Press Release Source: TreeCon Resources, Inc.
First Quarter Revenues Increase for Treecon Resources, Inc.
Thursday March 2, 4:43 pm ET
LUFKIN, Texas--(BUSINESS WIRE)--March 2, 2006--Executives with TreeCon Resources (Pink Sheets:TCRS - News) have reported that revenues for the first quarter of 2006 increased by US$1,040,789 to $12,768,338. During the three-month period that ended December 31, 2005, revenues rose by approximately 10 percent from $11,727,549 earned during the quarter that ended December 31, 2004. TreeCon Resources, formerly known as Overhill Corporation, is a holding company that, through its subsidiaries, distributes, leases and provides financing for industrial and logging equipment and is also engaged in sawmill operations.
Net income for the quarter that ended December 31, 2005, was $795,521 or $0.043 per share versus $909,028 or $0.049 for the quarter that ended December 31, 2004. A one-time gain of $287,427 on the sale of assets during the prior year comparable quarter was included in those statistics.
"The results of our first quarter of fiscal year 2006 were impressive," said TreeCon Resources CEO Mike Boatman. "Gross profit for the first quarter of fiscal 2006 was $2,684,898, which was an increase of $391,322 from $2,293,576 for the first quarter of fiscal 2005. Operating income for the first quarter of fiscal 2006 was $1,025,782, an increase of only $220,135 from $805,647 for fiscal 2005."
The company will post its first quarter results and more extensive 2005 year end audited financial information online at www.treeconresources.com.
This release contains statements that are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, and intended to enjoy the protection of the safe harbor for forward-looking statements provided by that Act. TreeCon Resources disclaims any obligation to update or revise statements contained in this news release based on new information or otherwise. These forward-looking statements are subject to risks, uncertainties and other factors, including, the cost of goods, competitive pressures, inflation, consumer spending patterns and debt levels, trade restrictions, changes in tariff and freight rates, weather conditions, changes in gasoline, diesel fuel and other energy costs, labor costs, health care costs and accident costs, interest rate fluctuations and other capital market conditions and other risks. We urge you to consider all of these risks, uncertainties and other factors carefully in evaluating the forward-looking statements contained in this release. As a result of these matters, including changes in facts, assumptions not being realized or other circumstances, our actual results may differ materially from historical results or from anticipated results implied in the forward-looking statements contained in this release. These forward-looking statements are made only as of the date of this report and we undertake no obligation to update the forward-looking statements to reflect subsequent events or circumstances.
TREECON RESOURCES, INC. 3 months 3 months
3 MONTHS ENDED 12/31/05 ended ended
--------------------------------- ------------ ------------ ----------
12/31/05 12/31/04
Consolidated Consolidated Change
SALES EQUIPMENT, PARTS & SERVICE 9,434,564 8,383,660 1,050,904
TIMBER AND WOOD PRODUCTS 3,333,774 3,343,889 (10,115)
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GROSS REVENUES 12,768,338 11,727,549 1,040,789
COST OF GOODS SOLD (10,007,696) (9,360,335) (647,361)
DEPRECIATION (75,744) (73,638) (2,106)
------------ ------------ ----------
COST OF GOODS SOLD (10,083,440) (9,433,973) (649,467)
------------ ------------ ----------
GROSS PROFIT 2,684,898 2,293,576 391,322
SG&A (1,579,176) (1,405,695) (173,481)
DEPRECIATION (79,940) (82,234) (2,294)
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TOTAL SG&A (1,659,116) (1,487,929) (171,187)
------------ ------------ ----------
OPERATING INCOME 1,025,782 805,647 220,135
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INTEREST INCOME (EXPENSE) (262,118) (225,376) (36,742)
OTHER INCOME 31,857 41,330 (9,473)
GAIN ON SALE OF ASSET -- (287,427) (287,427)
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TOTAL OTHER (230,261) (103,381) (333,642)
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NET INCOME BEFORE TAXES 795,521 909,028 (113,507)
FIT -- -- --
------------ ------------ ----------
NET INCOME 795,521 909,028 (113,507)
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Contact:
TreeCon Resources, Inc., Lufkin
Mike Boatman, 936-634-3365
Source: TreeCon Resources, Inc. |
