PRESS RELEASE - MAY 15, 2008
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TRANSTECH
INDUSTRIES, INC. REPORTS RESULTS
FOR
THE QUARTER ENDED MARCH 31, 2008
Revenues for the electricity generation
segment for the quarters ended March 31, 2008 and 2007 were $159,000 and $133,000,
respectively. The increase in revenue
was due to an increase in fee received per kWh.
Gross revenues of the environmental services segment for the period in 2008
and 2007 were $219,000 and $272,000, 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 quarters ended March 31,
2008 and 2007 were $704,000 and $578,000,
respectively. The net increase in costs was
primarily due to an increase in professional fees and general operating
expenses.
Other income for the quarters ended March 31, 2008 and 2007 was $121,000 and $114,000, respectively.
Income tax benefit for the quarters
ended March 31, 2008 and 2007 was $144,000 and $110,000, respectively.
Net loss for the quarter ended March 31,
2008 was $280,000, or $.09 per share, versus a net loss of $221,000, or $.07
per share, for the period in 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.
As
previously disclosed, the Company has challenged an arbitrator’s award of $3.5
million of insurance proceeds, held in escrow since 2002, to SCA Services, Inc. The arbitrator's ruling was affirmed by a District
Court and in December, 2005 the Company filed an appeal of the Court’s
decision. The Court of Appeals affirmed
the lower Court's decision March 24, 2008.
The Company has filed an appeal of 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.
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 unaudited consolidated balance sheet of
the Company as of March 31, 2008 and comparative consolidated statements of
operations for the quarters ended March 31, 2008 and 2007.
TRANSTECH INDUSTRIES, INC.
AND SUBSIDIARIES
CONSOLIDATED
BALANCE SHEET
As
of March 31, 2008
(Unaudited,
in $000's)
Assets
Cash
and cash equivalents $ 717
Marketable
securities 3,292
Restricted
escrow accounts 1,025
Other
current assets 662
Total current assets 5,696
Other
assets 2,127
Total assets $14,475
Liabilities
and Stockholders' Equity
Total
current liabilities $ 2,037
Income
taxes payable 698
Accrued
post-closure costs 7,600
Other
liabilities 15
Stockholders'
equity 4,125
Total Liabilities and Stockholders'
Equity $14,475
(In
$000's, except per share data)
Ended March
31,
2008 2007
Less:
Eliminations (219) (272)
Net
Revenues 159 133
Cost
of Operations (704) (578)
Other
Income 121 114
Income
Tax Benefit (Expense) 144 110
Net
Income (Loss) $(280) $(221)
Loss
per common share:
Net Income (Loss) $(.09) $(.07)
Number
of shares used in
calculation 2,979,190 2,979,190
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