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

Fri Nov 14, 3:21 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, 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 nine month periods ended September 30, 2008 were $201,000 and $573,000, respectively, versus $189,000 and $400,000 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 nine month periods ended September 30, 2008 were $186,000 and $623,000, respectively, versus $209,000 and $745,000 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, 2008 were $651,000 and $2,068,000, respectively, versus $612,000 and $1,815,000 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 to litigation initiated by the Company to challenge the attempts by two municipalities to encumber the Company’s real property located in Edison Township, N.J. and Deptford Township, N.J.

Other income for the three and nine month periods ended September 30, 2008 was $220,000 and $479,000, respectively, versus $210,000 and $460,000 reported for the those periods in 2007.

Income tax benefit for the three and nine month periods ended September 30, 2008 was $86,000 and $261,000, respectively, versus $42,000 and $298,000 reported for the those periods in 2007.

Net loss for the three and nine month periods ended September 30, 2008 was $137,000, or $.05 per share, and $747,000, or $.25 per share, respectively. Net loss reported for the three and nine month periods ended September 30, 2007 was $171,000, or $.06 per share, and $657,000, or $.22 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.

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

TRANSTECH INDUSTRIES, INC.

AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET

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

Assets

Cash and cash equivalents $ 1,067
Marketable securities 2,697
Restricted escrow accounts 1,037
Other current assets

882

Total current assets 5,683
Restricted escrow accounts 5,566
Other assets 2,023
Total assets $ 13,272
 

Liabilities and Stockholders' Equity

Total current liabilities $ 1,945
Income taxes payable 617
Accrued post-closure costs 7,334
Other liabilities 10
Stockholders' equity 3,366
Total Liabilities and Stockholders' Equity $ 13,272

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, in $000's, except per share data)

 
For the Three Months
Ended September 30,

2008

 

2007

Gross Revenues $ 387 $ 398
Less: Eliminations (186 ) (209 )
Net Revenues 201 189
Cost of Operations (651 ) (612 )
Gain on Sale of Equipment 7 -
Other Income 220 210
Income Tax Benefit (Expense) 86 42
Net Income (Loss) $ (137 ) $ (171 )
Loss per common share:
Net Income (Loss) $ (.05 ) $ (.06 )
Number of shares used in
calculation 2,979,190 2,979,190
 
For the Nine Months
Ended September 30,

2008

2007

Gross Revenues $ 1,196 $ 1,145
Less: Eliminations (623 ) (745 )
Net Revenues 573 400
Cost of Operations (2,068 ) (1,815 )
Gain on Sale of Equipment 8 -
Other Income 479 460
Income Tax Benefit (Expense) 261 298
Net Income (Loss) $ (747 ) $ (657 )
Loss per common share:
Net Income (Loss) $ (.25 ) $ (.22 )
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