Business
TX Rail Products, Inc. Reports Fiscal 2024 Third Quarter Results
TX Rail Products, Inc. Reports Fiscal 2024 Third Quarter Results.
About this update from Tx Rail Products, Inc.
[{"type":"text","content":"\n Gross margin expands to nearly 30%Net income increases 63% year-over-year ASHLAND, Ky., July 29, 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 third quarter of fiscal year 2024. Mr. Shrewsbury, CEO and Chairman of TX Rail Products, Inc., commented, “With a 63% year-over-year increase in net income in the third quarter of fiscal 2024, we have delivered our ninth consecutive quarter of positive earnings despite a modest decline in revenue. We have successfully reduced our cost of goods to drive our gross margin to nearly 30%, which we believe is sustainable, and we are generating positive cash from operations. We are optimistic about the outlook for our business given the stable market conditions, healthy demand and nearly $7 million in tax loss carryforwards that can be used to offset future earnings.” Mr. Shrewsbury, continued, “During the nine months ended June 30, 2024, we repurchased 418,084 shares of common stock under our stock repurchase program at a net cost of $17,000. We retire all stock upon repurchase and, in the near term, the Board of Directors intends to meet to approve of a new share repurchase program. We expect to fund future repurchases from cash on hand and cash flows from operating activities.” \"We are in the final stages of selecting a new audit firm and engaging an investor relations firm to enhance transparency, improve shareholder communications and raise our visibility within the investment community,” concluded Shrewsbury. “Ultimately, we aim to uplist our stock to a national exchange.” Third Quarter Fiscal Year 2024 Financial Summary Revenue for the third fiscal quarter ended June 30, 2024, was $1.76 million as compared to $1.79 million for the same period in the prior year, a decrease of 1.3%. Cost of goods sold was $1.2 million as compared to $1.4 million for the same period in the prior year, a decrease of 11.2%. Gross profit for the third quarter ended June 30,2024 increased as a percentage of revenue from 22.0% to 29.8% when compared to the same period the prior year. The increase in gross profit as a percentage of revenue is the result of higher margin products sold...