TX Holdings Inc. (OTCMKTS: TXHG) was up 50% after announcing fiscal 2021 financial results. The company reported a 47.3% YoY revenue increase to $3.44 million, with net income increasing from $129,675 to $133,803.
Market Action:
On Friday, TXHG stock jumped 49.68% at $0.0235 with more than 6.08 million shares, compared to its average volume of 360.36K shares. The stock has moved within a range of $0.0220 – 0.0473 after opening the trade at $0.0220.
Earnings Recap
CEO and Chairman Mr. Shrewsbury said that the company saw considerable improvement in fiscal 2021 compared to fiscal 2020. He said they are encouraged by the improved operating results driven by growing product demand and intensive sales efforts focusing on higher-margin products. Gross profit and sales increased 48T% and 47% respectively in fiscal 2021, attesting to the company’s success as a result of the company’s operational strategy.
At the end of September, the company had cash and equivalents of $59,267 relative to $24,082 a year ago. Net cash from operating activities was $23,138, with net cash of $19,342 from financing activities because of shareholder advances. As of September 30, 2021, the company’s inventory was $1.866 million, dropping 8.5% YoY. So in the coming months, investors should watch TXHG.
Key Quote
“Our 9/30/21fiscal year was an appreciable improvement over the prior year. We are encouraged by our improved operational results driven by an increase in product demand, and our concerted sales efforts to focus on products with higher margins. The increase in sales and gross profit of 47% and 48%, respectively, during the current fiscal year over the prior year attest to the success of the ongoing operational strategy”
