TX HOLDINGS REPORTS SECOND QUARTER RESULTS FOR 2023 FISCAL YEAR

ASHLAND, Kentucky "April 17, 2023 - 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 its second quarter 2023 fiscal year.  During the 2023 second quarter, the company reported revenue of $1,750,313, a 140.6% increase when compared to the same period the prior year. Net income for the second fiscal quarter of 2023 was $231,556, an income increase of $211,288, when compared to a net income of $20,268 for the prior year second quarter fiscal.

 

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

“Our 3/31/2023 second quarter and six months fiscal periods were an appreciable improvement over the same periods the prior year. Having experienced previous period of lower demand for our rail products, primarily due to a decline in the U.S. coal mining industry, we are excited by our improved operational results driven by an increase in rails’ products demand and new customer base sales to short line railroads and tunneling contractors, during the first six months of the current fiscal year, when we experienced a 146.1% revenue increase over the same period the prior year.

We are also encouraged by our common share buyback program initiated on February 1, 2023, having repurchased 1,784,645 common shares in the two months period since the program initiation”.  

 

Second Quarter Fiscal Year 2023 - Financial Summary

 

Revenue for the second fiscal quarter ended March 31, 2023, was $1,750,313 as compared to $727,608 for the same period in the prior year, an increase of $1,022,705 or 140.6%.

 

Cost of goods sold was $1,341,979 as compared to cost of goods sold of $581,354 for the same period the prior year, an increase of $760,625 or 130.8 %.

 

Gross profit for the second quarter ended March 31,2023 increased as a percentage of revenue from 20.1% to 23.3% when compared to the same period the prior year. The gross profit increase is the result of higher margin products sold in the current quarter.

 

Operating expenses for the fiscal quarter ended March 31, 2023 were $174,887 as compared to $120,601 for the three months ended March 31, 2022, an increase of $54,286 or 45.0%.  Higher sales commissions due to the increase in sales account for the higher expenses.

 

Other income/expense for the fiscal quarter ended March 31, 2023, resulted in a loss of $1,891 as compared to a loss of $5,385 in the same quarter the prior year.

 

Net income for the current fiscal quarter was $231,556, compared to a net income of $20,268, incurred in the same quarter in fiscal year 2022, representing an increase of 1042.5% over the prior year.

 

At March 31,2023, cash and cash equivalents were $208,504 compared to $51,810 at March 31, 2022.  Net cash provided by operating activities was $378,536 during the six months ended March 31, 2023. Net cash provided by operating activities was $22,652 during the same six- months period in the prior year. During the current fiscal quarter ended March 31, 2023, net cash used by financing activities was $193,108 as compared to cash used in financing activities of $30,109 the same period the prior year. Cash used to repurchase common stock of $53,500, accelerated partial repayment of our loan of $17,199 and lower proceeds from officer advances of $89,300 when compared to the same period the prior year account for the increase cash used in financing activities.

 

Accounts receivable were $541,292 as of March 31, 2023, as compared to $501,941 as of March 31, 2022, an increase of $39,351 or 7.8%.

Inventory was $2,152,658 as of March 31, 2023, an increase of $360,728 or 20.1% as compared to March 31, 2022. The increase in inventory is the direct result of higher product sales demand.

 

Contact:

 

William “Buck” Shrewsbury

Chairman and CEO

TX Holdings, Inc.

(606) 928-1131