Press Releases > Financial > Fourth Quarter 2005

Smith-Midland Corporation Announces Significantly Improved Results for the Year Ended December 31, 2005

Midland, Va. - Smith-Midland Corporation (OTCBB and Boston Stock Exchange:SMID) announced the company reported total revenue of $23,790,918 for the year ended December 31, 2005, compared to total revenue of $22,115,056 for the same period of 2004, an increase of $1,675,862, or 7.6%.  Pre-tax income was $1,762,894 for the year ended December 31, 2005, compared to a pre-tax income of $516,451 for the same period of 2004, an increase of $1,246,443. 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.

The increased net income was primarily the result of increased production activity for Slenderwall™ and soundwall products through December 31, 2005 and increased sales for security and highway barrier related work during the first quarter 2005. Increased royalty activity also contributed to the improvement. Also, higher profit margins were realized on some products due to improvements in the economy in the Company’s primary service areas.

As of March 24, 2006 the Company's unaudited production backlog was approximately $13,800,000 as compared to approximately $6,400,000 at the same time in 2005. This significant increase was the result of improved economic conditions in the area, which management expects should continue through most of 2006. The Company also has 7 projects equal to approximately $6,400,000 of additional production for which the Company has received letters of intent. The Company traditionally does not include projects in its production backlog calculation until the customer signs a complete contract. Accordingly, the Company has not included these amounts in its production backlog amount.

Smith-Midland develops, manufactures, licenses, rents, 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, South America, and Australia. Easi-Set Industries currently has 36 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