HOUSTON, Nov. 1, 2013 /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 2013. Financial Highlights for the third quarter 2013 compared to the third quarter 2012:
-- Revenues totaled $4.15 million, increasing 57% from $2.65 million.
-- Gross profit margin held steady at 45%.
-- Operating income increased 45% to $1.05 million from $721,000.
-- Net income available to shareholders decreased from $2.28 million to
$2.05 million. In both years, the company revalued its deferred income
tax assets resulting from its net operating loss carryforwards (NOLs)
and other book-to-tax differences. As a result, the company recognized
$1.31 million of income tax benefit in the third quarter of 2013,
compared to a benefit of $1.96 million for the third quarter of 2012.
-- Earnings per share on a fully diluted basis were unchanged at $0.03.
Financial Highlights for the nine months ended September 30, 2013 compared to the nine months ended September 30, 2012:
-- Revenues totaled $11.8 million, increasing 33% from $8.86 million.
-- Gross profit margin held steady at 50%.
-- Operating income increased 44% to $4.25 million from $2.95 million.
-- Net income available to shareholders rose 6% to $3.62 million from $3.43
million. In both years, the company revalued its deferred income tax
asset resulting from its net operating loss carryforwards (NOLs) and
other book-to-tax differences. As a result, the company recognized
$340,000 of income tax benefit in the first nine months of 2013,
compared to a benefit of $1.96 million for the first nine months of
-- Earnings per share on a fully diluted basis were unchanged at $0.05.
Prior to the third quarter of 2012, the Company valued its net operating loss carryforwards (NOLs) at zero due to the uncertainty of generating future income to utilize the NOLs. With the substantial improvement in operations, the Company revalued the NOLs and recorded the future benefit as an asset, and has been recognizing income tax expense since the third quarter of 2012. In the third quarter of 2013, the Company again revalued certain deferred income tax assets including the NOLs and other book-to-tax differences and increased its estimate of their value by approximately $1.6 million.
"While third quarter 2013 results were substantially improved over the third quarter 2012, operating income and net income were significantly less than the results achieved in the first two quarters of 2013. Results at MB Environmental Services, LLC were reduced due to lower revenues and increased property maintenance costs incurred during the quarter. Results at Eagle Ford Environmental Services, LLC were reduced due to lower revenues as the facility was shut down for several periods to allow the completion of the second disposal well. The second well is expected to be operational within the next week. However, TexCom Environmental Services, LLC generated better than expected revenues and operating income," stated Bob May, CEO and President.
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.
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.