PRESS RELEASE - APRIL 18 2005
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TRANSTECH
INDUSTRIES, INC. REPORTS RESULTS
FOR
THE YEAR ENDED DECEMBER 31, 2004
PISCATAWAY,
N.J., April 18, 2005 - Robert V. Silva, President and Chief
Executive Officer of Transtech Industries, Inc. (OTC BULLETIN BOARD:TRTI)
announced the results of operations for the year ended December 31, 2004. The Company’s subsidiaries perform
environmental services and generate electricity utilizing methane gas as fuel.
Gross
revenues of the environmental services segment for the year ended December 31,
2004 were $962,000 versus $961,000 for 2003.
Revenues for the electricity generation segment for the period in 2004
were $359,000 compared to $228,000 in 2003.
Net consolidated revenues (after the elimination of inter-company
environmental services revenues) for the years ended December 31, 2004 and 2003
were $359,000 and $298,000, respectively.
The cost of operations for the years ended December 31, 2004 and 2003 were $1,720,000 and $1,642,000, respectively. The net increase in expenses was primarily due to personnel related expenses.
Other income for the year ended December 31, 2004
was $2,276,000 versus an expense of $173,000 reported for 2003. The increase in
income in 2004 was primarily due to a $2,332,000 gain from a reduction in
federal income taxes and interest payable as a result of the IRS acceptance of
the Company’s Offer in Compromise. The
gain is not subject to income tax.
An income tax benefit of $418,000 and $522,000 was recognized
for the years ended December 31, 2004 and 2003, respectively.
Net income for the year ended December 31,
2004 was $1,333,000 or $.45 per share versus a net loss of $(995,000) or $(.33)
per share for 2003.
The Company previously announced the settlement of three significant matters during 2004. During February 2004 the Company reached settlement with the United States Environmental Protection Agency (“EPA”) of litigation regarding the Chemsol Superfund site. During July 2004 the Company’s Offer in Compromise was accepted by the United States Internal Revenue Service (“IRS”) that reduced the income taxes and interest due from past settlements of issues before the Tax Court. During December 2004 the Company reached settlement with EPA and others of litigation regarding the Kin-Buc Landfill. The Kin-Buc settlement is pending Court approval.
During
November 2004, EPA issued an Unilateral Administrative Order to the Company and
certain other PRPs that seeks reimbursement of past costs and contribution to
the continuing remediation of a site of past operations located in Carlstadt,
NJ. The Company intends to comply with the Order, and is unable to reasonably
estimate a range of its possible obligation given the current status of the
proceedings.
The Company continues to
face significant potential cash requirements for litigation expenses, as well
as ongoing administrative costs, and post-closure costs associated with sites
of past operations. Although the
Company continues to pursue the sale of property held for sale and claims
against non-settling insurance carriers for recoveries of past remediation
costs, no assurance can be given that the timing or amount of the proceeds from
such sources will be sufficient to meet the cash requirements of the Company.
This news release may contain
forward-looking statements as defined by federal securities laws, that are
based on current expectations and involve a number of known and unknown risks,
uncertainties and other factors that may cause the actual results, levels of
activity, performance or achievements to differ materially from results expressed
or implied by this press release. Such
risks and uncertainties include among others, the following: general economic
and business conditions; the ability of the Company to implement its business
strategy; the Company’s ability to successfully identify new business
opportunities; changes in the industry; competition; the effect of regulatory
and legal proceedings. The
forward-looking statements contained in this news release speak only as of the
date of release; and the Company does not undertake to revise those
forward-looking statements to reflect events after the date of this release.
Presented below are the consolidated
balance sheet and comparative consolidated statements of operations for the
year ended December 31, 2004.
TRANSTECH INDUSTRIES, INC.
AND SUBSIDIARIES
CONSOLIDATED
BALANCE SHEET
As
of December 31, 2004
(In
$000's)
Assets
Cash
and cash equivalents $ 1,038
Marketable
securities
1,993
Accounts
receivable, net of reserves 344
Refundable
income taxes 1,111
Other
current assets 325
Other
assets 1,920
Total assets $ 6,731
Liabilities
and Stockholders' Equity
Total
current liabilities
$ 1,033
Income
taxes payable 1,370
Accrued
closure costs 2,181
Other
liabilities 55
Stockholders'
equity
2,092
Total Liabilities and Stockholders'
Equity $ 6,731
(In
$000's, except per share data)
Ended December 31,
2004 2003
Less:
Inter-company (962) (891)
Net
Revenues
359 298
Cost
of operations
(1,720) (1,642)
Other
income (expense)(a)
2,276 (173)
Income
(taxes) credit 418 522
Net
income (loss) $ 1,333 $ (995)
Income
(loss) per common share:
Net income (loss) $ .45 $ (.33)
Number
of shares used in
calculation 2,979,190 2,979,190
(a) Amount for 2004 includes income
of $2,332,000 resulting from a reduction of accrued federal income taxes and
related interest.
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