SMG Industries (OTCMKTS:SMGI) Stock in Focus After Q1 Earnings

The growth-oriented transportation company, SMG Industries (OTCMKTS:SMGI), on May 18, 2022, came out with financial results for quarter one of 2022 and released the 2022 Quarterly Report on Form 10-Q.

Market Stats     

On Wednesday, SMGI stock ended flat at $0.2088 with more than 4.4K shares, compared to its average volume of 8.2K shares. The stock moved within a range of $0.2088 – 0.2088 after opening trading at $0.1531.

SMG Industries, Inc. Reports Financial Results for Its First Quarter 2022

In the first quarter, the firm’s revenues surged to $16,181,053 for the quarter ending March 31, 2022, an increase of 112% from $7,602,328 due to higher sales in the heavy haul and industrial transportation division. Furthermore, 5J Transportation’s flatbed division, as well as 5J Logistics’ asset-light brokerage business, resulted in higher growth.

The firm’s gross profit was $1,455,948 vis-à-vis gross loss of $1,098,180 a year before. The higher sales resulted in more fixed costs. SMG’s Selling, general and administrative expenses improved to about 15.2% of sales for quarter one of 2022 as compared to 19.9% for the same time last year.

The firm’s total assets surged to 0$32,030,438 on March 31, 2022, and it is eyeing transportation acquisitions for supporting the asset-rich equipment profile as well as infrastructure transportation growth plans. In the quarter ending March 31, 2022, the firm generated higher year-over-year quarterly growth.

Mr. Matt Flemming, Chairman of SMG said that the company is glad on reporting a 112% increase in revenues for quarter one of the year. Flemming added that the higher revenues, as well as higher pricing, led to a gross margin of about $1.45 million, including non-cash expenses from depreciation of approximately $1.35 million.

Traders Corner

SMGI stock is trading above the 20-Day and 50-Day Moving averages of $0.20 and 0.21 respectively. However, the stock is trading below the 200-Day moving average of $0.24.