Item 8.01. OTHER EVENTS.
Press Release
The following is the text of the press release dated November 14, 2007
reporting Transtech Industries, Inc.'s results of operations for the quarter
ended September 30, 2007.
TRANSTECH INDUSTRIES, INC. REPORTS RESULTS
FOR THE THREE AND NINE MONTH PERIODS ENDED SEPTEMBER 30, 2007
PISCATAWAY, N.J., November 14, 2007 - 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 nine
month periods ended September 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 September 30, 2007 and 2006 were $189,000 and $110,000, 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 $209,000 and $334,000,
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 September 30, 2007
and 2006 were $612,000 and $515,000, respectively. The net increase in
costs was primarily due to an increase in professional fees and general
operating expenses, and costs to relocate environmental operations into a
new facility.
Other income for the three months ended September 30, 2007 and 2006
was $210,000 and $224,000, respectively, which include proceeds from
insurance claims of $56,000 and $89,000, respectively.
Income tax benefit for the three months ended September 30, 2007 and
2006 was $42,000 and $69,000, respectively.
Net loss for the three months ended September 30, 2007 was $171,000,
or $.06 per share, versus a net loss of $112,000, or $.04 per share, for
the period in 2006.
Revenues for the electricity generation segment for the nine months
ended September 30, 2007 and 2006 were $400,000 and $277,000, respectively.
The increase in revenue was due to an increase in both kilowatts hours
generated and fee received. Gross revenues of the environmental services
segment for the period in 2007 and 2006 were $745,000 and $951,000,
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 nine months ended September 30, 2007
and 2006 were $1,815,000 and $1,720,000, respectively. The net increase in
costs was primarily due to an increase in professional fees and general
operating expenses, and costs to relocate environmental operations into a
new facility.
Other income for the nine months ended September 30, 2007 and 2006 was
$460,000 and $1,006,000, respectively. Such amounts include proceeds from
insurance claims of $56,000 and $435,000, respectively. 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 nine months ended September 30, 2007 and
2006 was $298,000 and $141,000, respectively.
Net loss for the nine months ended September 30, 2007 was $657,000, or
$.22 per share, versus a net loss of $296,000, or $.10 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 legal expenses on matters related to its past
participation in those industries. In addition, the Company may incur
significant remediation and post-closure costs related to sites of past
operations.
The Company previously announced that 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.
The Township has informed the Company that it has not finalized its
intentions with respect to the area, or if all or any of the Company's
property will ultimately be included. The Company has objected to errors
and mischaracterizations contained within the study, as well as its
conclusion, and during September 2007 filed suit against the Planning Board
seeking, among other remedies, to set aside the Planning Board's approval
of the study.
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
September 30, 2007 and comparative consolidated statements of operations
for the three and nine months ended September 30, 2007 and 2006.
TRANSTECH INDUSTRIES, INC.
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
As of September 30, 2007
(In $000's)
Assets
Cash and cash equivalents $ 724
Marketable securities 3,626
Restricted escrow accounts 1,012
Other current assets 538
Total current assets 5,900
Restricted escrow accounts 6,816
Other assets 2,190
Total assets $14,906
Liabilities and Stockholders' Equity
Total current liabilities $ 2,058
Income taxes payable 778
Accrued post-closure costs 7,864
Other liabilities 20
Stockholders' equity 4,186
Total Liabilities and Stockholders' Equity $14,906
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CONSOLIDATED STATEMENTS OF OPERATIONS
(In $000's, except per share data)
For the Three Months
Ended September 30,
2007 2006
Gross Revenues $ 398 $ 444
Less: Eliminations (209) (334)
Net Revenues 189 110
Cost of Operations (612) (515)
Other Income 210 224
Income Tax Benefit 42 69
Net Loss $ (171) $ (112)
Loss per common share:
Net loss $ (.06) $ (.04)
Number of shares used in
calculation 2,979,190 2,979,190
For the Nine Months
Ended September 30,
2007 2006
Gross Revenues $1,145 $1,228
Less: Eliminations (745) (951)
Net Revenues 400 277
Cost of Operations (1,815) (1,720)
Other Income(a) 460 1,006
Income Tax Benefit 298 141
Net Loss $ (657) $ (296)
Loss per common share:
Net loss $ (.22) $ (.10)
Number of shares used in
calculation 2,979,190 2,979,190
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(a) Amounts for 2007 and 2006 include $56,000 and $435,000, respectively, of
proceeds from insurance claims.