Smith-Midland (SMID) 10-Q 14 May 15 2015 Q1 Quarterly report Financial data

Document_Entity_Information

Document Entity Information	3 Months Ended
	Mar. 31, 2015	5-May-15
Document and Entity Information [Abstract]
Entity Registrant Name	SMITH MIDLAND CORP
Entity Central Index Key	924719
Current Fiscal Year End Date	-19
Entity Filer Category	Smaller Reporting Company
Document Type	10-Q
Document Period End Date	31-Mar-15
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1
Amendment Flag	FALSE
Entity Common Stock, Shares Outstanding		4,852,628

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (Unaudited) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Current assets
Cash and cash equivalents	$2,269,445
Cash, Cash Equivalents, and Short-term Investments	2,269,445	3,572,405
Investment securities, available-for-sale, at fair value	1,019,633	1,013,417
Accounts receivable, net
Trade - billed (less allowance for doubtful accounts of $347,175 and $267,985)	4,629,396	4,092,924
Trade - unbilled	194,032	240,635
Inventories
Raw materials	538,149	353,089
Finished goods	1,366,974	1,373,455
Prepaid expenses and other assets	170,634	126,047
Refundable income taxes	1,000,727	722,948
Deferred taxes	496,000	441,000
Total current assets	11,684,990	11,935,920
Property and equipment, net	4,131,156	4,106,611
Other assets	307,072	255,385
Total assets	16,123,218	16,297,916
Current liabilities
Accounts payable - trade	1,239,243	1,152,506
Accrued expenses and other liabilities	666,954	539,549
Accrued compensation	529,177	442,651
Income taxes payable	364,204	363,821
Customer deposits	557,459	432,274
Total current liabilities	3,357,037	2,930,801
Notes payable - less current maturities	2,138,374	2,230,364
Deferred tax liability	660,000	663,000
Total liabilities	6,155,411	5,824,165
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; 4,893,548 and 4,881,548 issued and outstanding	48,935	48,815
Additional paid-in capital	5,062,418	5,041,438
Accumulated other comprehensive loss, net	-9,303	-6,629
Retained earnings	4,968,057	5,492,427
Stockholders' Equity before Treasury Stock	10,070,107	10,576,051
Treasury stock, at cost, 40,920 shares	-102,300	-102,300
Total stockholders’ equity	9,967,807	10,473,751
Total liabilities and stockholders' equity	$16,123,218	$16,297,916

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Current Assets:
Allowance for doubtful accounts	$347,175	$267,985
Stockholders' equity
Common stock, par value (usd per share)	$0.01	$0.01
Common stock, shares authorized	8,000,000	8,000,000
Common stock, shares issued	4,893,548	4,881,548
Common stock, shares outstanding	4,893,548	4,881,548
Treasury stock, at cost	40,920	40,920
Preferred stock, par value (usd per share)	$0.01	$0.01
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares outstanding	0	0

Condensed_Consolidated_Stateme

Condensed Consolidated Statements of Operations (Unaudited) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Revenue
Products sales and leasing	$3,268,737	$4,070,338
Shipping and installation revenue	599,253	1,114,904
Royalties	332,135	452,166
Total revenue	4,200,125	5,637,408
Cost of goods sold	3,670,133	4,907,402
Gross profit	529,992	730,006
Operating expenses
General and administrative expenses	874,707	769,071
Selling expenses	504,014	539,480
Total operating expenses	1,378,721	1,308,551
Gain on sale of assets	5,254	11,977
Other income	10,607	30,077
Operating income (loss)	-832,868	-536,491
Interest income (expense)
Interest expense	-26,993	-28,757
Interest income	492	5,712
Total other expense	-26,501	-23,045
Loss before income tax benefit	-859,369	-559,536
Income tax expense (benefit)	-335,000	-231,000
Net income (loss)	($524,369)	($328,536)
Basic earnings (loss) per share (in dollars per share)	($0.11)	($0.07)
Diluted earnings (loss) per share (in dollars per share)	($0.11)	($0.07)
Weighted average number of common shares outstanding:
Basic	4,891,815	4,881,548
Diluted	4,891,815	4,881,548

Condensed_Consolidated_Stateme1

Condensed Consolidated Statement of Comprehensive Income (Loss) (Unaudited) Statement (USD $)	3 Months Ended
	Mar. 31, 2015		Mar. 31, 2014
Statement of Comprehensive Income [Abstract]
Net loss	($524,369)		($328,536)
Other comprehensive gain (loss), net of tax:
Net unrealized holding gain (loss)	-5,675	[1]	18,662	[1]
Comprehensive loss	($530,044)		($309,874)
[1]	Unrealized gains (losses) on available for sale securities are shown net of income tax benefit of $4,000 for March 31, 2015 and an income tax expense of $16,000 for March 31, 2014.

Condensed_Consolidated_Stateme2

Condensed Consolidated Statement of Comprehensive Income (Loss) (Unaudited) (Parenthetical) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Statement of Comprehensive Income [Abstract]
Unrealized gain (loss) on securities arising during period, tax	$4	$16

Condensed_Consolidated_Stateme3

Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Reconciliation of net loss to cash absorbed by operating activities
Net income (loss)	($524,369)	($328,536)
Adjustments to reconcile net loss to net cash absorbed by operating activities:
Depreciation and amortization	169,185	151,319
Gain on disposal of fixed assets	-5,254	-11,977
Realized loss on the sale of securities available-for-sale	0	0
Deferred taxes	-58,000	20,000
(Increase) decrease in:
Accounts receivable - billed	-536,472	993,024
Accounts receivable - unbilled	46,603	-236,059
Inventories	-178,578	74,801
Prepaid expenses and other assets	-96,274	-376,852
Prepaid income taxes	-277,779	97,370
Increase (decrease) in:
Accounts payable - trade	86,737	-111,693
Accrued expenses and other	127,404	-217,846
Accrued compensation	86,526	0
Accrued income taxes payable	0	-302,263
Customer deposits	125,185	181,740
Net cash absorbed by operating activities	-1,035,086	-66,972
Cash flows from investing activities:
Purchases of investment securities available-for-sale	-8,729	-21,010
Purchases of property and equipment	-193,730	-139,994
Proceeds from sale of fixed assets	5,092	13,141
Net cash absorbed by investing activities	-197,367	-147,863
Cash flows from financing activities:
Proceeds from long-term borrowings	0	55,159
Repayments of long-term borrowings	-91,607	-92,555
Proceeds from options exercised	21,100	0
Net cash absorbed by financing activities	-70,507	-37,396
Net decrease in cash and cash equivalents	-1,302,960	-252,231
Cash and cash equivalents
Beginning of period	3,572,405	3,136,063
End of period	$2,269,445	$2,883,832

Interim_Financial_Reporting

Interim Financial Reporting	3 Months Ended
	Mar. 31, 2015
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, 2014.  The December 31, 2014 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 consolidated 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 consolidated 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, 2015
Earnings Per Share [Abstract]
Net Income Per Common Share	NET LOSS 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 81,166 for the three months ended March 31, 2015 and 364,599 for the three months ended March 31, 2014.
		Three Months Ended March 31,
		2015			2014
	Basic loss per share
	Loss available to common shareholders	$	(524,369	)	$	(328,536	)
	Weighted average shares outstanding	4,891,815			4,881,548
	Basic loss per share	$	(0.11	)	$	(0.07	)
	Diluted loss per share
	Loss available to common shareholders	$	(524,369	)	$	(328,536	)
	Weighted average shares outstanding	4,891,815			4,881,548
	Dilutive effect of stock options	—			—
	Total weighted average shares outstanding	4,891,815			4,881,548
	Diluted loss per share	$	(0.11	)	$	(0.07	)

Stock_Options

Stock Options	3 Months Ended
	Mar. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock Options	STOCK OPTIONS
	In accordance with ASC 718, the Company had no stock option expense for the three months ended March 31, 2015 and 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 not issue any stock options for the three months ended March 31, 2015 or for the three months ended March 31, 2014.
	The following table summarized options outstanding at March 31, 2015
		Number of Shares		Weighted Average Exercise Price
	Balance, December 31, 2014	305,099		$	1.97
	Granted	—		—
	Forfeited	—		—
	Exercised	(12,000	)	1.76
	Outstanding options at end of quarter	293,099		$	1.98
	Outstanding exercisable options at end of quarter	293,099		$	1.98
	The intrinsic value of outstanding and exercisable options at March 31, 2015 was approximately $143,000.

Subsequent_Events

Subsequent Events	3 Months Ended
	Mar. 31, 2015
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, 2015 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, 2015
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 consolidated 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 consolidated 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, 2015
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted
		Three Months Ended March 31,
		2015			2014
	Basic loss per share
	Loss available to common shareholders	$	(524,369	)	$	(328,536	)
	Weighted average shares outstanding	4,891,815			4,881,548
	Basic loss per share	$	(0.11	)	$	(0.07	)
	Diluted loss per share
	Loss available to common shareholders	$	(524,369	)	$	(328,536	)
	Weighted average shares outstanding	4,891,815			4,881,548
	Dilutive effect of stock options	—			—
	Total weighted average shares outstanding	4,891,815			4,881,548
	Diluted loss per share	$	(0.11	)	$	(0.07	)

Stock_Options_Tables

Stock Options (Tables)	3 Months Ended
	Mar. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of stock option activity	The following table summarized options outstanding at March 31, 2015
		Number of Shares		Weighted Average Exercise Price
	Balance, December 31, 2014	305,099		$	1.97
	Granted	—		—
	Forfeited	—		—
	Exercised	(12,000	)	1.76
	Outstanding options at end of quarter	293,099		$	1.98
	Outstanding exercisable options at end of quarter	293,099		$	1.98

Interim_Financial_Reporting_De

Interim Financial Reporting (Details)	3 Months Ended
	Mar. 31, 2015
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, 2015	Mar. 31, 2014
Earnings Per Share [Abstract]
Number of options were excluded from diluted EPS calculation due to anti-dilutive effect	81,166	364,599
Basic loss per share
Loss available to common shareholders	($524,369)	($328,536)
Weighted average shares outstanding (shares)	4,891,815	4,881,548
Basic earnings (loss) per share (in dollars per share)	($0.11)	($0.07)
Diluted loss per share
Loss available to common shareholders	($524,369)	($328,536)
Weighted average shares outstanding (shares)	4,891,815	4,881,548
Dilutive effect of stock options (shares)	0	0
Total weighted average shares outstanding (shares)	4,891,815	4,881,548
Diluted earnings (loss) per share (in dollars per share)	($0.11)	($0.07)

Stock_Options_Details

Stock Options (Details) (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2015
Number of Shares
Balance, December 31, 2014 (shares)	305,099
Granted (shares)	0
Forfeited (shares)	0
Exercised (shares)	-12,000
Ending balance (shares)	293,099
Outstanding exercisable options at end of quarter (shares)	293,099
Weighted Average Exercise Price (in dollars per share)
Beginning balance (usd per share)	$1.98
Granted (usd per share)	$0
Forfeited (usd per share)	$0
Exercised (usd per share)	$1.76
Ending balance (usd per share)	$1.97
Outstanding exercisable options at end of quarter (usd per share)	$1.98
Intrinsic value of outstanding options	$143
Intrinsic value of exercisable options	$143