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 month period ended March 31, 2006. The Company's subsidiaries perform environmental services and generate electricity utilizing methane gas as fuel. Gross revenues of the environmental services segment for the three months ended March 31, 2006 and 2005 were $269,000 and $207,000, respectively. All of the environmental services provided in both periods were to members of the consolidated group and therefore eliminated in the calculation of net revenues. Revenues of the electricity generation segment for the period in 2006 increased to $109,000 from $96,000 reported for 2005. The increase in electricity revenue was primarily due to an increase in rate received per kilowatt generated. The cost of operations for the three months ended March 31, 2006 increased to $549,000 from $473,000 for the period in 2005. Decreases in direct operating costs and accretion expense were offset by an increase in professional fees and administrative expenses. Other income for the three months ended March 31, 2006 and 2005 was $275,000 and $132,000, respectively. The income for 2006 includes $129,000 received in settlement of litigation regarding the Company's interest in a former partnership. Income tax benefit for the three months ended March 31, 2006, was $45,000. No benefit was reported for the period in 2005. The net loss for the three months ended March 31, 2006 and 2005 was $120,000 or $.04 per share versus $245,000 or $.08 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 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. As previously reported, during March 2006, the Company was 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. During April 2006, the Company signed an amendment to the May 2001 contract regarding the sale of 60 acres of property for $2.1 million. The amendment, in addition to other terms, extended the closing to a date on or before December 15, 2006. 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 months ended March 31, 2006. -0- *T TRANSTECH INDUSTRIES, INC. AND SUBSIDIARIES ---------------- CONSOLIDATED BALANCE SHEET As of March 31, 2006 (In $000's) Assets ------ Cash and cash equivalents $ 1,427 Marketable securities 4,537 Accounts receivable, net of reserves 38 Refundable income taxes 487 Restricted escrow accounts 994 Other current assets 60 ------- Total current assets 7,543 Restricted escrow accounts 6,541 Other assets 1,762 ------- Total assets $15,846 ======= Liabilities and Stockholders' Equity ------------------------------------ Total current liabilities $ 2,306 Income taxes payable 1,097 Accrued closure costs 8,609 Other liabilities 28 Stockholders' equity 3,806 ------- Total Liabilities and Stockholders' Equity $15,846 ======= CONSOLIDATED STATEMENTS OF OPERATIONS (In $000's, except per share data) For the Three Months Ended March 31, 2006 2005 ---- ---- Gross Revenues $ 378 $ 303 Less: Inter-company (269) (207) ------- ------- Net Revenues 109 96 Cost of operations (549) (473) Other income 275 132 Income (taxes) benefit 45 - ------- ------- Net income (loss) $ (120) $ (245) ======= ======= Income (loss) per common share: Net income (loss) $ (.04) $ (.08) ======= ======= Number of shares used in calculation 2,979,190 2,979,190 *T