PRESS RELEASE - NOVEMBER 14, 2008


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TRANSTECH INDUSTRIES, INC. REPORTS RESULTS

FOR THE QUARTER ENDED SEPTEMBER 30, 2008

 

     PISCATAWAY, N.J., November 14, 2008 - 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, 2008.  The Company’s subsidiaries perform environmental services and generate electricity utilizing methane gas as fuel.

 

     Revenues for the electricity generation segment for the three and nine month periods ended September 30, 2008 were $201,000 and $573,000, respectively, versus $189,000 and $400,000 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 nine month periods ended September 30, 2008 were $186,000 and $623,000, respectively, versus $209,000 and $745,000 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 nine month periods ended September 30, 2008 were $651,000 and $2,068,000, respectively, versus $612,000 and $1,815,000 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 to litigation initiated by the Company to challenge the attempts by two municipalities to encumber the Company’s real property located in Edison Township, N.J. and Deptford Township, N.J.


     Other income for the three and nine month periods ended September 30, 2008 was $220,000 and $479,000, respectively, versus $210,000 and $460,000 reported for the those periods in 2007. 

 

     Income tax benefit for the three and nine month periods ended September 30, 2008 was $86,000 and $261,000, respectively, versus $42,000 and $298,000 reported for the those periods in 2007. 

 

     Net loss for the three and nine month periods ended September 30, 2008 was $137,000, or $.05 per share, and $747,000, or $.25 per share, respectively.  Net loss reported for the three and nine month periods ended September 30, 2007 was $171,000, or $.06 per share, and $657,000, or $.22 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.

    

     Presented below are the unaudited consolidated balance sheet of the Company as of September 30, 2008 and comparative consolidated statements of operations for the three and nine month periods ended September 30, 2008 and 2007.

 

    

TRANSTECH INDUSTRIES, INC.

AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET

As of September 30, 2008

(Unaudited, in $000's)

 

Assets

Cash and cash equivalents                              $ 1,067

Marketable securities                                    2,697

Restricted escrow accounts                               1,037

Other current assets                                       882

   Total current assets                                  5,683

Restricted escrow accounts                               5,566

Other assets                                             2,023

   Total assets                                        $13,272

 

Liabilities and Stockholders' Equity

Total current liabilities                              $ 1,945

Income taxes payable                                       617

Accrued post-closure costs                               7,334

Other liabilities                                           10

Stockholders' equity                                     3,366

   Total Liabilities and Stockholders' Equity          $13,272

 


 

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, in $000's, except per share data)

 

                                         For the Three Months

                                          Ended September 30,

                                         2008            2007

Gross Revenues                          $ 387           $ 398

Less: Eliminations                       (186)           (209)

Net Revenues                              201             189

Cost of Operations                       (651)           (612)

Gain on Sale of Equipment                   7              -

Other Income                              220             210

Income Tax Benefit (Expense)               86              42

Net Income (Loss)                       $(137)          $(171)

Loss per common share:

  Net Income (Loss)                     $(.05)          $(.06)

Number of shares used in

  calculation                       2,979,190       2,979,190

 

                                         For the Nine Months

                                          Ended September 30,

                                         2008            2007

Gross Revenues                         $1,196          $1,145

Less: Eliminations                       (623)           (745)

Net Revenues                              573             400

Cost of Operations                     (2,068)         (1,815)

Gain on Sale of Equipment                   8              -

Other Income                              479             460

Income Tax Benefit (Expense)              261             298

Net Income (Loss)                      $ (747)         $ (657)

Loss per common share:

  Net Income (Loss)                    $ (.25)         $ (.22)

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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