Transportation Services Company Reports $52.1 million in annual revenue for 2021, net of discontinued operations, an increase of $25.4 million, or 95% from 2020
HOUSTON, TX, April 19, 2022 (GLOBE NEWSWIRE) -- via NewMediaWire– SMG Industries, Inc. (the “Company”) (OTCQB:SMGI), a growth-oriented transportation services company focused on the domestic infrastructure logistics market, today reported financial results for the full year ended December 31, 2021 and released its 2021 Annual Report on Form 10-K.
Fiscal Year 2021 Highlights
- Net of discontinued operations, Revenues increased to $52.1 million in fiscal year 2021, or about 95% from $25.4 million in fiscal year 2020.
- Adjusted Gross Margins, after deducting 2021 depreciation expenses (a non-cash charge) of $5,398,529, were $4,797,938 for the year ended December 31, 2021.
- Selling, General and Administrative expenses as a percentage of sales improved to 16.1% of revenues in 2021 compared to 19.8% of revenues for the year ended December 31, 2020.
- Net loss from continuing operations for 2021 was $11.4 million, which included one-time, non-operational or non-cash expenses of approximately $8,129,270, resulting from depreciation expense of $5,398,529, amortization of deferred financing costs of $2,208,291 and $522,450 in other non-cash expenses and accruals.
- Total Assets grew to approximately $29.2 million in 2021 from $27.4 million in 2020.
- Company seeks further organic growth including its rapidly growing asset-light logistics brokerage business.
During the fiscal year ended December 31, 2021, the Company made significant progress in its stated plans to diversify its transportation services business with the introduction of heavy haul, super heavy haul business lines, the added flatbed division and the asset-light brokerage business, all driving revenue growth during the year.
Additionally, the industrial side of the business continued to benefit from higher hydrocarbon prices driving greater customer activity.
Mr. Matt Flemming, Chairman of SMG, stated “As the general economic conditions improved from the COVID-19 pandemic retracement, the Company saw improved activity levels with its customers. Expanding and diversifying into new business lines including infrastructure related over-dimensional heavy haul, flatbed transportation and logistics brokerage business all contributed to the Company’s top line growth.” Mr. Flemming continued, “While challenges continue with driver recruitment and rising fuel costs, the Company’s current improvement in SG&A as a percentage of revenue and increased sales covering more fixed costs within cost of sales should benefit future margins. Currently, the Company anticipates additional organic growth in 2022 and continues to review potential strategic target acquisitions to fuel its growth.”
Further information is available, including management’s discussion and analysis of the financial results and disclosures, in the Company’s 2021 Annual Report on Form 10-K filed April 15, 2022.
About SMG Industries, Inc.: SMG Industries is a growth-oriented transportation services company focused on the domestic infrastructure logistics market. Through several of the Company’s wholly-owned subsidiaries branded as the 5J Transportation Group, it offers heavy haul, super heavy haul, hot shot and drilling rig mobilization services. 5J’s dimensional permitted jobs can support up to 500-thousand-pound loads which include cargo associated with wind energy, power generation components, bridge beams, compressors, and refinery and construction equipment. SMG Industries, Inc. headquartered in Houston, Texas has facilities in Floresville, Hempstead, Henderson, Houston, Odessa, Palestine, Victoria, Texas and Fort Mill, South Carolina. Read more at www.SMGIndustries.com and www.5J-Group.com.
Source: SMG Industries, Inc.
Contact: Matthew Flemming, SMG Industries, Inc. +1-713-955-3497
