ASHLAND, KENTUCKY / ACCESSWIRE / January 20, 2017 / TX Holdings, Inc. (OTC Markets OTC PINK: TXHG), a supplier of mining and rail products to the U.S. coal mining industry, today announced financial results for the first quarter of fiscal 2017. During the first quarter, the company's revenues decreased due to overall lower sales demand and incurred a $60,657 net loss. Gross profit was $128,881, compared to $174,254 in the same period in the prior year.

Mr. Shrewsbury, the company's CEO and Chairman, stated, "We are looking forward to a positive turn in the coal mining industry and therefore increasing sales and a return to profitability for us as our future is closely tied to the coal industry. Some mines have started to re-open and we have seen evidence of that as rail sales and components have shown an increase. The reason for this renewed optimism is a new U.S. government administration favorable to the coal mining industry. This administration understands the need for coal and the fact that is responsible for over 30% of this countries' energy. The new administration has promised to do away with egregious regulations which cost the industry over twenty billion dollars yearly."

First Quarter 2017 Financial Summary

Revenue for first quarter 2017 was $496,916, a decrease of $285,349, or 36.5%, compared to 2016.

Cost of goods sold for the current quarter was $396,812, compared to $543,846 in 2016, a decrease of 27.0%.

Gross profit for the first quarter of 2017 was $100,104, and decreased as a percentage of revenue to 20.1% from 30.5% compared to 2016.

Net loss for first quarter of 2017 was $60,657, compared to a net profit in the same quarter of 2016 of $30,632.

Earnings (loss) per diluted share was $0.00 remaining unchanged from 2016.

Operating expenses decreased 26.0%, as compared to the same quarter of fiscal 2016. Other expenses in the first quarter 2017 were $31,880, compared to other net expense of $33,533 in 2016.

Cash provided by operating activities for the three months ended December 31, 2016 was $63,931, as compared to cash used in operating activities of $86,599 during same period in 2015. The increase was a direct result of an increase in accounts payable of $235,038 during the three months ended December 31, 2016. Cash flows used by financing activities decreased by $64,738 due to payment on our term loan of $14,938 and a net repayment of stockholder/officer advances of $49,800. At December 31, 2016, the company had cash and cash equivalents of $2,255, a decrease of $807 when compared to September 30, 2016.

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: reliance upon indebtedness furnished or guaranteed by our CEO; risks related to substantial indebtedness; 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 discussed in our Quarterly Reports on Form10-Q, our Annual Reports on Form 10-K, and in our other filings with the SEC 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 1934, 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 apply to us at certain times.

Contact:

William "Buck" Shrewsbury

Chairman and CEO

TX Holdings, Inc.

(606) 928-1131

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SOURCE: TX Holdings, Inc.