TXGE-Yup, this is awesome news
Texas Gulf Energy, Inc. Reports 60% Increase in Revenue to $9.1 Million in First Quarter of 2012
http://www.otcmarkets.com/stock/TXGE/news
HOUSTON, May 22, 2012 /PRNewswire via COMTEX/ -- Texas Gulf Energy, Inc. (OTCQX: TXGE) ( www.tgnrg.com ) Chairman and CEO David Mathews announced today "Texas Gulf Energy, Inc. is pleased to report that the company generated $9.1 Million in Revenues in the First Quarter of 2012, a 60% increase from the same period in the prior year. Gross profits increased from 5.6% in Q1 2011 to 21.6% in Q1 2012. There were significant non-recurring, one time items relating to our acquisition of three companies due to legal, accounting and professional fees in excess of $200,000 and non-cash compensation expense of $214,000. We continue to be pleased with our progress in building Texas Gulf Energy and have exceeded our business plan to date for 2012." Please see management's discussion of the results of operations, summarized below, and the full first quarter 2012 10-Q Report available on our website.
RESULTS OF OPERATIONS
Three Months Ended March 31, 2012 Compared to the Three Months Ended March 31, 2011 Consolidated
Consolidated revenues were $9.1 million for the three months ended March 31, 2012; an increase of $3.4 million, or 60%, from consolidated revenues of $5.7 million in the same period in the prior fiscal year. The increase in consolidated revenues was a result of an increase in utilization at International Plant Services, L.L.C., the underlying business environment, and the acquisitions completed by the Company.
Consolidated gross profit increased from $.32 million in the three months ended March 31, 2011 to $1.96 million in the three months ended March 31, 2012. The increase of $1.6 million, or 513%, was primarily due to higher gross revenues. Gross profit increased to 21.6% in the three months ended March 31, 2012 from 5.6% in the same period a year earlier. The gross profit improved due to improved utilization and rates. The Company has increased its employee utilization from 76% to 95% for the three months ended March 31, 2011 to March 31, 2012, respectively. The Company also improved rates we charge to our customers and have negotiated better rates from our vendors.
Consolidated selling, general & administrative ("SG&A") expenses were $1.9 million in the three months ended March 31, 2012 compared to $.7 million in the same period a year earlier. The increase of $1.2 million, or 171%, was primarily related to higher operating costs in the first quarter of fiscal 2012 due to the addition of new operating units that did not generate revenue in the first quarter, additional finance and legal expenses related to becoming a fully reporting public company, acquisitions, increased business volumes and strategic initiatives.
SG&A expenses in the three months ended March 31, 2011 included $214,000 in non-cash compensation not incurred in the 1st quarter of 2010. SG&A expense as a percentage of revenue increased to 21% in the three months ended March 31, 2012 compared to 12% in the same period in the prior fiscal year. We expect SG&A as a percent of revenue in future quarters to drop as new business units bring on projects and associated revenues in accordance with our 2012 plan.
