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RICHARDSON, Texas -- Titan Global Holdings, parent company of petroleum marketing company and convenience store operator Appalachian Oil Co., generated a record $111 million in revenue for fiscal 2007, but saw net operating losses of $23.8 million, which included the impact of a $13.4 million noncash charge for derivative expenses, as well as a change in revenue recognition methods for its communications division, the company stated.
The change resulted in a $12 million deferral of revenue, as a result of its prepaid international long distance products that were sold to customers but not yet used on the company’s network, Titan Global stated.
"Fiscal year 2007 was a year of transformation and repositioning for Titan," Bryan Chance, president and CEO of Titan Global, said in a statement. "During fiscal year 2007 we transformed Titan through the refinance of the company's operations, the addition of key management talent, the repositioning of the communications division and the strategic additions of new divisions."
Also in fiscal 2007, the company formed Titan Global Energy Group, a division that aggregates underutilized assets to provide revenue opportunities and earnings growth in the energy sector, according to the company. In September, the division completed the acquisition of Appalachian Oil Co. (Appco), which distributes petroleum products to more than 165 dealers in the southeastern U.S. and owns and operates 56 convenience store locations.
"Team Titan looks forward to fiscal year 2008," said Chance. "With the strategic assistance from our equity partners, we were able to capitalize on strategic acquisitions in the first quarter of 2008 that have changed Titan's long-term outlook. We look forward to creating shareholder value through organic and strategic developments in fiscal 2008."