SMG Industries Inc. (OTCMKTS:SMGI) Stock Gains After Issuing Annual Results

SMG Industries Inc. (OTCMKTS:SMGI) is up 15% in a week after the transportation services company announced full-year financial results for the period ending December 31, 2021.

Market Stats

On Tuesday, SMGI stock moved up 4.10% to $0.2068 with more than 33K shares, compared to its average volume of 9k shares. The stock moved within a range of $0.1980 – 0.2200 after opening trading at $0.22.

SMG Industries, Inc. Reports Financial Results for Fiscal Year 2021

Net revenue of discontinued operations was up 95% to $52.1 million from $24.4 million a year ago. After accounting for depreciation expenses of $5.398 million, Adjusted gross margins were almost $4.8 million. The company had a net loss from continuing operations of $11.4 million, including one-time non-cash or non-operational expenses of $8.129 million.

Total assets at the end of the year total assets were $29.2 million, up from $27.4 million a year ago. SMG industries made considerable progress in 2021 in its diversification of transport services business following the introduction of super heavy haul and heavy haul business segments, the addition of the asset-light brokerage division, and flatbed division, which drove revenue growth in 2021. Also, the industrial segment of the business benefited from high hydrocarbon prices. So, in the coming weeks, SMGI is worth watching.

Key Quote

Mr. Matt Flemming, Chairman of SMG, stated “As the general economic conditions improved from the COVID-19 pandemic retracement, the Company saw improved activity levels with its customers. Expanding and diversifying into new business lines including infrastructure related over-dimensional heavy haul, flatbed transportation and logistics brokerage business all contributed to the Company’s top line growth.” Mr. Flemming continued, “While challenges continue with driver recruitment and rising fuel costs, the Company’s current improvement in SG&A as a percentage of revenue and increased sales covering more fixed costs within cost of sales should benefit future margins. Currently, the Company anticipates additional organic growth in 2022 and continues to review potential strategic target acquisitions to fuel its growth.”

Traders Corner

SMGI stock is trading below the 20-Day and 50-Day Moving averages of $0.22 and $0.24 respectively. Moreover, the stock is trading below the 200-Day moving average of $0.24.