NEXH Nexia Realizes Net Income of $1.3 M for the Three Months Ended June 30, 2006
SALT LAKE CITY--(BUSINESS WIRE)--Aug. 21, 2006--Nexia Holdings Inc. (OTCBB:NEXH) reported net income of $1,328,928 and $1,095,980 for the three and six months ended June 30, 2006 compared to net income of $672,695 and $239,139 for same periods in 2005. These numbers reflect prepaid expenses recorded by the company in the amount of $2,078,706; these are expected to be expensed over the term of the contracts for investor relations entered into by the company (six to eight months).
Nexia's CEO Richard Surber pointed out that "Nexia's net income for the second quarter is slightly more than Nexia's entire market capitalization."
Gross revenues were $365,107 and $676,552 for the three and six months ended June 30, 2006 compared to $111,186 and $207,822 for the same periods in 2005. A 228% and 226% increase for the three and six months, respectively.
Surber noted that with "the expected acquisition of the Black Chandelier operations Nexia is on track to generate $2,000,000 in gross revenues for its fiscal year ending Dec. 31, 2006. If you add in other income which is expected to be approximately $2,157,116 from the settlement of certain debts owed to Nexia, gross income from all sources should exceed $4,000,000 for fiscal year 2006."
The reported operating losses were $675,835 and $965,301 for the three and six month periods ended June 30, 2006 compared to $184,575 and $630,812 for same periods in 2005. The increased losses are due primarily to increased G&A expenses as the result of increasing cost of sales and payroll relating to the operation of Landis, gearing up for future expansion plans and IR cost which ran close to $100,000 for the quarter.
Working capital improved from a deficit of $971,535 at Dec. 31, 2005 to a surplus of $1,362,009 at June 30, 2006. Surber added that "with the expected refinance of the Wallace and Bennett property, I expect the surplus to increase by close to an additional $950,000 by the end of the third quarter 2006. The acquisition of an additional 65% interest in Landis and the expected acquisition of Black Chandelier's operations may further improve Nexia's working capital position."
Total stockholder's equity at June 30, 2006 was $2,685,713 compared to $963,185 at Dec. 31, 2005. Surber pointed out that, "All of the real estate is held at a depreciated cost basis which means that if you added in the equity based upon the market value of the properties the number would be substantially higher. However, since Nexia is not considered a REIT, the market value is not taken into consideration in preparing the company's financials in accordance with GAAP."
Investors are encouraged to read the above information, in conjunction with Nexia's Form 10QSB for the period ended June 30, 2006.
Additional information on Nexia can be found at www.nexiaholdings.com. Information on Nexia's operations can also be found at www.blackchandelier.com, www.blackchandelier.biz and www.landissalons.com.
This press release may contain forward-looking statements that are based on a number of assumptions, including the liquidation of DVFF shares at a price of $2 or more per share, closing on the Wallace-Bennett loans, and the successful acquisition of the Black Chandelier operations. Although Nexia Holdings believes these assumptions are reasonable, no assurance can be given that they will prove correct. These forward-looking statements involve a number of risks and uncertainties. The actual results that Nexia Holdings may achieve could differ materially from any forward-looking statements due to such risks and uncertainties. For more information on Nexia Holdings please visit our Web site at www.nexiaholdings.com or see our filings at www.sec.gov.
