SOURCE: Totally Green, Inc.

Totally Green, Inc.

December 14, 2011 08:31 ET

Totally Green Reports Third Quarter 2011 Results

Pilot-to-Purchase Conversion Rate Reaches 90%, Driving Q3 Revenues Up 64% Versus Same Year-Ago Quarter

TULSA, OK--(Marketwire - Dec 14, 2011) - Totally Green, Inc. (PINKSHEETS: TLGN), a pioneer in organic food processing systems and compostable packaging alternatives, reported results for the third quarter ended September 30, 2011.

Q3 2011 Operational Highlights

  • Oklahoma State University Athletics purchased the ORCA Green™ Machine for the Boone Pickens Stadium. Learfield Sports, a pioneer in the collegiate marketing industry, participated in the purchase decision, and plans to monitor the installation for potential use in its network of more than 50 university partners.
  • Reasor's, a retail grocery store chain in Oklahoma with 15 locations, purchased the ORCA Green Machine following a successful pilot trial, with further roll out under consideration.
  • The University of Texas Southwestern Medical Center purchased an ORCA Green Machine for its University Hospital - Zale Lipshy. This installation at Zale Lipshy marks UT Southwestern Medical Center's second ORCA Green Machine purchase, with the original machine currently in use at their University Hospital - St. Paul location.
  • One of the nation's largest wholesale clubs purchased its fourth ORCA Green Machine.
  • Installed ORCA Green Machine at Durango and Silverton Narrow Gauge Railroad, which has also become a seller of Totally Green's Ingeo™ Green Bottle Spring Water. The Railroad plans to partner with local restaurants in an effort to reduce the amount of food waste sent to landfills.
  • Launched two ORCA Green Machine pilot trials for one of the largest supermarket chains in the U.S.
  • Pilot trial program achieves 90% sales conversion rate since inception 18 months ago.
  • New ORCA Green Machine installations totaled 12 machines in the quarter, as compared to 11 in the previous quarter and none reported in the third quarter of 2010.

Q3 2011 Summary of Financial Results
Revenue in the third quarter of 2011 was $225,000, up 64% from $137,000 in the same year-ago quarter, as the company emerges from its development stage to initial commercial sales. The increase in revenue was primarily due to improving sales and market penetration of the company's ORCA Green Machine, as well as an increasing amount of recurring supply-related revenue.

Gross profit in the third quarter of 2011 was $95,000 or 42% of revenue, as compared to gross profit of $5,000 or 4% of revenue in the same year-ago quarter.

Net loss in the third quarter of 2011 was $427,000 or $(0.00) per share, as compared to a net loss of $361,000 or $(0.00) per share in the same year-ago quarter. The third quarter 2011 net loss included depreciation and amortization costs of $158,000, versus $ 139,000 in the same year-ago quarter.

Cash and cash equivalents at September 30, 2011 totaled $53,000, versus $127,000 at June 30, 2011. Totally Green has a $2 million line of credit designated for operations, of which approximately $439,000 was available at the end of the third quarter.

Financial Guidance
For the fourth quarter of 2011, the company expects revenues of $200,000 to $220,000.

Management Commentary
"The substantial increase in revenue over the same year-ago quarter reflects the increasing market penetration of our revolutionary ORCA Green Machine," said Nate Baker, president and interim CFO of Totally Green. "This growth is largely attributed to our 90% pilot conversion ratio for the ORCA Green Machine, which includes the continued adoption by one of the nation's largest wholesale clubs, as well as further traction in our government, hospital and university verticals.

"During the quarter, several new commercial targets approved our technology for company-wide adoption, and we expect purchase orders in the near future. Also in the pipeline are several new pilot trials, including one of the largest supermarket chains in the U.S.

"Meanwhile, we are in advanced discussions for strategic business partnerships with one of the world's largest dining service contract companies and a major Canadian waste management service company. A pilot trial with another U.S. military branch is also in the works. This activity demonstrates customer interest in our products is strong and growing, and that we are enjoying tremendous momentum going into the New Year. In fact, our certification for the ETL product safety mark is expected in January, which we believe will help further drive sales.

"In line with our previously announced plan to eventually become a fully reporting company with the SEC, we recently completed an independent audit of our 2009 and 2010 financial statements. These are available on our website starting today. We anticipate our first SEC filings will be completed in 2012, and for this to coincide with our up listing to the OTCQX or NASDAQ stock exchange. We plan to provide a review of our Q4 and full year 2011 on our next investor conference call in late February. This will include our objectives and outlook for 2012, as well as an update on some very big customer wins we're currently pursuing."

About Totally Green
Totally Green, Inc. develops, manufactures, and markets the company's ORCA Green™ Machine and markets the Ingeo™ Green Bottle Spring Water. The ORCA (Organic Refuse Conversion Alternative) machine allows for rapid composting of most organic material in institutional and commercial end-user applications, after which the liquid compost is either returned to the soil as nourishment or disposed of through the ordinary sewer system. The machine creates meaningful cost savings for customers while diverting food waste from landfills and reducing methane gas production. Both products offer businesses and consumers innovative and affordable solutions for food & beverage by-product disposal. For more information, please visit www.totallygreen.com.

Important Cautions Regarding Forward-Looking Statements
This press release contains "forward-looking statements." Forward-looking statements are statements concerning plans, objectives, goals, strategies, expectations, intentions, projections, developments, future events, or performance, underlying (expressed or implied) assumptions and other statements that are other than historical facts. These forward-looking statements are only predictions. No assurances can be given that such predictions will prove correct. Actual events or results may differ materially. Forward-looking statements should be read in light of the cautionary statements and risks that include, but are not limited to, the risks associated with a small company, our comparatively limited financial resources, the uncertainty of market trends, the competition faced from other current and future technologies and the uncertainties of competitive pressures we face. These or other risks could cause actual results to differ materially from the future results indicated or implied in such forward-looking statements. We undertake no obligation to update or revise such statements.

TOTALLY GREEN, INC.
CONDENSED BALANCE SHEETS
ASSETS
September 30, December 31,
2011 2010
(Unaudited)
Current Assets
Cash & Cash Equivalents $ 52,668 $ 17,538
Temporary Investments - Restricted 25,000 25,000
Trade Accounts Receivable 209,498 700
Accounts receivable - Other 23,000 5,000
Prepaid Expenses 362,641 12,641
Inventory 320,366 130,816
Total Current Assets 993,173 191,695
Property and Equipment
Machinery and Equipment 45,400 38,640
Accumulated Depreciation (7,624 ) (2,760 )
Property and Equipment, net 37,776 35,880
Intangible Assets, net 688,416 774,827
Prepaid Marketing Fees 1,137,550 -
Other Assets 13,527 13,527
Discontinued Operations - Assets 536,987 681,167
Total Assets $ 3,407,429 $ 1,697,096
TOTALLY GREEN, INC.
CONDENSED BALANCE SHEETS
LIABILITIES AND EQUITY
September 30, December 31,
2011 2010
(Unaudited)
Current Liabilities
Accounts Payable $ 195,189 $ 172,014
Sales Tax Payable 1,751 -
Customer Deposits - 27,962
Dividends Payable 48,000 48,000
Fees Payable 106,280 106,280
Total Current Liabilties 351,220 354,256
Fees Payable - Long-Term 216,773 216,773
Line of Credit 1,561,102 603,009
Total Liabilities 2,129,095 1,174,038
Equity
Common Stock - $0.001 Par Value, 750,000,000 shares authorized 625,777,894 and 587,732,546 shares issued and outstanding 625,778 587,733
Preferred Stock
Series A - $0.001 Par Value 1,900,000 shares authorized, issued and outstanding 1,900 1,900
Series B - $0.001 Par Value, 3,000 shares authorized, issued and outstanding 3 3
Additional Paid in Capital:
Common Stock 4,565,373 2,703,418
Preferred Stock - Series A 55,100 55,100
Preferred Stock - Series B 1,149,997 1,149,997
Retained Earnings (Deficit) (5,119,817 ) (3,975,093 )
Total Equity 1,278,334 523,058
Total Liabilities and Equity $ 3,407,429 $ 1,697,096
TOTALLY GREEN, INC.
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Three Months
Ended Ended
September 30, 2011 September 30, 2010
Net Sales $ 224,746 $ 136,752
Cost of Goods Sold 129,292 131,749
Gross Profit 95,454 5,003
Selling, General and Administrative Expenses 520,937 401,588
Operating Loss (425,483 ) (396,585 )
Other Income (Expenses)
Other Income 1,743 36,000
Interest Expense (3,415 ) -
Total Other Income (Expenses) (1,672 ) 36,000
Net Loss $ (427,155 ) $ (360,585 )

Contact Information

  • Company Contact:
    Nate Baker
    President & Interim CFO
    Totally Green, Inc.
    Tel 918-619-9700

    Investor Relations Contact:
    Liolios Group, Inc.
    Scott Liolios or Chris Tyson
    Tel 949-574-3860