PRESS RELEASE - MAY 17, 2005


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TRANSTECH INDUSTRIES, INC. REPORTS RESULTS

FOR THE QUARTER ENDED MARCH 31, 2005

 

     PISCATAWAY, N.J., May 17, 2005 - Robert V. Silva, President and Chief Executive Officer of Transtech Industries, Inc. (OTC BULLETIN BOARD:TRTI) announced the results of operations for the three months ended March 31, 2005.  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, 2005 and 2004 were $207,000 and  $245,000, respectively.  The environmental services provided in both periods were to members of the consolidated group and therefore eliminated in the calculation of net revenues.  Revenues for the electricity generation segment for the period in 2005 and 2004 were $96,000 and $63,000, respectively.

 

     The cost of operations for the three months ended March 31, 2005 and 2004 were $366,000 and $398,000, respectively.  The net decrease in expenses was primarily due to personnel related expenses.

 

     Other income for the three months ended March 31, 2005 was $25,000 versus an expense of $25,000 reported for 2004. The increase in income in 2005 was primarily due to a reduction in accrued interest expense.

 

     No income tax benefit was recognized for the three months ended March 31, 2005, compared to a benefit of $122,000 reported for the period in 2004.

 

     Net loss for the three months ended March 31, 2005 and 2004 were $245,000 or $.08 per share versus a net loss of $238,000 or $.08 per share, respectively.

 

     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 three months ended March 31, 2005.


 

TRANSTECH INDUSTRIES, INC.

AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET

As of March 31, 2005

(In $000's)

 

Assets

Cash and cash equivalents                             $ 2,283

Marketable securities                                     499

Accounts receivable, net of reserves                      339

Refundable income taxes                             1,111

Other current assets                                      264

   Total current assets                                 4,496

Other assets                                            1,923

   Total assets                                       $ 6,419

 

Liabilities and Stockholders' Equity

Total current liabilities                             $ 1,021

Income taxes payable                                    1,315

Accrued closure costs                                   2,189

Other liabilities                                          50

Stockholders' equity                                    1,844

   Total Liabilities and Stockholders' Equity         $ 6,419

 

 

CONSOLIDATED STATEMENTS OF OPERATIONS

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

 

                                           For the Three Months

                                            Ended December 31,

                                          2005              2004

Gross Revenues                           $ 303             $ 308

Less: Inter-company                       (207)             (245)

Net Revenues                                96                63

Cost of operations                        (366)             (398)

Other income (expense)(a)                   25               (25)

Income (taxes) benefit                      -                122

Net income (loss)                       $ (245)           $ (238)

 

Income (loss) per common share:

  Net income (loss)                     $ (.08)           $ (.08)

Number of shares used in

  calculation                        2,979,190         2,979,190

 

 

(a) Amount for 2004 includes a charge of $58,000 for interest accrued on federal income taxes and related interest.


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