SOURCE: TexCom, Inc.

TexCom, Inc.

July 07, 2010 09:53 ET

TexCom, Inc. Reports Record 1st Quarter Earnings

HOUSTON, TX--(Marketwire - July 7, 2010) -  TexCom, Inc. (PINKSHEETS: TEXC) ("TexCom" or the "Company"), an environmental services company for the oil and gas industry, today announced net earnings of $661,041 or 1.3 cents per share for the three month period ended March 31, 2010. 

As previously released, revenues at TexCom's Class II nonhazardous oilfield waste disposal operation in Chambers County, Texas, M.B. Environmental Services, LLC ("MBES"), reached a record high of $2.24 million for the first quarter of 2010, representing growth of 51% over revenues of $1.5 million for the same period in 2009 and 26% growth over fourth quarter 2009 revenues of $1.9 million. Operating profits for the three month period were $1.15 million, an increase of 46% over the first quarter of 2009.

This marks the 21st consecutive profitable quarter for MBES under the guidance of TexCom. Additionally, revenues for the subsidiary have grown from $2.6 million in 2006 to $6.8 million in 2009, representing a compound annual growth rate of 38%. 

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 resulting from the completion of predevelopment expenditures relating to the Company's project in Paraguay. 

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 re-activate alternative energy prospects in Paraguay.

Management Comments

C.E.O. and Chairman Lou Ross stated, "We have just completed the first quarter in which TexCom's ownership in MBES exceeded 80%. This increased ownership has provided significant bottom line impact for TexCom, demonstrating our future earnings capability and allowing us to deliver current operating profits while we work to grow our company to a size that can be significant for our shareholders. We are particularly proud that we managed to grow over the last 6 quarters in challenging financial and oil & gas markets. Looking forward, we hope to expand the scope of services that we provide to our existing customers and add new oil & gas producing regions to our market area through development of new sites."

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 months ended March 31, 2009 and March 31, 2010.

TEXCOM, INC. AND SUBSIDIARIES  
CONSOLIDATED STATEMENTS OF OPERATIONS  
For the three months ended March 31, 2010 and 2009  
 (Unaudited)  
           
    2010   2009  
           
Sales   $2,240,637   $1,487,582  
Cost of sales   696,376   474,763  
Gross profit   1,544,261   1,012,819  
Selling, general and administrative expenses   388,926   219,656  
    Operating income (loss)   1,155,335   793,163  
           
Other income (expense)          
  Impairment of assets   -   -  
  Other   (1,200 ) (19,483 )
  Interest expense   (308,700 ) (42,401 )
    Total other income (expense)   (309,900 ) (61,884 )
               
Income before provision for income taxes and non-controlling interest   845,435   731,279  
Provision for income taxes   -   (267,016 )
Net income before non-controlling interest   845,435   464,263  
Income attributable to non-controlling interest   (184,394 ) (407,351 )
           
    Net income (loss) available to common shareholders   $661,041   $56,912  
           
Income (loss) per share - basic and diluted:   $0.01   $0.00  
           
  Weighted average common shares outstanding - basic   51,691,893   43,895,524  
  Weighted average common shares outstanding - diluted   51,691,893   43,895,524  
           
       

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