Smith Midland Corp 10-Q, filed May 11, 2021

Smith Midland Corp (SMID)

10-Q 2021-05-11 For: 2021-03-31

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Added on April 10, 2026

About this 10-Q

Smith Midland Corp filed this 10-Q on May 11, 2021, covering the quarter ended March 31, 2021.

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Delaware	54-1727060
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock, $0.01 par value per share	SMID	NASDAQ

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☑
Emerging growth company	☐

PART I. FINANCIAL INFORMATION	Page

Item 1. Financial Statements	3

Condensed Consolidated Balance Sheets	3

Condensed Consolidated Statements of Operations (Unaudited)	5

Condensed Consolidated Statements of Stockholders' Equity (Unaudited)	6

Condensed Consolidated Statements of Cash Flows (Unaudited)	7

Notes to Condensed Consolidated Financial Statements (Unaudited)	8

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations	14

Item 3. Quantitative and Qualitative Disclosures About Market Risk	21

Item 4. Controls and Procedures	21

PART II. OTHER INFORMATION

Item 1. Legal Proceedings	22

Item 1A. Risk Factors	22

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	22

Item 3. Defaults Upon Senior Securities	22

Item 4. Mine Safety Disclosures	23

Item 5. Other Information	23

Item 6. Exhibits	23

Signatures	24

ASSETS	March 31, 2021 (Unaudited)	December 31, 2020
Current assets
Cash	$12,534	$8,764
Investment securities, available-for-sale, at fair value	1,226	1,228
Accounts receivable, net
Trade - billed (less allowance for doubtful accounts of approximately $400), including contract retentions	10,922	9,798
Trade - unbilled	801	742
Inventories, net
Raw materials	713	643
Finished goods	1,634	1,551
Prepaid expenses and other assets	528	615

Total current assets	28,358	23,341

Property and equipment, net	18,528	18,602

Deferred buy-back lease asset, net	4,027	4,237

Other assets	295	319

Total assets	$51,208	$46,499

LIABILITIES AND STOCKHOLDERS' EQUITY	March 31, 2021 (Unaudited)	December 31, 2020
Current liabilities
Accounts payable - trade	$2,567	$1,866
Accrued expenses and other liabilities	664	875
Deferred revenue	2,091	1,774
Accrued compensation	1,387	1,318
Accrued income taxes	1,429	470
Deferred buy-back lease obligation	1,203	1,203
Operating lease liabilities	86	85
Current portion of PPP loan	750	—
Current maturities of notes payable	646	740
Customer deposits	853	569

Total current liabilities	11,676	8,900

Deferred revenue	804	600
Deferred buy-back lease obligation	3,489	3,790
Operating lease liabilities	189	211
Notes payable - less current maturities	4,094	4,196
PPP loan - less current portion	1,942	2.692
Deferred tax liability	2,457	2,461

Total liabilities	24,651	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; 5,279,411 and 5,279,411 issued and 5,202,158 and 5,202,158 outstanding, respectively	52	52
Additional paid-in capital	6,446	6,405
Treasury stock, at cost, 40,920 shares	(102)	(102)
Retained earnings	20,161	17,294

Total stockholders' equity	26,557	23,649

Total liabilities and stockholders' equity	$51,208	$46,499

	Three Months Ended March 31,
	2021	2020
Revenue
Product sales	$7,420	$6,852
Barrier rentals	5,777	742
Royalty income	420	268
Shipping and installation revenue	1,601	1,963

Total revenue	15,218	9,825

Cost of goods sold	9,496	8,225

Gross profit	5,722	1,600

Operating expenses
General and administrative expenses	1,325	1,051
Selling expenses	595	591

Total operating expenses	1,920	1,642

Operating income (loss)	3,802	(42)

Other income (expense)
Interest expense	(42)	(56)
Interest income	9	9
Gain (loss) on sale of assets	46	36
Other income (expense)	(7)	4

Total other income (expense)	6	(7)

Income (loss) before income tax expense (benefit)	3,808	(49)

Income tax expense (benefit)	941	(11)

Net income (loss)	$2,867	$(38)

Basic and diluted earnings (loss) per common share	$0.55	$(0.01)

Weighted average number of common shares outstanding:
Basic	5,202	5,183
Diluted	5,210	5,183

	Common Stock	Additional Paid-in Capital	Treasury Stock	Retained Earnings	Total
Balance at December 31, 2020	$52	$6,405	$(102)	$17,294	$23,649
Vesting of restricted stock	—	41	—	—	41
Net income (loss)	—	—	—	2,867	2,867
Balance at March 31, 2021	52	6,446	(102)	20,161	26,557

Revenue by Type	Three Months Ended March 31,
Product Sales:	2021	2020	Change	% Change
Soundwall Sales	$1,699	$1,887	$(188)	(10)%
Architectural Panel Sales	2,188	767	1,421	185%
SlenderWall Sales	—	923	(923)	(100)%
Miscellaneous Wall Sales	503	903	(400)	(44)%
Barrier Sales	1,491	1,325	166	13%
Easi-Set and Easi-Span Building Sales	754	559	195	35%
Utility Sales	268	401	(133)	(33)%
Miscellaneous Sales	517	87	430	494%
Total Product Sales	7,420	6,852	568	8%
Barrier Rentals	5,777	742	5,035	679%
Royalty Income	420	268	152	57%
Shipping and Installation Revenue	1,601	1,963	(362)	(18)%
Total Service Revenue	7,798	2,973	4,825	162%

Total Revenue	$15,218	$9,825	$5,393	55%

	Number of Shares	Weighted Average Grant Date Fair Value per Share
Non-vested, December 31, 2020	36,336	$8.98
Granted	—	—
Vested	—	—
Forfeited	—	—

Non-vested, end of period	36,336	$8.98

Revenue by Type (Disaggregated Revenue)	Three Months Ended March 31
Product Sales:	2021	2020	Change	% Change
Soundwall Sales	$1,699	$1,887	$(188)	(10)%
Architectural Panel Sales	2,188	767	1,421	185%
SlenderWall Sales	—	923	(923)	(100)%
Miscellaneous Wall Sales	503	903	(400)	(44)%
Barrier Sales	1,491	1,325	166	13%
Easi-Set and Easi-Span Building Sales	754	559	195	35%
Utility Sales	268	401	(133)	(33)%
Miscellaneous Sales	517	87	430	494%
Total Product Sales	7,420	6,852	568	8%
Barrier Rentals	5,777	742	5,035	679%
Royalty Income	420	268	152	57%
Shipping and Installation Revenue	1,601	1,963	(362)	(18)%
Total Service Revenue	7,798	2,973	4,825	162%

Total Revenue	$15,218	$9,825	$5,393	55%

Exhibit No.		Exhibit Description
31.1		Certification of the Chief Executive Officer pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934.
31.2		Certification of the Principal Financial Officer pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934.
32.1		Certification pursuant 18 U.S.C. Section 1350 as adapted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS		XBRL Instance Document.
101.SCH		XBRL Taxonomy Extension Schema Document.
101.CAL		XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF		XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB		XBRL Taxonomy Extension Label Linkbase Document.
101.PRE		XBRL Taxonomy Extension Presentation Linkbase Document.



		SMITH-MIDLAND CORPORATION (Registrant)

Date:	May 11, 2021	By:	/s/ Ashley B. Smith
			Ashley B. Smith, Chief Executive Officer
			(Principal Executive Officer)


Date:	May 11, 2021	By:	/s/ Adam J. Krick
			Adam J. Krick, Chief Financial Officer
			(Principal Financial Officer)


1.	I have reviewed this quarterly report on Form 10-Q of Smith-Midland Corporation;


2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

	Three Months Ended March 31,
	2021	2020
Cash flows from operating activities:
Net income (loss)	$2,867	$(38)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	646	572
Gain (loss) on sale of assets	(46)	(36)
Unrealized (gain) loss	8	—
Allowance for doubtful accounts	—	17
Stock compensation	41	—
Deferred taxes	(4)	16
(Increase) decrease in
Accounts receivable - billed	(1,124)	3,262
Accounts receivable - unbilled	(59)	(646)
Inventories	(153)	71
Prepaid expenses and other assets	104	41
Refundable income taxes	—	(32)
Increase (decrease) in
Accounts payable - trade	701	(511)
Accrued expenses and other liabilities	(211)	(31)
Deferred revenue	521	(271)
Accrued compensation	69	(314)
Accrued income taxes	959	—
Deferred buy-back lease obligation	(301)	(259)
Customer deposits	284	(585)
Net cash provided by (used in) operating activities	4,302	1,256
Cash flows from investing activities:
Purchases of investment securities available-for-sale	(7)	(8)
Purchases of property and equipment	(376)	(669)
Proceeds from sale of fixed assets	46	41
Net cash provided by (used in) investing activities	(337)	(636)
Cash flows from financing activities:
Proceeds from long-term borrowings	—	2,701
Repayments of long-term borrowings	(195)	(2,205)
Dividends paid on common stock	—	(282)
Net cash provided by (used in) financing activities	(195)	214
Net increase (decrease) in cash	3,770	834
Cash
Beginning of period	8,764	1,364
End of period	$12,534	$2,198


3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;


4.	The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:


(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;


(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;


(c)	Evaluated the effectiveness of registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and


(d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and


(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and


(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.



	By: /s/ Ashley B. Smith
	Ashley B. Smith
	Chief Executive Officer and President
	(principal executive officer)


	By: /s/ Adam J. Krick
	Adam J. Krick
	Chief Financial Officer
	(principal financial officer)

	Dated:	May 11, 2021