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SMITH MIDLAND CORP [SMID], a leading construction company, has announced its financial results for the second quarter of 2023. The company reported a net loss of $0.7 million for the quarter, compared to a net income of $0.9 million in the same period last year. Despite the challenging market conditions, the company managed to generate $14.7 million in revenue, demonstrating its resilience and adaptability.
In terms of financial performance, Smith Midland Corp experienced a decline in gross profit, which stood at $1.8 million for the quarter, compared to $3.2 million in Q2 2022. This decrease can be attributed to higher costs of goods sold, which amounted to $12.9 million, up from $10 million in the previous year. Operating expenses also increased, reaching $2.8 million, compared to $2.1 million in the same period last year. As a result, the company reported an operating loss of $0.98 million for the quarter.
Despite the challenges faced by the industry, Smith Midland Corp was able to achieve a revenue growth of approximately 11% in Q2 2023. The company generated $14.7 million in revenue, up from $13.3 million in the same period last year. This growth can be attributed to the solid performance of product sales, which amounted to $10.7 million, compared to $6.8 million in Q2 2022. Additionally, the company's barrier rentals and shipping installation revenue contributed to the overall revenue growth.
Looking at the balance sheet, Smith Midland Corp maintained a stable financial position during the quarter. The company's total assets amounted to $55.7 million, while total liabilities stood at $23.3 million. Stockholders' equity remained strong at $32.5 million. The company had cash and cash equivalents of $4.7 million, which decreased from $6.7 million at the end of 2022.
The basic and diluted earnings per common share for Smith Midland Corp in Q2 2023 were -$0.15, compared to $0.17 in the same period last year. The decrease in earnings per share can be attributed to the net loss incurred by the company during the quarter.
Despite the challenging market conditions, Smith Midland Corp remains optimistic about its future prospects. The company continues to focus on improving operational efficiency and cost management to mitigate the impact of rising costs. Additionally, Smith Midland Corp is actively pursuing new business opportunities and exploring strategic partnerships to drive growth.
In conclusion, Smith Midland Corp reported a net loss of $0.7 million in the second quarter of 2023, reflecting the challenging market conditions faced by the construction industry. However, the company achieved revenue growth and maintains a strong financial position. Smith Midland Corp remains committed to navigating these challenges and capitalizing on growth opportunities to deliver long-term value to its stakeholders.