CARLISLE, IA--(Marketwire - February 17, 2009) - GreenMan Technologies, Inc. (OTCBB: GMTI),
today announced results for the three months ended December 31, 2008.
Lyle Jensen, GreenMan's President and Chief Executive Officer stated,
"Having successfully divested our tire recycling business for approximately
$27.7 million in November, we enter fiscal 2009 with a strong balance
sheet, significantly increased cash position and revitalized growth
platform. We are focused on evaluating opportunities for our newly created
GreenMan Renewable Fuels and Alternative Energy subsidiary. Our strategy is
to focus on opportunities that offer shareholders long-term growth coupled
with near term positive cash flow. A silver lining of this difficult
economy is that attractive opportunities have availed themselves,
particularly green-based technologies that convert recycled material and
waste feedstock into bio-fuels, alternative energy, and recycled products."
Mr. Jensen continued, "The Welch Products group saw double digit revenue
growth for the quarter resulting in enhanced gross margins. While the
economy has tightened school board budgets, we continue to see demand for
our products given their ADA compliance and attractive total cost of
ownership. We remain focused on creating alternative funding solutions
and building relationships with state school boards as we head into 2009."
Please join us today, February 17, 2009 at 11:00 AM EST for a conference
call in which we will discuss the results for the quarter ended December
31, 2008. To participate, please call 1-877-879-6201 and ask for the
GreenMan call using passcode 6834038. A replay of the conference call can
be accessed until 11:50 PM on March 3, 2009 by calling 1-888-203-1112 and
entering pass code 6834038.
In September 2005, due to the magnitude of continued operating losses, our
Board of Directors approved plans to divest the operations of our GreenMan
Technologies of Georgia, Inc. subsidiary and dispose of its respective
assets. Accordingly, we have classified all remaining liabilities
associated with our Georgia entity and its results of operations as
discontinued operations for all periods presented in this press release. On
June 27, 2008, our Georgia subsidiary filed for liquidation under Chapter 7
of the federal bankruptcy laws in the Bankruptcy Court of the Middle
District of Georgia. As a result of the bankruptcy proceedings we have
relinquished control of our Georgia subsidiary to the Bankruptcy Court and
therefore have de-consolidated substantially all remaining obligations from
our financial statements as of September 30, 2008.
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
quarter covered by this release and the report on Form 10Q we have included
all relevant information on this business segment but have classified their
respective assets, liabilities and results of operations as discontinued
operations for all periods presented in the accompanying consolidated
financial statements.
The following information should be read in conjunction with the unaudited
consolidated financial statements and the notes thereto included in Item 1
of this Quarterly Report, and the audited consolidated financial statements
and notes thereto and Management's Discussion and Analysis of Financial
Condition and Results of Operations contained in our Form 10-KSB filed for
the fiscal year ended September 30, 2008.
Results of Operations
Three Months ended December 31, 2008 Compared to the Three Months ended
December 31, 2007
Net sales from continuing operations for the three months ended December
31, 2008 increased $62,000 or 10 percent to $662,000 as compared to net
sales of $600,000 for the quarter ended December 31, 2008. The increase is
primarily attributable to increased playground tile and equipment sales of
our Welch subsidiary.
Gross profit for the three months ended December 31, 2008 was $169,000 or
26 percent of net sales, compared to $112,000 or 19 percent of net sales
for the three months ended December 31, 2007. The increase was primarily
attributable to higher revenues and reduced overhead costs and headcount.
Selling, general and administrative expenses for the three months ended
December 31, 2008 increased $439,000 to $1,177,000 as compared to $738,000
for the three months ended December 31, 2007. The increase was primarily
attributable to an increase of $247,000 in professional expenses relating
to business development initiatives and the November 2008 sale of our tire
recycling operations, an increase of approximately $164,000 in wage and
performance-based incentives.
Interest and financing expense for the three months ended December 31, 2008
increased $14,000 to $59,000, compared to $45,000 during the three months
ended December 31,2007 due to increased borrowings.
As a result of the foregoing, our loss from continuing operations after
income taxes increased $387,000 to $1,077,000 for the three months ended
December 31, 2008 as compared to $690,000 for the three months ended
December 31, 2007.
During the three months ended December 31, 2008 we recognized a gain on
sale of discontinued operations net of income taxes ($5.5 million), of
$14,347,000 associated with the sale of our tire recycling business in
November 2008. The income from discontinued operations for the three
months ended December 31, 2008 relates primarily to the net results of our
tire recycling operations including approximately $391,000 of one-time
gains associated with the termination of a long-term land and building
lease agreement in Minnesota. In addition, during the quarter ended
December 31, 2008, we recognized income from Georgia discontinued
operations of approximately $144,000 including approximately $161,000
associated with the completion of a March 2008 settlement agreement with a
former Georgia vendor. The income from discontinued operations for the
three months ended December 31, 2007 relates to the net results of our tire
recycling operations.
Our net income for the three months ended December 31, 2008 was
$13,688,000 or $.39 per basic share as compared to net income of $18,000 or
$.00 per basic share for the three months ended December 31, 2007.
About GreenMan Technologies
GreenMan Technologies pursues technological processes and unique marketing
programs to transform recycled materials into renewable fuel, alternative
energy, recycled feedstock, and innovative recycled products. Through the
company's Welch Products subsidiary, the company develops and markets
branded products and services that provide schools and other political
subdivisions viable solutions for safety, compliance, and accessibility.
Our Renewable Fuels and Alternative Energy subsidiary supports our
strategic objective to pursue opportunities to commercialize green-based
technologies that convert waste feedstock into bio-fuels and other
waste-to-energy solutions. To learn more about all of the companies,
please visit the following websites: www.greenman.biz,
www.welchproducts.com,
www.nssi-usa.com
Condensed Consolidated Statements of Operations
Three Months Ended
December 31,
2008 2007
------------ ------------
Net sales $ 662,000 $ 600,000
Cost of sales 493,000 488,000
------------ ------------
Gross profit 169,000 112,000
Selling, general and administrative 1,177,000 738,000
------------ ------------
Operating (loss) from continuing operations (1,008,000) (626,000)
------------ ------------
Other income (expense)
Interest and financing expense (59,000) (45,000)
Other (expenses) income, net (10,000) (19,000)
------------ ------------
(69,000) (64,000)
(Loss) from continuing operations (1,077,000) (690,000)
------------ ------------
Discontinued operations
Gain from sale of discontinued operations 14,347,000 --
Income from discontinued operations 418,000 708,000
------------ ------------
14,765,000 708,000
------------ ------------
Net income $ 13,688,000 $ 18,000
============ ============
(Loss) from continuing operations per share -
basic $ (0.03) $ (0.02)
Income from discontinued operations per share -
basic 0.47 0.02
------------ ------------
Net income per share - basic $ 0.44 $ --
============ ============
Net income per share - diluted $ 0.39 $ --
============ ============
Weighted average shares outstanding - basic 30,880,000 30,880,000
============ ============
Weighted average shares outstanding - diluted 35,500,000 35,788,000
============ ============
Condensed Consolidated Balance Sheet Data
December 31, September 30,
2008 2008
------------- ------------
Assets
Current assets $ 12,818,000 $ 2,960,000
Assets related to discontinued operations,
current -- 10,145,000
Property, plant and equipment (net) 538,000 551,000
Goodwill 2,290,000 2,290,000
Other assets 1,042,000 1,094,000
Assets related to discontinued operations,
non-current -- 6,567,000
------------- ------------
$ 16,688,000 $ 23,607,000
============= ============
Liabilities and Stockholders Deficit
Current liabilities $ 1,970,000 $ 3,069,000
Liabilities related to discontinued operations,
current -- 16,140,000
Notes payable, non-current 479,000 483,000
Obligations due under lease settlement 581,000 581,000
Assets related to discontinued operations,
non-current -- 3,396,000
Stockholders equity (deficit) 13,658,000 (62,000)
------------- ------------
$ 16,688,000 $ 23,607,000
============= ============
"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 risks and uncertainties that may individually or collectively
impact the matters herein described, including but not limited to the facts
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 of our Welch division, the risks
that we may not be able to identify and acquire complementary businesses
and that we may not be able successfully to integrate any such acquisitions
with our current businesses, 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, and the 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-KSB for the fiscal period ended
September 30, 2008. 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