Transportation Services Company Reports $16.1 million in Revenues for First Quarter 2022, an Increase of approximately 112% from Q1, 2021
HOUSTON, TX, May 18, 2022 (GLOBE NEWSWIRE) -- via NewMediaWire - SMG Industries, Inc. (the “Company”) (OTCQB:SMGI), a growth-oriented transportation services company focused on the domestic infrastructure logistics market, today reported financial results for its first quarter 2022 and released its 2022 Quarterly Report on Form 10-Q.
First Quarter 2022 Highlights
Revenues increased to $16,181,053 for the quarter ending March 31, 2022, an increase of about 112% from $7,602,328 for the first quarter 2021, driven by higher sales in our industrial transportation division and the heavy haul division of infrastructure components including bridge beams and compressors. Additionally, 5J Transportation’s flatbed division and 5J Logistics’ asset-light brokerage business contributed to increased growth which were not present in the year ago period,
Gross profit was $1,455,948 for the first quarter 2022, compared to a gross loss of $1,098,180 in the year ago period. Higher sales covering more fixed costs within cost of sales generated a higher gross margin in Q1, 2022. The gross profit results included a non-cash depreciation expense of $1,357,401,
Selling, general and administrative (SG&A) expenses improved to approximately 15.2% of sales for the first quarter 2022, compared to 19.9% for the first quarter 2021,
Net loss from continuing operations for Q1, 2022 improved to $3,636,018, which included non-cash expenses of $1,357,401 for depreciation and $1,497,032 for deferred financing costs, compared to a net loss of $3,808,568 in the same period 2021,
Total assets grew to $32,030,438 at March 31, 2022, and,
The Company is eyeing transportation acquisitions to support its asset rich equipment profile and infrastructure transportation growth plans.
During the first quarter ended March 31, 2022, the Company generated higher year over year quarterly growth benefiting from increased customer activity resulting in higher pricing and volumes. Not present during the first quarter 2021, the Company’s flatbed and brokerage divisions further diversified the Company’s transportation services offering and contributed to revenue growth.
Mr. Matt Flemming, Chairman of SMG, stated “We are pleased to report a 112% increase in revenues for the first quarter 2022 compared to Q1, 2021. The increased revenues and higher pricing generated a gross margin of about $1.45 million which includes a non-cash expense from depreciation of approximately $1.35 million. Compared to the year ago period, customer activity was also favorable as the economy recovered further from the COVID pandemic. Strategically, the Company’s asset rich equipment profile has assisted in its transportation diversification plans and motivates SMGI to source accretive acquisitions to increase our growth.”
Further information is available, including financial statements, footnotes and management’s discussion and analysis of its financial results, in the Company’s Quarterly Report on Form 10-Q filed May 16, 2022, and its Annual Report on Form 10-K for the year ended December 31, 2021.
About SMG Industries, Inc.: SMG Industries is a growth-oriented transportation services company focused on the domestic infrastructure logistics market. Through several of the Company’s wholly-owned subsidiaries branded as the 5J Transportation Group, it offers heavy haul, super heavy haul, hot shot and drilling rig mobilization services. 5J’s dimensional permitted jobs can support up to 500-thousand-pound loads which include cargo associated with wind energy, power generation components, bridge beams, compressors, and refinery and construction equipment. SMG Industries, Inc. headquartered in Houston, Texas has facilities in Floresville, Hempstead, Henderson, Houston, Odessa, Palestine, Victoria, Texas and Fort Mill, South Carolina. Read more at www.SMGIndustries.com and www.5J-Group.com.
Contact: Matthew Flemming, SMG Industries, Inc. +1-713-955-3497
SOURCE: SMG Industries, Inc.