TexCom Announces Q3 2012 Results

21-Nov-2012

Download Interim Consolidated Financial Statements


 

HOUSTON, TX - (Marketwire) – November 16, 2012 - TexCom, Inc. (OTC Pink: TEXC)(the "Company" or "TexCom"), an environmental services company serving the oil and gas industry, today announced record financial results for the quarter ended September 30, 2012.

Financial Highlights for the third quarter 2012 compared to the second quarter 2011:

Revenues totaled $2,648,160, falling 5% from $2,779,306.
Gross profit margin fell from 60% to 44%.
Operating income fell 38% from $1,159,876 to $720,878.
The Company revalued the asset resulting from net operating loss carry forwards (NOLs), resulting in a one-time income tax benefit of $1,960,000.
Net income available to shareholders increased by 268% to $2,227,586 from $618,354.
Earnings per share on a fully diluted basis were $0.03, up from $0.01.

Financial Highlights for the nine months ended September 30, 2012 compared to the nine months ended September 30, 2011:

Revenues totaled $8,857,941, up 9% from $8,112,363.
Gross profit margin fell from 59% to 50%.
Operating income fell 15% from $3,472,384 to $2,951,714.
The Company revalued the asset resulting from net operating loss carry forwards (NOLs), resulting in a one-time income tax benefit of $1,960,000.
Net income available to shareholders increased by 84% from $1,859,317 to $3,425,460.
Earnings per share on a fully diluted basis were $0.05, up from $0.03.

Concerning the income tax asset, the value of $1,960,000 reflects $7,300,000 in taxable losses available to offset taxable income in the future. The Company calculated $2,550,000 of future tax savings from the net operating losses and other temporary differences between the carrying amounts of assets and liabilities, and reduced the total by $590,000 to account for unknown future events, such as a change in technology that would impact our earnings’ potential or the acquisition of the majority of the stock in the Company, which may limit our ability to utilize the losses.

“Third quarter results were impacted by the continued slower drilling pace in the Haynesville Shale play of east Texas which is the major service territory for our MB Environmental Services operation,” stated Bob May, CEO and President. “Our Eagle Ford Environmental Services project in south Texas continued its solid performance, although its results were impaired by lower crude oil prices. We completed a truck wash operation at the end of the third quarter which should generate significant revenues in the future.”

About TexCom, Inc.
TexCom, headquartered in Houston, Texas, is a growth-oriented environmental services company with a primary focus on the disposal of nonhazardous wastes generated by the oil & gas industry. Forward-Looking Statements This press release and the presentation referenced above 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 or such presentation 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 and the presentation 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.