SOURCE: TexCom, Inc.

TexCom, Inc.

August 01, 2011 14:20 ET

Texcom, Inc. Reports Record Results for the First Half of 2011

On a Year-Over-Year Basis, Six Month Revenues Climb 15% to $5.33 Million and Net Income Jumps 21% to $1.56 Million

HOUSTON, TX--(Marketwire - Aug 1, 2011) - TexCom, Inc. (PINKSHEETS: TEXC), an environmental services company serving the oil and gas industry, today announced its financial results for the three and six months ended June 30, 2011:

Financial Highlights for Three Months Ended June 30, 2011 Compared to Three Months Ended June 30, 2010:

  • Revenues totaled $2.69 million, a 12% increase from $2.40 million.
  • Selling, General and Administrative (SG&A) expenses declined 44% to $284,000 from $510,000.
  • Operating income rose 13% to $1.10 million from $979,000.
  • Net income available to shareholders climbed 16% to $726,000, or $0.01 earnings per basic and diluted share, from $627,000, or $0.01 per basic and diluted share.

Financial Highlights for Six Months Ended June 30, 2011 Compared to Six Months Ended June 30, 2010:

  • Revenues increased 15% to $5.33 million from $4.64 million.
  • SG&A expenses totaled $678,000, down 25% from $899,000.
  • Operating income grew 10%, rising to $2.36 million from $2.13 million.
  • Net income available to shareholders surged 21% to $1.56 million, or $0.03 earnings per basic and diluted share, from $1.29 million, or $0.03 earnings per basic and diluted share.

As of June 30, 2011, TexCom's cash, cash equivalents and account receivables totaled $2.97 million and net cash provided by the Company's operating activities during the first six months of 2011 was $1.59 million. Total stockholders' deficit was $2.49 million, a 25% improvement when compared to total stockholders' deficit of $4.19 million reported as of December 31, 2010.

Commenting on the record results, Lou Ross, Chairman and CEO of TexCom, stated, "Successful execution of several key growth strategies have helped to yield exceptional results for the first half of 2011 and well positions TexCom to gain even greater momentum as we progress through the year. Presented with numerous opportunities to address the need for responsible disposal of NOW and NORM (naturally occurring radioactive material) waste on a worldwide basis, coupled with our intent to vertically integrate 'in-demand' engineering, remediation and decontamination services to our service offering platform, TexCom's future appears bright indeed."

FINANCIAL CHARTS TO FOLLOW


TEXCOM, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED BALANCE SHEETS
June 30, December 31,
2011 2010
Assets
Current Assets:
Cash and cash equivalents $ 1,164,704 $ 190,155
Accounts receivable, net 1,811,412 1,735,235
Prepaid expense and other 120,390 50,372
Total Current Assets 3,096,505 1,975,762
Property and equipment, net 882,067 910,003
Equity in net assets of affiliate 705,003 705,003
Notes and accounts receivable from related parties 66,827 66,827
Goodwill 396,722 396,722
Other assets 109,366 135,073
Total Assets 5,256,490 $ 4,189,390
Liabilities and Stockholders' Equity (Deficit)
Current Liabilities:
Current portion of notes payable to third parties $ 1,719,121 $ 1,392,516
Current portion of notes payable to shareholders 259,598 163,885
Accounts payable 45,454 338,445
Accrued liabilities - related parties 795,501 618,557
Accrued liabilities 15,400 61,156
Total Current Liabilities 2,835,075 2,574,559
Long Term Liabilities:
Notes payable to third parties, net of current portion 4,509,964 5,476,754
Notes payable to shareholders, net of current portion 380,678 410,488
Asset retirement obligation 25,000 25,000
Total Liabilities 7,750,717 8,486,801
Stockholders' Equity (Deficit)


Series A Convertible Preferred Stock, $1.00 par value, 5,000,000
shares authorized; 2,016,250 and 2,028,750 shares
outstanding




2,016,250








2,016,250



Common Stock, $.001 par value, 100,000,000 shares authorized;
64,114,447 and 63,595,329 shares issued


64,116




63,595

Common Stock held in Treasury, 300,000 and 300,000 shares (165,000 ) (165,000 )
Additional paid - in capital 10,861,969 10,791,722
Accumulated deficit (16,070,059 ) (17,630,456 )
Non-controlling interest 798,499 626,478
Total Stockholders' Equity (Deficit) (2,494,226 ) (4,297,411 )
Total Liabilities and Stockholders' Equity (Deficit) $ 5,256,490 $ 4,189,390
TEXCOM, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three and Six months ended June 30, 2011
(Unaudited)
Three months ended June 30 Six months ended June 30
2011 2010 2011 2010
Sales $ 2,694,257 $ 2,401,175 $ 5,332,837 $ 4,641,812
Cost of Sales 1,297,469 911,487 2,288,622 1,607,862
Gross Profit 1,396,787 1,489,688 3,044,214 3,033,950
Selling, general & administrative expenses 284,317 510,414 677,657 899,340
Operating income (loss) 1,102,231 979,274 2,356,318 2,134,610
Other income (expense)
Interest expense (262,693 ) (342,056 ) (541,627 ) (650,756 )
Other, net 1,003 75,739 1,658 74,539
Total other income (expense) (261,689 ) (266,317 ) (539,968 ) (576,217 )
Income before income taxes and
non-controlling interest
840,542 712,957 1,816,350 1,558,393
Provision for income taxes - - - -
Net income before non-controlling interest 840,542 712,957 1,816,350 1,558,393
Income attributable to non-controlling interest 114,649 (86,034 ) (255,953 ) (270,428 )
Net income (loss) available to
common shareholders
$ 725,893
$ 626,923
$ 1,560,397 $ 1,287,965
Income (loss) per share - basic and diluted $ .01 $ .01 $ .03 $ .03

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. TexCom is expanding its interests to disposal of nonhazardous industrial wastewater, serving the refining and petrochemical industries. For more information, please visit 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

  • FOR ADDITIONAL INFORMATION, PLEASE CONTACT:
    ELITE FINANCIAL COMMUNICATIONS GROUP
    Dodi B. Handy
    President & CEO
    (Twitter: dodihandy)
    Or
    Kathy Addison
    COO
    (Twitter: kathyaddison)
    407-585-1080
    via email at
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