|April 15, 2010
||Banyan Rail Services Inc. Announces 2009 Fiscal Results
BOCA RATON, Fla. – (BUSINESS WIRE) – Banyan Rail Services Inc. (OTCBB: BARA/BARAD) today announced its results of operations for the year ended December 31, 2009. The Company had a net loss of $47,669, or $(.02) per common share, in 2009, compared to a net loss of $562,836, or $(.22) per common share, in 2008. The 2009 results include an income tax benefit of $1,356,862, reflecting the anticipated use of tax net operating losses.
On September 1, 2009, Banyan Rail acquired 100% of the equity securities of The Wood Energy Group, Inc, one of the nation’s largest railroad tie reclamation/energy generation companies. Banyan Rail’s operating revenues for 2009 were $1,142,738, reflecting four months of operating Wood Energy under Banyan’s ownership. Prior to the acquisition of Wood Energy, Banyan Rail had no revenue. As of December 31, 2009, Banyan Rail has total assets of $9,035,693 and stockholders’ equity of $3,964,100.
In early April 2010, Banyan Rail completed the exchange of $1,525,000 of convertible debentures into 15,250 shares of Series A Preferred Stock, reducing the Company’s debt and increasing the Company’s stockholders’ equity. The Company also completed a 1-for-10 reverse stock split in April 2010, so that as of December 31, 2009, there were 2,992,138 common shares outstanding on a post-split basis. To indicate the split, the Over-the-Counter Bulletin Board appended a “D” to the Company’s trading symbol until April 27, 2010. After April 27, 2010, the symbol will revert to “BARA.OB”.
In January 2010, the Company changed its name to Banyan Rail Services Inc. from B.H.I.T. Inc., to better reflect the Company’s plan to grow through the acquisition of rail-related service companies.
Banyan Rail Services Inc. is a railroad support services company headquartered in Boca Raton, Florida. The Company owns The Wood Energy Group, Inc., one of the nation’s largest railroad tie reclamation/energy generation companies. For more information on Banyan Rail, visit our website at: www.banyanrail.com.
Safe Harbor Regarding Forward-Looking Statements
Some of the statements that we make in this press release, including statements about our confidence in the Company’s prospects and strategies, are forward-looking statements within the meaning of §21E of the Securities Exchange Act. Some of these forward-looking statements can be identified by words like “believe,” “expect,” “will,” “should,” “intend,” “plan,” or similar terms; others can be determined by context. Statements contained in this release that are not historical facts are forward-looking statements. These statements are necessarily estimates reflecting our best judgment based upon current information, and involve a number of risks and uncertainties. Many factors could affect the accuracy of these forward-looking statements, causing our actual results to differ significantly from those anticipated in these statements. You should not place undue reliance on our forward-looking statements, which reflect our analysis only as of the date of this release. The risks and uncertainties listed above and in documents that we file with the Securities and Exchange Commission, including our annual report on Form 10-K, quarterly reports on Form 10-Q, and any current reports on Form 8-K, must be carefully considered by any investor or potential investor in the Company.