SMG Industries Inc. (SMGI, Financial), a growth-oriented transportation services company, released its pro forma financial results on October 2, 2023, following its acquisition of the Barnhart family of companies on July 7, 2023. The financial statements and pro forma financial information were included in the amendment of its Current Report on Form 8-K, originally filed with the Securities and Exchange Commission (SEC) on July 12, 2023.
Financial Highlights
As per the Current Report on Form 8-K/A filed with the SEC on September 15, 2023, SMGI's revenues for fiscal year 2022 were $152,771,088, with a gross profit of $16,770,897. The company reported a net loss from continuing operations of $5,296,586, which included non-cash expenses of $13,930,353 in depreciation and amortization expenses. The net loss, including these non-cash items, was $5,156,039. The pro forma Adjusted EBITDA, a non-GAAP measure, for fiscal year 2022 was $15,046,814.
Timothy Barnhart, CFO of SMG said, “Our team is excited about our future growth prospects and new critical mass in size given the July 7th closing of the Barnhart family of companies and its added cash flow. In addition to realizing cost synergies, the Company has been very busy with internal integration of its business and is fortunate to have transportation management systems (TMS) and related infrastructure that are similar and pair well together. Currently, the team believes this integration, including accounting and information technology, will be concluded prior to the year-end 2023. We have executed on several of the expense saving initiatives, including national account buying for fuel and other expenses.”
Company's Performance and Future Prospects
SMGI's acquisition of the Barnhart family of companies has added significant cash flow and increased the company's size, providing new growth prospects. The company has been actively integrating its business and has already executed several expense-saving initiatives. The integration, including accounting and information technology, is expected to conclude by the end of 2023.
Bryan Barnhart, CEO of SMG stated, “The Company has several revenue synergies underway, including cross-fertilizing customers, introducing additional services lines from the Barnhart family of companies and SMG/5J companies expanding solutions by building a “one stop shop,” full-service logistics provider for our customers and delivering seamless logistics solutions spanning the globe. We continue to enjoy diversification in our end market customer focus with industrial, oilfield and intermodal benefiting from additional activity in the market.”
About SMG Industries Inc.
SMG Industries Inc. (SMGI, Financial) is a growth-oriented transportation services company specializing in the full-service logistics market. The company offers comprehensive logistics solutions, serving as a single service provider for shipments of all sizes, both domestically and internationally. SMGI's core strengths lie in its specialized services, spanning heavy haul, super heavy haul, oversized, drilling rig relocations, and driveaway services, and a comprehensive suite of logistics solutions.
