PRESS RELEASE - AUGUST 14, 2008
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TRANSTECH
INDUSTRIES, INC. REPORTS RESULTS
FOR
THE QUARTER ENDED JUNE 30, 2008
Revenues for the electricity generation
segment for the three and six month periods ended June 30, 2008 were $213,000
and $372,000, respectively, versus $78,000 and $211,000 reported for the those
periods in 2007. The increase in revenue
was due to higher fees received per kWh and less downtime for repairs. Gross revenues of the environmental services
segment for the three and six month periods ended June 30, 2008 were $218,000
and $437,000, respectively, versus $264,000 and $536,000 reported for the those
periods last year. The environmental
services performed in the 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 and six month periods
ended June 30, 2008 were $712,000 and $1,417,000,
respectively, versus $625,000 and $1,203,000 reported for the those
periods in 2007. The net increase in costs was primarily due
to an increase in professional fees and general operating expenses. The increase in professional fees reported
for the periods in 2008 was due in large part to the Company’s ongoing
challenge of attempts by two municipalities to encumber the Company’s real
property located in
Other income for the three and six month periods ended June 30, 2008 was $138,000 and $259,000, respectively, versus $136,000 and $250,000 reported for the those periods in 2007.
Income tax benefit for the three and six month periods ended
June 30, 2008 was $31,000 and $175,000, respectively, versus
$146,000
and $256,000 reported for the those periods in 2007.
Net loss for the three and six month
periods ended June 30, 2008 was $330,000, or $.11 per share, and $610,000, or
$.20 per share, respectively. Net loss
reported for the three and six month periods ended June 30, 2007 was $265,000,
or $.09 per share, and $486,000, or $.16 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 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, and the Company’s subsequent
petition for a rehearing was denied by the Court on June 24, 2008. The Company will not continue to challenge the
Court’s 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.
Presented below are the unaudited consolidated balance sheet of
the Company as of June 30, 2008 and comparative consolidated statements of
operations for the three and six month periods ended June 30, 2008 and
2007.
TRANSTECH INDUSTRIES, INC.
AND SUBSIDIARIES
CONSOLIDATED
BALANCE SHEET
As
of June 30, 2008
(Unaudited,
in $000's)
Assets
Cash
and cash equivalents $ 699
Marketable
securities 2,709
Restricted
escrow accounts 1,031
Other
current assets 742
Total current assets 5,181
Other
assets 2,109
Total assets $13,671
Liabilities
and Stockholders' Equity
Total
current liabilities $ 2,006
Income
taxes payable 657
Accrued
post-closure costs 7,444
Other
liabilities 12
Stockholders'
equity 3,552
Total Liabilities and Stockholders'
Equity $13,671
(In
$000's, except per share data)
Ended June
30,
2008 2007
Less:
Eliminations (218) (264)
Net
Revenues 213 78
Cost
of Operations (712) (625)
Other
Income 138 136
Income
Tax Benefit (Expense) 31 146
Net
Income (Loss) $(330) $(265)
Loss
per common share:
Net Income (Loss) $(.11) $(.09)
Number
of shares used in
calculation 2,979,190 2,979,190
Ended June 30,
2008 2007
Less:
Eliminations (437) (536)
Net
Revenues 372 211
Cost
of Operations (1,416)
(1,203)
Other
Income 259 250
Income
Tax Benefit (Expense) 175 256
Net
Income (Loss) $
(610) $ (486)
Loss
per common share:
Net Income (Loss) $ (.20) $ (.16)
Number
of shares used in
calculation 2,979,190 2,979,190
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.
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