ASHLAND, Ky., Dec. 23, 2024 (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 its fiscal year 2024.
Mr. Shrewsbury, CEO and Chairman of TX Rail Products, Inc., commented, "For fiscal year 2024, we delivered double-digit revenue growth of 16% and with disciplined cost management, we more than doubled our net income. Importantly, we are generating positive cash from operations, thereby strengthening our balance sheet, self-funding our business and enabling the repurchase of our common stock."
Shrewsbury continued, "Demand remains robust for our rail products, as our reputation for excellent customer service combined with high quality product is gaining awareness among the end markets we serve. In November we added two new customers, which underscores our optimism for accelerating top-line growth in 2025."
Full Year Fiscal 2024 Financial Summary
Revenue for the fiscal year ended September 30, 2024, was $8.1 million as compared to $7.0 million for the prior fiscal year, an increase of 16.3%.
Cost of goods sold for fiscal year 2024 was $5.9 million as compared to $5.6 million for fiscal year 2023, an increase of 6.0%.
Gross profit for the fiscal year ended September 30, 2024 increased as a percentage of revenue to 27.2%, up from 20.1% for the prior fiscal year. The increase in gross profit as a percentage of revenue is the result of higher margin products sold in the current year.
Operating expenses for the fiscal year ended September 30, 2024, were $894,000 as compared to $736,000 for fiscal year 2023, an increase of 21.6%.
Other expense for fiscal year ended September 30, 2024 was ($22,000) as compared to other expense of ($26,000) in the prior fiscal year.
Net income for the fiscal year 2024 was $1.3 million, or $0.03 per diluted share, compared to $648,000, or $0.01 per diluted share, for fiscal year 2023, representing an increase of 100% on a dollar basis.
As of September 30, 2024, cash and cash equivalents were $114,000 compared to $159,000 at September 30, 2023.
Net cash provided by operating activities was $228,000 for the 12 months ended September 30, 2024 compared to $455,000 in the prior year. Net cash used in investing activities for fiscal year 2024 was ($302,000) compared to ($86,000) in 2023. Net cash provided by financing activities for fiscal year 2024 was $29,000 as compared to cash used in financing activities of ($319,000) for fiscal year 2023. The increase in cash provided by financing activities was primarily the result of a new line of credit of $500,000 that was used to repay loans and for current operating needs and proceeds from an additional loan used to purchase capital equipment.
Accounts receivable was $641,000 as of September 30, 2024, as compared to $803,000 as of September 30, 2023, a decrease of 20.2%.
Inventory was $2.8 million as of September 30, 2024, an increase of 9.5% as compared to September 30, 2023. 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 apply to us at certain times.
Contacts
Investor Relations:
Brett Maas
Hayden IR
txrp@haydenir.com
646-536-7331
William "Buck" Shrewsbury
Chairman and CEO TX Rail Products, Inc.
(606) 928-3131
