Texas Equipment Corporation Announces Twelve Months Operating Results

Apr 17, 2001, 01:00 ET from Texas Equipment Corporation

    SEMINOLE, Texas, April 17 /PRNewswire/ -- Texas Equipment Corporation
 (OTC Bulletin Board:   TEXQ) today announced sales of $57.6 million for the
 twelve months ended December 31, 2000, an 8.8% decrease from $63.2 million for
 the period a year ago.  This decrease in sales is primarily due to a
 $4.6 million decrease in used equipment sales and a $1.2 million decrease in
 parts and service revenues.  The agricultural equipment markets in 2000 were
 affected by historically low commodity prices for corn, soybean, wheat,
 peanuts and cotton.  This trend, which began in 1999, is expected to continue
 throughout fiscal 2001.
     Gross profit as a percentage of total revenues was approximately 12.3% for
 the twelve months ended December 31, 2000 compared to 13.8% for the same
 period 1999.  This decrease in margins was due to price pressures because of
 weak commodity prices, a weak corn harvest in the third quarter of 2000, and
 the lack of a winter wheat harvest in the Northern Panhandle in the second
 quarter of 2000.
     The Company reported a net loss of $2.9 million for the twelve months
 ended December 31, 2000 compared to a net loss of $1.2 million for the same
 period in 1999.  The decrease is primarily due to the significant decrease in
 equipment and parts and service sales and the decrease in gross margins.  Net
 loss per share for the twelve months ended December 31, 2000 was $0.81 per
 share (basic and diluted) compared to net loss per share of $0.34 (basic and
 diluted) for the twelve months ended December 31, 1999.
     According to Paul Condit, President and CEO, "The current economic
 downturn continues to suppress the agricultural equipment market.  The
 improvement we saw in equipment sales in the first six months was lost in the
 second half of the year, which put significant pressure on pricing.  We
 believe equipment demand will improve in 2001, but it very well could be 2002.
 We will continue our efforts to manage expenses and explore new markets and
 revenue opportunities during the current cyclical downturn."
     Texas Equipment Corporation operates eight John Deere dealerships in West
 Texas and Eastern New Mexico, specializing in the distribution, sale, service
 and rental of equipment, primarily supplied by Deere & Company, to the
 agricultural industry.
     This press release includes "forward-looking statements" within the
 meaning of the Private Securities Litigation Reform Act of 1995.  Such
 statements involve known and unknown risks, uncertainties and other factors
 that could cause the actual results of the Company to differ materially from
 the results expressed or implied by such statements, including general
 economic and business conditions, conditions affecting the Company's customers
 and suppliers, conditions affecting the industries served by the Company and
 its subsidiaries, competitor responses to the Company's products and services,
 the overall market acceptance of such products and services, and other factors
 disclosed in the Company's Annual Report on Form 10-K for the year ended
 December 31, 2000.  Accordingly, although the Company believes that the
 expectations reflected in such forward-looking statements are reasonable,
 there can be no assurance that such expectations will prove to be correct.
 The Company makes no commitment to disclose any revisions to forward-looking
 statements, or any facts, events or circumstances after the date hereof that
 may bear upon forward-looking statements.
 
                            TEXAS EQUIPMENT CORPORATION
                          1305 Hobbs Hwy, Seminole, Texas
                       SELECTED FINANCIAL AND OPERATING DATA
 
                                                      Twelve Months Ended
                                                         December 31,
     Income Statement Data:                         2000              1999
 
     Revenues                                   $57,648,203       $63,220,272
 
     Cost of sales                               50,570,852        54,515,128
 
     Gross profit                                 7,077,351         8,705,144
 
     Selling, general & administrative            8,873,240         9,144,727
 
     Operating loss                              (1,795,889)         (439,583)
 
     Other expenses - net                        (1,713,200)       (1,230,213)
 
     Loss before taxes                           (3,509,089)       (1,669,796)
 
     Income tax benefit                            (521,065)         (438,777)
 
     Net loss                                   $(2,988,024)      $(1,231,019)
 
     Net loss per share
        Basic                                        $(0.81)           $(0.34)
        Diluted                                      $(0.81)           $(0.34)
     Weighted average shares outstanding
        Basic                                     3,707,034         3,578,277
        Diluted                                   3,707,034         3,607,638
 
 
                                                December 31,      December 31
     Balance Sheet Data:                            2000              1999
     Working capital                              $(713,013)       $7,886,824
     Inventories                                $24,450,771       $27,247,079
     Total assets                               $31,846,035       $35,866,092
     Floor plan payables                        $17,113,025       $17,625,613
     Total liabilities                          $27,744,935       $28,944,123
     Stockholders' equity                        $4,101,100        $6,921,969
 
     Operating Data:
     Number of store locations                            8                 8
 
 

SOURCE Texas Equipment Corporation
    SEMINOLE, Texas, April 17 /PRNewswire/ -- Texas Equipment Corporation
 (OTC Bulletin Board:   TEXQ) today announced sales of $57.6 million for the
 twelve months ended December 31, 2000, an 8.8% decrease from $63.2 million for
 the period a year ago.  This decrease in sales is primarily due to a
 $4.6 million decrease in used equipment sales and a $1.2 million decrease in
 parts and service revenues.  The agricultural equipment markets in 2000 were
 affected by historically low commodity prices for corn, soybean, wheat,
 peanuts and cotton.  This trend, which began in 1999, is expected to continue
 throughout fiscal 2001.
     Gross profit as a percentage of total revenues was approximately 12.3% for
 the twelve months ended December 31, 2000 compared to 13.8% for the same
 period 1999.  This decrease in margins was due to price pressures because of
 weak commodity prices, a weak corn harvest in the third quarter of 2000, and
 the lack of a winter wheat harvest in the Northern Panhandle in the second
 quarter of 2000.
     The Company reported a net loss of $2.9 million for the twelve months
 ended December 31, 2000 compared to a net loss of $1.2 million for the same
 period in 1999.  The decrease is primarily due to the significant decrease in
 equipment and parts and service sales and the decrease in gross margins.  Net
 loss per share for the twelve months ended December 31, 2000 was $0.81 per
 share (basic and diluted) compared to net loss per share of $0.34 (basic and
 diluted) for the twelve months ended December 31, 1999.
     According to Paul Condit, President and CEO, "The current economic
 downturn continues to suppress the agricultural equipment market.  The
 improvement we saw in equipment sales in the first six months was lost in the
 second half of the year, which put significant pressure on pricing.  We
 believe equipment demand will improve in 2001, but it very well could be 2002.
 We will continue our efforts to manage expenses and explore new markets and
 revenue opportunities during the current cyclical downturn."
     Texas Equipment Corporation operates eight John Deere dealerships in West
 Texas and Eastern New Mexico, specializing in the distribution, sale, service
 and rental of equipment, primarily supplied by Deere & Company, to the
 agricultural industry.
     This press release includes "forward-looking statements" within the
 meaning of the Private Securities Litigation Reform Act of 1995.  Such
 statements involve known and unknown risks, uncertainties and other factors
 that could cause the actual results of the Company to differ materially from
 the results expressed or implied by such statements, including general
 economic and business conditions, conditions affecting the Company's customers
 and suppliers, conditions affecting the industries served by the Company and
 its subsidiaries, competitor responses to the Company's products and services,
 the overall market acceptance of such products and services, and other factors
 disclosed in the Company's Annual Report on Form 10-K for the year ended
 December 31, 2000.  Accordingly, although the Company believes that the
 expectations reflected in such forward-looking statements are reasonable,
 there can be no assurance that such expectations will prove to be correct.
 The Company makes no commitment to disclose any revisions to forward-looking
 statements, or any facts, events or circumstances after the date hereof that
 may bear upon forward-looking statements.
 
                            TEXAS EQUIPMENT CORPORATION
                          1305 Hobbs Hwy, Seminole, Texas
                       SELECTED FINANCIAL AND OPERATING DATA
 
                                                      Twelve Months Ended
                                                         December 31,
     Income Statement Data:                         2000              1999
 
     Revenues                                   $57,648,203       $63,220,272
 
     Cost of sales                               50,570,852        54,515,128
 
     Gross profit                                 7,077,351         8,705,144
 
     Selling, general & administrative            8,873,240         9,144,727
 
     Operating loss                              (1,795,889)         (439,583)
 
     Other expenses - net                        (1,713,200)       (1,230,213)
 
     Loss before taxes                           (3,509,089)       (1,669,796)
 
     Income tax benefit                            (521,065)         (438,777)
 
     Net loss                                   $(2,988,024)      $(1,231,019)
 
     Net loss per share
        Basic                                        $(0.81)           $(0.34)
        Diluted                                      $(0.81)           $(0.34)
     Weighted average shares outstanding
        Basic                                     3,707,034         3,578,277
        Diluted                                   3,707,034         3,607,638
 
 
                                                December 31,      December 31
     Balance Sheet Data:                            2000              1999
     Working capital                              $(713,013)       $7,886,824
     Inventories                                $24,450,771       $27,247,079
     Total assets                               $31,846,035       $35,866,092
     Floor plan payables                        $17,113,025       $17,625,613
     Total liabilities                          $27,744,935       $28,944,123
     Stockholders' equity                        $4,101,100        $6,921,969
 
     Operating Data:
     Number of store locations                            8                 8
 
 SOURCE  Texas Equipment Corporation