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TICKERS: SMGI

Oilfield Services Provider Increases YOY Revenue 31% in H1/19
News Update

Source:

Newly released financials included all of the costs of the recent acquisition but only three days of related sales.

SMG Industries Inc. (SMGI:OTCQB) announced in a news release its financial and operational results for Q2/19 ended June 30, 2019.

One highlight is that "the company roughly doubled its monthly revenues through the accretive acquisition of Trinity Services that closed during Q2/18," Chief Executive Officer Matt Flemming said in the release. The acquisition bolstered SMGI's presence in the Haynesville and Cotton Valley plays and added active customers to its base.

During H1/19, SMGI's revenue totaled $2,846,885, up about 31% year over year (YOY).

During Q2/19, total revenue was $1,094,181, down about 6% YOY. Of note, this period only included three days of sales from the Trinity acquisition. The decrease was due to reduced rig wash revenues in the West Texas market and decreased mechanic service revenues in East Texas. These were partly offset, though, by increased machine and product sales.

Total assets in Q2/19 were $8,009,002, up 127% since year-end 2018.

Net loss in Q2/19 was $980,922. Cost of sales expenses increased during Q2/19 as did selling, general and administrative and other expenses.

"The company continues to move forward with its buy and build strategy, seeking to consolidate oilfield services companies," the release noted. It expects an improved Q3/19 in revenues and margins.

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Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with SMG Industries. Please click here for more information. Within the last six months, an affiliate of Streetwise Reports has disseminated information about the private placement of the following companies mentioned in this article: SMG Industries.
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5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this interview, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of SMG Industries, a company mentioned in this article.




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