SMG Industries, Inc. Announces Terminal Expansion and New Business Unit in Houston
Rhea-AI Summary
SMG Industries has launched a new subsidiary, 5J Transportation LLC, to enhance revenue streams by focusing on flatbed and industrial freight. This expansion includes a 46-acre terminal in Houston, Texas, and 38 new owner/operator drivers, representing a 15% increase in their workforce. The company anticipates an estimated $6 million in additional annual revenues from this facility due to its strategic location near the Port of Houston and increased customer capacity. Preliminary revenue results for Q2 2021 are expected on or before July 13, 2021.
Positive
- Launch of 5J Transportation LLC as a new revenue stream.
- Expansion includes a 46-acre terminal in Houston, increasing storage and handling capacity.
- 15% increase in driver pool with 38 new owner/operator drivers.
- Estimated additional revenue of $6 million annually from the new facility.
Negative
- None.
News Market Reaction – SMGI
In the trading session that priced this news, SMGI declined 9.68%, reflecting a notable negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
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5J Transportation LLC, a wholly owned subsidiary of SMGI, diversifying revenues further with Flatbed and Industrial Freight
HOUSTON, TX, June 30, 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 it has created a new wholly-owned subsidiary, 5J Transportation, LLC, in connection with its expansion of a recently leased 46-acre terminal facility located in east Houston, Texas.
The Company formed the new subsidiary to capture higher-frequency, recurring jobs compared to big heavy haul engineered projects that have longer sales cycles. 5J Transportation LLC now employs 38 new owner/operator drivers at its new terminal, increasing the driver pool by about
Mr. Jeffrey Martini, CEO of SMG, stated, "The Company continues its plan of diversifying revenues with the expansion of this terminal and facility in east Houston, Texas. The size of this facility provides 5J with customer storage capacity and a strategic location for flatbed, oilfield, industrial and infrastructure projects. Additionally, we now have ready access to the high volumes of container ship traffic with our proximity to the Port of Houston. This location has allowed us to attract drivers which are in high industry demand and added growth from major new customers. The Company’s current monthly revenues at this facility illustrate an estimated
The Company currently anticipates announcing its preliminary revenue results for the second quarter ending June 30, 2021 on or before July 13th, 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