Texcom Announces Results for Third Quarter of 2014
HOUSTON, Nov. 18, 2014 /PRNewswire/ -- Texcom, Inc. (OTC Pink: TEXC) (the "Company" or "Texcom"), an environmental services company serving the oil and gas industry, today announced financial results for the third quarter of 2014.
"The financial results for the third quarter of 2014 reflect the substantial changes made to the Company during the first nine months of the year," stated Bob May, President of the Company. "We substantially improved the balance sheet of the Company by using our common shares to pay a large portion of the acquisition cost of two salt water disposal wells in Van Buren County, Arkansas. Further, we have paid all accrued dividends on the preferred shares and have converted the preferred shares to common shares. Conversely, earnings have been negatively impacted by the fact that we sold our MB Environmental Services, LLC assets in April but did not acquire the Arkansas properties until August. Further, all of these transactions, and the conduct of our annual meeting, have incurred significant legal and professional costs. Earnings were also reduced by other non-cash expenditures. We have now positioned the Company to improve core operations and seek additional acquisitions to grow the Company and add value for our shareholders."
Financial Highlights for the nine months ended September 30, 2014 compared to the nine months ended September 30, 2013:
- Net income available to shareholders was $7,056,000, which includes the gain on the sale of the MB Environmental Services, LLC assets, increasing from $3,617,000.
- Revenues totaled $9,912,000, decreasing from $11,798,000, due to the sale of the MB Environmental Services, LLC assets in April.
- Operating income was $1,049,000, decreasing from $4,255,000. Operating income was impacted by the decline of revenues as noted above and the occurrence of approximately $700,000 of legal and professional fees incurred to complete our divesture and acquisition transactions and complete the balance sheet restructuring. Further, we incurred $600,000 of non-cash expenditures related to the 2011 stock incentive plan.
- Earnings per share on a fully diluted basis were $0.87, an increase from $0.52.
- Equity available to Texcom common shareholders increased to $19.2 million from $4.4 million
Financial Highlights for the third quarter 2014 compared to the third quarter 2013:
- Net income available to shareholders was a loss of $40,000 compared to income of $2,050,000.
- Revenues totaled $2,702,000, decreasing from $4,154,000.
- Operating income was $104,000, decreasing from $1,040,000.
- Earnings per share on a fully diluted basis were a loss of $0.01, decreasing from income of $0.31.
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. For more information, please visit www.texcomresources.com.
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.
SOURCE Texcom, Inc.
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