Message #2 From:
NewsBot Date: February 13, 2005 09:40:37 PM
XRGI XRG Inc. Reports Results for Third Quarter 2004
XRG Inc. Reports Results for Third Quarter 2004
CLEARWATER, Fla.
XRG, Inc.
813-637-0700
info@xrginc.com
or
Investor Relations
Liolios Group Inc.
Scott Liolios or Michael Cannivet, 949-574-3860
scott@liolios.com
XRG, Inc. (OTCBB:XRGC), a provider of a wide range of truckload freight services in the United States, today announced results for its quarter ended September 30, 2004.
XRG generated revenue of $11,488,526 for the three months ended September 30, 2004 as compared to $298,225 during the three-month period ended September 30, 2003. This increase is the result of revenues attributable to five new truckload carriers that were acquired in April. For the six months ended September 30, 2004, revenues were $21,854,638, for a run rate of approximately $44 million. Net loss for the quarter was $2,157,832, as compared to a loss of $942,849 for the three month period ended September 30, 2003.
The month of September provided some key highlights for the company.
-- Revenues of $3,956,775, representing a run rate of over $47 million
-- EBITDA was $550,224, or 14% of revenues
-- Positive net income of $92,972
These results mark a significant improvement when compared to previous figures and can be attributed to management's success in integrating the acquired fleets, as well as the freight environment remaining very strong, due in part to the significant constraints on truckload capacity.
XRG Chief Executive Officer, Kevin Brennan, said of the quarter's achievements, "We have effectively managed growing from $4.6 million for the quarter ended March 31, to $11.5 million for the September quarter. The third quarter results illustrate that our acquisition and consolidation strategy is sound. Also, we're successfully executing our yield management and growing our revenue per mile. As a result of our focus we achieved our first positive cash flow month in September. We are encouraged that we have the right plan, in the right economic environment, and are positioned to continue aggressively building revenues and cash flows into the future."
About XRG, Inc.
XRG, Inc. is a public company trading on the OTC-BB under the symbol XRGC that was established in November 2000 to consolidate established and profitable truckload carriers throughout the United States. The Company is targeting carriers that have long-term customer relationships and typically generate revenues between $5 and $70 million. Our consolidation strategy enables us to diversify our customer base, technical capabilities and geographic areas served. For more information about XRG, Inc. visit http://www.xrginc.com or call 727-475-3060.
XRG, Inc. and Subsidiaries
Consolidated Balance Sheet
September 30,
2004
-------------
Assets (Unaudited)
Current assets:
Accounts receivable, net of allowance of $29,000 $4,223,621
Other current assets 483,593
-------------
Total current assets 4,707,214
Fixed assets, net of accumulated depreciation 5,094,545
Other assets
Goodwill 4,542,563
Other assets 35,392
-------------
Total other assets 4,577,955
-------------
$14,379,714
=============
Liabilities and Stockholders' Equity
Current liabilities:
Current portion of long-term debt $2,219,423
Current portion of long-term convertible debt; net
of unamortized discount of $73,724 290,000
Current portion of capital lease obligations 7,756
Bank overdraft 473,850
Accounts payable 612,292
Accrued expenses 675,538
Accrued purchased transportation 53,726
Accrued payroll expenses 301,613
Factor line of credit 3,430,628
Related party advances and payables 255,126
-------------
Total current liabilities 8,319,952
-------------
Long-term liabilities:
Notes payable 2,002,407
Convertible notes payable 100,000
Other long-term liabilities 55,923
-------------
Total long-term liabilities 2,158,330
-------------
Total liabilities 10,478,282
-------------
Stockholders' equity:
Series A Preferred stock; $.001 par value;
5,000,000 shares authorized; -
Preferred stock; $.001 par value; 45,000,000
shares authorized; -
Common stock; $.001 par value; 500,000,000 shares
authorized; 265,003,379 shares issued and
260,793,379 outstanding 265,003
Common stock to be issued 614,550
Additional paid-in capital 30,559,490
Subscription receivable (5,000)
Accumulated deficit (26,352,611)
Treasury stock, at cost, 4,210,000 shares (1,180,000)
-------------
Total stockholders' equity 3,901,432
-------------
$14,379,714
=============
XRG, Inc. and Subsidiaries
Consolidated Statements of Operations
(Unaudited)
Three months ended Six months ended
September 30, September 30,
--------------------------------------------------
2004 2003 2004 2003
--------------------------------------------------
Revenues $11,488,526 $298,225 $21,854,638 $298,225
Cost of revenues 9,184,197 22,970 18,391,462 22,970
--------------------------------------------------
Gross profit 2,304,329 275,255 3,463,176 275,255
Selling, general
and administrative
expenses 2,905,568 1,063,135 6,645,038 1,225,625
Settlement loss 744,582 - 744,582 -
--------------------------------------------------
3,650,150 1,063,135 7,389,620 1,225,625
--------------------------------------------------
Loss from operations (1,345,821) (787,880) (3,926,444) (950,370)
Interest expense (731,892) (32,437) (1,124,454) (68,942)
Intrinsic value of
convertible debt
and debt discount
for value of
detachable warrants (80,119) (122,532) (153,844) (551,798)
--------------------------------------------------
(812,011) (154,969) (1,278,298) (620,740)
--------------------------------------------------
Net loss applicable
to common
shareholders $(2,157,832) $(942,849) $(5,204,742) $(1,571,110)
==================================================
Basic and diluted
loss per common
shareholders $(0.01) $(0.05) $(0.03) $(0.11)
==================================================
Basic and diluted
weighted average
number of common
shares outstanding 258,373,089 17,435,202 174,286,167 13,865,017
==================================================
The accompanying notes are an integral part of the consolidated
financial statements.
