PRESS RELEASE - AUGUST 14, 2006
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TRANSTECH
INDUSTRIES, INC. REPORTS RESULTS
FOR
THE THREE AND SIX MONTH PERIODS ENDED June 30, 2006
PISCATAWAY,
N.J., August 14, 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 and six month periods ended June
30, 2006. The Company’s subsidiaries
perform environmental services and generate electricity utilizing methane gas
as fuel.
Revenues for the electricity generation
segment for the three months ended June 30, 2006 and 2005 were $58,000 and $55,000,
respectively. The increase in revenue
was due to an increase in kilowatt hours generated. Gross revenues of the environmental services segment for the
period in 2006 and 2005 were $348,000 and $222,000, 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 three months ended June 30, 2006 and 2005 were $656,000 and $544,000, respectively. The net increase was primarily due to increased equipment repair, legal and other professional expenses.
Other income for the three months ended June 30, 2006
and 2005 was $507,000 and $2,555,000, respectively, and includes $346,000 and
$2,710,000, respectively, of proceeds from claims against excess insurance
carriers.
Income tax benefit for the three months ended June 30, 2006, was
$27,000 compared to an expense of $647,000 reported for the period in 2005.
Net loss for the three months ended June 30,
2006 was $64,000, or $.02 per share, versus net income of $1,419,000, or $.48
per share, for the period in 2005.
Revenues for the electricity generation
segment for the six months ended June 30, 2006 and 2005 were $167,000 and $151,000,
respectively. The increase in revenue
was due to an increase in kilowatts hours generated. Gross revenues of the environmental services segment for the
period in 2006 and 2005 were $617,000 and $429,000, 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 six months ended June 30, 2006 and 2005 were $1,205,000 and $1,017,000, respectively. The net increase was primarily due to increased personnel costs, legal and other professional expenses.
Other income for the six months ended June 30, 2006 and
2005 was $782,000 and $2,687,000, respectively. In addition to the proceeds from insurance claims discussed above,
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 six months ended June 30, 2006, was $72,000
compared to an expense of $647,000 reported for the period in 2005.
Net loss for the six months ended June 30,
2006 was $184,000, or $.06 per share, versus net income of $1,174,000, or $.39
per share, for the period in 2005.
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.
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 as of June 30, 2006 and comparative consolidated statements of operations for the three and six months ended June 30, 2006 and 2005.
TRANSTECH INDUSTRIES, INC.
AND SUBSIDIARIES
CONSOLIDATED
BALANCE SHEET
As
of June 30, 2006
(In
$000's)
Assets
Cash
and cash equivalents $ 1,263
Marketable
securities
4,533
Restricted
escrow accounts
1,000
Other
current assets 205
Total current assets 7,001
Other
assets 1,971
Total assets $15,523
Liabilities
and Stockholders' Equity
Total
current liabilities
$ 2,197
Income
taxes payable 1,042
Accrued
post-closure costs 8,532
Other
liabilities 43
Stockholders'
equity
3,709
Total Liabilities and Stockholders'
Equity $15,523
(In
$000's, except per share data)
Ended June 30,
2006 2005
Less:
Eliminations (348) (222)
Net
Revenues 58 55
Cost
of operations (656) (544)
Other
income(a) 507
2,555
Income
(taxes) benefit 27
(647)
Net
income (loss) $ (64) $1,419
Income
(loss) per common share:
Net income (loss) $ (.02) $ .48
Number
of shares used in
calculation 2,979,190 2,979,190
Ended June 30,
2006 2005
Less:
Inter-company (617) (429)
Net
Revenues 167 151
Cost
of operations (1,205) (1,017)
Other
income(a) 782 2,687
Income
(taxes) benefit 72 (647)
Net
income (loss) $
(184) $1,174
Income
(loss) per common share:
Net income (loss) $ (.06) $ .39
Number
of shares used in
calculation 2,979,190 2,979,190
(a) Amounts for 2006 and 2005
include $346,000 and $2,710,000 of proceeds from insurance claims.
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