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8-K - FORM 8-K - SMITH MIDLAND CORP | smid-20200331_8kpr.htm |
Exhibit
99.1
Smith-Midland
Announces First Quarter 2020 Results
MIDLAND, VA. – Smith-Midland
Corporation (the Company) (OTCQX: SMID), which develops,
manufactures, licenses, rents, and sells a broad array of precast
concrete products for use primarily in the construction,
transportation, and utilities industries, today announced results
for the quarter ended March 31, 2020.
First
Quarter 2020 Results
The
Company reported first quarter revenues of $9.8 million for 2020
and $10.2 million for the comparable quarter of 2019, a decrease of
$0.4 million, or 4%. The pre-tax loss for the first quarter of 2020
was $0.1 million compared to pre-tax income of $0.4 million in
2019, a decrease of $0.5 million. The Company had a net loss for
the first quarter of 2020 in the amount of $0.1 million compared to
net income of $0.3 million in 2019, a decrease of $0.4 million. The
basic and diluted loss per share was $0.01 for the first quarter
2020, while the basic and diluted income per share was $0.06 for
the first quarter 2019.
COVID-19
Update
Smith-Midland is
closely monitoring the current and potential impact of the COVID-19
outbreak on its operations, employees, customers, and supply
chain. Although the Company’s three manufacturing
facilities remain operational, the Company has adopted
virus-prevention protocols consistent with the recommendations
provided by the U.S. Centers for Disease Control and Prevention.
The Company’s facilities are currently operational with the
industry classified under essential businesses.
CEO
Commentary
Ashley
Smith, CEO stated, “The first quarter of 2020 started off
slower than expected with short-term delays in project approvals.
However, the increase in the barrier rental fleet during the fourth
quarter 2019 proved to be instrumental in the Company landing a
$1.1 million highway project, in which deliveries began during the
second quarter of this year. The project duration is estimated at
2-3 years, and the Company will recognize the related revenues over
the same period. The Company continues to shift its focus from
barrier sales to barrier rentals, which remains one of the highest
margin revenue streams.
“Also during
the first quarter, the Company secured a large architectural
project valued near $8.3 million with the Army Corp of Engineers.
The design-assist project is located at an undisclosed military
base in Maryland, with production planned out of the Virginia
plant. Production is set to begin during the third quarter 2020,
and projected to continue through the second quarter
2021.
“The new
facility in North Carolina has increased production during the
second quarter 2020, manufacturing a large, custom retaining wall
order, and is expected to continue production through the third
quarter 2020. The South Carolina plant received its first MASH TL3
barrier order, which is set to begin production during the latter
half of the second quarter 2020. The Company is aggressively
bidding on highway projects at both locations in order to fill the
available capacity.
“Although
there has been a slowdown in highway bidding due to the COVID-19
outbreak, the Company is still seeing demand for the patented
SlenderWall system with increasing budget requests. As jobsites
continue to evolve, with additional restrictions put in place,
SlenderWall proves to fit the needs of our customers. When the
country recovers from the pandemic, we believe that the long-term
demand will continue to move to offsite modular construction,
creating a greater need for our proprietary system.
“Despite
continued operations under the essential business classification,
significant uncertainty remains as to how the novel coronavirus may
impact bidding, customers’ ability to pay, supply chains, and
our ability to maintain production in our plants in the coming
months. We are starting to see the impacts of the COVID-19
outbreak, but the Company is committed to doing everything in our
control to protect our associates, community, and shareholders
through this pandemic.”
Balance
Sheet and Liquidity
As of
March 31, 2020, the Company had cash and investments totaling $3.4
million. Accounts receivable decreased to $9.4 million at March 31,
2020. Total outstanding debt on notes payable increased to $5.5
million at the recent quarter end. With the economic uncertainty
due to the COVID-19 outbreak, the Company received a Paycheck
Protection Plan loan in the amount of $2.7 million subsequent to
the end of the first quarter 2020.
About
Smith-Midland
Smith-Midland
develops, manufactures, licenses, rents, and sells a broad array of
precast concrete products for use primarily in the construction,
transportation and utilities industries. Management and the Board
own approximately 20% 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 COVID-19 outbreak may
significantly adversely affect future operations, product demand,
the impact of competitive products and pricing, capacity and supply
constraints or difficulties, general business and economic
conditions, our 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.
For
more complete information on Smith-Midland Corporation, visit the
Company’s website at SMITHMIDLAND.com. The “Investor
Relations” area will include the Company’s Form
10-K.
Media
Inquiries:
AJ
Krick, CFO
540-439-3266
investors@smithmidland.com
Sales
Inquiries:
info@smithmidland.com