PRESS RELEASE - AUGUST 16, 2005
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TRANSTECH
INDUSTRIES, INC. REPORTS RESULTS
FOR
THE THREE AND SIX MONTH PERIODS ENDED JUNE 30, 2005
PISCATAWAY,
N.J., August 16, 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 and six month periods ended
June 30, 2005. 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, 2005 and 2004 were $55,000 and
$99,000, respectively. The decline in
revenue was due to repairs and maintenance of the electricity generating
equipment. Gross revenues of the
environmental services segment for the period in 2005 and 2004 were $222,000
and $229,000, respectively. The
environmental services provided in both periods were to members of the
consolidated group and therefore eliminated in the calculation of net revenues.
The cost of operations for the three months ended June 30, 2005 and 2004 were $544,000 and $451,000, respectively. The net increase in expenses was primarily due to equipment repair costs and accretion expense associated with the Company’s post-closure obligations.
Other income for the three months ended June 30,
2005 was $2,555,000 versus $36,000 reported for the period in 2004. The income for 2005 includes proceeds from
insurance claims of $2,710,000. The
receipt of the proceeds was the subject of the Company’s press release issued
June 12, 2005.
Income tax expense recognized for the three months ended June
30, 2005, was $647,000 compared to a benefit of $68,000 reported for the period
in 2004.
Net income for the three months ended June
30, 2005 and 2004 was $1,419,000 or $.48 per share versus a net loss of $248,000
or $.08 per share, respectively.
Revenues for the electricity generation
segment for the six months ended June 30, 2005 and 2004 were $151,000 and
$162,000, respectively. The decline in
revenue was due to the equipment repairs and maintenance. Gross revenues of the environmental services
segment for the period in 2005 and 2004 were $429,000 and $474,000,
respectively. The environmental
services provided in both periods were to members of the consolidated group and
therefore eliminated in the calculation of net revenues.
The cost of operations for the six months ended June 30, 2005 and 2004 were $1,017,000 and $960,000, respectively. The net increase in expenses was again due to equipment repair costs and accretion expense.
Other income for the six months ended June 30, 2005
was $2,687,000 versus $122,000 reported for the period in 2004. The income for 2005 includes proceeds from
insurance claims of $2,710,000.
Income tax expense recognized for the six months ended June 30,
2005, was $647,000 compared to a benefit of $190,000 reported for the period in
2004.
Net income for the six months ended June
30, 2005 and 2004 was $1,174,000 or $.39 per share versus a net loss of
$486,000 or $.16 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 and six months
ended June 30, 2005. Certain
modifications have been made to the historic classification of accounts
contained in the Company’s financial statements. Most significant is the reclassification of escrow funds
dedicated to finance the post-closure costs of one of the Company’s
landfill. The account has been
reclassified from a set-off to the post-closure cost liability to the asset
portion of the balance sheet. In
addition, accretion expense associated with the Company’s post-closure
obligations has been reclassified from other expense to a cost of
operations. The reclassifications do
not impact net earnings.
TRANSTECH INDUSTRIES, INC.
AND SUBSIDIARIES
CONSOLIDATED
BALANCE SHEET
As
of June 30, 2005
(In
$000's)
Assets
Cash
and cash equivalents $ 1,429
Marketable
securities
3,472
Accounts
receivable, net of reserves 319
Refundable
income taxes
1,111
Restricted
escrow accounts
1,003
Other
current assets 110
Total current assets 7,444
Other
assets 1,792
Total assets $16,198
Liabilities
and Stockholders' Equity
Total
current liabilities
$ 2,648
Income
taxes payable 1,243
Accrued
closure costs
8,969
Other
liabilities 45
Stockholders'
equity
3,293
Total Liabilities and Stockholders'
Equity $16,198
(In
$000's, except per share data)
Ended June 30,
2005 2004
Less:
Inter-company (222) (229)
Net
Revenues
55 99
Cost
of operations (544) (451)
Other
income (expense)(a)
2,555 36
Income
(taxes) benefit (647) 68
Net
income (loss) $1,419 $(248)
Income
(loss) per common share:
Net income (loss) $
.48 $(.08)
Number
of shares used in
calculation 2,979,190 2,979,190
Ended June 30,
2005 2004
Less:
Inter-company (429) (474)
Net
Revenues 151 162
Cost
of operations
(1,017) (960)
Other
income (expense)(a)
2,687 122
Income
(taxes) benefit (647) 190
Net
income (loss) $1,174 $(486)
Income
(loss) per common share:
Net income (loss) $
.39 $(.16)
Number
of shares used in
calculation 2,979,190 2,979,190
(a) Amount for 2005 includes
$2,710,000 of proceeds from insurance claims.
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