CARLISLE, IA--(Marketwire - January 13, 2010) - GreenMan Technologies, Inc. (
OTCBB:
GMTI),
today announced results for the three months and fiscal year ended
September 30, 2009.
Lyle Jensen, GreenMan's President and Chief Executive Officer, stated,
"This has been a transformational year for GreenMan and we are pleased with
the Company's achievements. Even more so, we believe we have a strong
foundation from which to grow our business and capitalize on future
prospects and we remain focused in our determination to build shareholder
value. We are making great progress ramping up operations at American Power
Group (APG) and as our marketing efforts have taken effect, we have
increased not only our deliverable backlog but also seen significant growth
in open quotes to approximately $10 million. APG offers a
state-of-the-art, patented retrofit dual fuel option for diesel engines,
enabling them to burn less diesel fuel, reducing emissions as well as
saving money. With APG's technology, a diesel engine or generator may be
upgraded to operate on a combination of compressed natural gas and diesel;
on diesel fuel and biomethane; or on 100% diesel fuel as the situation may
require. APG's technology is applicable domestically and internationally
to stationary diesel engines, such as those that run emergency generators
as well as to vehicular engines, with no loss of performance capability.
We believe APG's technology offers a compelling solution and has tremendous
growth potential in the alternative fuel market.
"While the struggling economy and tighter discretionary spending continued
to impact our playground business during the fourth quarter, we have
continued to build our existing relationships with municipalities, school
board associations and state-based departments of natural resources and
have made progress toward expanding our footprint to new geographic
markets. In the distressed economy, playground projects and upgrades have
been delayed, but we have kept in close contact with our partners and
customers so that we will be able to mobilize quickly when funding returns.
Additionally, our past work and experience as a provider of safe, ADA
accessible and compliant playgrounds has led to increased project
opportunities."
Conference Call
Please join us today, January 13, 2010 at 2:00 PM Eastern time for a
conference call in which we will discuss the results for the quarter and
year ended September 30, 2009. To participate, please call 1-877-545-1403
and ask for the GreenMan call using passcode 4891047. A replay of the
conference call can be accessed until 11:50 PM on January 31, 2010 by
calling 1-888-203-1112 and entering pass code 4891047.
Results of Operations
Our business changed substantially in November 2008, when we sold
substantially all of the assets of our tire recycling operations. Because
we operated our tire recycling assets during only a portion of the fiscal
year ended September 30, 2009 we have included relevant information on this
business segment but have classified its assets, liabilities and results of
operations as discontinued operations for all periods presented in the
accompanying consolidated financial statements. On July 27, 2009 we
purchased substantially all the dual fuel conversion operating assets of
American Power Group (excluding its dual fuel patent). The results
described below include the operations of American Power Group since July
27, 2009.
Results of Operations
Three Months ended September 30, 2009 Compared to the Three Months ended
September 30, 2008
Net sales from continuing operations for the three months ended September
30, 2009 increased $646,000 or 47 percent to $2,017,000 as compared to net
sales of $1,371,000 for the three months ended September 30, 2008. The
increase is primarily attributable to stronger playground tile and
equipment sales in the Midwestern U.S. and Hawaii during the three months
ended September 30, 2009.
Our gross profit for the three months ended September 30, 2009 was $320,000
or 16 percent of net sales compared to a gross profit of $346,000 or 25
percent of net sales for the three months ended September 30, 2008. The
decrease was attributable to the inclusion of approximately $200,000 in
costs associated with our American Power Group subsidiary, without any
corresponding revenues.
Selling, general and administrative expenses for the three months ended
September 30, 2009 increased $373,000 to $1,449,000 as compared to
$1,076,000 for the three months ended September 30, 2008. The increase was
primarily attributable to the inclusion of $271,000 in costs associated
with sales and marketing initiatives for our American Power Group
subsidiary as well as increased professional expenses relating to business
development initiatives and increased performance based incentives.
During the past two fiscal years, Green Tech Products has incurred
operating losses of approximately $800,000 per year and has had negative
cash flow from operations. Green Tech also had stagnant revenue growth
during fiscal 2009. As a result of the losses and our annual evaluation of
potential goodwill impairment, management has determined the carrying value
of Green Tech Product's goodwill to be impaired and accordingly wrote-off
all goodwill, recording a non-cash impairment loss of $2,290,000 during the
three months ended September 30, 2009.
As a result of the foregoing, our loss from continuing operations after
income taxes increased $2,595,000 to $3,472,000 for the three months ended
September 30, 2009 as compared to $877,000 for the three months ended
September 30, 2008.
During the three months ended September 30, 2009 we recognized an
additional loss on the sale of discontinued tire recycling operations of
$620,000 associated with recognition of additional income taxes as we
finalized all year end results. The income from discontinued operations for
the three months ended September 30, 2008 includes a net benefit for income
taxes of $5,333,000, primarily due to the recognition of a $5.3 million
deferred tax asset associated with the November 2008 tire recycling
operations sale with the balance relating to the net results of our tire
recycling operations.
Our net loss for the three months ended September 30, 2009 was $4,092,000
or $.13 per basic share as compared to net income of $5,761,000 or $.19 per
basic share for the three months ended September 30, 2008.
Year ended September 30, 2009 Compared to the Year ended September 30, 2008
Net sales from continuing operations for the fiscal year ended September
30, 2009 decreased $237,000 or 7 percent to $3,228,000 as compared to net
sales of $3,465,000 for the fiscal year ended September 30, 2008. The
decrease is primarily attributable to decreased playground tile and
equipment sales in the Midwestern and Western parts of the United States
due to a general economic slowdown during fiscal 2009. There were no net
sales from our American Power Group subsidiary during the fiscal year ended
September 30, 2009.
Our gross profit for the fiscal year ended September 30, 2009 was $523,000
or 16 percent of net sales compared to a gross profit of $969,000 or 28
percent of net sales for the year ended September 30, 2008. The decrease
was primarily attributable to the inclusion of approximately $200,000 in
costs associated with our American Power Group subsidiary, without any
corresponding revenues. The remaining decrease is attributed to slower
tile sales during the seasonally slower first half of fiscal 2009 and
management's decision to produce a minimal amount of playground tiles
during that period. As a result we were unable to fully absorb all
manufacturing overhead which negatively impacted our year-to-date gross
profit.
Selling, general and administrative expenses for the fiscal year ended
September 30, 2009 increased $875,000 to $4,254,000 as compared to
$3,379,000 for the fiscal year ended September 30, 2008. The increase was
primarily attributable to an increase of $300,000 in professional expenses
relating to business development initiatives and the November 2008 sale of
our tire recycling operations as well as an increase of approximately
$250,000 in performance based incentives. Additionally, SG&A expense for
the fiscal year ended September 30, 2009 includes $271,000 in costs
associated with sales and marketing initiatives for our American Power
Group subsidiary. These increases were partially offset by reduced travel,
marketing and sales related costs at our molded products operations.
During the past two fiscal years, Green Tech Products has incurred
operating losses of approximately $800,000 per year and has had negative
cash flow from operations. Green Tech also had stagnant revenue growth
during in fiscal 2009. As a result of the losses and our annual evaluation
of potential goodwill impairment, management has determined the carrying
value of Green Tech Product's goodwill to be impaired and accordingly
wrote-off all goodwill, recording a non-cash impairment loss of $2,290,000
during the fiscal year ended September 30, 2009.
Interest and financing expense for the fiscal year ended September 30, 2009
decreased to $113,000, compared to $148,000 during the year ended September
30, 2008 due to reduced borrowings.
As a result of the foregoing, our loss from continuing operations after
income taxes increased $3,344,000 to $6,092,000 for the fiscal year ended
September 30, 2009 as compared to $2,748,000 for the fiscal year ended
September 30, 2008.
During the fiscal year ended September 30, 2009, we recognized a gain on
the sale of discontinued operations net of income taxes ($6.1 million), of
$13,793,000 associated with the sale of our tire recycling business in
November 2008. The income from discontinued operations of $290,000 for the
fiscal year ended September 30, 2009 relates primarily to the net results
of our tire recycling operations.
The income from discontinued operations for the fiscal year ended September
30, 2008 includes a net benefit for income taxes of $5,333,000, primarily
due to the recognition of a deferred tax asset of $5,300,000 and
approximately $2,361,000 is associated with the de-consolidation of our
Georgia subsidiary with the balance relating to the net results of our tire
recycling operations.
Our net income for the fiscal year ended September 30, 2009 was $7,990,000
or $.26 per basic share as compared to net income of $7,891,000 or $.26 per
basic share for the fiscal year ended September 30, 2008.
Condensed Consolidated Statements of Operations
Three Months Ended Year Ended
September 30, September 30,
2009 2008 2009 2008
Net sales $ 2,017,000 $ 1,371,000 $ 3,228,000 $ 3,465,000
Cost of sales 1,697,000 1,025,000 2,705,000 2,496,000
----------- ----------- ----------- -----------
Gross profit 320,000 346,000 523,000 969,000
Selling, general and
administrative 1,449,000 1,076,000 4,254,000 3,379,000
Impairment loss -
goodwill 2,290,000 -- 2,290,000 --
----------- ----------- ----------- -----------
(3,739,000) (1,076,000) 6,544,000 3,379,000
----------- ----------- ----------- -----------
Operating loss from
continuing operations (3,419,000) (730,000) (6,021,000) (2,410,000)
----------- ----------- ----------- -----------
Other income (expense):
Interest and
financing expense (25,000) (34,000) (113,000) (148,000)
Other, net (28,000) (113,000) 42,000 (190,000)
----------- ----------- ----------- -----------
Other expense, net (53,000) (147,000) (71,000) (338,000)
Loss from continuing
operations (3,472,000) (877,000) (6,092,000) (2,748,000)
Provision for income
taxes -- -- -- --
----------- ----------- ----------- -----------
Loss after income taxes (3,472,000) (877,000) (6,092,000) (2,748,000)
Discontinued operations:
(Loss) gain on sale
of discontinued
operations, net of
taxes (620,000) -- 13,793,000 --
Income from
discontinued
operations -- 6,638,000 289,000 10,639,000
----------- ----------- ----------- -----------
(620,000) 6,638,000 14,082,000 10,639,000
----------- ----------- ----------- -----------
Net (loss) income $(4,092,000) $ 5,761,000 $ 7,990,000 $ 7,891,000
=========== =========== =========== ===========
Loss from continuing
operations per share -
basic $ (0.11) $ (0.03) $ (0.19) $ (0.09)
(Loss) income from
discontinued
operations per share -
basic (0.02) 0.22 0.45 0.35
----------- ----------- ----------- -----------
Net (loss) income per
share $ (0.13) $ 0.19 $ 0.26 $ (0.26)
=========== =========== =========== ===========
Weighted average shares
outstanding 31,506,000 30,880,000 31,506,000 30,880,000
=========== =========== =========== ===========
Condensed Consolidated Balance Sheet Data
September 30, September 30,
2009 2008
------------- ------------
Assets
Current assets $ 9,218,000 $ 2,960,000
Assets related to discontinued operations,
current -- 10,145,000
Property, plant and equipment, net 872,000 551,000
Goodwill -- 2,290,000
Other assets 2,552,000 1,094,000
Assets related to discontinued operations,
non-current -- 6,567,000
------------- ------------
$ 12,642,000 $ 23,607,000
============= ============
Liabilities and Stockholders' Equity (Deficit)
Current liabilities $ 3,720,000 $ 3,069,000
Liabilities related to discontinued operations,
current -- 16,140,000
Notes payable, non-current 530,000 483,000
Obligations due under lease settlement 505,000 581,000
Liabilities related to discontinued operations,
non-current -- 3,396,000
Stockholders' equity (deficit) 7,887,000 (62,000)
------------- ------------
$ 12,642,000 $ 23,607,000
============= ============
About GreenMan Technologies
GreenMan Technologies, through its subsidiaries, provides technological
processes and unique marketing programs for alternative energy, renewable
fuels and innovative recycled products. The Company's alternative energy
subsidiary, American Power Group, Inc. (APG) provides a cost-effective
patented dual fuel technology for diesel engines. APG's dual fuel
alternative energy system is a unique external fuel delivery 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 ("CNG"); 2) diesel fuel and
bio-methane, or 3) 100% diesel fuel depending on the circumstances. The
proprietary technology seamlessly displaces up to 70% of the normal diesel
fuel consumption with CNG or bio-methane and the energized fuel balance
between the two fuels is maintained with a patented control system ensuring
the engines operate to Original Equipment Manufacturers' ("OEM") specified
temperatures and pressures with no loss of horsepower. Installation
requires no engine modification unlike the more expensive high-pressure
alternative fuel systems in the market. Our Green Tech Products, Inc.
subsidiary, the company develops and markets branded products and services
that provide schools and other political subdivisions viable solutions for
safety, compliance, and accessibility including recycled surfacing. See
additional information at:
www.americanpowergroupinc.com and
www.playgroundcompliance.com
"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 risks and uncertainties that may individually or collectively
impact the matters herein described, including but not limited to the fact
that we have sold the tire recycling operations which have historically
generated substantially all our revenue and that we will be prohibited from
competing in that business on a regional basis until 2013; the risk that we
may not be able to increase the revenue or improve the operating results of
our Green Tech Products or American Power Group divisions; 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 the Annual Report on Form 10-K for the
fiscal year ended September 30, 2009. 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
781-224-2411
Investor Relations Contacts:
Jennifer Belodeau or John Nesbett
Institutional Marketing Services (IMS)
203-972-9200