TX Rail Products, Inc. Reports Financial Results for Third Quarter of Fiscal 2025

Globe and Mail

2 hours ago

ASHLAND, Ky., Aug. 04, 2025 (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 the third quarter of fiscal year 2025.
Mr. Shrewsbury, CEO and Chairman of TX Rail Products, Inc., commented, 'We continued to make solid progress in the third quarter, delivering year-over-year revenue growth and maintaining consistent gross margins, while investing in inventory to support anticipated demand. We are encouraged by the broader market signals and a resurgence in customer activity. We are seeing a release of pent-up demand as recent tariff concerns have begun to ease, providing a clearer runway for customer purchasing decisions. With inventory levels positioned to support this rising demand, we remain confident in the outlook for our business.'
Third Quarter Fiscal Year 2025 Financial Summary
Revenue for the third fiscal quarter ended June 30, 2025, was $1.9 million as compared to $1.8 million for the same period in the prior year, an increase of 4.9%.
Cost of goods sold was $1.3 million as compared to $1.2 million for the same period in the prior year, an increase of 4.9%.
Gross margin for the third fiscal quarter ended June 30, 2025, was 29.8%, consistent with the same period last year.
Operating expenses for the third fiscal quarter ended June 30, 2025, were $266,000 as compared to $222,000 for the three months ended June 30, 2024, an increase of 20.0%.
Other income for the third fiscal quarter ended June 30, 2025, was $11,700 as compared to other expense of ($2,200) in the same quarter the prior year.
Net income for the current third fiscal quarter was $297,000, compared to $302,000 in the third quarter of fiscal year 2024, representing a decrease of 1.5%.
On June 30,2025, cash and cash equivalents were $41,000 compared to $114,000 as of September 30, 2024. Net cash used by operating activities was $622,000 for the nine months ended June 30, 2025.
Net cash used in investing activities was $0 for the first nine months of fiscal 2025 compared to $31,000 for the first nine months of the prior fiscal year. Net cash provided by financing activities for the first nine months of fiscal year 2025 was $549,000 as compared to $31,000 for the same period the prior fiscal year.
Accounts receivable was $949,000 as of June 30, 2025, as compared to $641,000 as of September 30, 2024, an increase of 48.1%.
Inventory was $5.5 million as of June 30, 2025, an increase of 92.9% as compared to $2.8 million as of September 30, 2024. The increase in inventory is the result of our anticipation for the increase of future sales.
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: 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 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 1933, 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 applied to us at certain times.
Contacts
Investor Relations:
Brett Maas
Hayden IR
[e-mail]
646-536-7331
William 'Buck' Shrewsbury
Chairman and CEO TX Rail Products, Inc.
[phone]