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 New Jersey grants a municipality many options to achieve its objectives regarding the use of property within the zone.  Municipalities may acquire property for redevelopment using their powers of eminent domain, compensating the property owner for its fair market value.  The owner of property included within a zone may challenge the creation of the redevelopment area and/or the amount of compensation received for property.  The declaration of a redevelopment zone requires the approval of the Township’s governing body.  The Township has informed the Company that it has not finalized its intentions with respect to the area, or if all or any of the Company’s property will ultimately be included.  The Company has objected to errors and mischaracterizations contained within the study, as well as its conclusion, and during September 2007 filed suit against the Planning Board seeking, among other remedies, to set aside the Planning Board’s approval of the study.

 

     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

Restricted escrow accounts                              6,816

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

 


 

CONSOLIDATED STATEMENTS OF OPERATIONS

(In $000's, except per share data)

 

                                         For the Three Months

                                          Ended September 30,

                                        2007              2006

Gross Revenues                        $  398            $  444

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

 

 

                                          For the Nine Months

                                          Ended September 30,

                                        2007              2006

Gross Revenues                        $1,145            $1,228

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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