Record earnings! Company looks to have just reported their best quarter EVER:
The company looks to be actively hiring : http://www.smithmidland.com/production.html
Not only that, the company is in a niche that should benefit nicely once infrastructure spending from the government picks up over the coming years- here is a cut and paste about one of their products that should benefit although several products stand to cater to the infrastructure spending:
JJ Hooks (from JJhooks.com):
The J-J Hooks highway traffic safety barrier connection system has become a “standard” on North American and international highways in recent years. It is the most widely used private connection design in the United States. Last year, local producers provided more than one million linear feet of barrier to US highway projects. It is the lowest cost barrier connection system available in the industry today.
Their raw materials are in large part comprised of steel and cement which have been declining in price lately.This should continue to help margins going forward.
At $15.9 million, they have near-record backlog even after the last two blowout quarters so business is looking very strong.
On top of the backlog, there is also recurring business from a repeat customer that adds to revenues and their seasonally stronger quarters lie ahead of them on top of expected continuing moderation of raw materials costs during 2009 (from the 10Q filed):
The Company services the construction industry primarily in areas of the United States where construction activity may be inhibited by adverse weather during the winter. As a result, the Company may experience reduced revenues from December through February and realize the substantial part of its revenues during the other months of the year. The Company may experience lower profits, or losses, during the winter months, and as such, must have sufficient working capital to fund its operations at a reduced level until the spring construction season. The failure to generate or obtain sufficient working capital during the winter may have a material adverse effect on the Company.
Significant increases in the cost of steel, cement and other direct materials used in production and delivery, including fuel surcharges, have caused increases in cost of goods sold of the Company during the year ending December 31, 2008. Due to a downturn in the economy, [b]the Company expects these costs to continue to moderate during 2009.[/b]
As of May 6, 2009, the Registrant's sales backlog was approximately $15,900,000, as compared to approximately $12,432,000 at the same date in 2008. The Company also maintains 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 $6,500,000 annually.
In the production backlog, the repeat customer has been dropping the orders amount slightly but not a lot (from approx $7 million last year to about $6.5 million now).
Fairly recent news items that are currently or will soon be positively impacting 2009 earnings:
All above is accurate to the best of my knowledge, verify things through your own DD and good luck.