PRESS RELEASE - APRIL 15, 2009


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TRANSTECH INDUSTRIES, INC. REPORTS RESULTS

FOR THE YEAR ENDED DECEMBER 31, 2008

 

     PISCATAWAY, N.J., April 15, 2009 - 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, 2008.  The Company’s subsidiaries perform environmental services and generate electric power utilizing methane gas as fuel.

 

     Revenues for the electricity generation segment for the years ended December 31, 2008 and 2007 were $689,000 and $537,000, respectively.  The increase in revenue was due to an increase in both kilowatt hours generated and fee received per kilowatt.  Gross revenues of the environmental services segment for 2008 and 2007 were $737,000 and $933,000, respectively. The environmental services were conducted on sites owned or leased by members of the consolidated group in both years and therefore eliminated in the calculation of net revenues.

 

     The cost of operations for the years ended December 31, 2008 and 2007 were $2,764,000 and $2,532,000, respectively.  The net increase in costs was primarily due to an increase in professional fees and general operating expenses.  The increase in professional fees in 2008 was primarily due to litigation initiated by the Company to challenge two municipalities’ attempts to encumber the Company’s real property located in Edison Township, N.J. and Deptford Township, N.J.

 

     Other income for the years ended December 31, 2008 and 2007 was $764,000 and $725,000, respectively.

 

     Income tax benefit for the years ended December 31, 2008 and 2007 was $374,000 and $454,000, respectively.

 

     Net loss for the year ended December 31, 2008 was $937,000, or $.31 per share, versus a net loss $816,000, or $.27 per share, for 2007.

 

     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.

 

     Presented below are the audited consolidated balance sheet as of December 31, 2008 and comparative consolidated statements of operations for the years ended December 31, 2008 and 2007.

    

TRANSTECH INDUSTRIES, INC.

AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET

As of December 31, 2008

(In $000's)

 

Assets

Cash and cash equivalents                            $   716

Marketable securities                                  2,480

Restricted escrow accounts                             1,044

Other current assets                                     945

   Total current assets                                5,185

Restricted escrow accounts                             6,019

Other assets                                           2,001

   Total assets                                      $13,205

 

Liabilities and Stockholders' Equity

Total current liabilities                            $ 1,833

Income taxes payable                                     577

Accrued post-closure costs                             7,312

Other liabilities                                          8

Stockholders' equity                                   3,475

   Total Liabilities and Stockholders' Equity        $13,205

 

 

CONSOLIDATED STATEMENTS OF OPERATIONS

(In $000's, except per share data)

 

                                            For the Years

                                          Ended December 31,

                                        2008              2007

Gross Revenues                      $1,426            $1,470

Less: Eliminations                    (737)             (933)

Net Revenues                           689               537

Cost of Operations                  (2,764)           (2,532)

Other Income(a)                        764               725

Income Tax Benefit (Expense)           374               454

Net Income (Loss)                   $ (937)           $ (816)

 

Loss per common share:

Net Income (Loss)                   $ (.31)           $ (.27)

Number of shares used in

  calculation                      2,979,190         2,979,190

 

(a) Amounts for 2008 and 2007 include $95,000 and $137,000, respectively, of proceeds from insurance claims.

 

 

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.


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