SMG Industries, Inc. Announces Preliminary Unaudited Revenue Results for the Second Quarter 2021

Rhea-AI Summary

SMG Industries, Inc. (OTCQB: SMGI) reported preliminary unaudited revenues of approximately $11.75 million for Q2 2021, reflecting a sequential increase of 55% from Q1 2021. This revenue growth is attributed to the resurgence of economic activity post-COVID-19 restrictions, higher freight demand from infrastructure and manufacturing sectors, and increased pricing. The new Houston terminal focused on flatbed freight contributed to an expanded customer base and a 10% increase in drivers. Full financial results are expected by August 16, 2021.

Positive

• Preliminary Q2 2021 revenues of approximately $11.75 million, a 55% increase from Q1 2021.
• 39% growth in revenues compared to Q2 2020.
• New Houston terminal contributing to expanded customer base and increased driver count by about 10%.
• Higher commodity prices driving increased customer activity and pricing.

Negative

• None.

SMG Reports Preliminary Unaudited Revenues of Approximately $11.75 Million for the Second Quarter Ended June 30, 2021, a Sequential Increase of Approximately 55% From the First Quarter 2021

HOUSTON, TX, July 13, 2021 (GLOBE NEWSWIRE) -- via NewMediaWire – SMG Industries, Inc. (“SMG” or the "Company") (OTCQB:SMGI), a growth-oriented transportation services company focused on the domestic infrastructure logistics market today announced that its preliminary unaudited results of consolidated revenues from operations for the second quarter ended June 30, 2021 was approximately $11.75 million, representing an increase of about 55% from its previous quarter ended March 31, 2021 of $7.6 million, and an increase of approximately 39% from the comparable second quarter ended June 30, 2020 of $8.43 million. This increase in revenues for Q2, 2021 is a result of a return of general economic activity as Covid-19 restrictions have been lifted and infrastructure and manufacturing customers’ freight requirements increase and higher pricing. Additionally, the benefit of a new Houston terminal focused on flatbed freight, adding several new customers to 5J and increasing the number of drivers by approximately 10%. Higher commodity prices also drove increased customer activity and pricing on our drilling rig relocation business.   

Mr. Jeffrey Martini, CEO of SMG, stated, "We are pleased to report the substantial sequential and quarter revenue growth.  We believe we have gained share over the last quarter through our superior customer service and further expansion into the Houston market for open-bed freight with the recently announced terminal expansion.  With approximately 250 power units in the fleet and about as many trailers, we are well positioned to continue to track the growth of the markets we serve in and around Texas.  Additionally, we continue to look forward to the anticipated market growth and increased activity as the US government’s infrastructure spend is realized in coming quarters.  Finally, we continue to use a disciplined approach to evaluating additional acquisitions and are experiencing a healthy level of deal flow.”

The Company currently anticipates announcing its full financial results along with management’s discussion and analysis within its Second Quarter 2021 Quarterly Report on Form 10-Q estimated to be filed on or before August 16, 2021.

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, flatbed, brokerage, 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, and Victoria, Texas. Read more at www.SMGIndustries.com.

Source: SMG Industries, Inc. +1-713-821-3153

FAQ

What were SMGI's revenues for the second quarter of 2021?

SMGI reported approximately $11.75 million in revenues for Q2 2021.

How much did SMGI's revenues increase from Q1 to Q2 2021?

Revenues increased by approximately 55% from Q1 2021.

When will SMGI announce its full financial results?

SMGI is expected to announce its full financial results by August 16, 2021.

What factors contributed to the revenue growth for SMGI in Q2 2021?

The revenue growth was due to increased economic activity, higher freight demand, and pricing.

Did SMGI experience year-over-year revenue growth?

Yes, SMGI saw a 39% increase in revenues compared to Q2 2020.