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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