Transtech Industries, Inc. Reports Results for the Quarter Ended September 30, 2009

Fri Nov 13, 3:26 PM

PISCATAWAY, N.J.--(BUSINESS WIRE)--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, 2009. 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, 2009 were $108,000 and $313,000, respectively, versus $201,000 and $573,000 reported for the those periods in 2008. The decrease in revenue reflects the decline in the price received per kilowatt generated as the kilowatt output was comparable for the periods. Gross revenues of the environmental services segment for the three and nine month periods ended September 30, 2009 were $178,000 and $509,000, respectively, versus $186,000 and $623,000 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, 2009 were $588,000 and $1,797,000, respectively, versus $644,000 and $2,060,000 reported for the periods in 2008. The net decrease in costs was primarily due to a decrease in professional fees and general operating expenses.

Other income for the three and nine month periods ended September 30, 2009 was $197,000 and $652,000, respectively, versus $220,000 and $479,000 reported for the periods in 2008.

Income tax benefit recognized for the three and nine month periods ended September 30, 2009 was $162,000 versus $86,000 and $261,000 reported for the periods in 2008, respectively.

Net loss for the three and nine month periods ended September 30, 2009 was $121,000, or $.04 per share, and $670,000, or $.22 per share, respectively. Net loss reported for the three and nine month periods in 2008 was $137,000, or $.05 per share, and $747,000, or $.25 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 in excess of amounts accrued for such costs.

Presented below are the unaudited consolidated balance sheet of the Company as of September 30, 2009 and comparative consolidated statements of operations for the three and nine month periods ended September 30, 2009 and 2008.

TRANSTECH INDUSTRIES, INC.

AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET

As of September 30, 2009
(Unaudited, in $000's)
 

Assets

Cash and cash equivalents   $ 664
Marketable securities 1,700
Restricted escrow accounts 1,063
Other current assets 618
Total current assets 4,045
Restricted escrow accounts 5,581
Other assets 1,999
Total assets $ 11,625
 

Liabilities and Stockholders' Equity

Total current liabilities $ 1,872
Income taxes payable 456
Accrued post-closure costs 6,876
Other liabilities 51
Stockholders' equity 2,370
Total Liabilities and Stockholders' Equity $ 11,625

CONSOLIDATED STATEMENTS OF OPERATIONS

(In $000's, except per share data)
 
  For the Three Months
Ended September 30,
2009   2008
Gross Revenues $ 286 $ 387
Less: Eliminations (178 ) (186 )
Net Revenues 108 201
Cost of Operations (588 ) (644 )
Other Income 197 220
Income Tax Benefit 162 86
Net Loss $ (121 ) $ (137 )
Loss per common share:
Net Income Loss $ (.04 ) $ (.05 )
Number of shares used in
calculation 2,979,190 2,979,190
 
For the Nine Months
Ended September 30,
2009 2008
Gross Revenues $ 822 $ 1,196
Less: Eliminations (509 ) (623 )
Net Revenues 313 573
Cost of Operations (1,797 ) (2,060 )
Other Income 652 479
Income Tax Benefit 162 261
Net Loss $ (670 ) $ (747 )
Loss per common share:
Net Loss $ (.22 ) $ (.25 )
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.

Transtech Industries, Inc.
Andrew J. Mayer, Jr., 732-564-3122
Vice President-Finance and
Chief Financial Officer
Web Site: www.Transtechindustries.com