TX Holdings Reports Results for Fiscal Year Ended September 30, 2017

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ASHLAND, Ky., Dec. 15, 2017 — TX Holdings, Inc. (OTC PINK:TXHG), a supplier of mining and rail products to the U.S. coal mining industry, today announced financial results for its 2017 fiscal year.  During the 2017 fiscal year, the company reported annual revenue of $3,006,599, a 41.3% increase when compared to the same period the prior year. Net loss for fiscal year 2017 was $124,506, a loss decrease of $554,213, when compared to a net loss of $678,719 for the prior year.
Mr. Shrewsbury, the company’s CEO and Chairman, stated that:“Our fiscal 2017 results were an appreciable improvement over the two prior year results. Having experienced previous periods of lower demand for our mine and rail products, primarily due to a decline in the U.S. coal mining industry, we are encouraged by our improved operational results driven by an increase in product demand during the last three quarters of the current fiscal year, when we experienced an 41.3% revenue increase over the prior year. The U.S. Energy Information Administration has forecast that U.S. electricity produced by coal which rose to 31% in 2017 from 30% the prior year will remain stable during 2018, and we believe this will cause demand for our products to remain at current period levels. We have an increased confidence in the future based on the fact that the number of regulations that have negatively impacted the coal industry have been either eliminated or significantly eased.”Fiscal Year 2017 – Financial SummaryRevenue for the year ended September 30, 2017 was $3,006,599 as compared to $2,128,278 for the same period in the prior year, an increase of $878,321 or 41.3%.Cost of goods sold was $2,273,214 as compared to cost of goods sold of $1,849,289 for the same period the prior year, an increase of $423,925 or 22.9%.Gross profit for the year ended September 30, 2017 increased 162.9% when compared to 2016.Operating expenses for the year ended September 30, 2017 were $742,941 as compared to $837,209 for the twelve months ended September 30, 2016 a decrease of $94,268 or 11.3%.  Other expenses decreased by $5,549 or 4.9% compared to the same period in the prior year.Net loss for the current year was $124,506, compared to a net loss of $678,719, incurred in the fiscal year 2016.At September 30, 2017, cash and cash equivalents were $40,345 compared to $3,062 at September 30, 2016.  Net cash provided in operating activities was $258,040 during the twelve months ended September 30,2017. Net cash used in operating activities was $82,165 during the same twelve months period in the prior year.  There was no cash flow from investing activities for the fiscal year ended September 30, 2017, or 2016.  During the fiscal year ended September 30, 2017, net cash used in financing activities was $220,757 due to a net repayment of a stockholder’s advances of $164,650.  Cash flow provided by financing activities was $23,663 during the same period in the prior year.Accounts receivable were $458,203 as of September 30, 2017, as compared to $235,402 as of September 30, 2016, an increase of 94.6%. A $113,643 decrease in the allowance for doubtful accounts during the current year, partially accounted for the increase in receivables.Inventory was $1,690,350 as of September 30, 2017, a decrease of 6.4% as compared to September 30, 2016. During the fiscal year 2017, the Company recorded a $144,726 inventory write-off.The attached consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Company’s September 30, 2017 Annual Report on Form 10-K.Forward-Looking and Cautionary StatementsExcept 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; and other risks, uncertainties and factors discussed in our Quarterly Reports on Form10-Q, our Annual Reports on Form 10-K, and in our other filings with the SEC 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 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
 

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Brad Bennett

Brad Bennett

Brad grew up in a small town in northern Iowa. He studied chemistry in college, graduated, and married his wife one month later. They were then blessed with two baby boys within the first four years of marriage. Having babies gave their family a desire to return to the old paths – to nourish their family with traditional, homegrown foods; rid their home of toxic chemicals and petroleum products; and give their boys a chance to know a simple, sustainable way of life. They are currently building a homestead from scratch on two little acres in central Texas. There’s a lot to be done to become somewhat self-sufficient, but they are debt-free and get to spend their days living this simple, good life together with their five young children.
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