TW Resources Holding Corp Releases First Quarterly Report for 2015, Posts $2.7 Million in Revenues
May 28, 2015 08:30:00 (ET)
Company Reports Significant Increase in Gross Profit Margins
MIDLAND, Texas--(BUSINESS WIRE)--May 28, 2015--
STW Resources Holding Corp. (OTCQB: STWS) a quality provider of oilfield services, water reclamation and processing management services including water desalination, and rig cleaning services, announced today that its financial results for the three months ended March 31, 2015 have been filed on its Form 10-Q Quarterly Report with the Securities and Exchange Commission (SEC). A detailed Form 10-Q is available on the company web site.
STWS reported revenues for the quarter ended March 31, 2015, of $2,679,401. While this represents a 25.6% reduction in revenues from the quarter ended March 31, 2014, gross profit during the first quarter of 2015 increased by $379,599, or 90% over the same quarter of 2014. The Company's gross profit margin during the three months ended March 31, 2015, increasing to 30% compared to 12% during the three months ending March 31, 2014. The company demonstrated increased margin expansion in the last three quarters of 2014 and first quarter of 2015. This significant improvement in gross profit margin demonstrates the success of management's initiatives to reduce overall costs, including cost of revenues, improved operating efficiencies, and shedding less profitable revenues sources. The Company expects to report significant quarter-to-quarter revenue growth from its expanding water reclamation business, water sales and the midstream pipeline business. STWS will manage this growth with a focus on profitability.
The non-GAAP net loss, which is net loss adjusted for non-cash expenses including stock based compensation, amortization of debt discount, and change in derivative liability, was $1,762,439 for the three months ended March 31, 2015, compared to $2,172,236 for the three months ended March 31, 2014, an improvement of $415,797, or 24%.
During the three months ended March 31, 2015, the Company raised $1,375,000 of convertible notes from accredited investors. The Company also closed an initial $5.0 million non equity based credit facility to fund STW Water's design, engineer and build projects. This credit facility will allow the company to execute on high margin water reclamation projects that continue to be in demand within the company's market area.
Stanley Weiner, STW Resources' CEO, said, "We are pleased to have filed our first quarter 2015 report with the SEC. With our capital constraints now lifted, we can now begin executing on a number of high margin projects. As the company continues to win contracts with these larger profit margins, concentrate on water reclamation services and beginning the build out of the Ft. Stockton Lease, margins should expand even further. The direct results of this margin expansion are reduced debt and enhanced profitability."
Weiner continued, "We are very excited about the work currently underway in our STW Water business unit. We have been busy working on building a pipeline of business with the DyVaR desalination technology and preparing for the Ft. Stockton well development project."
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About STW Resources Holding Corp.
STW Resources Holdings Corp, (OTCQB: STWS) is a quality provider of oilfield services, water reclamation and processing management services, and rig cleaning services through its three subsidiaries. STW Water is a Total Water Solutions Provider Company and provides turnkey design build solutions and provides its Customers with "out-of-the-box" design solutions to meet customer's water needs. STW Water has capabilities to provide complete oversight of various water and wastewater projects with primary focus on engineering, regulatory permitting including Public Water Systems (PWS), Discharge permits, Pilot exception and Pilot Study, equipment design & treatment process design, manufacturing & installation and full scale Commissioning and training for all types of oil & gas, industrial and municipal water and wastewater markets throughout the State of Texas. STW's model of water ownership has had recent successes and broken ground on both Upton County and Ft. Stockton, Texas projects.
The Company consults and provides customized water analysis, reclamation and remediation services to a variety of complex oil and gas produced and flowback water, brackish water, ocean water desalination, industrial, and municipal applications throughout several geographic locations to fill a tremendous need for fresh water in the areas they service. As an independent solutions provider, STW utilizes proven technologies, from various well-known manufacturers, including Salttech, a Zero Liquid Discharge (ZLD) technology that is economically feasible to use. These technologies are available as fixed or mobile units with varying capabilities. STW's process ensures that the most effective and efficient technologies are implemented. The Salttech system can process any saline laden water with Total Dissolved Solids (TDS) levels ranging from 5,000 ppm to >300,000 ppm. Current potential project locations include the Eagle Ford Shale (TX), the west Texas Delaware and Permian Basins (TX), eastern New Mexico, and ocean desalination projects on the Gulf Coast of Texas, California, and Hawaii.
ENVIRONMENTAL IMPACT: If STW's Proprietary Technology is placed in-line with a Seawater Reverse Osmosis System or used with a geothermal operation, there will be no potentially environmentally sensitive brine concentrate discharged into the local waterways since the system is Zero Liquid Discharge and 95-97%+ of the fresh water is recovered in the process. The waste stream is salt crystals and minerals. This is a completely Blue/Green operation that provides a sustainable supply of power and water for municipal and industrial use.
STW uses the latest technology to install new pipelines and repair and maintain aging water, and oil & gas pipelines (STW Pipeline).
