PRESS RELEASE - MAY 15, 2006
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TRANSTECH
INDUSTRIES, INC. REPORTS RESULTS
FOR
THE QUARTER ENDED MARCH 31, 2006
PISCATAWAY,
N.J., May 15, 2006 - Robert V. Silva, President and Chief
Executive Officer of Transtech Industries, Inc. (OTC BULLETIN BOARD:TRTI)
announced the results of operations for the three month period ended March 31,
2006. The Company’s subsidiaries
perform environmental services and generate electricity utilizing methane gas
as fuel.
Gross revenues of the environmental
services segment for the three months ended March 31, 2006 and 2005 were $269,000
and $207,000, respectively. All of the
environmental services provided in both periods were to members of the
consolidated group and therefore eliminated in the calculation of net revenues. Revenues of the electricity generation
segment for the period in 2006 increased to $109,000 from $96,000 reported for
2005. The increase in electricity
revenue was primarily due to an increase in rate received per kilowatt
generated.
The cost of operations for the three months ended March 31, 2006 increased to $549,000 from $473,000 for the period in 2005. Decreases in direct operating costs and accretion expense were offset by an increase in professional fees and administrative expenses.
Other income for the three months ended March 31,
2006 and 2005 was $275,000 and $132,000, respectively. The 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 three months ended March 31, 2006,
was $45,000. No benefit was reported
for the period in 2005.
The net loss for the three months ended
March 31, 2006 and 2005 was $120,000 or $.04 per share versus $245,000 or $.08
per share, respectively.
The Company and certain subsidiaries
previously participated in the waste recovery and waste management
industries. The Company continues to
incur administrative and litigation expenses on matters related to 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 reported, during March 2006,
the Company was one of 158 parties named as a potentially responsible party in
a notice from the U.S. EPA regarding an area located in Bergen County, N.J.
known as the Berry’s Creek Area. The
Company had previously been named to administrative orders regarding the
remediation of the SCP Superfund Site which is located in the vicinity of
Berry’s Creek. The extent of the
Company’s involvement with the Berry’s Creek Area, if any, has yet to be
determined.
During April
2006, the Company signed an amendment to the May 2001 contract regarding the
sale of 60 acres of property for $2.1 million.
The amendment, in addition to other terms, extended the closing to a
date on or before December 15, 2006.
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 three months ended March 31, 2006.
TRANSTECH INDUSTRIES, INC.
AND SUBSIDIARIES
CONSOLIDATED
BALANCE SHEET
As
of March 31, 2006
(In
$000's)
Assets
Cash
and cash equivalents $ 1,427
Marketable
securities
4,537
Accounts
receivable, net of reserves 38
Refundable
income taxes
487
Restricted
escrow accounts 994
Other
current assets 60
Total current assets 7,543
Other
assets 1,762
Total assets $15,846
Liabilities
and Stockholders' Equity
Total
current liabilities
$ 2,306
Income
taxes payable 1,097
Accrued
closure costs 8,609
Other
liabilities 28
Stockholders'
equity
3,806
Total Liabilities and Stockholders'
Equity $15,846
(In
$000's, except per share data)
Ended March 31,
2006 2005
Less:
Inter-company (269) (207)
Net
Revenues
109 96
Cost
of operations
(549) (473)
Other
income 275 132
Income
(taxes) benefit 45 -
Net
income (loss) $
(120) $ (245)
Income
(loss) per common share:
Net income (loss) $ (.04) $ (.08)
Number
of shares used in
calculation 2,979,190 2,979,190
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