Press Releases > Financial > Third Quarter of 2006

Smith-Midland Corporation Announces Results for the Third Quarter 2006

Midland, Va. - Smith-Midland Corporation (OTCBB and Boston Stock Exchange: SMID) announced the company reported total revenue of $7,987,384 for the quarter ended September 30, 2006, compared to total revenue of $6,528,905 for the quarter ended September 30, 2005, an increase of $1,458,479, or 22%. The Company had net income of $252,341 for the three months ended September 30, 2006, compared to net income of $230,677 for the same period in 2005. The increased net income was primarily the result of higher revenues and production, while overhead costs remained flat.

The company reported total revenues of $21,352,481 for the nine months ended September 30, 2006, compared to total revenue of $17,431,560 for the nine months ended September 30, 2005, an increase of $3,920,921, or 23%. Net income was $373,014 for the nine months ended September 30, 2006, compared to a net income of $1,158,073 for the same period in 2005.

The decreased net income for the nine month period resulted in part from the unusual profitability of barrier and security work in 2005 related to the Presidential Inauguration. Also, negatively affecting net income for the period was the additional income tax in the more recent period, as compared to the prior year, primarily due to the complete utilization of net operating loss carry forward in 2005. In comparing the Company’s regularly occurring production and sales volumes, Slenderwall™ production and sales increased significantly during 2006, resulting from growing customer acceptance and continued success in expanding the applications and capabilities of Slenderwall™.

As of November 14, 2006 the Company's unaudited production backlog was approximately $15,400,000 as compared to approximately $14,800,000 at the same time in 2005. Selling and bidding activity and the economic condition of the construction industry in our service areas have remained strong. Management is continuing with its aggressive marketing and advertising initiatives and no changes are expected in the near future. The majority of the projects relating to the backlog as of November 14, 2006 are scheduled to be produced and erected in the remainder of 2006 and through August 2007. The Company also enjoys a regularly occurring repeat customer business, which should be considered in addition to the ordered production backlog described above. These orders typically have a quick turn around and represent purchases of a significant portion of the Company’s inventoried standard products, such as highway safety barrier, utility and Easi-Set® building products. Historically, this regularly occurring repeat customer business is equal to approximately $7 million annually.

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 40 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