S. Patent No. 12,596,819 and Notices of Allowance on two additional U.S. patent applications. This milestone builds directly on the Company's December 2025 issuance of two foundational patents for blockchain-driven content licensing and tokenized monetization - further expanding its robust intellectual property portfolio headlined by the industry-defining Carbon Credit Tokenization Patent. Key Highlights for Investors One newly issued patent and two Notices of Allowance extend protection across three high-value platforms: AI-validated d
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