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, 2009. The Company’s subsidiaries perform environmental services and generate electricity utilizing methane gas as fuel.

Revenues for the electricity generation segment for the three and six month periods ended June 30, 2009 were $94,000 and $205,000, respectively, versus $213,000 and $372,000 reported for the those periods in 2008. The decrease in revenue was due to a decline in the price received per kilowatt generated as the kilowatt output was comparable for the periods. Gross revenues of the environmental services segment for the three and six month periods ended June 30, 2009 were $178,000 and $331,000, respectively, versus $218,000 and $437,000 reported for the those periods last year. The environmental services performed in the 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 and six month periods ended June 30, 2009 were $509,000 and $1,209,000, respectively, versus $712,000 and $1,417,000 reported for the periods in 2008. The net decrease in costs was primarily due to a decrease in professional fees and general operating expenses.

Other income for the three and six month periods ended June 30, 2009 was $316,000 and $455,000, respectively, versus $138,000 and $259,000 reported for the periods in 2008.

No income tax benefit was recognized for the periods in 2009 while benefits of $31,000 and $175,000 were reported for the three and six month periods in 2008, respectively.

Net loss for the three and six month periods ended June 30, 2009 was $99,000, or $.03 per share, and $549,000, or $.18 per share, respectively. Net loss reported for the three and six month periods in 2008 was $330,000, or $.11 per share, and $610,000, or $.20 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 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 in excess of amounts accrued for such costs.

During July 2009, appeal courts rejected the Company’s challenge of decisions made in two separate matters. During 2007 the Company brought suit to obtain an accounting of $16 million it had contributed toward the remediation of the SCP Superfund Site. During July 2009, an appeals court affirmed the lower court’s 2007 denial of the Company’s request. During 2008 the Township of Edison in New Jersey brought suit to commence condemnation proceedings on a 0.48 acre portion of riverfront property owned by the Company. During July 2009 an appeals court affirmed the lower court’s 2008 decision in favor of the Township. The property had been valued by the Township’s appraiser at $17,000. The Company’s challenge of that valuation continues. The Company is evaluating its remaining options with respect to these matters.

Presented below are the unaudited consolidated balance sheet of the Company as of June 30, 2009 and comparative consolidated statements of operations for the three and six month periods ended June 30, 2009 and 2008.

TRANSTECH INDUSTRIES, INC.

AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET

As of June 30, 2009 (Unaudited, in $000's)  

Assets

Cash and cash equivalents $ 708 Marketable securities 1,999 Restricted escrow accounts 1,057 Other current assets 452 Total current assets 4,216 Restricted escrow accounts 5,489 Other assets 2,019 Total assets $ 11,724  

Liabilities and Stockholders' Equity

Total current liabilities $ 1,606 Income taxes payable 496 Accrued post-closure costs 7,088 Other liabilities 55 Stockholders' equity 2,479 Total Liabilities and Stockholders' Equity $ 11,724

CONSOLIDATED STATEMENTS OF OPERATIONS

(In $000's, except per share data)    

 

For the Three Months

 

Ended June 30,

 

2009

 

2008

Gross Revenues $ 272 $ 431 Less: Eliminations

(178

) (218 ) Net Revenues 94 213 Cost of Operations (509 ) (712 ) Other Income 316 138 Income Tax Benefit

 

-

31 Net Loss $ (99 ) $ (330 ) Loss per common share: Net Income Loss $ (.03 ) $ (.11 ) Number of shares used in calculation 2,979,190 2,979,190  

 

For the Six Months

 

Ended June 30,

 

2009

2008

Gross Revenues $ 536 $ 809 Less: Eliminations (331 ) (437 ) Net Revenues 205 372 Cost of Operations (1,209 ) (1,416 ) Other Income 455 259 Income Tax Benefit

 

-

175 Net Loss $ (549 ) $ (610 ) Loss per common share: Net Loss $ (.18 ) $ (.20 ) Number of shares used in calculation 2,979,190 2,979,190

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.