PRESS RELEASE - NOVEMBER 14, 2007
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TRANSTECH
INDUSTRIES, INC. REPORTS RESULTS
FOR
THE THREE AND NINE MONTH PERIODS ENDED SEPTEMBER 30, 2007
PISCATAWAY,
N.J., November 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 nine month periods ended September
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 September 30, 2007 and 2006 were $189,000
and $110,000, 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 $209,000
and $334,000, 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,
2007 and 2006 were $612,000 and $515,000, respectively. The net increase in costs was primarily due
to an increase in professional fees and general operating expenses, and costs
to relocate environmental operations into a new facility.
Other income for the three months ended September
30, 2007 and 2006 was $210,000 and $224,000, respectively, which include
proceeds from insurance claims of $56,000 and $89,000, respectively.
Income tax benefit for the three months
ended September 30, 2007 and 2006 was $42,000 and $69,000, respectively.
Net loss for the three months ended September
30, 2007 was $171,000, or $.06 per share, versus a net loss of $112,000, or $.04
per share, for the period in 2006.
Revenues for the electricity generation
segment for the nine months ended September 30, 2007 and 2006 were $400,000 and
$277,000, respectively. The increase in
revenue was due to an increase in both kilowatts hours generated and fee
received. Gross revenues of the
environmental services segment for the period in 2007 and 2006 were $745,000
and $951,000, 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,
2007 and 2006 were $1,815,000 and $1,720,000, respectively. The net increase in costs was primarily due
to an increase in professional fees and general operating expenses, and costs to
relocate environmental operations into a new facility.
Other income for the nine months ended September
30, 2007 and 2006 was $460,000 and $1,006,000, respectively. Such amounts include proceeds from insurance
claims of $56,000 and $435,000, respectively. 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 nine months
ended September 30, 2007 and 2006 was $298,000 and $141,000, respectively.
Net loss for the nine months ended September
30, 2007 was $657,000, or $.22 per share, versus a net loss of $296,000, or $.10
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 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.
The Company
previously announced that 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
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, 2007 and comparative consolidated statements of operations for
the three and nine months ended September 30, 2007 and 2006.
TRANSTECH INDUSTRIES, INC.
AND SUBSIDIARIES
CONSOLIDATED
BALANCE SHEET
As
of September 30, 2007
(In
$000's)
Assets
Cash
and cash equivalents
$ 724
Marketable
securities
3,626
Restricted
escrow accounts
1,012
Other
current assets 538
Total current assets 5,900
Other
assets
2,190
Total assets $14,906
Liabilities
and Stockholders' Equity
Total
current liabilities
$ 2,058
Income
taxes payable
778
Accrued
post-closure costs
7,864
Other
liabilities 20
Stockholders'
equity 4,186
Total Liabilities and Stockholders'
Equity $14,906
(In
$000's, except per share data)
Ended September 30,
2007 2006
Less:
Eliminations (209) (334)
Net
Revenues 189 110
Cost
of Operations (612) (515)
Other
Income 210 224
Income
Tax Benefit 42 69
Net
Loss $ (171) $ (112)
Loss
per common share:
Net loss $ (.06) $ (.04)
Number
of shares used in
calculation 2,979,190 2,979,190
Ended September 30,
2007 2006
Less:
Eliminations (745) (951)
Net
Revenues 400 277
Cost
of Operations (1,815) (1,720)
Other
Income(a) 460 1,006
Income
Tax Benefit 298 141
Net
Loss $ (657) $ (296)
Loss
per common share:
Net loss $ (.22) $ (.10)
Number
of shares used in
calculation 2,979,190 2,979,190
(a) Amounts for
2007 and 2006 include $56,000 and $435,000, respectively, of proceeds from
insurance claims.
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