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
British Library Selects Preservica for Large-Scale Digital Preservation Program4.3.2026 15:00:00 CET | Press release
OXFORD, UK AND BOSTON, MA / ACCESS Newswire / March 4, 2026 / Preservica, the leader in AI-powered Active Digital Preservation™, today announced that it has been selected by the British Library to provide a Digital Preservation Repository solution and project implementation services to support the long-term preservation and management of the Library's extensive, petabyte- scale digital collections. Following a formal procurement and evaluation process, Preservica will deliver a secure, cloud-based Digital Preservation platform to support the continuous acquisition, management, and long-term preservation of the Library's diverse and expanding digital collections - including e-books, e-journals, sound recordings, UK websites, eTheses, digitised heritage materials and more - strengthening its ability to safeguard digital content for future generations. "Robust and secure Digital Preservation is essential for the effective custodianship, management and long-term readability of modern digit
Accu-Time Systems Announces Strategic Integration with Connecteam for Seamless Workforce Management4.3.2026 15:00:00 CET | Press release
The collaboration brings enterprise-grade stride80 time clocks to the Connecteam ecosystem, offering businesses a unified solution for high-accuracy attendance and real-time data sync. BOSTON, MASSACHUSETTS / ACCESS Newswire / March 4, 2026 / Accu-Time Systems (ATS), a leading provider of employee time collection solutions, today announced a strategic partnership with Connecteam, the all-in-one platform for managing distributed workforces. This collaboration integrates Connecteam's workforce management system with Accu-Time Systems' stride80 employee time clocks-delivering a unified, accurate, and secure way to collect employee time for payroll processing. Through this integration, employee punches recorded on stride80 time clocks are automatically transmitted to Connecteam's time tracking system in real time. The result is a streamlined data flow that eliminates manual entry, reduces payroll errors, and saves organizations valuable administrative time. "By integrating Connecteam's pla
Formerra Appoints Tom Kelly as Chief Executive Officer4.3.2026 14:00:00 CET | Press release
CLEVELAND, OHIO / ACCESS Newswire / March 4, 2026 / Formerra, LLC ("Formerra"), a leading distributor of engineered thermoplastic resins, additives, elastomers, and other specialty materials, today announced the appointment of Tom Kelly as Chief Executive Officer ("CEO"). A seasoned executive with over 30 years of specialty and engineered materials experience, Tom is known for leading teams to drive differentiated growth and building high-performing organizations set up for long-term success. The former CEO, Cathy Dodd, will stay on as Special Advisor to the Board and will remain an investor in the Company. Tom brings extensive commercial, supply chain, and distribution experience with a strong background in scaling global enterprises in the engineered materials sector. After previous roles at Cabot Microelectronics and Chemtura, Tom's most recent role was Senior Vice President of Engineered Materials at Celanese, where he led key commercial and operational initiatives across engineere
New GTDC Research Details Distribution's Influence on AI, Cloud and Hyperscaler Sales and Adoption3.3.2026 16:00:00 CET | Press release
IT distributors have become digital ecosystem orchestrators that unify cloud, AI, hyperscaler, and subscription-based business models. Distribution significantly accelerates vendor growth while reducing risk, allowing suppliers to scale efficiently, expand partner bases, enter new markets and mitigate financial and operational liabilities. Digital platforms are creating a new GTM "operating system". These systems offer end-to-end digital commerce and intelligence layers to manage procurement, billing, lifecycles and analytics. TAMPA, FL / ACCESS Newswire / March 3, 2026 / The Global Technology Distribution Council (GTDC), the world's largest consortium of technology distributors, has released a new research report, Distribution: The Digital Force Multiplier. Developed by CommCentric Solutions, this study examines how IT distribution has transformed and continues to evolve into a critical enabler of cloud, artificial intelligence (AI), hyperscaler and platform-driven business models acr
Datavault AI Reports Significant Institutional Ownership Growth as Platform Expansion Accelerates3.3.2026 14:08:00 CET | Press release
PHILADELPHIA, PA / ACCESS Newswire / March 3, 2026 / Datavault AI Inc. ("Datavault AI" or the "Company") (NASDAQ:DVLT), a provider of data monetization, credentialing, digital engagement, and real‑world asset tokenization technologies, today highlighted a marked increase in institutional ownership alongside continued commercial expansion across media and enterprise markets. Between the fourth quarter of 2025 and February 2026, several major asset managers significantly expanded their positions in Datavault AI. According to recent public filings, Vanguard increased its holdings from approximately 393,000 shares to 11.8 million shares. State Street expanded from roughly 335,000 shares to 10.0 million shares. BlackRock increased its position from approximately 136,000 shares to 4.1 million shares. These changes represent percentage increases of approximately 2,900%, 2,800%, and 3,000%, respectively. Management views this increase in institutional participation as support for Datavault AI'
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