PRESS RELEASE - AUGUST 14, 2007
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TRANSTECH
INDUSTRIES, INC. REPORTS RESULTS
FOR
THE THREE AND SIX MONTH PERIODS ENDED JUNE 30, 2007
PISCATAWAY,
N.J., August 14, 2007 - 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, 2007. 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, 2007 and 2006 were $78,000 and $58,000,
respectively. The increase in revenue
was due to an increase in both kilowatt hours generated and fee received. Gross revenues of the environmental services
segment for the period in 2007 and 2006 were $264,000 and $357,000,
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, 2007 and
2006 were $625,000 and $656,000, respectively.
The net decrease was primarily due to a decrease in equipment repair
costs and professional fees.
Other income for the three months ended
June 30, 2007 and 2006 was $136,000 and $507,000, respectively. The amount for 2006 includes $346,000 of
proceeds from claims against excess insurance carriers.
Income tax benefit for the three months
ended June 30, 2007 and 2006 was $146,000 and $27,000, respectively.
Net loss for the three months ended June
30, 2007 was $265,000, or $.09 per share, versus a net loss of $64,000, or $.02
per share, for the period in 2006.
Revenues for the electricity generation
segment for the six months ended June 30, 2007 and 2006 were $211,000 and $167,000,
respectively. The increase in revenue
was due to an increase in kilowatts hours generated and fee received. Gross revenues of the environmental services
segment for the period in 2007 and 2006 were $536,000 and $610,000,
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, 2007
and 2006 were $1,203,000 and $1,205,000, respectively.
Other income for the six months ended June
30, 2007 and 2006 was $250,000 and $782,000, 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, 2007 and 2006 was $256,000 and $72,000, respectively.
Net loss for the six months ended June 30,
2007 was $486,000, or $.16 per share, versus a net loss of $184,000, or $.06 per
share, for the period in 2006.
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.
On August 8,
2007, the Planning Board of Deptford Township, New Jersey approved a study that
concluded an area within the Township which includes approximately 364 acres of
property owned by the Company is in need of redevelopment. The declaration of an area as a redevelopment
zone under the laws of the State of New Jersey grants a municipality many
options to achieve its objectives regarding the use of property within the zone. Municipalities may acquire property for
redevelopment using their powers of eminent domain, compensating the property
owner for its “fair market value”. The
owner of property included within a zone may challenge the creation of the
redevelopment area and/or the amount of compensation received for
property. The declaration of a
redevelopment zone requires the approval of the Township’s governing body. Presently the Company does not know what
course the Township intends to take with respect to the area, or if all or any
of the Company’s property will ultimately be included. The Company has filed objections to certain
errors and mischaracterizations contained within the study, as well as its
conclusion.
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, 2007 and comparative consolidated statements of operations for the
three and six months ended June 30, 2007 and 2006.
TRANSTECH INDUSTRIES, INC.
AND SUBSIDIARIES
CONSOLIDATED
BALANCE SHEET
As
of June 30, 2007
(In
$000's)
Assets
Cash
and cash equivalents
$ 793
Marketable
securities
4,100
Restricted
escrow accounts
1,006
Other
current assets 464
Total current assets 6,363
Other
assets
2,055
Total assets $14,970
Liabilities
and Stockholders' Equity
Total
current liabilities
$ 1,958
Income
taxes payable
823
Accrued
post-closure costs
8,017
Other
liabilities 22
Stockholders'
equity 4,150
Total Liabilities and Stockholders'
Equity $14,970
(In
$000's, except per share data)
Ended June 30,
2007 2006
Less:
Eliminations (264) (357)
Net
Revenues 78 58
Cost
of Operations (625) (656)
Other
Income(a) 136 507
Income
(Taxes) Benefit 146 27
Net
Income (Loss) $ (265) $
(64)
Income
(loss) per common share:
Net income (loss) $ (.09) $ (.02)
Number
of shares used in
calculation 2,979,190 2,979,190
Ended June 30,
2007 2006
Less:
Eliminations (536) (610)
Net
Revenues 211 167
Cost
of Operations (1,203) (1,205)
Other
Income(a) 250 782
Income
(Taxes) Benefit 256 72
Net
Income (Loss) $
(486) $ (184)
Income
(loss) per common share:
Net income (loss) $ (.16) $ (.06)
Number
of shares used in
calculation 2,979,190 2,979,190
(a) Amount for
2006 includes $346,000 of proceeds from insurance claims.
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