TexCom Announces Results for 201301-Apr-2014
HOUSTON, TX – (Marketwire) – March 31, 2014 - TexCom, Inc. (OTC Pink: TEXC) (the "Company" or "TexCom"), an environmental services company serving the oil and gas industry, today announced financial results for 2013.
“We achieved significant growth in revenues, operating income, and income before income taxes in 2013, fueled principally by improved performance by our Eagle Ford Environmental Services, LLC unit. The second well at this location went into operation in early November resulting in an immediate substantial increase in disposal volumes and oil recovery. We look forward to a full year of operations for this unit in 2014. We also significantly strengthened our balance sheet in 2013. We are excited about the opportunities we have to achieve new growth in 2014,” stated Bob May, CEO and President.
Financial Highlights for the year ended December 31, 2013 compared to the year ended December 31, 2012:
- Revenues totaled $15.89 million, increasing 38% from $11.53 million. Gross profit margin held steady at 48%.
- Operating income increased 45% to $5.08 million from $3.50 million.
- Income before income taxes increased 300% to $4.28 million from $1.43 million.
- Net income available to shareholders was essentially flat at $3.88 million compared to $3.77 million. In both years, the company revalued its deferred income tax asset resulting from its net operating loss carry-forwards (NOLs) and other book-to-tax differences. As a result, the company recognized $10,000 of income tax expense in 2013, compared to a benefit of $2.65 million for 2012.
- Earnings per share on a fully diluted basis were unchanged at $0.05.
- Total liabilities decreased to $9.65 million from $10.91 million.
- TexCom equity increased to $4.43 million from $540,000.
Prior to 2012, the Company valued its net operating loss carryforwards (NOLs) at zero due to the uncertainty of generating future income to utilize the NOLs. With the substantial improvement in operations, the Company revalued the NOLs in 2012 and recorded the future benefit as an asset, and has been recognizing income tax expense. In 2013, the Company again revalued certain deferred income tax assets including the NOLs and other book-to-tax differences and increased its estimate of their value by approximately $1.62 million.