TX HOLDINGS REPORTS RESULTS FOR 2021 FISCAL YEAR

TX Holdings
Fri, October 29, 2021, 6:00 AM

• Revenue for year ended September 30, 2021, increased 47% as compared to 2020

• Net income for year ended September 30, 2021, was $133,803 as compared to net income of $4,128 in 2020

• Gross profit for year ended September 30, 2021, increased 48% as compared to 2020

• Third full year in which company has posted net income

ASHLAND, Ky., Oct. 29, 2021 (GLOBE NEWSWIRE) -- TX Holdings, Inc. (OTC Markets PINK: TXHG), a supplier of mining and rail products to the U.S. coal mining industry, today announced financial results for the 2021 fiscal year. During the fiscal year 2021, the company reported annual revenue of $3,440,763, a 47.3% increase when compared to the same period the prior year. Net income for fiscal year 2021 was $133,803 an income increase of $129,675, when compared to a net income of $4,128 for the prior fiscal year.

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

“Our 9/30/21fiscal year was an appreciable improvement over the prior year. We are encouraged by our improved operational results driven by an increase in product demand, and our concerted sales efforts to focus on products with higher margins. The increase in sales and gross profit of 47% and 48%, respectively, during the current fiscal year over the prior year attest to the success of the ongoing operational strategy”

Fiscal Year 2021 - Financial Summary

Revenue for the fiscal year ended September 30, 2021, was $3,440,763 as compared to $2,335,590 for the same period in the prior year, an increase of $1,105,173 or 47.3%.

Cost of goods sold was $2,785,813 as compared to cost of goods sold of $1,883,735 for the same period the prior year, an increase of $902,078 or 47.9 %.

Gross profit for the fiscal year ended September 30,2021 and 2020 remained at 19.0% as a percentage of revenue.

Operating expenses for the fiscal year ended September 30, 2021, were $512,088 as compared to $505,793 for the fiscal year ended September 30, 2020, an increase of $6,295 or 1.2%.

Other income/expense for the fiscal year ended September 30, 2021, resulted in a loss of $9,059 as compared to income of $58,066 in the same period the prior year. The loss variance of $67,125 was the result of a $36,500 Small Business Association loan for payroll payments which was forgiven by the Federal Government during the 2020 fiscal year, and higher scrap sales of $26,336 during the prior fiscal year.

Net income for the current fiscal year was $133,803, compared to net income of $4,128, incurred in the 2020 fiscal year.

At September 30, 2021, cash and cash equivalents were $59,267 compared to $24,082 at September 30,2020. Net cash provided by operating activities was $23,138 during the fiscal year ended September 30, 2021. Net cash used by operating activities was $113,667 during the same fiscal period in the prior year. During the current fiscal year ended September 30, 2021, net cash provided by financing activities was $19,342 due to an increase of stockholder’s advances. Net cash provided by financing activities from stockholder’s advances was $142,296 during the same period in the prior fiscal year.

Accounts receivable were $430,803 as of September 30, 2021, as compared to $114,985 as of September 30, 2020, an increase of $315,818 or 274.6%. The higher sales during the current fiscal year account for the increase in receivables.

Inventory was $1,866,421 as of September 30, 2021, a decrease of $172,970 or 8.5% as compared to September 30, 2020.

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: Contact: William “Buck” Shrewsbury Chairman and CEO TX Holdings, Inc. (606) 928-1131