Smith-Midland (SMID) 10-Q 15 May 14 2014 Q1 Quarterly report Financial data

Document_Entity_Information

Document Entity Information	3 Months Ended
	Mar. 31, 2014	5-May-14
Document and Entity Information [Abstract]	'	'
Entity Registrant Name	'SMITH MIDLAND CORP	'
Entity Central Index Key	'0000924719	'
Current Fiscal Year End Date	'--12-31	'
Entity Filer Category	'Smaller Reporting Company	'
Document Type	'10-Q	'
Document Period End Date	31-Mar-14	'
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q1	'
Amendment Flag	'false	'
Entity Common Stock, Shares Outstanding	'	4,840,628

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (Unaudited) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Current assets	'	'
Cash and cash equivalents	$2,883,832	$3,136,063
Investment securities, available-for-sale, at fair value	952,068	915,341
Accounts receivable, net	'	'
Trade - billed (less allowance for doubtful accounts of $271,737 and $285,305)	6,303,768	7,296,792
Trade - unbilled	277,918	41,859
Inventories	'	'
Raw materials	614,013	861,129
Finished goods	1,250,663	1,078,349
Prepaid expenses and other assets	155,885	231,365
Refundable income taxes	376,852	0
Deferred taxes	433,000	475,000
Total current assets	13,247,999	14,035,898
Property and equipment, net	4,311,670	4,322,995
Other assets	276,026	297,915
Total assets	17,835,695	18,656,808
Current liabilities	'	'
Accounts payable - trade	1,405,931	1,517,625
Accrued expenses and other liabilities	1,113,829	1,331,675
Income taxes payable	0	302,263
Current maturities of notes payable	375,411	364,204
Customer deposits	729,529	547,789
Total current liabilities	3,624,700	4,063,556
Notes payable - less current maturities	2,496,206	2,544,809
Deferred tax liability	608,000	630,000
Total liabilities	6,728,906	7,238,365
Commitments and contingencies	0	0
Stockholders’ equity	'	'
Preferred stock, $.01 par value; authorized 1,000,000 shares, none outstanding	0	0
Common stock, $.01 par value; authorized 8,000,000 shares; 4,881,548 issued and outstanding	48,815	48,815
Additional paid-in capital	5,041,438	5,041,438
Accumulated other comprehensive loss, net	-24,132	-41,014
Retained earnings	6,142,968	6,471,504
Stockholders' Equity before Treasury Stock	11,209,089	11,520,743
Treasury stock, at cost, 40,920 shares	-102,300	-102,300
Total stockholders’ equity	11,106,789	11,418,443
Total liabilities and stockholders' equity	$17,835,695	$18,656,808

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Current Assets:	'	'
Allowance for doubtful accounts	$271,737	$285,305
Stockholders' equity	'	'
Preferred stock, par value	$0.01	$0.01
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares outstanding	0	0
Common stock, par value	$0.01	$0.01
Common stock, shares authorized	8,000,000	8,000,000
Common Stock, Shares, Issued	4,881,548	4,881,548
Common Stock, Shares, Outstanding	4,881,548	4,881,548
Treasury stock, at cost	40,920	40,920

Condensed_Consolidated_Stateme

Condensed Consolidated Statements of Operations (Unaudited) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Revenue	'	'
Products sales and leasing	$4,070,338	$5,859,381
Shipping and installation revenue	1,114,904	706,804
Royalties	452,166	327,450
Total revenue	5,637,408	6,893,635
Cost of goods sold	4,907,402	5,077,872
Gross profit	730,006	1,815,763
Operating expenses	'	'
General and administrative expenses	769,071	629,753
Selling expenses	539,480	660,899
Total operating expenses	1,308,551	1,290,652
Gain on sale of assets	11,977	7,157
Other income (expense)	30,077	20,101
Operating income (loss)	-536,491	552,369
Interest income (expense)	'	'
Interest expense	-28,757	-32,378
Interest income	5,712	1,080
Total other expense	-23,045	-31,298
Income (loss) before income tax expense (benefit)	-559,536	521,071
Income tax expense (benefit)	-231,000	212,000
Net income (loss)	($328,536)	$309,071
Basic earnings (loss) per share	($0.07)	$0.06
Diluted earnings (loss) per share	($0.07)	$0.06
Weighted average number of common shares outstanding:	'	'
Basic (in shares)	4,881,548	4,826,182
Diluted (in shares)	4,881,548	4,898,348

Condensed_Consolidated_Stateme1

Condensed Consolidated Statement of Comprehensive Income (Loss) (Unaudited) Statement (USD $)	3 Months Ended
	Mar. 31, 2014		Mar. 31, 2013
Statement of Comprehensive Income [Abstract]	'		'
Net income (loss)	($328,536)		$309,071
Other comprehensive gain (loss), net of tax:	'		'
Net unrealized holding gain (loss)	18,662	[1]	-6,378	[1]
Comprehensive income (loss)	-309,874		302,693
Tax benefit	$16,000		$5,000
[1]	Unrealized gains (losses) on available for sale securities are shown net of income tax expense of $16,000 for March 31, 2014 and an income tax benefit of $5,000 for March 31, 2013.

Condensed_Consolidated_Stateme2

Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Reconciliation of net income to cash provided by operating activities	'	'
Net income (loss)	($328,536)	$309,071
Adjustments to reconcile net income to net cash provided by operating activities:	'	'
Depreciation and amortization	151,319	159,844
Gain on disposal of fixed assets	-11,977	-7,157
Deferred taxes	20,000	11,000
(Increase) decrease in:	'	'
Accounts receivable - billed	993,024	-1,115,048
Accounts receivable - unbilled	-236,059	15,748
Inventories	74,801	125,422
Prepaid expenses and other assets	-376,852	124,617
Prepaid income taxes	97,370	0
Increase (decrease) in:	'	'
Accounts payable - trade	-111,693	42,813
Accrued expenses and other	-217,846	-242,980
Accrued income taxes payable	-302,263	189,602
Customer deposits	181,740	81,815
Net cash absorbed by operating activities	-66,972	-305,253
Cash flows from investing activities:	'	'
Purchases of investment securities available-for-sale	-21,010	-1,998,922
Purchases of property and equipment	-139,994	-112,668
Proceeds from sale of fixed assets	13,141	7,144
Net cash absorbed by investing activities	-147,863	-2,104,446
Cash flows from financing activities:	'	'
Proceeds from long-term borrowings	55,159	42,814
Repayments of long-term borrowings	-92,555	-86,023
Net cash absorbed by financing activities	-37,396	-43,209
Net decrease in cash and cash equivalents	-252,231	-2,452,908
Cash and cash equivalents	'	'
Beginning of period	3,136,063	4,367,474
End of period	$2,883,832	$1,914,566

Interim_Financial_Reporting

Interim Financial Reporting	3 Months Ended
	Mar. 31, 2014
INTERIM FINANCIAL REPORTING [Abstract]	'
Interim Financial Reporting	'
	INTERIM FINANCIAL REPORTING
	Basis of Presentation
	The accompanying condensed consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information, and with the instructions to Form 10-Q and Article 10 of Regulation S-X.  Accordingly, we have condensed or omitted certain information and footnote disclosures that are included in our annual financial statements. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the related notes included in our Annual Report on Form 10-K for the year ended December 31, 2013.  The December 31, 2013 balance sheet was derived from audited financial statements included in the Form 10-K.
	In the opinion of management, these condensed consolidated financial statements reflect all adjustments (which consist of normal, recurring adjustments) necessary for a fair presentation of the financial position and results of operations and cash flows for the periods presented.The results disclosed in the condensed consolidated statements of operations are not necessarily indicative of the results to be expected in any future periods.
	Reclassifications
	Certain minor reclassifications have been made in prior year amounts to conform to the current year presentation.
	Use of Estimates
	The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.
	Revenue Recognition
	Smith-Midland Corporation (the "Company") primarily recognizes revenue on the sale of its standard precast concrete products at shipment date, including revenue derived from any projects to be completed under short-term contracts.  Installation of the Company’s standard products is typically performed by the customer; however, in some circumstances, the Company will install certain products which are accomplished at the time of delivery.  The installation activities of smaller buildings are usually performed at the Company's site and shipped completed to the customers site.  In larger utility building sales, the buildings are erected on the customers site within one or two days, depending on style and size.
	Leasing fees are paid at the beginning of the lease agreement and recorded to a deferred revenue account.  As the revenue is earned each month during the contract, the amount earned is recorded as lease income and an equivalent amount is debited to deferred revenue.
	Royalties are recognized as revenue as they are earned.  The Company licenses certain other precast companies to produce its licensed products to our engineering specifications under licensing agreements.  The agreements are typically for five year terms and require royalty payments from 4% to 6% which are paid on a monthly basis.  The revenue from licensing agreements is recognized in the month earned.
	With respect to certain sales of Soundwall panels, architectural precast panels and Slenderwall™ precast panels, revenue is recognized using the percentage of completion method for recording revenues on long term contracts pursuant to ASC 605-35-25.  The contracts are executed by both parties and clearly stipulate the requirements for progress payments and a schedule of delivery dates.  Provisions for estimated losses on contracts are made in the period in which such losses are determined.
	Shipping revenues are recognized in the period the shipping services are provided to the customer.
	Smith-Midland products are typically sold pursuant to an implicit warranty as to merchantability only.  Warranty claims are reviewed and resolved on a case by case method.  Although the Company does incur costs for these types of expense, historically the amount of expense is immaterial.
	Investments
	Investments in marketable securities are classified as available-for-sale and are stated at market value with unrealized holding gains and losses excluded from earnings and reported as a separate component of stockholders' equity until realized.

Net_Income_Per_Common_Share

Net Income Per Common Share	3 Months Ended
	Mar. 31, 2014
Earnings Per Share [Abstract]	'
Net Income Per Common Share	'
	NET INCOME PER COMMON SHARE
	Basic earnings per common share exclude all dilutive stock options and are computed using the weighted average number of common shares outstanding during the period. The diluted earnings per common share calculation reflect the potential dilutive effect of securities that could share in earnings of an entity.  Outstanding options were excluded from the diluted earnings per share calculation because they would have an anti-dilutive effect were 364,599 for the three months ended March 31, 2014 and 254,166 for the three months ended March 31, 2013.
		Three Months Ended March, 31
		2014			2013
	Basic earnings (loss) per share
	Income (loss) available to common shareholders	$	(328,536	)	$	309,071
	Weighted average shares outstanding	4,881,548			4,826,182
	Basic earnings (loss) per share	$	(0.07	)	$	0.06
	Diluted earnings (loss) per share
	Income (loss) available to common shareholders	$	(328,536	)	$	309,071
	Weighted average shares outstanding	4,881,548			4,826,182
	Dilutive effect of stock options	—			72,166
	Total weighted average shares outstanding	4,881,548			4,898,348
	Diluted earnings (loss) per share	$	(0.07	)	$	0.06

Stock_Options

Stock Options	3 Months Ended
	Mar. 31, 2014
STOCK OPTIONS [Abstract]	'
Stock Options	'
	STOCK OPTIONS
	In accordance with ASC 718, the Company had no stock option expense for the three months ended March 31, 2014. The Company uses the Black-Scholes option-pricing model to measure the fair value of stock options granted to employees. The Company did not issue any stock options for the three months ended March 31, 2014.
	The following table summarized options outstanding at March 31, 2014
		Number of Shares	Weighted Average Exercise Price
	Balance, March 31, 2014	370,599	$	1.96
	Granted	—	—
	Forfeited	6,000	0.83
	Exercised	—	—
	Outstanding options at end of quarter	364,599	$	1.98
	Outstanding exercisable options at end of quarter	364,599	$	1.98
	The intrinsic value of outstanding and exercisable options at March 31, 2014 was approximately $155,000.

Subsequent_Events

Subsequent Events	3 Months Ended
	Mar. 31, 2014
Subsequent Events [Abstract]	'
Subsequent Events	'
	SUBSEQUENT EVENTS
	Through the date of the filing of this Form 10-Q, the Company has evaluated events and transactions occurring subsequent to March 31, 2014 and has determined that there have been no significant events or transactions that provide additional evidence about conditions of the Company that existed as of the balance sheet date.

Interim_Financial_Reporting_Po

Interim Financial Reporting (Policies)	3 Months Ended
	Mar. 31, 2014
INTERIM FINANCIAL REPORTING [Abstract]	'
Reclassification	'
	Reclassifications
	Certain minor reclassifications have been made in prior year amounts to conform to the current year presentation.
Use of Estimates	'
	Use of Estimates
	The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.
Revenue Recognition	'
	Revenue Recognition
	Smith-Midland Corporation (the "Company") primarily recognizes revenue on the sale of its standard precast concrete products at shipment date, including revenue derived from any projects to be completed under short-term contracts.  Installation of the Company’s standard products is typically performed by the customer; however, in some circumstances, the Company will install certain products which are accomplished at the time of delivery.  The installation activities of smaller buildings are usually performed at the Company's site and shipped completed to the customers site.  In larger utility building sales, the buildings are erected on the customers site within one or two days, depending on style and size.
	Leasing fees are paid at the beginning of the lease agreement and recorded to a deferred revenue account.  As the revenue is earned each month during the contract, the amount earned is recorded as lease income and an equivalent amount is debited to deferred revenue.
	Royalties are recognized as revenue as they are earned.  The Company licenses certain other precast companies to produce its licensed products to our engineering specifications under licensing agreements.  The agreements are typically for five year terms and require royalty payments from 4% to 6% which are paid on a monthly basis.  The revenue from licensing agreements is recognized in the month earned.
	With respect to certain sales of Soundwall panels, architectural precast panels and Slenderwall™ precast panels, revenue is recognized using the percentage of completion method for recording revenues on long term contracts pursuant to ASC 605-35-25.  The contracts are executed by both parties and clearly stipulate the requirements for progress payments and a schedule of delivery dates.  Provisions for estimated losses on contracts are made in the period in which such losses are determined.
	Shipping revenues are recognized in the period the shipping services are provided to the customer.
	Smith-Midland products are typically sold pursuant to an implicit warranty as to merchantability only.  Warranty claims are reviewed and resolved on a case by case method.  Although the Company does incur costs for these types of expense, historically the amount of expense is immaterial.
Investments	'
	Investments
	Investments in marketable securities are classified as available-for-sale and are stated at market value with unrealized holding gains and losses excluded from earnings and reported as a separate component of stockholders' equity until realized.

Net_Income_Per_Common_Share_Ta

Net Income Per Common Share (Tables)	3 Months Ended
	Mar. 31, 2014
Earnings Per Share [Abstract]	'
Schedule of Earnings Per Share, Basic and Diluted	'
		Three Months Ended March, 31
		2014			2013
	Basic earnings (loss) per share
	Income (loss) available to common shareholders	$	(328,536	)	$	309,071
	Weighted average shares outstanding	4,881,548			4,826,182
	Basic earnings (loss) per share	$	(0.07	)	$	0.06
	Diluted earnings (loss) per share
	Income (loss) available to common shareholders	$	(328,536	)	$	309,071
	Weighted average shares outstanding	4,881,548			4,826,182
	Dilutive effect of stock options	—			72,166
	Total weighted average shares outstanding	4,881,548			4,898,348
	Diluted earnings (loss) per share	$	(0.07	)	$	0.06

Stock_Options_Tables

Stock Options (Tables)	3 Months Ended
	Mar. 31, 2014
STOCK OPTIONS [Abstract]	'
Schedule of stock option activity	'
	The following table summarized options outstanding at March 31, 2014
		Number of Shares	Weighted Average Exercise Price
	Balance, March 31, 2014	370,599	$	1.96
	Granted	—	—
	Forfeited	6,000	0.83
	Exercised	—	—
	Outstanding options at end of quarter	364,599	$	1.98
	Outstanding exercisable options at end of quarter	364,599	$	1.98

Interim_Financial_Reporting_De

Interim Financial Reporting (Details)	3 Months Ended
	Mar. 31, 2014
Deferred Revenue Arrangement [Line Items]	'
Licensing contract term	'5 years
Minimum [Member]	'
Deferred Revenue Arrangement [Line Items]	'
Royalty percent earned on licensing agreement	4.00%
Maximum [Member]	'
Deferred Revenue Arrangement [Line Items]	'
Royalty percent earned on licensing agreement	6.00%

Net_Income_Per_Common_Share_De

Net Income Per Common Share (Details) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Earnings Per Share [Abstract]	'	'
Number of options were excluded from diluted EPS calculation due to anti-dilutive effect	364,599	254,166
Basic earnings (loss) per share	'	'
Income (loss) available to common shareholders	($328,536)	$309,071
Weighted average shares outstanding	4,881,548	4,826,182
Basic earnings (loss) per share	($0.07)	$0.06
Diluted earnings (loss) per share	'	'
Income (loss) available to common shareholders	($328,536)	$309,071
Weighted average shares outstanding	4,881,548	4,826,182
Dilutive effect of stock options	0	72,166
Total weighted average shares outstanding	4,881,548	4,898,348
Diluted earnings (loss) per share	($0.07)	$0.06

Stock_Options_Details

Stock Options (Details) (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2014
Number of Shares	'
Beginning balance	370,599
Granted	0
Forfeited	6,000
Exercised	0
Ending balance	364,599
Outstanding exercisable options at end of quarter	364,599
Weighted Average Exercise Price	'
Beginning balance	$1.98
Granted	$0
Forfeited	$0.83
Exercised	$0
Ending balance	$1.96
Outstanding exercisable options at end of quarter	$1.98
Intrinsic value of outstanding options	$155
Intrinsic value of exercisable options	$155