Press Releases > Financial > Third Quarter 2005

Smith-Midland Corporation Announces Results for the Quarter Ended September 30, 2005 with Revenues of $6,528,905 and Pre-Tax Income of $411,851

Midland, Va. - Smith-Midland Corporation (OTCBB and Boston Stock Exchange:SMID) announced the company reported total revenue of $6,528,905 for the quarter ended September 30, 2005, compared to total revenue of $5,686,567 for the same period of 2004, an increase of $842,338, or 15%. Pre-tax income was $411,851 for the quarter ended September 30, 2005, compared to pre-tax income of $273,306 for the same period of 2004, an increase of $138,546.
The company reported total revenues of $17,431,560 for the nine months ended September 30, 2005, compared to total revenue of $16,348,935 for the same period of 2004, an increase of $1,082,625, or 7%. Pre-tax income was $1,418,592 for the nine months ended September 30, 2005, compared to $657,100 for the same period of 2004, which is an increase of $761,492. Having fully utilized its net operating loss carry forward, the Company began to incur an income tax expense in 2005, which was not incurred in 2004.

As of November 10, 2005 the Company's unaudited production backlog for booked orders was approximately $14,800,000 as compared to approximately $7,500,000 at the same time in 2004. This significant increase was the result of improved economic conditions in the area and management’s decision to apply more resources to selling and marketing. The majority of the projects relating to the backlog as of November 10, 2005 are scheduled to be produced and erected in the last quarter of 2005 and first half of 2006. The Company has also seen significant increases in the demand and sale of its Slenderwall™ and soundwall product lines with current production backlog scheduled through the third quarter 2006. Also, due to the lighter weight characteristics of the Slenderwall™, the Company has been able to considerably expand its service area into regions that previously could not be reached economically in the past.

The Company also enjoys a certain amount of regularly occurring repeat customer business, which should be considered in addition to the contracted and ordered production backlog described above. These orders typically have a quick turn around and represent a significant portion of the Company’s inventoried standard products, such as highway safety barrier, utility and farm products.

Smith-Midland develops, manufactures, licenses and sells a broad array of precast concrete products for use primarily in the construction, transportation and utilities industries. Smith-Midland has two manufacturing facilities located in Midland, VA and Reidsville, NC. Easi-Set Industries, a wholly owned subsidiary of Smith-Midland Corporation, licenses Smith-Midland developed products throughout North America, Europe and South America. Easi-Set Industries currently has 30 precast concrete product licensees worldwide.

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, product demand, the impact of competitive products and pricing, capacity and supply constraints or difficulties, general business and economic conditions, the effect of the Company's accounting policies and other risks detailed in the Company's Annual Report on Form 10-KSB and other filings with the Securities and Exchange Commission.

Smith-Midland Corporation and Subsidiaries Consolidated Statements of Operations Data