TX Holdings Reports Second Quarter Results for 2017 Fiscal Year
ASHLAND, Kentucky, April 28, 2017 (Newswire.com) - TX Holdings, Inc. (OTC Markets OTCQB: TXHG), a supplier of mining and rail products to the U.S. coal mining industry, today announced financial results for the second quarter of fiscal 2017. During the 2017 second fiscal quarter, the company reported quarterly revenue of $923,403, a 63.5% increase when compared to the same quarter in the prior year. Net loss for the second quarter of fiscal 2017 was $54,059 an increase of $2,955 when compared to a net loss of $51,104 for the same period in the prior year.
Mr. Shrewsbury, the company’s CEO and Chairman, stated that “We are encouraged by our current quarter sales demand increase, we continue to seek expansion in our customer base and, prior customers’ mines have started to re-open contributing to recent higher sales in our rail as well as our mining related products. The recent energy outlook by The U.S. Energy Information Administration has reported an expected increase in coal-fired electricity generation to contribute a 4% and 2% increase in coal production on 2017 and 2018, respectively, denoting a positive turn in the coal mining industry.”
Second Quarter 2017 Financial Summary
"We are encouraged by our current quarter sales demand increase, we continue to seek expansion in our customer base and, prior customers' mines have started to re-open contributing to recent higher sales in our rail as well as our mining related products. The recent energy outlook by The U.S. Energy Information Administration has reported an expected increase in coal-fired electricity generation to contribute a 4% and 2% increase in coal production on 2017 and 2018, respectively, denoting a positive turn in the coal mining industry."
Revenue for second quarter 2017 was $923,403, an increase of $358,490 or 63.5% compared to 2016.
Cost of goods sold for the current quarter was $804,9642 compared to $394,611 in 2016, an increase of 104.0%.
Gross profit for the second quarter of 2017 was $118,439, and decreased as a percentage of revenue to 12.8% from 30.1% compared to 2016.
Net loss for second quarter 2017 was $54,059 compared to a net loss in the same quarter of 2016 of $51,104.
Earnings (loss) per diluted share was $0.00 remaining unchanged from 2016.
Operating expenses decreased 25.5% as compared to the same quarter of fiscal 2016. Other expenses in the second quarter 2017 were $29,764 compared to other expense of $29,744 in 2016.
Cash provided by operating activities for the three months ended March 31, 2017 was $36,366 as compared to cash used in operating activities of $124,484 during same period in 2016. The increase was a direct result of an increase in accounts payable of $208,265 and a decrease in inventory of $302,491 partially offset by an increase in accounts receivable of $425,783 during the three months ended March 31, 2017. Cash flows used by financing activities decreased by $17,227 due to payment on our term loan of $24,427 and a net advance from stockholder/officer of $7,200. At March 31, 2017, the company had cash and cash equivalents of $22,201, an increase of $19,139 when compared to September 30, 2016.
Forward-Looking and Cautionary Statements
Except for the historical information and discussions contained herein, statements contained in this release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (PSLRA) and other applicable law. When used, the words "believe", "anticipate", "estimate", "project", "should", "expect," “plan”, “assume” and similar expressions that do not relate solely to historical matters identify forward-looking statements. Forward-looking statements are based on the company’s current assumptions regarding future business and financial performance. Forward-looking statements concerning future plans or results are necessarily only estimates and actual results could differ materially from expectations. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially, including the following: reliance upon indebtedness furnished or guaranteed by our CEO; risks related to substantial indebtedness; our ability to implement our business strategy; our financial strategy; a downturn in economic environment; our failure to meet growth and productivity objectives; a failure of our innovation initiatives; risks from investing in growth opportunities; fluctuations in financial results and purchases; the impact of local legal, economic, political and health conditions; adverse effects from environmental matters and tax matters; ineffective internal controls; our use of accounting estimates; our ability to attract and retain key personnel and our reliance on critical skills; impact of relationships with critical suppliers; currency fluctuations and customer financing risks; the impact of changes in market liquidity conditions and customer credit risk on receivables; our reliance on third party distribution channels; Securities and Exchange Commission regulations related to trading in “penny stocks;” the continued availability of certain financing provided by our CEO; and other risks, uncertainties and factors discussed in our Quarterly Reports on Form10-Q, our Annual Reports on Form 10-K, and in our other filings with the SEC or in materials incorporated therein by reference. Any forward-looking statement in this release speaks only as of the date on which it is made. We assume no obligation to update or revise any forward-looking statement. Notwithstanding the above, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, expressly state that the safe harbor for forward looking statements does not apply to companies that issue penny stocks. Because we may from time to time be considered to be an issuer of penny stock, the safe harbor for forward looking statements under the PSLRA may not be apply to us at certain times.
William “Buck” Shrewsbury
Chairman and CEO
TX Holdings, Inc.
Source: TX Holdings, Inc.