Smith-Midland receives Nasdaq non-compliance notice

Published 23/04/2025, 15:30
Smith-Midland receives Nasdaq non-compliance notice

MIDLAND, VA - Smith-Midland Corporation (NASDAQ:SMID), known for its precast concrete products and systems, has been notified by Nasdaq of non-compliance with its filing requirements. The company, currently valued at $173 million in market capitalization, disclosed on Monday that it received a letter on April 17, 2025, from Nasdaq because it did not file its annual report on Form 10-K for the fiscal year ending December 31, 2024, on time.

Nasdaq’s notice does not immediately affect the trading of Smith-Midland’s shares on the exchange. The company has up to 60 days to submit a plan to regain compliance. If Nasdaq accepts the plan, Smith-Midland may be given an extension of up to 180 days, until October 13, 2025, to meet the exchange’s requirements.

The delay in filing is attributed to the need for additional time to complete the financial reporting process, including an assessment of internal financial controls, which may reveal material weaknesses. This follows Smith-Midland’s March 31, 2025, announcement that its revenue for 2024 is projected to be between $77 and $79 million, indicating a 31% increase from the previous year. According to InvestingPro data, the company has maintained strong financial fundamentals with a healthy current ratio of 2.78 and operates with a moderate debt-to-equity ratio of 0.13. The growth has been primarily driven by higher sales in Soundwall and utility products, as well as increased revenue from barrier rentals and shipping and installation services.

Smith-Midland operates with three manufacturing facilities located in Midland, VA, Reidsville, NC, and Columbia, SC, and runs a safety barrier rental firm, Concrete Safety Systems. The company maintains a "GREAT" financial health score according to InvestingPro’s comprehensive analysis, with 7 additional key insights available to subscribers. Easi-Set Worldwide, its subsidiary, licenses the production and sale of various precast products, offering diversification opportunities within the precast industry globally.

In their press release statement, Smith-Midland also included forward-looking statements, cautioning that actual results may differ due to various risks and uncertainties, including product demand, competitive pressures, supply constraints, government policies, potential recession, internal control weaknesses, and other economic conditions.

The company’s financial position and outlook are subject to the risks detailed in its filings with the Securities and Exchange Commission, including the potential effects of less government infrastructure spending, high levels of accounts receivables, and debt exposure. Based on InvestingPro’s Fair Value analysis, the stock currently appears to be trading above its intrinsic value, though the company maintains strong profitability with a return on equity of 18% in the last twelve months.

Smith-Midland has not provided a new timeline for when it expects to file its Form 10-K. The information in this article is based on a press release statement from the company.

In other recent news, Smith-Midland Corporation has secured a contract to supply over $5 million worth of its SlenderWall architectural precast concrete panels for the re-cladding of the FBI dormitories in Quantico, Virginia. The production of these panels is set to begin in June 2025, with installation planned for October of the same year. This project aims to enhance the structural integrity and security of the FBI’s facilities while providing aesthetic improvements. Smith-Midland’s SlenderWall system is noted for its durability, energy efficiency, and rapid installation capabilities. The company has collaborated with BL Harbert Construction to streamline the design and installation processes, ensuring the project stays on schedule. Matthew Smith, Vice President of Sales and Marketing at Smith-Midland, highlighted the system’s ability to meet the FBI’s stringent requirements. Garrett Goodman, Director of Design at BL Harbert, praised Smith-Midland’s proactive approach and leadership in advancing the project. These developments are based on a press release statement, with a reminder that forward-looking statements are subject to risks and uncertainties.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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