Smith-Midland Corp (SMID) Reports Q2 2023 Financial Results: Revenue Up 11% to $14.7 Million
Smith-Midland Corp (NASDAQ:SMID) reports Q2 2023 revenue of $14.7 million, an 11% increase from the prior year.
Product sales increased by 58% from the prior year quarter to $10.7 million.
Net loss of $782,000 primarily due to cost inflation and isolated incidents.
Record backlog of $60.9 million as of August 1, 2023.
Smith-Midland Corp (NASDAQ:SMID), a provider of innovative, high-quality proprietary and patented precast concrete products and systems, announced its second quarter results for the period ended June 30, 2023, on October 11, 2023. The company reported an 11% increase in revenue from the prior year quarter to $14.7 million and a 58% increase in product sales to $10.7 million. However, the company reported a net loss of $782,000, primarily related to cost inflation and isolated incidents.
Financial Performance
The company's gross profit was $1.8 million, compared to $3.2 million in the prior year quarter. The gross margin for the current year quarter was 12.2% compared to 24.4% in the previous years quarter. The operating loss for the quarter was $981,000 compared to operating income of $1.1 million in the prior-year quarter. The net loss for the second quarter was $782,000, or loss per share of $0.15, compared to net income of $910,000, or $0.17 per diluted share in the second quarter of 2022.
Product and Service Revenue
Total product sales for the second quarter of 2023 were $10.7 million compared to $6.8 in the prior-year quarter. Service revenue, which includes barrier rentals, royalty income, and shipping and installation, was $4.0 million compared to $6.5 million in the second quarter of 2022.
Balance Sheet and Liquidity
As of June 30, 2023, cash totaled $4.7 million compared to cash totaling $6.7 million for the year ended December 31, 2022. Account receivables totaled $16.6 million and debt totaled $6.0 million as of June 30, 2023. Capital spending totaled $1.8 million for the second quarter of 2023.
Outlook
Smith-Midland anticipates increased sales volumes for the remainder of 2023 and continuing into 2024 due to the growing backlog and continued strength in bidding activity. The company remains focused on long-term strategic growth initiatives to drive shareholder value.
Revenue for the second quarter of 2023 represents the third consecutive quarter of double-digit, year-over-year revenue growth, reflecting the underlying strength of our business, said Ashley Smith, Chairman and Chief Executive Officer of Smith-Midland. We expect third quarter revenue growth to be in excess of 20 percent compared to the third quarter of the prior year as we execute on the production of our historic backlog. Overall, the multiple tailwinds across our business should continue the trend of strong top-line growth, positioning us to create long-term shareholder value, Mr. Smith concluded.
This article first appeared on GuruFocus.
