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 three and six month periods ended June 30, 2005. The Company's subsidiaries perform environmental services and generate electricity utilizing methane gas as fuel. Revenues for the electricity generation segment for the three months ended June 30, 2005 and 2004 were $55,000 and $99,000, respectively. The decline in revenue was due to repairs and maintenance of the electricity generating equipment. Gross revenues of the environmental services segment for the period in 2005 and 2004 were $222,000 and $229,000, respectively. The environmental services provided in both periods were to members of the consolidated group and therefore eliminated in the calculation of net revenues. The cost of operations for the three months ended June 30, 2005 and 2004 were $544,000 and $451,000, respectively. The net increase in expenses was primarily due to equipment repair costs and accretion expense associated with the Company's post-closure obligations. Other income for the three months ended June 30, 2005 was $2,555,000 versus $36,000 reported for the period in 2004. The income for 2005 includes proceeds from insurance claims of $2,710,000. The receipt of the proceeds was the subject of the Company's press release issued June 12, 2005. Income tax expense recognized for the three months ended June 30, 2005, was $647,000 compared to a benefit of $68,000 reported for the period in 2004. Net income for the three months ended June 30, 2005 and 2004 was $1,419,000 or $.48 per share versus a net loss of $248,000 or $.08 per share, respectively. Revenues for the electricity generation segment for the six months ended June 30, 2005 and 2004 were $151,000 and $162,000, respectively. The decline in revenue was due to the equipment repairs and maintenance. Gross revenues of the environmental services segment for the period in 2005 and 2004 were $429,000 and $474,000, respectively. The environmental services provided in both periods were to members of the consolidated group and therefore eliminated in the calculation of net revenues. The cost of operations for the six months ended June 30, 2005 and 2004 were $1,017,000 and $960,000, respectively. The net increase in expenses was again due to equipment repair costs and accretion expense. Other income for the six months ended June 30, 2005 was $2,687,000 versus $122,000 reported for the period in 2004. The income for 2005 includes proceeds from insurance claims of $2,710,000. Income tax expense recognized for the six months ended June 30, 2005, was $647,000 compared to a benefit of $190,000 reported for the period in 2004. Net income for the six months ended June 30, 2005 and 2004 was $1,174,000 or $.39 per share versus a net loss of $486,000 or $.16 per share, respectively. The Company continues to face significant potential cash requirements for litigation expenses, as well as ongoing administrative costs, and post-closure costs associated with sites of past operations. Although the Company continues to pursue the sale of property held for sale and claims against non-settling insurance carriers for recoveries of past remediation costs, no assurance can be given that the timing or amount of the proceeds from such sources will be sufficient to meet the cash requirements of the Company. 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 three and six months ended June 30, 2005. Certain modifications have been made to the historic classification of accounts contained in the Company's financial statements. Most significant is the reclassification of escrow funds dedicated to finance the post-closure costs of one of the Company's landfill. The account has been reclassified from a set-off to the post-closure cost liability to the asset portion of the balance sheet. In addition, accretion expense associated with the Company's post-closure obligations has been reclassified from other expense to a cost of operations. The reclassifications do not impact net earnings. -0- *T TRANSTECH INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET As of June 30, 2005 (In $000's) Assets Cash and cash equivalents $ 1,429 Marketable securities 3,472 Accounts receivable, net of reserves 319 Refundable income taxes 1,111 Restricted escrow accounts 1,003 Other current assets 110 Total current assets 7,444 Restricted escrow accounts 6,962 Other assets 1,792 Total assets $16,198 Liabilities and Stockholders' Equity Total current liabilities $ 2,648 Income taxes payable 1,243 Accrued closure costs 8,969 Other liabilities 45 Stockholders' equity 3,293 Total Liabilities and Stockholders' Equity $16,198 CONSOLIDATED STATEMENTS OF OPERATIONS (In $000's, except per share data) For the Three Months Ended June 30, 2005 2004 Gross Revenues $ 277 $ 328 Less: Inter-company (222) (229) Net Revenues 55 99 Cost of operations (544) (451) Other income (expense)(a) 2,555 36 Income (taxes) benefit (647) 68 Net income (loss) $1,419 $(248) Income (loss) per common share: Net income (loss) $ .48 $(.08) Number of shares used in calculation 2,979,190 2,979,190 For the Six Months Ended June 30, 2005 2004 Gross Revenues $ 580 $ 636 Less: Inter-company (429) (474) Net Revenues 151 162 Cost of operations (1,017) (960) Other income (expense)(a) 2,687 122 Income (taxes) benefit (647) 190 Net income (loss) $1,174 $(486) Income (loss) per common share: Net income (loss) $ .39 $(.16) Number of shares used in calculation 2,979,190 2,979,190 (a) Amount for 2005 includes $2,710,000 of proceeds from insurance claims. *T