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, 2007. The Company�s subsidiaries perform environmental services and generate electricity utilizing methane gas as fuel. Revenues for the electricity generation segment for the years ended December 31, 2007 and 2006 were $537,000 and $364,000, 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 2007 and 2006 were $933,000 and $1,196,000, 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 years ended December 31, 2007 and 2006 were $2,532,000 and $2,409,000, respectively. The net increase in costs was primarily due to an increase in professional fees, general operating expenses and costs incurred to relocate the environmental operations into a new facility. Results for 2006 include a gain of $1,852,000 from the sale of 60 acres of property located in Deptford Township, N.J. Other income for the years ended December 31, 2007 and 2006 was $725,000 and $1,335,000, respectively, which include proceeds from insurance claims of $137,000 and $600,000, 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 year ended December 31, 2007 was $454,000 versus an income tax expense of $512,000 for 2006. Net loss for the years ended December 31, 2007 was $816,000, or $.27 per share, versus a net income of $630,000, or $.21 per share, for 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. As previously disclosed, the Company commenced litigation during February 2004 to either vacate or modify an arbitrator�s award of $3.5 million of insurance proceeds, held in escrow since 2002, to SCA Services, Inc. (�SCA�). The arbitrator's ruling was affirmed by the District Court during October 2005. In December, 2005 the Company filed an appeal of the District Court's ruling with the United States Court of Appeals for the Third Circuit. The Court of Appeals rendered its decision on March 24, 2008 affirming the lower Court's decision. The Company has not yet decided whether it will appeal this recent decision. The amount held in escrow is not reflected on the Company's financial statements; therefore the Court's decision will not adversely impact the Company's financial statements. The Company will recognize income equal to the amount of the escrow remaining after payment of amounts due SCA, if any, in the period such funds are released from escrow. 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 audited consolidated balance sheet as of December 31, 2007 and comparative consolidated statements of operations for the years ended December 31, 2007 and 2006. TRANSTECH INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET As of December 31, 2007 (In $000's) � Assets � Cash and cash equivalents $ 961 Marketable securities 3,267 Restricted escrow accounts 1,018 Other current assets 765 Total current assets 6,011 Restricted escrow accounts 6,355 Other assets 2,149 Total assets $ 14,515 � Liabilities and Stockholders' Equity Total current liabilities $ 1,827 Income taxes payable 738 Accrued post-closure costs 7,762 Other liabilities 17 Stockholders' equity 4,171 Total Liabilities and Stockholders' Equity $ 14,515 CONSOLIDATED STATEMENTS OF OPERATIONS (In $000's, except per share data) � For the Years Ended December 31, 2007 � 2006 Gross Revenues $ 1,470 $ 1,560 Less: Eliminations (933 ) (1,196 ) Net Revenues 537 364 Cost of Operations (2,532 ) (2,409 ) Gain from Sale of Real Property - 1,852 Other Income(a) 725 1,335 Income Tax Benefit (Expense) 454 (512 ) Net Income (Loss) $ (816 ) $ 630 � Loss per common share: Net Income (Loss) $ (.27 ) $ .21 Number of shares used in calculation 2,979,190 2,979,190 � (a) Amounts for 2007 and 2006 include $137,000 and $600,000, respectively, of proceeds from insurance claims.