TX Holdings Reports Results for 2023 Fiscal Year

• First year of operation the Company’s earnings per share reached $0.014.
  
  
• Revenue for the year ended September 30,2023, increased 79% as compared to 2022.
  
  
• Net income for the year ended September 30, 2023, was $648,353 as compared to net income of $380.871 in 2022, representing an increase of 70% over the prior year.
  
  
• Gross profit for year ended September 30, 2023, increased 42% as compared to 2022.
  
  
• Fifth consecutive year in which the company has posted net income.
  
  

ASHLAND, Ky., Oct. 23, 2023 (GLOBE NEWSWIRE) -- TX Holdings, Inc. (OTC Markets PINK: TXHG), 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 2023 fiscal year. During the fiscal year 2023, the company reported annual revenue of $7,007,867, a 79.3% increase when compared to the same period the prior year. Net income for fiscal year 2023 was $648,353 an income increase of $267,483, when compared to a net income of $380,871 for the prior fiscal year.

Mr. Shrewsbury, the company’s CEO and Chairman, stated that:

“Our 9/30/23 fiscal year represents the fifth consecutive year in which the Company was successful in achieving positive net income and third consecutive year in realizing positive cash flows from operating activities. We are very pleased by our improved operational results, driven by our efforts to increase product demand by expanding our customer base, and continuing to focus our sales efforts on products of higher margins. We are also very pleased with the result of our common share buyback program initiated on February 1, 2023, having purchased since the program initiation, 2,635,000 common shares at a cost of $85,000. Additional cash from operating activity was also used to purchase delivery equipment, reduce our debt, and increase our inventory levels to meet higher sales demands.”

  

Fiscal Year 2023 - Financial Summary

Revenue for the fiscal year ended September 30, 2023, was $7,007,868 as compared to $3,908,031 for the same period in the prior year, an increase of $3,099,837 or 79.3%.

Cost of goods sold was $5,597,718 as compared to cost of goods sold of $2,918,197 for the same period the prior year, an increase of $2,679,521 or 91.8%.

Gross profit for the fiscal year ended September 30,2023 was 20.1% as a percentage of revenue compared to 25.3% the prior fiscal year.

Operating expenses for the fiscal year ended September 30, 2023, were $735,828 as compared to $572,251 for the fiscal year ended September 30, 2022, an increase of $163,577 or 28.6%.

Other income/expense for the fiscal year ended September 30, 2023, resulted in a loss of $25,969 as compared to a loss of $36,712 in the same period the prior year. The favorable variance of $10,743 was the result of a $20,000 charitable donation during the prior fiscal year, partially offset by the current year’s higher interest on our outstanding bank loan.

Net income for the current fiscal year was $648,353, compared to net income of $380,871, incurred in the 2022 fiscal year.

At September 30, 2023, cash and cash equivalents were $159,088 compared to $108,966 at September 30,2022. Net cash provided by operating activities was $455,495 during the fiscal year ended September 30, 2023, as compared to $146,456 during the same fiscal period in the prior year. During the current fiscal year ended September 30, 2023, net cash used in investing activities was $85,890 and $319,483 by financing activities as compared to zero and $96,757 respectively, for the same period the prior year. The current year’s higher investing activity is the result of the purchase of delivery equipment. The $222,726 increase in financing activities over the prior year derives from the common stock purchase program of $85,000 and the Company’s repayment of officers’ advances.

Accounts receivables were $802,752 as of September 30, 2023, as compared to $604,173 as of September 30, 2022, an increase of $198,579 or 32.9%. The higher sales during the current fiscal year account for the increase in receivables.

Inventory was $2,599,510 as of September 30, 2023, an increase of $363,335 or 16.2% as compared to September 30, 2022.

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: reliance upon indebtedness furnished or guaranteed by our CEO; risks related to substantial indebtedness; 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. 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 1934, 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 apply to us at certain times.

Contact:

William “Buck” Shrewsbury

Chairman and CEO

TX Holdings, Inc.

(606) 928-1131