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, 2007. 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, 2007 and 2006 were $78,000 and $58,000, respectively. The increase in revenue was due to an increase in both kilowatt hours generated and fee received. Gross revenues of the environmental services segment for the period in 2007 and 2006 were $264,000 and $357,000, respectively. The environmental services in both 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 months ended June 30, 2007 and 2006 were $625,000 and $656,000, respectively. The net decrease was primarily due to a decrease in equipment repair costs and professional fees. Other income for the three months ended June 30, 2007 and 2006 was $136,000 and $507,000, respectively. The amount for 2006 includes $346,000 of proceeds from claims against excess insurance carriers. Income tax benefit for the three months ended June 30, 2007 and 2006 was $146,000 and $27,000, respectively. Net loss for the three months ended June 30, 2007 was $265,000, or $.09 per share, versus a net loss of $64,000, or $.02 per share, for the period in 2006. Revenues for the electricity generation segment for the six months ended June 30, 2007 and 2006 were $211,000 and $167,000, respectively. The increase in revenue was due to an increase in kilowatts hours generated and fee received. Gross revenues of the environmental services segment for the period in 2007 and 2006 were $536,000 and $610,000, respectively. The environmental services in both 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 six months ended June 30, 2007 and 2006 were $1,203,000 and $1,205,000, respectively. Other income for the six months ended June 30, 2007 and 2006 was $250,000 and $782,000, respectively. In addition to the proceeds from insurance claims discussed above, other 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 six months ended June 30, 2007 and 2006 was $256,000 and $72,000, respectively. Net loss for the six months ended June 30, 2007 was $486,000, or $.16 per share, versus a net loss of $184,000, or $.06 per share, for the period in 2006. 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. On August 8, 2007, the Planning Board of Deptford Township, New Jersey approved a study that concluded an area within the Township which includes approximately 364 acres of property owned by the Company is in need of redevelopment. The declaration of an area as a redevelopment zone under the laws of the State of New Jersey grants a municipality many options to achieve its objectives regarding the use of property within the zone. Municipalities may acquire property for redevelopment using their powers of eminent domain, compensating the property owner for its �fair market value�. The owner of property included within a zone may challenge the creation of the redevelopment area and/or the amount of compensation received for property. The declaration of a redevelopment zone requires the approval of the Township�s governing body. Presently the Company does not know what course the Township intends to take with respect to the area, or if all or any of the Company�s property will ultimately be included. The Company has filed objections to certain errors and mischaracterizations contained within the study, as well as its conclusion. 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 unaudited consolidated balance sheet as of June 30, 2007 and comparative consolidated statements of operations for the three and six months ended June 30, 2007 and 2006. TRANSTECH INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET As of June 30, 2007 (In $000's) � Assets Cash and cash equivalents $ 793 Marketable securities 4,100 Restricted escrow accounts 1,006 Other current assets � 464 Total current assets 6,363 Restricted escrow accounts 6,552 Other assets � 2,055 Total assets $ 14,970 � Liabilities and Stockholders' Equity Total current liabilities $ 1,958 Income taxes payable 823 Accrued post-closure costs 8,017 Other liabilities 22 Stockholders' equity � 4,150 Total Liabilities and Stockholders' Equity $ 14,970 CONSOLIDATED STATEMENTS OF OPERATIONS (In $000's, except per share data) � For the Three Months Ended June 30, 2007 2006 Gross Revenues $ 342 $ 415 Less: Eliminations � (264 ) � (357 ) Net Revenues 78 58 Cost of Operations (625 ) (656 ) Other Income(a) 136 507 Income (Taxes) Benefit � 146 � � 27 � Net Income (Loss) $ (265 ) $ (64 ) � Income (loss) per common share: Net income (loss) $ (.09 ) $ (.02 ) Number of shares used in calculation 2,979,190 2,979,190 � � For the Six Months Ended June 30, 2007 2006 Gross Revenues $ 747 $ 777 Less: Eliminations � (536 ) � (610 ) Net Revenues 211 167 Cost of Operations (1,203 ) (1,205 ) Other Income(a) 250 782 Income (Taxes) Benefit � 256 � � 72 � Net Income (Loss) $ (486 ) $ (184 ) � Income (loss) per common share: Net income (loss) $ (.16 ) $ (.06 ) Number of shares used in calculation 2,979,190 2,979,190 � (a) Amount for 2006 includes $346,000 of proceeds from insurance claims.