LYNNFIELD, MA--(Marketwire - Jan 17, 2012) - GreenMan Technologies, Inc. (
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, January 17, 2012 at 2:00 PM ET for a conference call in which we will discuss the results for the three and twelve months ended September 30, 2011. To participate, please call 1-888-352-6803 and ask for the GreenMan call using pass code 9304731. A replay of the conference call can be accessed until 11:50 PM on February 15, 2012 by calling 1-888-203-1112 and entering pass code 9304731.
Three Months ended September 30, 2011 Compared to Three Months ended September 30, 2010
Net sales from continuing operations for the three months ended September 30, 2011 increased $209,000 or 151 percent to $347,000 as compared to net sales of $138,000 for the three months ended September 30, 2010. The increase is attributable to stronger domestic stationary and international stationary and vehicular dual fuel revenues.
During the three months ended September 30, 2011, the Company reported a gross profit of $16,000 as compared to a negative gross profit of $90,000 for the three months ended September 30, 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 September 30, 2011 and was primarily the reason for the negative gross profit during the three months ended September 30, 2010.
Selling, general and administrative expenses for the three months ended September 30, 2011 increased $359,000 or 49 percent to $1,091,000 as compared to $732,000 for the three months ended September 30, 2010. The increase was primarily attributable to increased selling, professional and non-cash stock option amortization expense and the allocation of more internal resources to our ongoing dual fuel research and development efforts during the three months ended September 30, 2011.
Expenses for 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, and research and development overhead increased $177,000 or 74 percent to $415,000 for the three months ended September 30, 2011 as compared to $238,000 for the three months ended September 30, 2010.
During the three months ended September 30, 2011, interest and financing expense increased $328,000 to $273,000 of expense including $163,000 of non-cash financing costs as compared to $55,000 of income for the three months ended September 30, 2010 due to increased borrowings.
Our net loss from continuing operations was $1,841,000 for the three months ended September 30, 2011 as compared to a net loss of $1,085,000 for the three months ended September 30, 2010.
During the three months ended September 30, 2011, the Company recognized a loss on sale of discontinued operations net of $60,000 associated with the sale of our molded rubber products business in August 2011. The net profit from discontinued operations for the three months ended September 30, 2011 of $106,000 relates to the net results of our molded rubber products operations. The loss from discontinued operations of $108,000 for the three months ended September 30, 2010 relates primarily to the net results of our molded rubber products operations.
Our net loss for the three months ended September 30, 2011 was $1,795,000 or ($.05) per basic share as compared to $1,263,000 or ($.04) per basic share for the three months ended September 30, 2010.
Fiscal Year ended September 30, 2011 Compared to Fiscal Year ended September 30, 2010
Net sales from continuing operations for the fiscal year ended September 30, 2011 increased $1,435,000 or 431 percent to $1,768,000 as compared to net sales of $333,000 for the fiscal year ended September 30, 2010. The increase is attributable to stronger domestic stationary and international stationary and vehicular dual fuel revenues.
During the fiscal year ended September 30, 2011, the Company incurred a negative gross profit of $65,000 as compared to a negative gross profit of $697,000 for the fiscal year ended September 30, 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 fiscal year ended September 30, 2011 and was primarily the reason for the negative gross profit during the fiscal year ended September 30, 2010.
Selling, general and administrative expenses for the fiscal year ended September 30, 2011 increased $99,000 or 3 percent to $3,467,000 as compared to $3,368,000 for the fiscal year ended September 30, 2010. The increase was primarily attributable to increased selling, professional and non-cash stock option amortization expense and the allocation of more internal resources to our ongoing dual fuel research and development efforts during the fiscal year ended September 30, 2011.
During the fiscal year ended September 30, 2011, the Company recorded an impairment loss of $150,000 associated with a long term deposit for the distribution rights to a tire to energy technology which has not been completed.
Expenses for 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, and research and development overhead increased $623,000 or 89 percent to $1,322,000 for the fiscal year ended September 30, 2011 as compared to $699,000 for the fiscal year ended September 30, 2010.
During the fiscal year ended September 30, 2011, interest income and financing expense increased $846,000 to $766,000 of expense including $507,000 of non-cash financing costs as compared to $80,000 of income for the fiscal year ended September 30, 2010 due to increased borrowings.
During the fiscal year ended September 30, 2011, the Company recognized a net income tax benefit of $322,000 associated with refundable federal and state income taxes.
GreenMan's net loss from continuing operations was $5,637,000 for the fiscal year ended September 30, 2011 as compared to a net loss of $4,933,000 for the fiscal year ended September 30, 2010.
During the fiscal year ended September 30, 2011, the Company recognized a loss on sale of discontinued operations net of $60,000 associated with the sale of our molded rubber products business in August 2011. The loss from discontinued operations for the fiscal year ended September 30, 2011 of $1,116,000 relates to the net results of our molded rubber products operations including approximately $449,000 associated with a non-cash impairment loss and an inventory valuation allowance recorded during the year. The loss from discontinued operations of $708,000 for the fiscal year ended September 30, 2010 relates primarily to the net results of our molded rubber products operations which was offset by income from discontinued operations of $149,000 primarily with a reduction of income tax expense.
GreenMan reported a net loss for the fiscal year ended September 30, 2011 was $6,813,000 or ($.19) per basic share as compared to $5,641,000 or ($.17) per basic share for the fiscal year ended September 30, 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 September 30, | Fiscal Year Ended September 30, | ||||||||||||||||||
| 2011 | 2010 | 2011 | 2010 | ||||||||||||||||
| Net sales | $ | 347,000 | $ | 138,000 | $ | 1,768,000 | $ | 333,000 | |||||||||||
| Cost of sales | 331,000 | 228,000 | 1,833,000 | 1,030,000 | |||||||||||||||
| Gross profit (loss) | 16,000 | (90,000 | ) | (65,000 | ) | (697,000 | ) | ||||||||||||
| Selling, general and administrative | 1,091,000 | 732,000 | 3,467,000 | 3,368,000 | |||||||||||||||
| Impairment loss | -- | -- | 150,000 | -- | |||||||||||||||
| Research and development | 415,000 | 238,000 | 1,322,000 | 699,000 | |||||||||||||||
| 1,506,000 | 970,000 | 4,939,000 | 4,067,000 | ||||||||||||||||
| Operating loss | (1,490,000 | ) | (1,060,000 | ) | (5,004,000 | ) | (4,764,000 | ) | |||||||||||
| Other income (expense): | |||||||||||||||||||
| Interest and financing (expense) income | (273,000 | ) | 55,000 | (766,000 | ) | 80,000 | |||||||||||||
| Other, net | (78,000 | ) | (80,000 | ) | (189,000 | ) | (249,000 | ) | |||||||||||
| Other expense, net | (351,000 | ) | (25,000 | ) | (955,000 | ) | (169,000 | ) | |||||||||||
| Loss from continuing operations before taxes | (1,841,000 | ) | (1,085,000 | ) | (5,959,000 | ) | (4,933,000 | ) | |||||||||||
| Income tax benefit | -- | -- | 322,000 | -- | |||||||||||||||
| Loss from continuing operations | (1,841,000 | ) | (1,085,000 | ) | (5,637,000 | ) | (4,933,000 | ) | |||||||||||
| Discontinued operations: | |||||||||||||||||||
| Loss on sale of discontinued operations, net of taxes | (60,000 | ) | -- | (60,000 | ) | -- | |||||||||||||
| Income (loss) from discontinued operations, | 106,000 | (108,000 | ) | (1,116,000 | ) | (708,000 | ) | ||||||||||||
| 46,000 | (108,000 | ) | (1,176,000 | ) | (708,000 | ) | |||||||||||||
| Net loss | $ | (1,795,000 | ) | $ | (1,193,000 | ) | $ | (6,813,000 | ) | $ | (5,641,000 | ) | |||||||
| Loss from continuing operations per share - basic and diluted. | $ | (0.05 |
) | $ | (0.04 |
) | $ | (0.16 |
) | $ (0.15 |
) | ||||||||
| Income from discontinued operations per share - basic and diluted | -- |
-- |
(0.03 |
) | (0.02 |
) | |||||||||||||
| Net loss per share | $ | (0.05 | ) | $ | (0.04 | ) | $ | (0.19 | ) | $ | (0.17 | ) | |||||||
| Weighted average shares outstanding - basic and diluted | 36,173,000 |
33,163,000 |
35,621,000 |
33,111,000 |
|||||||||||||||
| Condensed Consolidated Balance Sheet Data | |||||||
| September 30, 2011 | September 30, 2010 | ||||||
| Assets | |||||||
| Current assets | $ | 1,870,000 | $ | 1,956,000 | |||
| Property, plant and equipment, net | 384,000 | 478,000 | |||||
| Other assets | 1,533,000 | 1,887,000 | |||||
| Assets related to discontinued operations | -- | 2,539,000 | |||||
| $ | 3,787,000 | $ | 6,860,000 | ||||
| Liabilities and Stockholders' (Deficit) Equity | |||||||
| Current liabilities | $ | 4,536,000 | $ | 1,708,000 | |||
| Notes payable, non-current | 1,824,000 | 921,000 | |||||
| Obligations due under lease settlement, non-current | 506,000 | 506,000 | |||||
| Liabilities released to discontinued operations | -- | 1,207,000 | |||||
| Stockholders' (deficit) equity | (3,079,000 | ) | 2,518,000 | ||||
| $ | 3,787,000 | $ | 6,860,000 | ||||
Contact Information:
Contacts:
Chuck Coppa
CFO
Lyle Jensen
CEO
GreenMan Technologies
781-224-2411
Investor Relations Contacts:
John Nesbett or Jennifer Belodeau
Institutional Marketing Services (IMS)
203-972-9200