HOUSTON, April 03, 2018 (GLOBE NEWSWIRE) — SMG Industries, Inc., formerly SMG Indium Resources Ltd., (OTCQB:SMGI) an oilfield services company headquartered in Houston, Texas announced today their financial results for the full year ended December 31, 2017.
Full Year 2017 Highlights
- Revenue increased 54% to $2,465,897 in 2017, from $1,603,395 for the year 2016;
- Gross Profit increased 54% to $1,019,987 from $663,615 year over year;
- Gross Margin for the fiscal year 2017 was 41.4%;
- Net Loss for 2017 of $731,080 which includes acquisition expenses and other one-time costs compared to 2016 Net Profit of $178,015;
- Total Assets grew to $855,413 in 2017 from $543,919 in 2016;
- New Platform acquisition in Oilfield Services Market with MG Cleaners LLC;
- Common shares were upgraded to OTCQB® Venture Market;
- Direct sales expansion into the Permian Basin and West Texas to meet customer demands; and,
- Accretive Acquisition Strategy Anticipated for 2018.
As illustrated in the Company’s 2017 Annual Report on Form 10-k filed on April 2, 2018, the Company had fourth quarter revenues in 2017 of $663,411 and revenues of $2,465,897 for the year ended December 31, 2017. This represented an increase of revenues of approximately 36% for the fourth quarter 2017, when compared to the prior year period, and an increase of 54% over the 2016 fiscal year results. Gross margin for year 2017 was $1,019,987, or 41.4% of revenues, compared to $633,615, or 41.3% of 2016 revenues. When combining stock compensation expense, a one-time, non-cash item, associated with the September 19, 2017 merger, selling, general and administrative (SGA) expenses increased to $1,188,494 compared to $363,584 for the year 2016. SGA in 2017 included $211,320 in non-cash stock based compensation, and other one-time expenses associated with the MG Cleaners acquisition. The Net Loss for 2017 was $731,080, which includes acquisition costs of $378,807, stock compensation charges of $211,320, non-cash depreciation expenses of $72,161, amortization of deferred financing costs of $63,482, impairment expense of $27,366 and interest expenses of $155,484. This compares to a Net Income of $178,015 in 2016.
Matthew Flemming, Chief Executive Officer of SMGI, stated, “SMG’s activities and developments that occurred during 2017 generated significant year-over-year growth. The acquisition of 100% of the outstanding membership interest in MG Cleaners LLC produced a new platform for the Company’s future growth in the oilfield services market. MG Cleaners built a solid reputation for its 13 branded products and its rig support services since its 2010 founding.” Mr. Flemming continued, “Currently SMG’s market benefits from an approximate 146% increase in the domestic drilling rig count when comparing May 2016 lows to the present day. The Company anticipates continued growth in 2018 including a favorable product sales margin mix and operating expenses reflective of current revenue trends. The rename to SMG Industries, Inc. is completed and management is now scheduling investor conferences and venues to appropriately get the company introduced further to investors. Currently, the Company anticipates 50% sequential growth with its first quarter 2018 revenues compared to the fourth quarter 2017 the result of expansion in the Permian Basin of West Texas and added service crews addressing additional customer demand.”
The Company’s wholly-owned subsidiary, MG Cleaners, has multiple revenue streams; branded proprietary detergents, surfactants and degreasers, service equipment sales, parts, rentals and drilling rig service wash crews. The West Texas facility in Odessa, Texas covering the Permian Basin is anticipated to be a continued contributor to the Company’s future growth.
For more information please refer to the Company’s Annual Report on Form 10-k located at our web site or www.sec.gov. The Company anticipates releasing its first quarter 2018 results before May 14, 2018.
About SMG Industries, Inc.: SMGI is an oilfield services company that operates throughout Texas. The company, through its wholly-owned subsidiary MG Cleaners LLC., is focused on selling proprietary branded products including detergents, surfactants and degreasers (such as Miracle Blue™) to oilfield drilling rig contractors and oilfield companies. In addition to the company’s proprietary products, SMGI sells equipment and parts and has service crews that perform on-site repairs, maintenance and drilling rig wash services for customers such as Nabors Industries Patterson-UTI, Helmrich & Payne, Cactus Drilling and others. SMG Industries, Inc. (formerly SMG Indium Resources Ltd.) headquarters are located in Houston, Texas with facilities in Carthage, Texas and Odessa, Texas. Read more at www.smg-indium.com and www.mgcleanersllc.com.
This news release contains information that is “forward-looking” in that it describes events and conditions SMGI reasonably expects to occur in the future. Expectations for the future performance of SMGI are dependent upon a number of factors and there can be no assurance that SMGI will achieve the results as contemplated herein. Certain statements contained in this release using the terms “may”, “expects to”, “anticipated” and other terms denoting future possibilities, are forward-looking statements. The accuracy of these statements cannot be guaranteed as they are subject to a variety of risks, which are beyond SMGI’s ability to predict, or control and which may cause actual results to differ materially from the projections or estimates contained herein. Forward-looking statements in this news release that are subject to risk include the ability to achieve and continue revenue, net income and adjusted EBITDA improvements. It is important that each person reviewing this release understand the significant risks attendant to the operation of SMGI. SMGI disclaims any obligation to update any forward-looking statement made herein.