Sign In  |  Register  |  About Santa Clara  |  Contact Us

Santa Clara, CA
September 01, 2020 1:39pm
7-Day Forecast | Traffic
  • Search Hotels in Santa Clara

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

SMG Industries, Inc. Reports $18.07 Million in Revenue for the Second Quarter and $34.2 Million for the Six-Months Ended June 30, 2022

Fiscal Year 2022 Six-Month Revenues up 73% From the Comparable Year Ago Period

Houston, TX - (NewMediaWire) - August 17, 2022 - SMG Industries, Inc. (the “Company”) (OTCQB:SMGI), a growth-oriented transportation services company focused on the domestic infrastructure logistics market, today reported financial results for its second quarter ended June 30, 2022.

Second Quarter Financial Highlights:

  • Revenues increased approximately 47.6% to $18,076,897 for the three months ended June 30, 2022, compared to the three months ended June 30, 2021, 
  • Revenues increased approximately 73% to $34,257,950 for the six months ended June 30, 2022, compared to the year ago period, 
  • Adjusted Gross Margins, a non-GAAP measure, improved to $2,538,548, after adjusting for depreciation (a non-cash expense) within cost of sales of $1,397,491, for the three months ended June 30, 2022, compared to an Adjusted Gross Margin of $607,167, including depreciation expense of $1,319,104 for the same period in 2021, 
  • Net loss from continuing operations was $2,982,150 for the three months ended June 30, 2022, compared to a net loss of $419,360 for the three months ended June 30, 2021, which included PPP debt forgiveness income in 2021, 
  • Positive Adjusted EBITDA, a non-GAAP measure, was $742,535, or 4.1% of sales for the three months ended June 30, 2022, 
  • Total Assets were $26,841,851 at June 30, 2022, and 
  • The Company continues to move forward with its “buy and build” growth strategy seeking to acquire additional owner/operator logistics terminals as well as standalone transportation services companies. 

Sales for the quarter ended June 30, 2022, increased to $18,076,897, an increase of 47.6% from $12,243,091 for the quarter ended June 30, 2021. The increase in sales in the second quarter of 2022 was primarily driven by increased revenues in our industrial transportation segment from higher customer activity transporting drilling rigs, and in our heavy haul business transporting bridge beams, over-dimensional infrastructure items and large natural gas compressors. Our increase in revenues was also attributable to the new contribution of revenues from our 5J Transportation flatbed and 5J Logistics brokerage division, not present in the comparable period in 2021 along with the general improvement in the domestic United States economy from the COVID‑19 pandemic.

Sales for the six months ended June 30, 2022, increased to $34,257,950, an increase of 73% from $19,845,419 for the six months ended June 30, 2021. The increase in sales during the six months of 2022 was primarily driven by increased revenues in our industrial transportation segment from higher customer activity transporting drilling rigs, and in our heavy haul business transporting bridge beams, over-dimensional infrastructure items and large natural gas compressors.

“We are pleased with the revenue growth, improvement in adjusted gross margin and positive adjusted EBITDA compared to prior periods,” stated Matt Flemming, Chairman of SMG. Matt continued, “Currently the Company anticipates further revenue, margin and EBITDA growth from indicated increased customer demand of infrastructure components such as bridge beams, higher volumes and improved pricing. Additionally, our asset-light brokerage business continues to be an important part of our anticipated future growth along with accretive acquisitions we seek.”

Adjusted EBITDA Table and Non-GAAP Reconciliation

About SMG Industries, Inc.:  SMG Industries is a growth-oriented transportation services company focused on the domestic infrastructure logistics market.  Through several of the Company’s wholly-owned subsidiaries branded as the “5J Transportation Group,” it offers permitted and specialized heavy haul, super heavy haul, flatbed, brokerage, and drilling rig mobilization services. 5J’s dimensional permitted jobs can support up to 500-thousand-pound loads which include cargo associated with wind energy, power generation components, bridge beams, compressors, and refinery and construction equipment.  SMG Industries, Inc. headquartered in Houston, Texas has facilities in Floresville, Hempstead, Henderson, Houston, Odessa, Palestine, Victoria, Texas and Fort Mill, South Carolina. Read more at www.SMGIndustries.com and  www.5J-Group.com.

Use of Non-GAAP Measures

This news release includes non-GAAP financial measures for the Company and its reporting segments, including Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Cost of Sales and Adjusted Gross Margins.

Please note that the non-GAAP measures described below are not a substitute for, or more meaningful than, net income (loss), cash flows from operating activities, operating income or any other measure prescribed by GAAP, and there are limitations to using non-GAAP measures. Certain items excluded from these non-GAAP measures are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital, tax structure and the historic costs of depreciable assets. Also, other companies in SMG’s industry may define these non‐GAAP measures differently than SMG does, and as a result, it may be difficult to use these non‐GAAP measures to compare the performance of those companies to SMG’s performance. Because of these limitations, these non-GAAP measures should not be considered a measure of the income generated by SMG’s business or discretionary cash available to it to invest in the growth of its business. SMG’s management compensates for these limitations by relying primarily on SMG’s GAAP results and using these non-GAAP measures supplementally.

You can find the reconciliation of these non‐GAAP measures to the nearest comparable GAAP measures in the table above.

Adjusted EBITDA

SMG defines Adjusted EBITDA as net income (loss) plus (i) depreciation and amortization, (ii) interest expense, (iii) income taxes, and (iv) non-cash items such as amortization of debt discounts, stock option expenses and other non-recurring and material items that management believes do not reflect our core operating performance.

We have not reconciled non‐GAAP forward-looking measures to their corresponding GAAP measures because certain items that impact these measures are unavailable or cannot be reasonably predicted without unreasonable efforts.

Forward‐Looking Statements

This news release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “may,” “will,” “expect,” “anticipate,” “continue,” “estimate,” “project,” “believe,” “plan,” “should,” “could,” “would,” “forecast,” “seek,” “target,” “predict,” and “potential,” the negative of these terms, or other comparable terminology. Projected financial information, including our guidance outlook, are forward-looking statements. Forward-looking statements may also include statements about the Company’s goals, business strategy and plans; the Company’s financial strategy, liquidity and capital required for its business strategy and plans; the Company’s competition and government regulations; general economic conditions; and the Company’s future operating results.

These forward-looking statements are based on information available as of the date of this release, and current expectations, forecasts and assumptions. While management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting us will be those that the Company anticipates. Accordingly, forward-looking statements should not be relied upon as representing the Company’s views as of any subsequent date, and the Company does not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. Readers are cautioned not to place undue reliance on the forward-looking statements.

Forward-looking statements are subject to risks and uncertainties (many of which are beyond our control) that could cause actual results or outcomes to differ materially from those indicated by such forward-looking statements. These factors include, but are not limited to, general economic and business risks, such as downturns in customers’ business cycles, disruptions in capital and credit markets and inflationary cost pressures, the Company’s ability to adequately address downward pricing and other competitive pressures, the Company’s insurance or claims expense, driver shortages and increases in driver compensation or owner-operator contracted rates, fluctuations in the price or availability of diesel fuel, increased prices for, or decreases in the availability of, new revenue equipment and decreases in the value of used revenue equipment, impact to the Company’s business and operations resulting from the COVID-19 pandemic, seasonality and the impact of weather and other catastrophic events, the Company’s ability to secure the services of third-party capacity providers on competitive terms, loss of key personnel, a failure of the Company’s information systems, including disruptions or failures of services essential to our operations or upon which our information technology platforms rely, data or other security breach, or cybersecurity incidents,  the Company’s ability to realize all of the intended benefits from acquisitions or investments, the Company’s ability to generate sufficient cash to service all of the Company’s indebtedness and the Company’s ability to finance its capital requirements, restrictions in its existing and future debt agreements, increases in interest rates, changes in existing laws or regulations, including environmental and worker health safety laws and regulations and those relating to tax rates or taxes in general, the impact of governmental regulations and other governmental actions related to the Company and its operations, and litigation and governmental proceedings. Additional risks or uncertainties that are not currently known to us, that we currently deem to be immaterial, or that could apply to any company could also materially adversely affect our business, financial condition, or future results. For additional information regarding known material factors that could cause our actual results to differ from those expressed in forward-looking statements, please see SMG’s filings with the Securities and Exchange Commission, available at www.sec.gov, including SMG’s most recent annual report on Form 10-K and subsequent quarterly reports on Form 10-Q, particularly the section titled “Risk Factors.”

Contact:
Matt Flemming, SMG Industries, Inc.
email address: Matt@SMGIndustries.com

SOURCE: SMG Industries, Inc.


Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Copyright © 2010-2020 SantaClara.com & California Media Partners, LLC. All rights reserved.