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nuts, re SMID

The backlog is impressive, but what about the seasonality? From the 10Q:

The Company services the construction industry primarily in areas of the United States where construction activity is inhibited by adverse weather during the winter. As a result, the Company traditionally experiences reduced revenues from December through March and realizes the substantial part of its revenues during the other months of the year. The Company typically experiences lower profits, or losses, during the winter months, and must have sufficient working capital to fund its operations at a reduced level until spring construction season. The failure to generate or obtain sufficient working capital during the winter may have a material adverse effect on the Company.


After tax earnings of .12/share in Q4 and .20/share in Q1 seems way too optimistic to me. Half that would be quite an accomplishment. They had a monster Q1 earlier this year, but that was due to a big margin boost from the Republican National Convention project. Maybe these new projects will also have high margins, but considering SMID has posted a loss in Q4 for the last few years...I wouldn't set the bar too high.