SOURCE: GreenMan Technologies Inc.

GreenMan Technologies Inc.

February 15, 2012 09:00 ET

GreenMan Technologies Reports 10 Percent Increase in Dual Fuel Sales in First Quarter

LYNNFIELD, MA--(Marketwire - Feb 15, 2012) - GreenMan Technologies, Inc. (OTCQB: GMTI) (PINKSHEETS: GMTI), today announced results for the three months ended December 31, 2011. Revenues at the company's American Power Group (APG) dual fuel subsidiary increased to $396,000 from $360,000 for the same quarter last year.

Lyle Jensen, GreenMan's President and Chief Executive Officer commented, "Overall, this was a solid quarter for our Company, in which we continued to drive revenue growth both compared to last year and sequentially. As our dual fuel technology gains acceptance domestically and internationally, we are making steady progress toward profitability and positive earnings performance. On the stationary front, the use of our technology in aftermarket upgrade applications in the oil and gas industry has demonstrated successful field performance and also provides a favorable economic model which has driven demand for our solution, creating a robust conversion pipeline. In the domestic vehicular market, we believe that the recent changes in EPA aftermarket regulations leave us uniquely positioned to capitalize on conversion opportunities and we currently have three engine families under EPA exemption that are scheduled to go through emissions testing shortly. We anticipate fully launching our vehicular conversion strategy during spring 2012."

APG's dual fuel system converts diesel engines and diesel generators to function more efficiently and at a lower operating cost (average net fuel cost savings of 20% - 35%) by seamlessly displacing up to 40% - 60% of the normal diesel fuel consumption with either CNG, LNG, pipeline gas, well-head gas, or other qualified bio-methane gases. APG's system is non-invasive to the OEM engine and operates within all OEM performance controls with the flexibility to return to 100% diesel operation at any time. APG's dual fuel conversion and emissions reduction systems can help users achieve their sustainability goals through lower carbon monoxide, nitrogen oxide, and particulate matter emissions. In addition, the introduction of natural gas through APG's dual fuel system does not impact diesel engine power or torque and will assist in extending the engine's oil life as natural gas is a cleaner burning fuel compared to diesel.

Conference Call

Please join us today, February 15, 2012 at 11:30 AM ET for a conference call in which we will discuss the results for the three months ended December 31, 2011. To participate, please call 1-800-946-0709 and ask for the GreenMan call using pass code 8933435. A replay of the conference call can be accessed until 11:50 PM on March 15, 2012 by calling 1-888-203-1112 and entering pass code 8933435.

Three Months ended December 31, 2011 Compared to Three Months ended December 31, 2010

Net sales from continuing operations for the three months ended December 31, 2011 increased $36,000 or 10 percent to $396,000 as compared to net sales of $360,000 for the three months ended December 31, 2010. The increase is attributable to stronger domestic stationary and international stationary and vehicular dual fuel revenues.

During the three months ended December 31, 2011, we incurred a negative gross profit of $9,000 as compared to a negative gross profit of $36,000 for the three months ended December 31, 2010. Although dual fuel revenue levels were higher, they were not sufficient to fully absorb all manufacturing overhead costs which negatively impacted the gross profit for the three months ended December 31, 2011.

Selling, general and administrative expenses for the three months ended December 31, 2011 decreased $91,000 or 11 percent to $723,000 as compared to $814,000 for the three months ended December 31, 2010. The decrease was primarily attributable to lower selling, professional and non-cash stock option amortization expenses.

During the three months ended December 31, 2011, costs associated with our research and development decreased $153,000 or 80 percent to $37,000 for the three months ended December 31, 2011 as compared to $190,000 for the three months ended December 31, 2010. The decrease is attributable to the completion of a majority of internal research and development projects relating to the introduction of new dual fuel products, enhancements made to the current family of dual fuel products especially in the area of domestic and international vehicular solutions.

During the three months ended December 31, 2011, interest and financing expense increased $250,000 to $355,000 including $205,000 of non-cash financing costs as compared to $105,000 for the three months ended December 31, 2010 due to increased borrowings.

Our net loss from continuing operations was $1,144,000 for the three months ended December 31, 2011 as compared to a net loss of $1,173,000 for the three months ended December 31, 2010.

The loss from discontinued operations for the three months ended December 31, 2010 of $312,000 relates to the net results of our molded rubber products operations which were sold in August 2011.

Our net loss for the three months ended December 31, 2011 was $1,144,000 or ($.03) per basic share as compared to $1,485,000 or ($.05) per basic share for the three months ended December 31, 2010.

About GreenMan Technologies
GreenMan's alternative energy subsidiary, American Power Group, Inc., provides a cost-effective patented dual fuel conversion technology for diesel engines and diesel generators. American Power Group's dual fuel technology is a unique non-invasive energy enhancement system that converts existing diesel engines into more efficient and environmentally friendly engines that have the flexibility to run on: (1) diesel fuel and compressed natural gas; (2) diesel fuel and liquid natural gas; (3) diesel fuel and well-head gas; and (4) diesel fuel and bio-methane, with the flexibility to return to 100% diesel fuel operation at any time. The proprietary technology seamlessly displaces 40% to 60% of the normal diesel fuel consumption and the energized fuel balance is maintained with a proprietary electronic controller system ensuring the engines operate at engine manufacturers' specified temperatures and pressures. Installation on a wide variety of engine models and end-market applications requires no engine modifications unlike the more expensive invasive alternative fuel systems in the market. See additional information at: www.greenman.biz and www.americanpowergroupinc.com.

Caution Regarding Forward-Looking Statements
With the exception of the historical information contained in this news release, the matters described herein contain "forward-looking" statements that involve risks and uncertainties that may individually or collectively impact the matters herein described, including but not limited to the risk that we may not be able to complete the transactions described in this release, the fact that we have sold the tire recycling operations which have historically generated substantially all our revenue; the risk that we may not be able to increase the revenue or improve the operating results of our American Power Group division; the risk that we may not be able to return to sustained profitability; the risk that we may not be able to secure additional funding necessary to grow our business, on acceptable terms or at all; the risk that if we have to sell securities in order to obtain financing, the rights of our current stockholders may be adversely affected; the risk that we may not be able to increase the demand for our products and services; the risk that we may not be able to adequately protect our intellectual property; and risks of possible adverse effects of economic, governmental, seasonal and/or other factors outside the control of the Company, which are detailed from time to time in the Company's SEC reports, including our Annual Report on Form 10-K for the fiscal year ended September 30, 2011. The Company disclaims any intent or obligation to update these "forward-looking" statements

Condensed Consolidated Statements of Operations
Three Months Ended
December 31,
2011 2010
Net sales $ 396,000 $ 360,000
Cost of sales 405,000 396,000
Gross profit (loss) (9,000 ) (36,000 )
Selling, general and administrative 723,000 814,000
Research and development 37,000 190,000
760,000 1,004,000
Operating loss (769,000 ) (1,040,000 )
Other income (expense):
Interest and financing (expense) income (344,000 ) (91,000 )
Other, net (31,000 ) (42,000 )
Other expense, net (375,000 ) (133,000 )
Loss from continuing operations (1,144,000 ) (1,173,000 )
Discontinued operations:
Loss from discontinued operations -- (312,000 )
-- (312,000 )
Net loss $ (1,144,000 ) $ (1,485,000 )
Loss from continuing operations per share - basic and diluted $ (0.03 ) $ (0.04 )
Income from discontinued operations per share - basic and diluted -- (0.01 )
Net loss per share $ (0.03 ) $ (0.05 )
Weighted average shares outstanding - basic and diluted 36,595,000 33,439,000
Condensed Consolidated Balance Sheet Data
December 31,
2011
September 30,
2011
Assets
Current assets $ 1,662,000 $ 1,870,000
Other assets 1,672,000 1,553,000
$ 3,681,000 $ 3,787,000
Liabilities and Stockholders' Deficit
Current liabilities $ 4,528,000 $ 4,536,000
Notes payable, non-current 1,996,000 1,824,000
Obligations due under lease settlement, non-current 506,000 506,000
Stockholders' (deficit) equity (3,349,000 ) (3,079,000 )
$ 3,681,000 $ 3,787,000

Contact Information

  • Contacts:
    Chuck Coppa, CFO or Lyle Jensen, CEO
    GreenMan Technologies
    781-224-2411

    Investor Relations Contacts:
    John Nesbett or Jennifer Belodeau
    Institutional Marketing Services (IMS)
    203-972-9200