PRESS RELEASE - APRIL 16, 2007
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TRANSTECH INDUSTRIES, INC. REPORTS RESULTS
FOR THE YEAR ENDED DECEMBER 31, 2006
PISCATAWAY, N.J., April
16, 2007 - 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, 2006. The Company’s subsidiaries perform
environmental services and generate electricity utilizing methane gas as fuel.
Revenues for the electricity generation segment for the years
ended December 31, 2006 and 2005 were $364,000 and $451,000, respectively. The decrease in 2006 revenue was due to a
decline in the rate received per kilowatt generated. Gross revenues of the environmental services
segment for 2006 and 2005 were $1,196,000 and $870,000, respectively. All of the services provided in both years
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 2006 and 2005 were $2,409,000 and $2,034,000,
respectively. The net increase was primarily
due to increased equipment repair costs, professional fees, general operating
and personnel costs.
The results for 2006 include a net gain of $1,852,000 from the
sale of 60 acres of real property.
Other income for 2006 and 2005 was $1,335,000 and $4,681,000,
respectively, and includes $600,000 and $4,514,000, respectively, of proceeds
from claims against excess insurance carriers.
Income tax expense equaled $630,000 and $1,126,000 for 2006 and 2005,
respectively.
Net income for the year ended December 31, 2006 was $630,000 or
$.21 per share versus $1,972,000 or $.66 per share reported for 2005.
The proceeds from insurance claims reported for 2006 and 2005
were received 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
98% of the value assigned to the policies subject to the suit.
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 was one of 158 parties named as a
potentially responsible party in a notice from the U.S. EPA regarding an area
located in
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, 2006.
TRANSTECH INDUSTRIES, INC.
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
As of December 31, 2006
(In $000's)
Assets
Cash and cash
equivalents $ 1,601
Marketable securities 4,645
Other current assets 1,155
Total current assets 7,401
Other assets 8,530
Total assets $15,931
Liabilities and Stockholders' Equity
Total current
liabilities $
1,903
Income taxes payable 933
Accrued post-closure
costs 8,399
Other liabilities 27
Stockholders' equity 4,669
Total Liabilities and Stockholders'
Equity $15,931
CONSOLIDATED STATEMENTS OF OPERATIONS
(In $000's, except per share data)
For the Year
Ended December 31,
2006 2005
Gross Revenues $ 1,560 $ 1,321
Less: Inter-company (1,196) (870)
Net Revenues 364 451
Cost of operations (2,409) (2,034)
Gain from the sale of real
property 1,852 -
Other income(a) 1,335 4,681
Income taxes (512) (1,126)
Net income $ 630 $ 1,126
Income (loss) per common
share:
Net income (loss) $ .21 $ .66
Number of shares used in
calculation 2,979,190 2,979,190
(a) Amount for 2006 and 2005
includes $600 and $4,514, respectively, of proceeds from settlements of
insurance claims.
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