PRESS RELEASE - NOVEMBER 14, 2006
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TRANSTECH
INDUSTRIES, INC. REPORTS RESULTS
FOR THE THREE AND NINE
MONTH PERIODS ENDED SEPTEMBER 30, 2006
PISCATAWAY, N.J., November
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 nine month periods ended September 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 September 30, 2006 and 2005 were $110,000
and $145,000, respectively. The decrease
in revenue was due to a decline in the rate per kilowatt received for the power
generated. Gross revenues of the
environmental services segment for the period in 2006 and 2005 were $334,000
and $223,000, 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 September 30, 2006 and 2005 were $515,000 and $435,000,
respectively. The net increase was
primarily due to increased equipment repair, general operating and personnel costs.
Other income for the three months ended September
30, 2006 and 2005 was $224,000 and $637,000, respectively, and includes $89,000
and $510,000, respectively, of proceeds from claims against excess insurance
carriers.
Income tax benefit for the three months
ended September 30, 2006, was $69,000 compared to an expense of $189,000
reported for the period in 2005.
Net loss for the three months ended September 30, 2006 was $112,000,
or $.04 per share, versus net income of $158,000, or $.05 per share, for the
period in 2005.
Revenues for the electricity generation
segment for the nine months ended September 30, 2006 and 2005 were $277,000 and
$296,000, respectively. The decrease in
revenue was due to a decline in the rate per kilowatt received for the power
generated. Gross revenues of the
environmental services segment for the period in 2006 and 2005 were $951,000
and $652,000, 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 nine months
ended September 30, 2006 and 2005 were $1,720,000 and $1,452,000,
respectively. The net increase was
primarily due to increased personnel costs, legal and other professional
expenses.
Other income for the nine months ended September
30, 2006 and 2005 was $1,006,000 and $3,324,000, respectively, and includes
$435,000 and $3,220,000, respectively, of proceeds from claims against excess
insurance carriers.
Income tax benefit for the nine months ended
September 30, 2006, was $141,000 compared to an expense of $836,000 reported
for the period in 2005.
Net loss for the nine months ended September
30, 2006 was $296,000, or $.10 per share, versus net income of $1,332,000, or
$.45 per share, for the period in 2005.
As previously reported, the Company
completed the sale of certain real property and buildings during October
2006. The Company will include a pretax
net gain of approximately $1.9 million from the sale in its results for the
year ended December 31, 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.
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 September 30, 2006 and comparative
consolidated statements of operations for the three and nine months ended September
30, 2006 and 2005.
TRANSTECH INDUSTRIES, INC.
AND SUBSIDIARIES
CONSOLIDATED
BALANCE SHEET
As of September 30,
2006
(In $000's)
Assets
Cash and cash
equivalents $
3,166
Marketable
securities
2,383
Restricted escrow
accounts
1,007
Other current
assets 267
Total current
assets 6,823
Other assets 2,093
Total assets $15,413
Liabilities and
Stockholders' Equity
Total current
liabilities $
2,156
Income taxes
payable
987
Accrued
post-closure costs
8,479
Other
liabilities 29
Stockholders'
equity 3,762
Total Liabilities and Stockholders'
Equity $15,413
(In $000's, except
per share data)
Ended September
30,
2006 2005
Less:
Eliminations (334) (223)
Net Revenues 110 145
Cost of
operations (515) (435)
Other income 224 637
Income (taxes)
benefit 69
(189)
Net income
(loss) $(112) $158
Income (loss) per
common share:
Net income (loss) $(.04) $ .05
Number of shares
used in
calculation 2,979,190 2,979,190
Ended September 30,
2006 2005
Less:
Inter-company (951) (652)
Net Revenues 277 296
Cost of
operations (1,720) (1,452)
Other
income(a) 1,006 3,324
Income (taxes)
benefit 141 (836)
Net income
(loss) $ (296) $1,332
Income (loss) per
common share:
Net income (loss) $ (.10) $
.45
Number of shares
used in
calculation 2,979,190 2,979,190
(a)
Includes proceeds from insurance claims of $435,000 and $3,220,000 in 2006 and
2005, respectively.
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