SAVAGE, MN--(Marketwire - August 8, 2007) - GreenMan Technologies, Inc. (
OTCBB:
GMTI), a
leading recycler of over 12 million scrap tires per year in the United
States, today announced results for the three and nine months ended June
30, 2007.
Lyle Jensen, GreenMan's President and Chief Executive Officer stated:
"During the third quarter we saw improvement in many fundamental aspects of
the business, including 13 percent organic revenue growth, improving
operating profit margins and our first profitable quarter in almost 5
years. During the quarter ended June 30, 2007, we shipped over 7.7 million
pounds of crumb rubber which was 47 percent more than in same quarter a
year ago. Earnings from continuing operations before interest, tax,
depreciation, and amortization ('EBITDA') doubled to over $1.1 million for
the quarter compared to $536,000 for the quarter ended June 30, 2006."
Mr. Jensen added, "Profitability certainly marks an important milestone for
GreenMan and I credit our employees for their commitment and contributions
to this accomplishment. We still have lot of work ahead of us. In
addition to continuing to drive improvement in our core business, we are
now focused on strategic business development opportunities that could
leverage our expertise in recycled products and provide additional growth.
This is an important next step as we look to further enhance future
earnings to cover interest expense from our secured lending partner and
enhance shareholder value over time."
Please join us tomorrow, Thursday, August 9, 2007 at 10:00 AM EDT for a
conference call in which we will discuss the results for the quarter ended
June 30, 2007. To participate, please call 1-866-542-4236 and ask for the
GreenMan call. A replay of the conference call can be accessed until 11:50
PM on August 15, 2007 by calling 1-800-408-3053 and entering pass code
3231260.
GreenMan collects and recycles over 12 million tires annually into
alternative fuel, alternative energy and innovative products. Today, our
products are used as an efficient alternative fuel in large industrial
boilers, as a substitute for crushed stone in civil engineering
applications and as crumb rubber in playground and sport surfaces,
rubberized asphalt and landscaping applications. We pursue technological
processes and unique marketing programs intended to maximize the value of
each tire we manage. To learn more, please visit our website at
www.greenman.biz
In September 2005, due to the magnitude of continued operating losses, our
Board of Directors approved separate plans to divest the operations of our
Georgia and Tennessee subsidiaries and dispose of their respective assets.
In addition, due to continuing operating losses, in July 2006 we sold our
California subsidiary. Accordingly, we have classified all three respective
entity's results of operations as discontinued operations for all periods
presented in the consolidated financial statements.
Three Months Ended June 30, 2007 Compared To The Three Months Ended June
30, 2006
Net sales from continuing operations for the three months ended June 30,
2007 increased $610,000 or 13 percent to $5,320,000 as compared to
$4,710,000 for the quarter ended June 30, 2006. Our continuing operations
processed approximately 3.0 million passenger tire equivalents during the
quarter ended June 30, 2007 compared to approximately 3.3 million passenger
tire equivalents during the same period last year. The increase in revenue
was primarily attributable to a 34 percent increase in product revenues and
an 8 percent increase in overall tipping fees (fees we are paid to collect
and dispose of scrap tires) per passenger tire. In addition, approximately
$54,000 of revenue and 39,000 passenger tire equivalents associated with an
Iowa scrap tire cleanup project were included in the results for the
quarter ended June 30, 2007.
Gross profit for the three months ended June 30, 2007 was $1,742,000 or 33
percent of net sales, compared to $1,435,000 or 30 percent of net sales for
the three months ended June 30, 2006. Our cost of sales increased $303,000
or 9 percent primarily due to increased product shipments, transportation
costs and repair/maintenance costs.
Selling, general and administrative expenses for the three months ended
June 30, 2007 decreased $265,000 to $944,000 or 18 percent of net sales,
compared to $1,209,000 or 26 percent of net sales for the three months
ended June 30, 2006. The results for the three months ended June 30, 2006
included approximately $397,000 of one-time severance costs related to our
former President and Chief Executive Officer and the sale of our California
subsidiary in July 2006. This decrease was offset by an increase of
approximately $174,000 in wages and performance based incentives during the
three months ended June 30, 2007.
As a result of the foregoing, we had operating income from continuing
operations of $798,000 during the three months ended June 30, 2007 as
compared to operating income of $226,000 for the same period last year.
Interest and financing expense for the three months ended June 30, 2007
decreased $985,000 to $560,000, compared to $1,545,000 during the three
months ended June 30, 2006. The decrease is attributable to the elimination
of $888,000 of one-time fees and expenses and $310,000 of non-cash
financing costs associated with the Laurus credit facility which was
restructured in June 2006. This reduction was offset by the inclusion of
approximately $152,000 of deferred interest associated with the June 2006
Laurus credit facility restructuring, increased rates and borrowings.
During the three months ended June 30, 2006 we recognized approximately
$353,000 of gain on restructuring associated with the June 30, 2006
restructuring of a note payable.
We recorded a provision for state income tax expense of approximately
$32,000 during the quarter ended June 30, 2007 based on certain subsidiary
state income tax obligations.
As a result of the foregoing, our income after income taxes from continuing
operations for the three months ended June 30, 2007 was $212,000 or $.01
per basic share, compared to a net loss of $946,000 or $.05 per basic share
for the three months ended June 30, 2006.
During the quarter ended June 30, 2007 we reached agreements with several
Georgia vendors regarding remaining past due amounts resulting in
approximately $102,000 of income from discontinued operations. The loss
from discontinued operations for the three months ended June 30, 2006 of
$35,000 includes approximately $185,000 of miscellaneous income associated
with our Georgia and Tennessee operation and approximately $220,000 of
losses associated with our California operations.
Our net income for the three months ended June 30, 2007 $313,000 or $.01
per basic share as compared to a net loss of $981,000 or $.05 per basic
share for the three months ended June 30, 2006.
Nine Months ended June 30, 2007 Compared to the Nine Months ended June 30,
2006
Net sales from continuing operations for the nine months ended June 30,
2007 increased $1,526,000 or 13 percent to $13,671,000 as compared to
$12,145,000 for the nine months ended June 30, 2006. Our continuing
operations processed 2 percent more or approximately 8.90 million passenger
tire equivalents during the nine months ended June 30, 2007 compared to
approximately 8.75 million passenger tire equivalents during the same
period last year. The increase in revenue was attributable to increased
volume on which we realized a 7 percent increase in overall tipping fees
(fees we are paid to collect and dispose of scrap tires) per passenger tire
in addition to a 21 percent increase in overall product revenues during the
nine months ended June 30, 2007. The increase in revenue and inbound
volume included approximately $404,000 of revenue and 205,000 passenger
tire equivalents associated with an Iowa scrap tire cleanup project which
were processed during the nine months ended June 30, 2007.
Gross profit for the nine months ended June 30, 2007 was $4,001,000 or 29
percent of net sales, compared to $3,333,000 or 27 percent of net sales for
the nine months ended June 30, 2006. Our cost of sales increased $858,000
or 10 percent primarily due to increased collection and processing costs
associated with higher inbound volume and $113,000 of increased processing
residual waste costs due to the completion of several large civil
engineering projects (which use more of the scrap tire including waste
wire) during the nine months ended June 30, 2006.
Selling, general and administrative expenses for the nine months ended June
30, 2007 increased $51,000 to $2,813,000 or 21 percent of net sales,
compared to $2,762,000 or 23 percent of net sales for the nine months ended
June 30, 2006. The results for the nine months ended June 30, 2006 included
approximately $397,000 of one-time severance costs related to our former
President and Chief Executive Officer and the sale of our California
subsidiary in July 2006. This decrease was offset by an increase of
approximately $437,000 wages, performance based incentives and outside
commissions in addition to the re-allocation of approximately $124,000 of
net corporate operating expenses which were absorbed by discontinued
operations during the nine months ended June 30, 2006.
As a result of the foregoing, we had operating income from continuing
operations of $1,188,000 during the nine months ended June 30, 2007 as
compared to operating income of $571,000 for the same period last year.
Interest and financing expense for the nine months ended June 30, 2007
decreased $1,461,000 to $1,606,000, compared to $3,067,000 during the nine
months ended June 30, 2006. The decrease is attributable to the elimination
of $1,271,000 of non-cash financing fees and interest and $888,000 one-time
fees and expenses incurred during the nine months ended June 30, 2006
associated with Laurus credit facility which was restructured in June 2006.
This reduction was offset by the inclusion of approximately $435,000 of
deferred interest associated with the June 2006 Laurus credit facility
restructuring and increased rates. During the nine months ended June 30,
2006 we recognized approximately $353,000 of gain on restructuring
associated with the June 30, 2006 restructuring of a note payable.
We recorded a provision for state income tax expense of approximately
$33,000 during the nine months ended June 30, 2007 based on certain
subsidiary state income tax obligations.
As a result of the foregoing, our loss after income taxes from continuing
operations for the nine months ended June 30, 2007 decreased 79 percent or
$1,691,000 to $456,000 or $.02 per basic share, compared to a net loss of
$2,147,000 or $.11 per basic share for the nine months ended June 30, 2006.
During the nine months ended June 30, 2007, we received credits from
vendors, we recovered certain bad debts and reduced certain accrued
expenses which offset a $19,000 increase in our Georgia lease settlement
reserve resulting in $112,000 of income from discontinued operations. The
$1,521,000 loss ($.08 per basic share) from discontinued operations for the
nine months ended June 30, 2006 includes approximately $573,000 associated
with our Georgia and Tennessee operations and approximately $948,000
associated with our California operations.
Our net loss for the nine months ended June 30, 2007 decreased $3,324,00 or
91 percent to $344,000 or $.02 per basic share as compared to a net loss of
$3,668,000 or $.19 per basic share for the nine months ended June 30, 2006.
Condensed Unaudited Consolidated Statements of Operations
Three Months Ended Nine Months Ended
June 30, June 30,
2007 2006 2007 2006
------------ ------------ ------------ ------------
Net sales $ 5,320,000 $ 4,710,000 $ 13,671,000 $ 12,145,000
Cost of sales 3,578,000 3,275,000 9,670,000 8,812,000
------------ ------------ ------------ ------------
Gross profit 1,742,000 1,435,000 4,001,000 3,333,000
Selling, general
and administrative 944,000 1,209,000 2,813,000 2,762,000
------------ ------------ ------------ ------------
Operating income
(loss) from
continuing
operations 798,000 226,000 1,188,000 571,000
------------ ------------ ------------ ------------
Other income
(expense):
Interest and
financing
expense (560,000) (1,545,000) (1,606,000) (3,067,000)
Other, net 6,000 373,000 (5,000) 349,000
------------ ------------ ------------ ------------
Other
(expense),
net (554,000) (1,172,000) (1,611,000) (2,718,000)
------------ ------------ ------------ ------------
Income (loss) from
continuing
operations before
taxes 244,000 (946,000) (423,000) (2,147,000)
Provision for
income taxes 32,000 -- 33,000 --
------------ ------------ ------------ ------------
Income (loss) from
continuing
operations 212,000 (946,000) (456,000) (2,147,000)
Discontinued
operations:
Gain (loss) from
discontinued
operations 102,000 (35,000) 112,000 (1,521,000)
------------ ------------ ------------ ------------
Net income (loss) $ 314,000 $ (981,000) $ (344,000) $ (3,668,000)
============ ============ ============ ============
Income (loss) from
continuing
operations per
share - basic $ 0.01 $ (0.05) $ (0.02) $ (0.11)
Income (loss) from
discontinued
operations per
share - basic -- -- -- (0.08)
------------ ------------ ------------ ------------
Net loss per share
-basic $ 0.01 $ (0.05) $ (0.02) $ (0.19)
============ ============ ============ ============
Net loss per share
-diluted $ 0.01 $ (0.05) $ (0.02) $ (0.19)
============ ============ ============ ============
Weighted average
shares outstanding
- basic 21,588,000 19,992,000 21,527,000 19,481,000
============ ============ ============ ============
Weighted average
shares outstanding
- diluted 27,340,000 19,992,000 21,527,000 19,481,000
============ ============ ============ ============
Condensed Unaudited Consolidated Balance Sheet Data
June 30, September 30,
2007 2006
------------ ------------
Assets
Current assets $ 4,318,000 $ 3,463,000
Property, plant and equipment, net 5,640,000 5,807,000
Other assets 220,000 232,000
Assets related to discontinued operations -- 7,000
------------ ------------
$ 10,178,000 $ 9,509,000
============ ============
Liabilities and Stockholders’ (Deficit)
Current liabilities $ 5,156,000 $ 4,045,000
Liabilities related to discontinued operations 3,226,000 3,415,000
Notes payable, non-current 10,929,000 10,874,000
Capital lease obligations, non-current 1,619,000 1,615,000
Deferred gain on sale leaseback 316,000 343,000
Obligations due under lease settlement,
non-current 581,000 630,000
Stockholders’ deficit (11,649,000) (11,413,000)
------------ ------------
$ 10,178,000 $ 9,509,000
============ ============
"Safe Harbor" Statement: Under the Private Securities Litigation Reform Act
With the exception of the historical information contained in this news
release, the matters described herein contain "forward-looking" statements
that involve risk and uncertainties that may individually or collectively
impact the matters herein described, including but not limited to the
possibility that we may not be able to secure the financing necessary to
return to profitability, the possibility that the delisting of our stock by
the American Stock Exchange could substantially limit our stock's future
liquidity and our ability to raise capital, the possibility that we may
not realize the benefits of product acceptance, economic, competitive,
governmental, seasonal, management, technological and/or other factors
outside the control of the Company, which are detailed from time to time in
the Company's SEC reports, including the annual report on Form 10-KSB for
the fiscal period ended September 30,2006. The Company disclaims any
intent or obligation to update these "forward-looking" statements.
Contact Information: Contacts:
Chuck Coppa, CFO
or
Lyle Jensen, CEO
GreenMan Technologies
800-526-0860
www.greenman.biz