SOURCE: TexCom, Inc.

TexCom, Inc.

August 19, 2010 10:58 ET

TexCom, Inc. Reports Record Second Quarter Earnings

HOUSTON, TX--(Marketwire - August 19, 2010) - TexCom, Inc. (PINKSHEETS: TEXC) ("TexCom" or the "Company"), an environmental services company for the oil and gas industry, today announced financial results for the quarter ended June 30, 2010.

This marks the 22nd consecutive profitable quarter for M.B. Environmental Services, LLC., TexCom's subsidiary in the oil and gas waste disposal business, and the 4th consecutive profitable quarter for TexCom, Inc.

Management Comments

"TexCom had a strong second quarter," said Lou Ross, CEO of TexCom. "Solid growth in our M.B. Environmental business drove73% revenue growth year over year. We saw strength in each disposal product area, as drilling activity increased over 2009 levels. The second quarter is our fourth straight quarter showing profitability. We feel confident about our future and plan to continue to expand our capacity and efficiency in our core areas of strategic focus."

Q2 Financial Summary

TexCom reports revenues of $2.401 million for the quarter ended June 30, 2010, an increase of 73% compared to the second quarter of 2009.

--  Operating income in the second quarter of 2010 was $0.979 million, or
    41% of revenues, and a 53% increase over the second quarter of 2009.
--  Net income in the second quarter of 2010 was $0.627 million, compared
    to a loss of $0.772 million in the second quarter of 2009.
--  EPS in the second quarter of 2010 was $.013 compared to a loss of
    ($.02) in the second quarter of 2009 on 51,691,893 million diluted
    shares outstanding.

Q2 Financial Highlights

--  Sales Per Employee - Sales per employee were $92,346 for the quarter or
    $369,384 annualized.
--  Operating Income Per Employee - Operating Income per employee was
    $39,583 for the quarter or $158,332 annualized.
--  Net Income Per Employee - Net income per employee for the quarter was
    $26,031 or $104,124 annualized.
--  Headcount - TexCom employed 26 full-time employees as of June 30, 2010.

Factors that positively impacted profitability for TexCom included a continuing recovery in the operating drilling rig count in the East Texas region, TexCom's increased effective ownership in MBES, and reduction in corporate level G & A as a percentage of revenues.

Key Initiatives

Since the beginning of 2009, TexCom management has focused on four key initiatives: (i) bringing TexCom's ownership position in 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 monetize alternative energy prospects in Paraguay.

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.pinksheets.com/pink/quote/quote.jsp?symbol=texc

The following is a summary of certain historical financial information for TexCom, Inc. for the three and six months ended June 30, 2009 and June 30, 2010.

                              Three months ended       Six months ended
                                   June 30                 June 30
                            ----------------------  ----------------------

                               2010        2009        2010        2009
                            ----------  ----------  ----------  ----------

Sale                         2,401,175   1,387,821   4,641,812   2,875,403

Cost of Sales                  911,487     452,969   1,607,863     927,732
                            ----------  ----------  ----------  ----------

Gross Profit                 1,489,688     934,852   3,033,950   1,947,671

Selling, general &
 administrative expenses       510,414     293,773     899,450     513,429
                            ----------  ----------  ----------  ----------

  Operating income (loss)      979,274     641,079   2,134,610   1,434,242
                            ----------  ----------  ----------  ----------

Other income (expense)
  Impairment of assets                    (518,206)               (518,206)
  Interest expense            (342,056)    (87,646)   (650,756)   (130,047)
  Other, net                    75,739      19,584      74,533      10,032
                            ----------  ----------  ----------  ----------

  Total other income
   (expense)                  (266,317)   (586,268)   (576,217)   (638,221)
                            ----------  ----------  ----------  ----------

Income before income taxes
 and non-controlling
 interest                      712,957      54,811   1,558,393     796,021

Provision for income taxes                (163,008)               (259,379)
                                        ----------              ----------

Net income before
 non-controlling interest      712,957    (108,197)  1,558,393     536,642

Income attributable to
 non-controlling interest      (86,034)   (663,868)   (270,428) (1,071,219)
                            ----------  ----------  ----------  ----------

Net income (loss) available
 to common shareholders        626,923    (772,065)  1,287,965    (534,577)
                            ----------  ----------  ----------  ----------

Income (loss) per share -
 basic and diluted                0.01       (0.02)       0.03       (0.01)

About TexCom

TexCom, Inc., headquartered in Houston, Texas, is a growth-oriented company with its primary focus on the disposal of nonhazardous wastes and production of biodiesel. Domestically, TexCom disposes of nonhazardous materials generated by oil and gas exploration and production and is expanding its interests in 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.

Contact Information

  • Contacts:
    TexCom, Inc.
    Management contact
    Britt Brooks
    EVP
    713-914-9193
    Email Contact: Email Contact