Shares of SMG Industries (OTCMKTS:SMGI) fell a bit in Wednesday’s trading session after the recent jump. The stock has gained 28% in the past week.
Market Reaction
On Wednesday, SMGI stock went down 6.50% to $0.43 with 30K shares, compared to its average volume of 16K shares. The stock has moved within a range of $0.3060 – 0.4300 after opening trade at $0.38.
Earnings Recap
Growth-oriented transportation services firm focusing on domestic infrastructure logistics market, SMG Industries (OTCMKTS:SMGI), on November 17, 2021 came out with financial results for the third quarter ending September 30, 2021.
Some of the key highlights from the third quarter include increase in revenue by 117% to $14,772,939 for 3 months ending September 30, 2021 and increase by 85% to $34,618,358 for the 9 months ending the same period.
The company confirmed that Adjusted Gross Margins for nine months was $1,745,470 after adjusting for depreciation while the Net loss from continuing operations was $3,928,964 for 3 months.
The firm’s total assets surged to $31,326,756 as compared to December 2020. SMG Industries also confirmed on $6,400,000 first tranche of senior debt refinancing that was funded on September 7, 2021. It is moving forward on infrastructure growth platform of over-dimensional heavy haul as well as bridge beam. Additionally, the company is also targeting “buy and build” growth strategy for acquisition of extra operator logistics and standalone transportation services companies.
SMG Industries, Inc.’s CFO, Mr. Allen R. Parrott said that the company is glad on reporting 117% quarterly revenue growth as compared to quarter three of 2020. Parrott added that recent improved mix of heavy haul freight as well as utilization of assets on higher volumes can have positive effect on the company’s margins.
The CEO added that it is concluding refinancing of more expense senior secured acquisition debt from February 2020 with new lenders offering only terms for the first 12 months.
Key Quote
SMG Industries, Inc.’s CFO, Mr. Allen R. Parrott, stated, “We are pleased to report this 117% quarterly revenue growth compared to the third quarter of 2020. We believe the recent improved mix of heavy haul freight and utilization of assets on higher volumes should have additional positive impact on margins for SMG Industries. The Company is also very pleased to conclude the refinancing of more expense senior secured acquisition debt from February 2020 with new lenders that offer interest only terms for the first 12 months and a forty eight month term out of principal and interest thereafter given the company substantial savings of cash flow in fixed charge payments.”
Traders Review
SMGI stock is trading above the 20-Day and 50-Day Moving averages of $0.30 and $0.22 respectively. Moreover, the stock is trading above the 200-Day moving average of $0.20. The stock is up 27% over the past week.
