Transtech Industries, Inc. Reports Results for the Quarter Ended June 30, 2008

Thu Aug 14, 4:24 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 six month periods ended June 30, 2008. 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 six month periods ended June 30, 2008 were $213,000 and $372,000, respectively, versus $78,000 and $211,000 reported for the those periods in 2007. The increase in revenue was due to higher fees received per kWh and less downtime for repairs. Gross revenues of the environmental services segment for the three and six month periods ended June 30, 2008 were $218,000 and $437,000, respectively, versus $264,000 and $536,000 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 six month periods ended June 30, 2008 were $712,000 and $1,417,000, respectively, versus $625,000 and $1,203,000 reported for the those periods in 2007. The net increase in costs was primarily due to an increase in professional fees and general operating expenses. The increase in professional fees reported for the periods in 2008 was due in large part to the Company’s ongoing challenge of attempts by two municipalities to encumber the Company’s real property located in Edison Township, N.J. and Deptford Township, N.J. The Company has filed suits to prevent such actions.

Other income for the three and six month periods ended June 30, 2008 was $138,000 and $259,000, respectively, versus $136,000 and $250,000 reported for the those periods in 2007.

Income tax benefit for the three and six month periods ended June 30, 2008 was $31,000 and $175,000, respectively, versus $146,000 and $256,000 reported for the those periods in 2007.

Net loss for the three and six month periods ended June 30, 2008 was $330,000, or $.11 per share, and $610,000, or $.20 per share, respectively. Net loss reported for the three and six month periods ended June 30, 2007 was $265,000, or $.09 per share, and $486,000, or $.16 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.

As previously disclosed, the Company has challenged an arbitrator’s award of $3.5 million of insurance proceeds, held in escrow since 2002, to SCA Services, Inc. The arbitrator's ruling was affirmed by a District Court and in December, 2005 the Company filed an appeal of the Court’s decision. The Court of Appeals affirmed the lower Court's decision March 24, 2008, and the Company’s subsequent petition for a rehearing was denied by the Court on June 24, 2008. The Company will not continue to challenge the Court’s decision. The amount held in escrow is not reflected on the Company's financial statements; therefore the Court's decision will not adversely impact the Company's financial statements.

Presented below are the unaudited consolidated balance sheet of the Company as of June 30, 2008 and comparative consolidated statements of operations for the three and six month periods ended June 30, 2008 and 2007.

TRANSTECH INDUSTRIES, INC.

AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET

As of June 30, 2008
(Unaudited, in $000's)
 

Assets

Cash and cash equivalents   $ 699
Marketable securities 2,709
Restricted escrow accounts 1,031
Other current assets 742
Total current assets 5,181
Restricted escrow accounts 6,381
Other assets 2,109
Total assets $ 13,671
 

Liabilities and Stockholders' Equity

Total current liabilities $ 2,006
Income taxes payable 657
Accrued post-closure costs 7,444
Other liabilities 12
Stockholders' equity 3,552
Total Liabilities and Stockholders' Equity $ 13,671

CONSOLIDATED STATEMENTS OF OPERATIONS

(In $000's, except per share data)
 
  For the Three Months
Ended June 30,

2008

 

2007

Gross Revenues $ 431 $ 342
Less: Eliminations (218 ) (264 )
Net Revenues 213 78
Cost of Operations (712 ) (625 )
Other Income 138 136
Income Tax Benefit (Expense) 31 146
Net Income (Loss) $ (330 ) $ (265 )
Loss per common share:
Net Income (Loss) $ (.11 ) $ (.09 )
Number of shares used in calculation 2,979,190 2,979,190
 
For the Six Months
Ended June 30,

2008

2007

Gross Revenues $ 809 $ 747
Less: Eliminations (437 ) (536 )
Net Revenues 372 211
Cost of Operations (1,416 ) (1,203 )
Other Income 259 250
Income Tax Benefit (Expense) 175 256
Net Income (Loss) $ (610 ) $ (486 )
Loss per common share:
Net Income (Loss) $ (.20 ) $ (.16 )
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
www.Transtechindustries.com