PRESS RELEASE - MARCH 28, 2008
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TRANSTECH
INDUSTRIES, INC. REPORTS RESULTS
FOR
THE YEAR ENDED DECEMBER 31, 2007 AND
RULING
BY THE
Revenues for the electricity generation
segment for the years ended December 31, 2007 and 2006 were $537,000 and $364,000,
respectively. The increase in revenue
was due to an increase in both kilowatt hours generated and fee received. Gross revenues of the environmental services
segment for 2007 and 2006 were $933,000 and $1,196,000, respectively. The
environmental services in both periods were conducted on sites owned or leased
by members of the consolidated group and therefore eliminated in the
calculation of net revenues.
The cost of operations for the years ended December 31, 2007 and
2006 were $2,532,000 and $2,409,000, respectively. The net increase in costs was primarily due
to an increase in professional fees, general operating expenses and costs incurred
to relocate the environmental operations into a new facility.
Results for 2006 include a gain of $1,852,000 from the sale of 60
acres of property located in
Other income for the years ended December
31, 2007 and 2006 was $725,000 and $1,335,000, respectively, which include
proceeds from insurance claims of $137,000 and $600,000, respectively. Other income for 2006 includes $129,000
received in settlement of litigation regarding the Company’s interest in a
former partnership.
Income tax benefit for the year ended December
31, 2007 was $454,000 versus an income tax expense of $512,000 for 2006.
Net loss for the years ended December 31,
2007 was $816,000, or $.27 per share, versus a net income of $630,000, or $.21
per share, for 2006.
The Company and certain subsidiaries
previously participated in the waste recovery and waste management
industries. The Company continues to
incur administrative and legal expenses on matters related to its past
participation in those industries. In
addition, the Company may incur significant remediation and post-closure costs
related to sites of past operations.
As
previously disclosed, the Company commenced litigation during February 2004 to
either vacate or modify an arbitrator’s award of $3.5 million of insurance
proceeds, held in escrow since 2002, to SCA Services, Inc. (“SCA”). The arbitrator's ruling was affirmed by the District
Court during October 2005. In December,
2005 the Company filed an appeal of the District Court's ruling with the United
States Court of Appeals for the Third Circuit.
The Court of Appeals rendered its decision on March 24, 2008 affirming
the lower Court's decision. The Company
has not yet decided whether it will appeal this recent decision. The amount held in escrow is not reflected on
the Company's financial statements; therefore the Court's decision will not
adversely impact the Company's financial statements. The
Company will recognize income equal to the amount of the escrow remaining after
payment of amounts due SCA, if any, in the period such funds are released from
escrow.
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 audited consolidated balance sheet as of
December 31, 2007 and comparative consolidated statements of operations for the
years ended December 31, 2007 and 2006.
TRANSTECH INDUSTRIES, INC.
AND SUBSIDIARIES
CONSOLIDATED
BALANCE SHEET
As
of December 31, 2007
(In
$000's)
Assets
Cash
and cash equivalents $ 961
Marketable
securities 3,267
Restricted
escrow accounts 1,018
Other
current assets 765
Total current assets 6,011
Other
assets 2,149
Total assets $14,515
Liabilities
and Stockholders' Equity
Total
current liabilities $ 1,827
Income
taxes payable 738
Accrued
post-closure costs 7,762
Other
liabilities 17
Stockholders'
equity 4,171
Total Liabilities and Stockholders'
Equity $14,515
(In
$000's, except per share data)
Ended December 31,
2007 2006
Less:
Eliminations (933) (1,196)
Net
Revenues 537 364
Cost
of Operations (2,532) (2,409)
Gain
from
Other
Income(a) 725 1,335
Income
Tax Benefit (Expense) 454 (512)
Net
Income (Loss) $ (816) $ 630
Loss
per common share:
Net Income (Loss) $ (.27) $ .21
Number
of shares used in
calculation 2,979,190 2,979,190
(a) Amounts for
2007 and 2006 include $137,000 and $600,000, respectively, of proceeds from
insurance claims.
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