PRESS RELEASE - MARCH 31, 2006
Home Page | Investor Relations | Transtech Profile | Press Releases | United Environmental Services Profile
TRANSTECH
INDUSTRIES, INC. REPORTS RESULTS
FOR
THE YEAR ENDED DECEMBER 31, 2005
PISCATAWAY,
N.J., March 31, 2006 - Robert V. Silva, President and Chief
Executive Officer of Transtech Industries, Inc. (OTC BULLETIN BOARD:TRTI)
announced the results of operations for the year ended December 31, 2005. The Company’s subsidiaries perform
environmental services and generate electricity utilizing methane gas as fuel.
Gross revenues of the environmental
services segment for the year ended December 31, 2005 were $870,000 versus $962,000
for 2004. Revenues for the electricity
generation segment for 2005 were $451,000 compared to $359,000 for 2004. 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 years ended December 31, 2005 and 2004 were $2,034,000 and $2,165,000, respectively.
Other income for the year ended December 31, 2005
was $4,681,000 and includes $4,514,000 of income from settlements of insurance
claims. Other income for 2004 was
$2,721,000 and includes a $2,332,000 gain from a reduction in federal income
taxes and interest payable realized as a result of the IRS acceptance of the
Company’s Offer in Compromise.
Income tax expense for the year ended December 31, 2005 was
$1,126,000 compared to a benefit of $418,000 recognized in 2004.
Net income for the year ended December 31,
2005 was $1,972,000 or $.66 per share versus $1,333,000 or $.45 per share for
2004.
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.
During March 2006, the Company one of 158
parties named as a potentially responsible party in a notice from the U.S. EPA
regarding an area located in Bergen County, N.J. known as the Berry’s Creek
Area. The Company had previously been
named to administrative orders regarding the remediation of the SCP Superfund
Site which is located in the vicinity of Berry’s Creek. The extent of the Company’s involvement with
the Berry’s Creek Area, if any, has yet to be determined.
As previously announced, during 2005 the Company received
payments totaling approximately $4.5 million from the estates of insolvent
excess insurance carriers. The
insolvent excess insurers were among the defendant excess insurers named in the
suit brought by the Company in 1995 which sought reimbursement of past
remediation costs. A settlement was
reached with the majority of the defendant carriers in 2001. The Company has now reached settlement with
carriers that represent approximately 97% of the value assigned to the policies
subject to the suit.
Also
previously reported, on October 18, 2005 the
U.S. District Court for the District of New Jersey accepted a consent decree
that the Company had executed on December 30, 2004, which resolved the claims
brought against the Company and others by EPA, the New Jersey Department of
Environmental Protection and New Jersey Spill Compensation Fund regarding the
Kin-Buc Landfill.
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
year ended December 31, 2005.
TRANSTECH INDUSTRIES, INC.
AND SUBSIDIARIES
CONSOLIDATED
BALANCE SHEET
As
of December 31, 2005
(In
$000's)
Assets
Cash
and cash equivalents
$ 2,071
Marketable
securities
4,445
Accounts
receivable, net of reserves
57
Refundable
income taxes
436
Other
current assets 1,067
Other
assets 8,461
Total assets $16,537
Liabilities
and Stockholders' Equity
Total
current liabilities
$ 2,619
Income
taxes payable 1,151
Accrued
closure costs
8,758
Other
liabilities 34
Stockholders'
equity
3,975
Total Liabilities and Stockholders' Equity $16,537
(In
$000's, except per share data)
Ended December 31,
2005 2004
Less:
Inter-company (870) (962)
Net
Revenues 451 359
Cost
of operations (2,034) (2,165)
Other
income (expense) 4,681(a) 2,721(b)
Income
(taxes) credit (1,126) 418
Net
income (loss) $ 1,972 $ 1,333
Income
(loss) per common share:
Net income (loss) $ .66 $ .45
Number
of shares used in
calculation 2,979,190 2,979,190
(a) Amount for 2005 includes income
of $4,514,000 of proceeds from the settlement of insurance claims.
(b) Amount for 2004 includes income
of $2,332,000 resulting from a reduction of accrued federal income taxes and
related interest.
Home Page | Investor Relations | Transtech Profile | Press Releases | United Environmental Services Profile