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, 2005. The Company's subsidiaries perform environmental services and generate electricity utilizing methane gas as fuel. Gross revenues of the environmental services segment for the year ended December 31, 2005 were $870,000 versus $962,000 for 2004. Revenues for the electricity generation segment for 2005 were $451,000 compared to $359,000 for 2004. 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 years ended December 31, 2005 and 2004 were $2,034,000 and $2,165,000, respectively. Other income for the year ended December 31, 2005 was $4,681,000 and includes $4,514,000 of income from settlements of insurance claims. Other income for 2004 was $2,721,000 and includes a $2,332,000 gain from a reduction in federal income taxes and interest payable realized as a result of the IRS acceptance of the Company's Offer in Compromise. Income tax expense for the year ended December 31, 2005 was $1,126,000 compared to a benefit of $418,000 recognized in 2004. Net income for the year ended December 31, 2005 was $1,972,000 or $.66 per share versus $1,333,000 or $.45 per share for 2004. The Company and certain subsidiaries previously participated in the waste recovery and waste management industries. The Company continues to incur administrative and litigation expenses on matters related to past participation in those industries. In addition, the Company may incur significant remediation and post-closure costs related to sites of past operations. During March 2006, the Company one of 158 parties named as a potentially responsible party in a notice from the U.S. EPA regarding an area located in Bergen County, N.J. known as the Berry's Creek Area. The Company had previously been named to administrative orders regarding the remediation of the SCP Superfund Site which is located in the vicinity of Berry's Creek. The extent of the Company's involvement with the Berry's Creek Area, if any, has yet to be determined. As previously announced, during 2005 the Company received payments totaling approximately $4.5 million from the estates of insolvent excess insurance carriers. The insolvent excess insurers were among the defendant excess insurers named in the suit brought by the Company in 1995 which sought reimbursement of past remediation costs. A settlement was reached with the majority of the defendant carriers in 2001. The Company has now reached settlement with carriers that represent approximately 97% of the value assigned to the policies subject to the suit. Also previously reported, on October 18, 2005 the U.S. District Court for the District of New Jersey accepted a consent decree that the Company had executed on December 30, 2004, which resolved the claims brought against the Company and others by EPA, the New Jersey Department of Environmental Protection and New Jersey Spill Compensation Fund regarding the Kin-Buc Landfill. 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 year ended December 31, 2005. -0- *T TRANSTECH INDUSTRIES, INC. AND SUBSIDIARIES ---------------- CONSOLIDATED BALANCE SHEET As of December 31, 2005 (In $000's) Assets ------ Cash and cash equivalents $ 2,071 Marketable securities 4,445 Accounts receivable, net of reserves 57 Refundable income taxes 436 Other current assets 1,067 -------- Total current assets 8,076 Other assets 8,461 -------- Total assets $16,537 ======== Liabilities and Stockholders' Equity ------------------------------------ Total current liabilities $ 2,619 Income taxes payable 1,151 Accrued closure costs 8,758 Other liabilities 34 Stockholders' equity 3,975 -------- Total Liabilities and Stockholders' Equity $16,537 ======== CONSOLIDATED STATEMENTS OF OPERATIONS (In $000's, except per share data) For the Year Ended December 31, 2005 2004 ---- ---- Gross Revenues $ 1,321 $ 1,321 Less: Inter-company (870) (962) -------- -------- Net Revenues 451 359 Cost of operations (2,034) (2,165) Other income (expense) 4,681(a) 2,721(b) Income (taxes) credit (1,126) 418 -------- -------- Net income (loss) $ 1,972 $ 1,333 ======== ======== Income (loss) per common share: Net income (loss) $ .66 $ .45 Number of shares used in === === calculation 2,979,190 2,979,190 (a) Amount for 2005 includes income of $4,514,000 of proceeds from the settlement of insurance claims. (b) Amount for 2004 includes income of $2,332,000 resulting from a reduction of accrued federal income taxes and related interest. *T