Smith-Midland Corporation
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
The Michelin Guide Expands Its Global Footprint with the Arrival in Aotearoa New Zealand5.11.2025 20:00:00 CET | Press release
AUCKLAND, NZ / ACCESS Newswire / November 5, 2025 / Michelin is pleased to announce the arrival of the MICHELIN Guide in Aotearoa New Zealand, marking its first-ever expansion into Oceania. The inaugural edition will cover four vibrant culinary destinations: Auckland, Wellington, Christchurch, and Queenstown. Set to be unveiled in the middle of 2026, the restaurant selection process is already under way, as MICHELIN Guide Inspectors are currently on the ground, dining anonymously to identify the very best restaurants that showcase the unique character of Auckland, Wellington, Christchurch, and Queenstown culinary scenes. Gwendal Poullennec, International Director of the MICHELIN Guide states: "We are thrilled to bring the MICHELIN Guide to Aotearoa New Zealand for the very first time. The country offers a rich and diverse culinary landscape, shaped by its indigenous Māori heritage, Pacific influences, and a new generation of chefs who champion local produce with creativity and passion.
Loar Holdings Inc. Announces Date and Time for Third Quarter 2025 Earnings Conference Call5.11.2025 14:00:00 CET | Press release
WHITE PLAINS, NEW YORK / ACCESS Newswire / November 5, 2025 / Loar Holdings Inc. (NYSE:LOAR), will report Q3 2025 earnings before the market opens on Wednesday, November 12, 2025. A conference call will follow at 10:00a.m., Eastern Time. To participate in the call telephonically please dial +1 877-407-0670 / +1 215-268-9902. International participants can find a list of toll-free numbers here. A live audio webcast will also be available at the following link as well as through the Investor section of Loar Holdings website; https://ir.loargroup.com The webcast will be archived and available for replay later in the day. About Loar Holdings Inc. Loar Holdings Inc. is a diversified manufacturer and supplier of niche aerospace and defense components that are essential for today's aircraft and aerospace and defense systems. Loar has established relationships across leading aerospace and defense original equipment manufacturers and Tier Ones worldwide. Contact Ian McKillop Loar Holdings Inc.
New GA-ASI Gambit 6 UCAV Adds Air-To-Ground Operations for International CCA4.11.2025 16:00:00 CET | Press release
SAN DIEGO, CALIFORNIA / ACCESS Newswire / November 4, 2025 / The latest iteration of the innovative Gambit Series of unmanned combat air vehicles (UCAV) from General Atomics Aeronautical Systems, Inc. (GA-ASI) is Gambit 6, a collaborative combat aircraft (CCA) that adds air-to-ground operations to its already proven air-to-air capability. The multi-role platform is optimized for roles such as electronic warfare, suppression of enemy air defenses (SEAD), and deep precision strike, making it a versatile option for evolving defense needs. Air forces throughout the world are looking to air-to-ground-capable CCAs to enhance operational capabilities and address emerging threats in a denied environment. Gambit 6 is being developed to meet the corresponding need for adaptability, scalability, and mission-specific performance. "These are real threats, and they require real solutions," said GA-ASI President David R. Alexander. "The modular architecture and signature-reducing internal weapons bay
FiberCop and FMC GlobalSat/MTN Seal Strategic Partnership to Develop Hybrid Terrestrial-satellite Network Architectures in Italy4.11.2025 13:00:00 CET | Press release
The two companies have signed a strategic partnership aimed at offering high-speed connectivity across Italy, enabling high-performance backhaul and last-mile services by integrating satellite backhaul and fiber access in remote areas. ROME, ITALY AND FORT LAUDERDALE, FL / ACCESS Newswire / November 4, 2025 / FiberCop, the company running Italy's most advanced, extensive and widespread digital network infrastructure has signed a strategic partnership with FMC GlobalSat and its 100% owned subsidiary MTNSat "MTN", a world-class satellite network operator, to develop cutting-edge hybrid terrestrial-satellite solutions to deliver stable connectivity in remote areas across Italy. This agreement represents one of the first architectures of its kind developed worldwide over Low Earth Orbit (LEO) satellite networks. Altogether, both companies have successfully completed tests with hybrid network architectures that integrate LEO satellite services into terrestrial infrastructures, specifically
Sauce Labs Introduces Sauce AI for Insights: Purpose-Built AI Agents That Transform Software Quality Data Into Instant Engineering Intelligence3.11.2025 16:00:00 CET | Press release
Purpose-Built AI Agents Eliminate Hours of Manual Test Analysis, Accelerating Release Cycles and Empowering Engineering Teams to Ship High-Quality Applications with Unprecedented Speed and Confidence SAN FRANCISCO, CA / ACCESS Newswire / November 3, 2025 / Sauce Labs, the leading platform for continuous quality, today announced Sauce AI for Insights, a groundbreaking suite of AI-powered data and analytics capabilities that fundamentally transforms how engineering teams analyze, understand, and act on real-time test execution and runtime data to deliver quality releases at speed - while offering enterprise-grade rigorous security and compliance controls. As the industry's first AI agent purpose-built for software quality intelligence, Sauce AI for Insights converts one of the most critical bottlenecks in modern software development into a strategic advantage: the overwhelming volume of test data that slows decision-making and delays releases now accelerates developer productivity and en
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