Q-1 2011 Earnings

05-May-2011

SOURCE: TexCom, Inc.

May 05, 2011 06:00 ET

TexCom, Inc. Earns 1.3 Cents per Share in Record First Quarter

HOUSTON, TX--(Marketwire - May 5, 2011) - TexCom, Inc. (PINKSHEETS: TEXC) ("TexCom" or the "Company"), an environmental services company for the oil and gas industry, today announced net earnings of $834,504 or 1.3 cents per share for the three month period ended March 31, 2011.

Revenues were $2.64 million for the first quarter of 2011, representing growth of 18% over revenues of $2.24 million for the same period in 2010 and 26% growth over fourth quarter 2010 revenues of $2.09 million. Operating income for the three month period was $1.25 million, an increase of 9% over the first quarter of 2010.

Net income available to common shareholders was $0.835 million for first quarter 2011 versus $0.661 million for the first quarter 2010, an increase of 26%.

Of significance on TexCom's balance sheet, current assets rose 45% from $1,975,762 to $2,867,042. Factors that positively impacted profitability for TexCom included a continuing recovery in the operating drilling rig count in the East Texas region and the fact that TexCom's selling, general and administrative expenses rose only 1% in Q-1 2011 vs. Q-1 2010.

Key Initiatives
Since the beginning of 2009, TexCom management has focused on four key initiatives; (i) bringing TexCom's ownership position in MB Environmental Services ("MBES") to 100%, (ii) assembling a pipeline of growth projects and acquisition candidates predominantly in the environmental services sector, (iii) adding engineering and remediation services to the NORM disposal capability at MBES and (iv) securing financing to expand environmental services and re-activate alternative energy prospects in Paraguay.

Management Comments
CEO and Chairman Lou Ross stated, "Again, we have proven our ability to effectively increase revenues while maintaining margins. The time for expansion to new oil & gas producing regions is now. New locations will allow us to replicate our proven operating model, providing services for the same World Class customer base that we now serve. The lack of traditional financing for companies such as ours has kept us from growing our company in the way that we would like, but looking forward, we expect to announce progress on our Key Initiatives."

While we encourage you to read the entire filed document, this release is intended to summarize some of the significant information in our earnings statement which is more fully disclosed in our earnings post. Complete information can be found at www.otcmarkets.com/stock/TEXC/financials

TEXCOM, INC. AND SUBSIDIARIES

 

CONSOLIDATED STATEMENTS OF OPERATIONS

 

For the three months ended March 31, 2011 and 2010
(Unaudited)

 

 

 

 

 

 

 

 

 

 

2011

 

 

2010

 

 

 

 

 

 

 

 

Sales

 

$

2,638,580

 

 

$

2,240,637

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

 

991,153

 

 

 

696,376

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

1,647,427

 

 

 

1,544,261

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

393,340

 

 

 

388,926

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

 

1,254,087

 

 

 

1,155,335

 

 

 

 

 

 

 

 

 

 

Other income (expense)

 

 

 

 

 

 

 

 

 

Other

 

 

655

 

 

 

(1,200

)

 

Interest expense

 

 

(278,934

)

 

 

(308,700

)

 

 

 

 

 

 

 

 

 

 

 

Total other income (expense)

 

 

(278,279

)

 

 

(309,900

)

 

 

 

 

 

 

 

 

 

Income before provision for income taxes and non-controlling interest

 

 

975,808

 

 

 

845,435

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

Net income before non-controlling interest

 

 

975,808

 

 

 

845,435

 

 

 

 

 

 

 

 

 

 

Income attributable to non-controlling interest

 

 

(141,304

)

 

 

(184,394

)

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) available to common shareholders

 

$

834,504

 

 

$

661,041

 

 

 

 

 

 

 

 

 

 

Income (loss) per share - basic and diluted:

 

$

0.02

 

 

$

0.01

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding - basic and diluted

 

 

63,979,285

 

 

 

51,691,893

 

 

 

 

 

 

 

 

 

 

About TexCom
TexCom, Inc., headquartered in Houston, Texas, is a growth-oriented environmental services company with its primary focus on the disposal of nonhazardous wastes generated by the oil & gas industry. TexCom is expanding its interests to disposal of nonhazardous industrial wastewater, serving the refining and petrochemical industries.

For further information on TexCom, please visit: http://www.texcomresources.com.

Forward-Looking Statements
This press release may contain forward-looking statements, including information about management's view of TexCom, Inc.'s future expectations, plans and prospects. In particular, when used in the preceding discussion, the words "believes," "expects," "intends," "plans," "anticipates," or "may," and similar conditional expressions are intended to identify forward-looking statements. Any statements made in this news release other than those of historical fact, about an action, event or development, are forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors, which may cause the results of TexCom, Inc., its divisions and concepts to be materially different than those expressed or implied in such statements. Unknown or unpredictable factors also could have material adverse effects on TexCom's future results. The forward-looking statements included in this press release are made only as of the date hereof. TexCom cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, TexCom undertakes no obligation to update these statements after the date of this release, except as required by law, and also takes no obligation to update or correct information prepared by third parties that are not paid for by TexCom.

 

 

Britt Brooks

TexCom, Inc.

M.B. Environmental, LLC

 

T   713-914-9193

 

www.texcomresources.com

www.mbenvironmental.net