TRTI Transtech Industries Inc (CE)

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, 2009. The Company’s subsidiaries perform environmental services and generate electricity utilizing methane gas as fuel.

Revenues for the electricity generation segment for the year ended December 31, 2009 were $413,000 versus $689,000 reported for 2008. The decrease in revenue reflects the decline in the price received per kilowatt generated as the kilowatt output increased 11% in 2009. Gross revenues of the environmental services segment for year ended December 31, 2009 were $658,000 versus $737,000 reported for 2008. The environmental services performed 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 the year ended December 31, 2009 were $2,458,000 versus $2,764,000 reported for 2008. The net decrease in costs was primarily due to a decrease in professional fees and general operating expenses.

Other income for year ended December 31, 2009 was $750,000 versus $764,000 reported for 2008.

Income tax benefit recognized for the year ended December 31, 2009 was $598,000 versus $374,000 reported for 2008.

Net loss for the year ended December 31, 2009 was $697,000, or $.23 per share versus $937,000, or $.31 per share, reported for 2008.

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, and has been named as a potentially responsible party for the remediation of four sites. The Company has reported significant operating loses in each of the last five years, and it is anticipated that such operating losses will continue as the Company’s expenses exceed revenue from its operations in the near term. The Company may also incur significant remediation and landfill post-closure maintenance costs in excess of amounts accrued. The Company therefore is unable to determine whether the timing and amount of cash generated from its efforts to enhance its liquidity, through the sale of real property and otherwise, and from the Company’s remaining operations will be adequate to satisfy its future cash requirements. These conditions raise substantial doubt about the Company’s ability to continue as a going concern.

Presented below are the audited consolidated balance sheet of the Company as of December 31, 2009 and comparative consolidated statements of operations for the years ended December 31, 2009 and 2008.

 

TRANSTECH INDUSTRIES, INC.

AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET

As of December 31, 2009

(Audited, in $000's)

 

Assets

Cash and cash equivalents   $ 1,087 Marketable securities 1,300 Restricted escrow accounts 1,070 Other current assets   675 Total current assets 4,132 Restricted escrow accounts 5,100 Other assets   1,983 Total assets $ 11,215  

Liabilities and Stockholders' Equity

Total current liabilities $ 1,625 Income taxes payable 416 Accrued post-closure costs 6,895 Other liabilities 46 Stockholders' equity   2,233 Total Liabilities and Stockholders' Equity $ 11,215    

CONSOLIDATED STATEMENTS OF OPERATIONS

(In $000's, except per share data)

  For the Year Ended December 31,

2009

 

2008

Gross Revenues $ 1,071 $ 1,426

Less: Eliminations

  (658 )   (737 ) Net Revenues 413 689 Cost of Operations (2,458 ) (2,764 ) Other Income 750 764 Income Tax Benefit   598     374   Net Loss $ (697 ) $ (937 ) Loss per common share: Net Income Loss $ (.23 ) $ (.31 )

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.