- 3Q2023 revenues were $13,464,338; and profits were $4,287,255
- Nine-month FY-2023 revenues were $38,154,606; and profits were $11,790,323
- Long-term debt was $49,356,045, a decrease of $7.2 million since 1Q2023
- Total debt was $68,312,081, a decrease of $11.9 million since 1Q2023
NEW YORK, NY / ACCESSWIRE / February 21, 2023 / Exxe Group, Inc. (OTC PINK:AXXA), ("Exxe" or the "Company") a diversified fintech company, is pleased to announce its three-month and nine-month results for the period ended December 31, 2022.
Financial Highlights
Revenues for the nine-month period ending December 31, 2022 (3Q2023) was $38,154,606 as compared to $33,900,534, in the same period last year, an increase of 12.5%. Net income was $11,790,323 as compared with $7,611,676 which was an increase of 55%.
Third Quarter (3Q2023) revenues were $13,464,338 as compared with $14,181,451 for the same period a year ago. Net profit for the Quarter was $4,198,372 as compared with $3,390,829 for the same period in 3Q2022.
At the end of the period ending September 30, 2022 (2Q2023), Exxe Group recorded revenue of $12,956,036 as compared with $13,464,338 in 3Q2023. The Quarter-over-Quarter change is $508,302 or 3.9%.
Debt Reduction
Long-term debt for the period ending December 31, 2022, was $49,356,045 as compared to $56,525,384 in the same period last year, a reduction of $7,169,339 or 14.5%.
Total debt for the period ending December 31, 2022 was $68,312,081 as compared to $80,163,412 in the same period last year, a reduction of $11,851,331 or 17.3%.
Financial Summary
Exxe Group continues to work on developing its capital efficiency, improving its capital structure, and building out the economy of its ecosystem. Net changes continue to lower debts, result in better deployment of capital into revenue-generating projects, and improvements to the underlying health of the operating companies as the balance sheet is deleveraged.
The success of the strategy is evidenced by changes in cash on the balance sheet which increased from $258,877 in 1Q2023 to $561,600 in 3Q2023; a 10%, or $1,187,978 reduction in inventory from $12,357,957 in 1Q2023 to $11,169,979 in 3Q2023; and decreases in long-term debt by $7,169,339, and total debt by $11,851,331.
Business Highlights
Exxe Group continues to see increases across its revenue-generating verticals. In the period between October and December 2022, Exxe saw a peak in the tight physical supply constraints that were experienced in early 2022. Costs were passed through to the end-users of our various operating companies, and the markets for our products remain buoyant and healthy.
Basic businesses such as the M-Moto car engine and overhaul service saw large revenue increases. The high price of vehicles helped to incentivize customers to repair their luxury and high-end vehicles rather than replace them. While we currently anticipate used car prices to moderate and decline in 2023 and 2024, we believe the evolving dynamic of the luxury and high-end market means a healthy business model remains in place.
M-Moto's DHE business focuses on the distribution of car parts including tires, center discs, barrels, and rims that are sold to agricultural harvest companies and large transport vehicle operators. As a cost-effective supplier of these products, high transportation rates improved DHE's revenues as end-users sought to cut costs. This positions DHE to expand market share running into 2023 and 2024.
1Myle is increasing its revenues and users. In the final Quarter of 2022 Exxe Group and 1Myle took the opportunity to restructure the business relationship in a way that unlocks economic growth for both parties. This new relationship has been roadmaped and tested. Going forward Exxe Group and 1Myle will focus on business-to-business (B2B) relationships while outsourcing business-to-consumer (B2C) relationships to client-side businesses in the legal jurisdictions in which they operate. These B2C relationships include, but are not limited to, customer management and obtaining licensing.
Exxe Group's 1Myle continues to be the backend engine for client-side businesses to complete any B2B tasks they require. This structure will allow Exxe Group to expand its cryptocurrency- related offerings in multiple jurisdictions much more rapidly, as well as process significantly more transactions than at present. The end focus for Exxe Group remains on growing revenues, which is a function of the number of transactions and technology capabilities we can offer our clients.
M-Meditech saw improvements to its medical supply business. Revenues continue to grow as the Company increased the range of products supplied to the Swiss medical community, including a new contract from the Swiss hospital system.
Dr. Eduard Nazmiev, Exxe Group CEO, stated: "Exxe Group continues to see improvements across the range of our operating companies. We have worked diligently to reduce our long-term debt and total debt. Long-term debt has been reduced by $7.2 million or 14.5%, and total debt has been reduced by $11.9 million or 17.3%. We expect further debt reductions in CY-2023 as the Company continues to deleverage its balance sheet."
About Exxe Group
Exxe Group Exxe is a diversified fintech company with assets in real estate, architectural design, agricultural, automotive, medical, media, and trading technology. Exxe Group acquires controlling equity interests in undervalued assets, and undertakes an active role in improving their performance - accelerating their growth by providing both access to capital and management expertise. For additional information please visit the Company's:
Website: http://www.exxegroup.com/
Twitter: https://twitter.com/exxegroup
Forward-Looking Statements:
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, you can identify forward-looking statements by the following words: "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "ongoing," "plan," "potential," "predict," "project," "should," "will," "would," or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. Forward-looking statements are not a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on information available at the time the statements are made and involve known and unknown risks, uncertainties and other factors that may cause our results, levels of activity, performance or achievements to be materially different from the information expressed or implied by the forward-looking statements in this press release.
CONTACT: Exxe Group IR: [email protected]
SOURCE: Exxe Group