QualityStocks would like to highlight Texas Gulf Energy, Inc (OTCBB:TXGE), a vertically integrated provider of energy services, oil, and gas production, project management and professional consulting services to the U.S. and international refinery, chemical, construction, mining, and power industries. Their wholly owned subsidiaries providing these services include International Plant Services, LLC, Texas Gulf International, Inc, Texas Gulf Professional Services, Texas Gulf Industrial Services, Texas Gulf Electrical & Instrumentation, Inc and Texas Gulf Oil and Gas, Inc.
In the company’s news yesterday,
Texas Gulf Energy reported on results from operations, in conjunction with release of the company’s full 10-Q (available on their website) for Q1, underscoring the whopping 60% increase in revenues from last year, as TXGE has pulled in some $9.1M in the first quarter of this year (largely due to increased utilization at IPS and the improved underlying market conditions). Chairman and CEO of TXGE, David Mathews, expressed the great confidence management has in the overall business model’s performance, explaining that operations have already significantly exceeded expectations.
The job they have done building this company since its inception in 2003 is indeed remarkable, bringing together a family of subsidiaries who have become widely known and trusted throughout the energy markets as providing exemplary construction capabilities and the skilled person to execute. As the company enters its tenth year of operations, things are really looking up, with the earned reputation really paying off amid continued increases in domestic hydrocarbon activity, and the company’s subsidiaries providing everything from wellhead services to consulting.
The U.S. has truly re-emerged as a frontline in the global energy resource production sector and taking a look at Q1 data coming out of TXGE, we have a good barometer of this resurgence. Comparing the figures for Q1 to the same period last year, we see:
Revenues (consolidated) – up 60% to $9.1M
Gross Profits – up 16% to 21.6%, or $1.96M on improved utilization/rates
Employee Utilization – up 19% to a very healthy 95%
Customer Rates were improved across the board, as well as Vendor Rates
Additionally, there were three large, one-time expense items associated with the acquisition of three companies by TXGE, for which the company incurred fees and non-cash compensation expenses totaling $414k. Thus, SG&A Expense (expressed as a percentage of revenue) was up roughly 9% to $1.9M, closing the quarter at around 21% (when compared to last year’s figures), due in large part to the higher operating costs associated with new units being brought online that were not yet producing (as well as certain other costs associated with becoming a fully reporting public company and other ancillary acquisitive/strategic efforts). This expense is projected by management to drop sharply as new business units bring more projects on board, with the associated revenues offsetting SG&A, in accordance with the company’s plan for 2012.
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Forward-Looking Statement:
This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. Risks and uncertainties applicable to the company and its business could cause the company's actual results to differ materially from those indicated in any forward-looking statements.
