Tue, Jun 11, 8:19 PM (226 days ago)
Smith-Midland Corporation's Q1 2024 financial performance showed a significant improvement over Q1 2023. The company reported a net income of $1,147, up from $80 in the same period last year. Total revenue increased by 30% to $16,756, driven by higher sales in soundwalls, utility products, miscellaneous products, and shipping and installation services. The cost of sales as a percentage of revenue decreased to 79% from 86%, benefiting from increased production volumes and better overhead absorption. Operating income rose to $1,509 from $54, largely due to the revenue increase and improved cost management. General and administrative expenses increased to $1,549, mainly due to higher allowances for credit losses. Selling expenses also rose to $853 due to additional sales personnel and increased commissions. Interest expense remained relatively stable at $60. The effective tax rate was 24%. The company’s cash position decreased to $6,801 from $9,175 at year-end 2023, primarily due to higher capital expenditures and increased accounts receivable. The sales backlog grew to approximately $64.6 million, suggesting strong future demand. Management continues to address material weaknesses in internal controls, particularly around credit loss allowances and journal entry reviews.