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SMITH MIDLAND CORP [SMID], a leading provider of innovative precast concrete products, announced its financial results for the third quarter ended September 30, 2023. The company reported net income of $565 thousand for the quarter, representing a solid performance in a challenging market environment. Quarterly revenue reached $15.7 million, reflecting steady growth compared to the same period last year.
Despite facing headwinds in the construction industry, Smith Midland Corp managed to deliver a strong financial performance. Gross profit for the quarter stood at $3.6 million, a significant increase from the $2.1 million reported in the third quarter of the previous year. Operating income reached $1.5 million, demonstrating the company's ability to optimize its operations and manage costs effectively.
The company's revenue growth was driven by increases in product sales, barrier rentals, royalty income, and shipping and installation revenue. Product sales witnessed a substantial surge, from $7.1 million in the third quarter of 2022 to $10.9 million in the current quarter. This impressive growth can be attributed to Smith Midland Corp's reputation for delivering high-quality precast concrete products.
Smith Midland Corp continues to maintain a solid financial position, with total assets of $57.7 million as of September 30, 2023. The company has a strong balance sheet, with current assets amounting to $29.9 million and total stockholders' equity reaching $33.8 million. The company's property and equipment, net, increased to $27.4 million, reflecting investments in enhancing its manufacturing capabilities.
The earnings per common share for the quarter were $0.24, indicating strong profitability. The weighted average number of common shares outstanding was 5.3 million for both basic and diluted earnings per share calculations. This represents a positive trend compared to the previous year, showcasing Smith Midland Corp's ability to generate value for its shareholders.
Looking ahead, Smith Midland Corp remains focused on driving growth in its core markets and expanding its customer base. The company is committed to delivering innovative precast concrete solutions that meet the evolving needs of the construction industry. With a strong financial foundation and a track record of successful execution, Smith Midland Corp is well-positioned to capitalize on market opportunities and navigate potential challenges.
In conclusion, Smith Midland Corp's third-quarter financial results reflect its resilience and ability to thrive in a competitive industry. The company's solid net income and revenue growth demonstrate its commitment to delivering value to its customers and shareholders. As Smith Midland Corp continues to innovate and expand its market presence, it is poised for continued success in the future.