(MENAFN- GlobeNewsWire - Nasdaq) Net income up 73%; Generated positive cash from operationsASHLAND, Ky., Feb. 03, 2025 (GLOBE NEWSWIRE) -- TX Rail Products, Inc. (OTC Markets PINK: TXRP) , a supplier of rail and rail products to the U.S. coal mining industry, short line railroads and tunneling contractors, today announced financial results for the first quarter of fiscal year 2025.
Mr. Shrewsbury, CEO and Chairman of TX Rail Products, Inc., commented, "We delivered a 31% increase in revenue and generated positive cash from operations for the first quarter of fiscal 2025. We have added multiple new customers, and importantly, geopolitical conditions are favorable for our offerings. We expect these conditions will remain favorable in the coming years, especially in states where we already have an established presence."
First Quarter Fiscal Year 2025 Financial Summary
Revenue for the first fiscal quarter ended December 31, 2024, was $2.1 million as compared to $1.6 million for the same period in the prior year, an increase of 31.1%.
Cost of goods sold was $1.6 million as compared to $1.3 million for the same period in the prior year, an increase of 28.7%.
Gross profit for the first fiscal quarter ended December 31, 2024 increased as a percentage of revenue from 20.4% to 21.9% when compared to the same period the prior year. The increase in gross profit as a percentage of revenue is the result of the mix of products sold in the current quarter.
Operating expenses for the first fiscal quarter ended December 31, 2024, were $277,000 as compared to $216,000 for the three months ended December 31, 2023, an increase of 28.2%.
Other income for the first fiscal quarter ended December 31, 2024, was $607 as compared to other expense of ($5,100) in the same quarter the prior year.
Net income for the current first fiscal quarter was $178,000, compared to $102,000 in the first quarter of fiscal year 2024, representing an increase of 73.4%.
On December 31,2024, cash and cash equivalents were $260,000 compared to $114,000 as of September 30, 2024. Net cash provided by operating activities was $138,000 for the three months ended December 31, 2024.
Net cash used in investing activities was $0 for the first three months of fiscal 2025 and fiscal 2024. Net cash provided by financing activities for the first three months of fiscal year 2025 was $8,000 as compared to cash used in financing activities of ($107,000) for the same period the prior fiscal year. The increase in cash provided by financing activities was primarily the result of proceeds of $45,000 from a line of credit that was used for current operating needs.
Accounts receivable was $375,000 as of December 31, 2024, as compared to $641,000 as of September 30, 2024, a decrease of 41.4%.
Inventory was $3.7 million as of December 31, 2024, an increase of 29.2% as compared to $2.8 million as of September 30, 2024. The increase in inventory is the direct result of higher product sales demand.
Forward-Looking and Cautionary Statements
Except for the historical information and discussions contained herein, statements contained in this release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (PSLRA) and other applicable law. When used, the words "believe", "anticipate", "estimate", "project", "should", "expect", "plan", "assume" and similar expressions that do not relate solely to historical matters identify forward-looking statements. Forward-looking statements are based on the Company's current assumptions regarding future business and financial performance. Forward-looking statements concerning future plans or results are necessarily only estimates and actual results could differ materially from expectations. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially, including the following: our ability to implement our business strategy; our financial strategy; a downturn in economic environment; our failure to meet growth and productivity objectives; a failure of our innovation initiatives; risks from investing in growth opportunities; fluctuations in financial results and purchases; the impact of local legal, economic, political and health conditions; adverse effects from environmental matters and tax matters; ineffective internal controls; our use of accounting estimates; our ability to attract and retain key personnel and our reliance on critical skills; impact of relationships with critical suppliers; currency fluctuations and customer financing risks; the impact of changes in market liquidity conditions and customer credit risk on receivables; our reliance on third party distribution channels; Securities and Exchange Commission regulations related to trading in "penny stocks;" the continued availability of certain financing provided by our CEO; and other risks, uncertainties and factors or in materials incorporated therein by reference. Any forward-looking statement in this release speaks only as of the date on which it is made. We assume no obligation to update or revise any forward-looking statement. Notwithstanding the above, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1933, as amended, expressly state that the safe harbor for forward looking statements does not apply to companies that issue penny stocks. Because we may from time to time be considered to be an issuer of penny stock, the safe harbor for forward looking statements under the PSLRA may not be applied to us at certain times.
Contacts
Investor Relations:
Brett Maas
Hayden IR
...
646-536-7331
William“Buck” Shrewsbury
Chairman and CEO TX Rail Products, Inc.
(606) 928-3131
| TX RAIL PRODUCTS, INC. |
| BALANCE SHEETS |
| December 31, 2024 and September 30, 2024 |
| | | | | | |
| | | Unaudited
| | | Audited |
| | | December 31, | | | September 30, |
| | | 2024 | | | 2024 |
| ASSETS | | | | | |
| Current assets: | | | | | |
| Cash and cash equivalents | $ | 259,504 | | | $ | 113,976 | |
| Accounts receivable, net of allowance for doubtful accounts of $27,440 | | | | | |
| at December 31, 2024 and September 30,2024 | | 375,292 | | | | 640,511 | |
| Deposits on purchased products | | _ | | | 91,702 | |
| Inventory | | 3,678,293 | | | | 2,847,149 | |
| Other current assets | | 25,999 | | | | 48,924 | |
| Total current assets | | 4,339,088 | | | | 3,742,262 | |
| | | | | | |
| Property and equipment, net (Note 2) | | 352,680 | | | | 365,019 | |
| Total Assets | $ | 4,691,768 | | | $ | 4,107,281 | |
| | | | | | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | | | | | |
| | | | | | |
| Current liabilities: | | | | | |
| Accrued expenses, primarily to officers (Note 5) | $ | 90,410 | | | $ | 100,411 | |
| Accounts payable | | 482,135 | | | | 60,148 | |
| Accrued interest to officer | | 559,726 | | | | 559,726 | |
| Advances from officer (Note 5) | | 64,587 | | | | 101,587 | |
| Stockholder/officers advances for operations-warehouse rent | | 234,000 | | | | 228,000 | |
| Other current liability | | 178,487 | | | | 197,281 | |
| Total current liabilities | | 1,609,345 | | | | 1,247,153 | |
| | | | | | |
| Line of Credit (Note 7) | | 495,492 | | | | 450,706 | |
| Note payable to officer (Note 5) | | 2,000,000 | | | | 2,000,000 | |
| Total Liabilities | | 4,104,837 | | | | 3,697,859 | |
| | | | | | |
| Commitments and contingencies (Note 9) | | 0 | | | | 0 | |
| | | | | | |
| Stockholders' equity: | | | | | |
| Preferred stock: no par value, 1,000,000 shares authorized | | | | | |
| no shares outstanding | | _ | | | _ |
| Common stock: no par value, 250,000,000 shares (Note 8) | | | | | |
| authorized, 45,000,000 shares issued and outstanding | | | | | |
| at December 31, 2024 and September 30, 2024 | | 8,703,344 | | | | 8,703,344 | |
| Additional paid-in capital | | 4,809,295 | | | | 4,809,295 | |
| Accumulated deficit | | (12,925,708 | ) | | | (13,103,217 | ) |
| Total stockholders' equity | | 586,931 | | | | 409,422 | |
| Total Liabilities and Stockholders' Equity | $ | 4,691,768 | | | $ | 4,107,281 | |
| | | | | | |
| The accompanying notes are an integral part of the financial statements. |
| TX RAIL PRODUCTS, INC. |
| STATEMENTS OF CASH FLOWS |
| For the Three Months Ended December 31, 2024 and 2023 |
| | | | (Unaudited) |
| | | | December 31, | | December 31, |
| | | | 2024 | | 2023 |
| Cash flows provided by/(used in) operating activities: | |
| | Net income | | $ | 177,509 | | | $ | 102,348 | |
| | Adjustments to reconcile net income/(loss) to net cash provided by/(used in) | | | | |
| | operating activities: | | | | |
| | Depreciation expense | | | 12,339 | | | | 4,915 | |
| | Changes in operating assets and liabilities: | | | | |
| | Accounts receivable, net | | | 265,219 | | | | 427,532 | |
| | Inventory | | | (831,144 | ) | | | (370,316 | ) |
| | Deposits | | | 91,702 | | | _ |
| | Other current assets | | | 22,925 | | | | (25,041 | ) |
| | Accrued liabilities, primarily to officers (Note 5) | | | (10,001 | ) | | | (24,999 | ) |
| | Accounts payable | | | 421,987 | | | | 231,313 | |
| | Other current liability | | | (18,794 | ) | | | 6,257 | |
| | Stockholder/officers advances for operations-warehouse rent (Note 5) | | | 6,000 | | | | 6,000 | |
| | Net cash provided by/(used in) operating activities | | | 137,742 | | | | 358,009 | |
| | | | | | |
| Cash flows provided by/(used in) investing activities: | |
| | Net cash provided by/(used in) investing activities | | _ | | _ |
| | | | | | |
| Cash flows provided by/(used in) financing activities: | |
| | Common share repurchase program | | _ | | | (17,000 | ) |
| | Proceeds from Line of Credit | | | 44,786 | | | |
| | Repayment of bank term loan | | _ | | | (41,786 | ) |
| | Proceeds from officer advances | | | 3,800 | | | _ |
| | Repayment of officer advances | | | (40,800 | ) | | | (48,000 | ) |
| | Net cash provided by/(used in) financing activities | | | 7,786 | | | | (106,786 | ) |
| | | | | | |
| Increase in cash and cash equivalents | | | 145,528 | | | | 251,223 | |
| Cash and cash equivalents at beginning of period | | | 113,976 | | | | 159,088 | |
| | | | | | | | | | |
| Cash and cash equivalents at end of period | | $ | 259,504 | | | $ | 410,311 | |
| | | | | | | | | | |
| Supplemental Disclosure of Cash Flow Information | |
| | | | | | | | | | |
| Cash paid during the period for interest | | $ | 1,226 | | | $ | 5,114 | |
| | | | | | | | | | |
| The accompanying notes are an integral part of the financial statements. |