LUFKIN, Texas, Aug. 25 /PRNewswire-FirstCall/ -- TreeCon Resources, Inc. (OTC Pink Sheets: TCRS) is making available certain financial information regarding the company's financial performance. The financial information covering the three months and nine months ended June 30, 2006 contained in this release is unaudited and has not been reviewed by the Company's auditors. 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.
During the three-month period ending June 30, 2006 revenues decreased by $4,377,985, or approximately 28.9%, from $15,160,574 to $10,782,589. Net income for the quarter ending June 30, 2006 was $286,631, or 1.5 cents per share compared to $361,489 or 1.9 cents per share in the same quarter of 2005. Gross profit for the third quarter of fiscal 2006 was $2,139,476 which was an increase of $24,056 from $2,115,420 from the third quarter of fiscal 2005. Operating income for the third quarter of 2006 increased by $49,222, from $509,431 to $558,653 over the same quarter of 2005.
For the nine months ended June 30, 2006 the Company had gross revenues of $33,894,861 as compared to revenues of $38,812,959 for the nine months ended June 30, 2005. Net income was $1,683,342 or 9.0 cents per share for the nine months ended June 30, 2006 as compared to net income of $2,081,955 or 11.0 cents per share for the nine months ended June 30, 2005.
Mike Boatman, President of TreeCon Resources, said that revenues were down as a result of the continued softness in the equipment market. However, the decline in revenues was offset by an improvement in gross profit margin. Net income was down, primarily due to a $124,112 increase in interest expense related to higher interest rates. The Company will post summarized financial results for the third quarter 2006 and for the nine months ended June 30, 2006 online at http://www.treeconresources.com/ .
