Smith-Midland Corporation Q1 2024 Financial Results

Date: June 13, 2024
Company Name: Smith-Midland Corporation (NASDAQ: SMID)
Sector: Basic Materials
Industry: Building Materials
Reported Currency: USD
Link to Full Report: SEC Filing

Financial Highlights

For the first quarter of 2024, Smith-Midland Corporation reported a revenue of $16.76M, with a cost of revenue amounting to $12.85M. This resulted in a gross profit of $3.91M, reflecting a gross profit margin of 23.34%. The company's gross profit margin underperformed the average of its peers, which is 33.66%.

Operating expenses stood at $2.4M, including $1.55M in General and Administrative Expenses and $853k in Selling and Marketing Expenses. Consequently, the operating income reached $1.51M, with an operating income ratio of 9.01%, aligning with the operating income margin.

Net Income

The net income was $1.15M after a tax expense of $357k, resulting in a net income margin of 6.85%. Earnings per share (EPS) were reported at $0.22, with a diluted EPS of $0.21.

Cash Flow Analysis

Smith-Midland Corporation's net cash provided by operating activities was reported at -$777k. Capital expenditures were recorded at -$1.8M, leading to a free cash flow of -$2.57M. Cash at the end of the period stood at $6.8M, decreasing from $9.18M at the beginning of the period.

Balance Sheet Overview

The company’s total liabilities amounted to $29.54M, compared to equity of $35.31M, resulting in a total liabilities and equity value of $64.85M. The debt-to-equity ratio was maintained at 15.87%, while the total debt was $5.61M.

Financial Ratio Analysis

Smith-Midland Corporation's performance metrics, when compared to industry peers, highlighted several areas of interest:

• Gross Profit Margin TTM: 19.52%, underperforming the industry average of 33.66%.
• Operating Profit Margin TTM: 4.05%, compared to the industry average of 19.53%.
• Net Profit Margin TTM: 2.93%, below the industry average of 16.02%.
• Return on Equity TTM: 5.48%, while the industry average stands at 19.85%.

The company's interest coverage ratio TTM stands at a robust 1,963.36%, significantly higher than the industry average of 95,054.18%.

Conclusion

Smith-Midland Corporation’s first-quarter financial performance for 2024 demonstrates stable profitability and effective cost management. However, when benchmarked against peers, there are areas for improvement, especially in profit margins and returns. Moving forward, the focus will be on optimizing operational efficiency and enhancing shareholder value.

For more detailed financial data, please refer to the full report.