Smith-Midland(SMID) - 2024 Q4 - Annual Report

Financial Performance - The Company reported a net income of $7,675 for 2024, a significant increase from $795 in 2023, reflecting a growth of 867%[81] - Total revenue for 2024 was $78,508, up $18,928 or 32% from $59,580 in 2023, driven by increased sales in barrier rentals, shipping, installation, and utility products[86] - Operating income surged to $9,899 in 2024, an increase of $8,781 or 785% compared to $1,118 in 2023, primarily due to higher revenues and lower cost of sales[102] - The Company reported a net income of $7,675 for the year ended December 31, 2024, compared to $795 for 2023, with earnings per share increasing from $0.15 to $1.45[104] Sales and Revenue Growth - Soundwall sales increased by 54% in 2024 compared to 2023, attributed to higher production volumes across all plants[88] - Architectural sales saw a remarkable increase of 272% in 2024, linked to the production of two major projects initiated in early 2024[89] - Utility product sales surged by 171% in 2024, driven by the growing market for dry utility vaults supporting data center expansion[94] - Barrier rentals increased by 90% in 2024, with core rental fleet revenue rising by 52%, reflecting a strategic shift from barrier sales to rentals[96] Cost Management and Margins - Cost of sales as a percentage of revenue decreased to 78% in 2024 from 86% in 2023, indicating improved margins[82] - General and administrative expenses rose by 9% to $6,554 in 2024, influenced by higher salary rates and increased credit loss allowances[100] Cash Flow and Capital Expenditures - Cash provided by operations was $5,584, while cash disbursements from investing activities totaled $6,576, leading to a decrease in cash from $9,175 in 2023 to $7,548 in 2024[111] - Capital expenditures increased from $5,010 in 2023 to $6,629 in 2024, primarily for the expansion of the North Carolina production facility and new manufacturing equipment[112] - The Company anticipates capital spending for 2025 to be approximately $5,000, focusing on increased production capacity and miscellaneous manufacturing equipment[112] Accounts Receivable and Inventory - The Company's accounts receivable balance increased to $19,420 in 2024 from $17,209 in 2023, attributed to increased revenue, with days sales outstanding (DSO) improving from 113 days in 2023 to 88 days in 2024[116] - Inventory rose to $6,677 in 2024 from $5,150 in 2023, with annual inventory turns decreasing from 15.0 to 10.0[117] Sales Backlog - The Company's sales backlog as of March 3, 2025, was approximately $59.5 million, slightly down from $60.8 million the previous year, with expectations for increased sales volumes in 2025[85] - The Company had a sales backlog of approximately $59.5 million as of March 3, 2025, compared to $60.8 million in 2024, indicating stable demand for its products[123] Strategic Initiatives - The Company is continuing its strategy of innovation and new product development to mitigate risks associated with recessionary economic conditions[124] - The Company is implementing lean business practices to improve production quality, reduce defects, and increase sales volume[125] - The Company has a $5,000 line of credit with no balance outstanding as of December 31, 2024, which is collateralized by accounts receivable and inventory[110]