CARLISLE, IA--(Marketwire - August 12, 2009) - GreenMan Technologies, Inc. (OTCBB: GMTI)
today announced results for the three and nine months ended June 30, 2009.
Lyle Jensen, GreenMan's President and Chief Executive Officer stated,
"Third quarter financial results were disappointing as we continued to see
the impact of the economy and a slow start to the playground install season
for our Green Tech Products subsidiary. That being said, we saw
much stronger revenue in the month of July that exceeded the revenue for
the whole quarter ending June. The firm backlog for August through October
is at $ 1.7 million which we believe will give us the opportunity for a
strong fourth quarter and year-end finish. While the general economic
slowdown has impacted our Green Tech Product year-to-date results,
particularly in states like California, we expect flat to moderate growth
in the Midwest and have momentum builders in place to capture additional
new state endorsements which could bode well for calendar year 2010."
Jensen further stated, "Subsequent to the quarter, we purchased the assets
of American Power Group, Inc., a provider of patented dual fuel alternative
energy technology. This is a bourgeoning industry around the world, and
American Power Group provides a unique patented solution that reduces a
customer's operating cost while also being environmentally friendly. We
are working very closely with the their management team on multiple
opportunities both in the U.S. and abroad and expect this business to be a
primary growth driver for GreenMan's business in 2010 and beyond."
Conference Call
Please join us today, August 12, 2009 at 11:00 AM EDT for a conference call
in which we will discuss the results for the quarter ended June 30, 2009.
To participate, please call 1-888-576-4390 and ask for the GreenMan call
using passcode 5256004. A replay of the conference call can be accessed
until 11:50 PM on September 11, 2009 by calling 1-888-203-1112 and entering
pass code 5256004.
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 duel 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
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.
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 June 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 June 30, 2009 Compared to the Three Months ended June
30, 2008
Net sales from continuing operations for the three months ended June 30,
2009 decreased $435,000 or 49 percent to $451,000 as compared to net sales
of $886,000 for the three months ended June 30, 2008. The decrease is
primarily attributable to decreased playground tile and equipment sales in
the Midwestern and Western regions of the United States due to a general
economic slowdown during fiscal 2009 in the United States. A majority of
our revenue is derived from specific one time installations with minimal
follow on revenue from the installed project, thus making quarterly revenue
comparisons particularly difficult. We anticipate increased revenue during
our seasonally strongest fourth quarter due to warmer weather conditions
and school vacation closures which allow for easier installation
conditions.
Our gross profit for the three months ended June 30, 2009 was $145,000 or
32 percent of net sales as compared to a gross profit of $285,000 or 32
percent of net sales for the three months ended June 30, 2008.
Selling, general and administrative expenses for the three months ended
June 30, 2009 increased $169,000 to $903,000 as compared to $734,000 for
the three months ended June 30, 2008. The increase was primarily
attributable to an increase of $115,000 in professional expenses relating
to business development initiatives and the November 2008 sale of our tire
recycling operations and an increase of approximately $125,000 in
performance based incentives. These increases were partially offset by
reduced travel, marketing and sales related costs.
Interest and financing expense for the three months ended June 30, 2009
decreased $28,000 to $15,000, compared to $43,000 during the three months
ended June 30, 2008 due to decreased borrowings.
As a result of the foregoing, our loss from continuing operations after
income taxes increased $207,000 to $726,000 for the three months ended June
30, 2009 as compared to $519,000 for the three months ended June 30, 2008.
During the three months ended June 30, 2009, we recognized net income from
our discontinued tire recycling operations of $37,000 associated with the
final purchase price reconciliation with the purchaser of the assets. The
income from discontinued operations for the three months ended June 30,
2008 includes approximately $2,631,000 associated with the de-consolidation
of our Georgia subsidiary due to its bankruptcy with the balance associated
with the net results of our tire recycling.
Our net loss for the three months ended June 30, 2009 was $689,000 or $.02
per basic share as compared to net income of $2,992,000 or $.10 per basic
share for the three months ended June 30, 2008.
Nine Months ended June 30, 2009 Compared to the Nine Months ended June 30,
2008
Net sales from continuing operations for the nine months ended June 30,
2009 decreased $883,000 or 42 percent to $1,211,000 as compared to net
sales of $2,094,000 for the nine months ended June 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 in the United States . A majority of
our revenue is derived from specific one time installations with minimal
follow on revenue from the installed project, thus making quarterly revenue
comparisons particularly difficult. We anticipate increased revenue during
our seasonally strongest fourth quarter due to warmer weather conditions
and school vacation closures which allow for easier installation
conditions.
Due to lower revenue and playground tile production during the nine months
ended June 30, 2009 our gross profit was $203,000 or 17 percent of net
sales compared to a gross profit of $623,000 or 30 percent of net sales for
the nine months ended June 30, 2008. Due to slower tile sales during the
seasonally slower first half of fiscal 2009 and adequate existing product
inventory levels, management decided to produce a minimal amount of
playground tiles during the first half of fiscal 2009 and 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 nine months ended June
30, 2009 increased $502,000 to $2,805,000 as compared to $2,303,000 for the
nine months ended June 30, 2008. 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 and an increase of approximately $164,000 in performance based
incentives. These increases were partially offset by reduced travel,
marketing and sales related costs.
Interest and financing expense for the nine months ended June 30, 2009
decreased to $88,000, compared to $114,000 during the nine months ended
June 30, 2008 due to reduced borrowings.
As a result of the foregoing, our loss from continuing operations after
income taxes increased $749,000 to $2,620,000 for the nine months ended
June 30, 2009 as compared to $1,871,000 for the nine months ended June 30,
2008.
During the nine months ended June 30, 2009 we recognized a gain on sale of
discontinued operations net of income taxes ($5.5 million), of $14,413,000
associated with the sale of our tire recycling business in November 2008.
The income from discontinued operations for the nine months ended June 30,
2009 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 six months ended June 30, 2009, we recognized
income from Georgia discontinued operations of approximately $44,000
relating to the net effects of two settlement agreements with two former
Georgia vendors. The income from discontinued operations for the nine
months ended June 30, 2008 includes approximately $2,361,000 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 nine months ended June 30, 2009 was $12,083,000 or
$.39 per basic share as compared to net income of $2,130,000 or $.07 per
basic share for the nine months ended June 30, 2008.
Condensed Consolidated Statements of Operations
Three Months Ended Nine Months Ended
June 30, June 30,
2009 2008 2009 2008
------------ ------------ ------------ ------------
Net sales $ 451,000 $ 886,000 $ 1,211,000 $ 2,094,000
Cost of sales 306,000 601,000 1,008,000 1,471,000
------------ ------------ ------------ ------------
Gross profit 145,000 285,000 203,000 623,000
Selling, general
and administrative 903,000 734,000 2,805,000 2,303,000
------------ ------------ ------------ ------------
Operating (loss)
income from
continuing
operations (758,000) (449,000) (2,602,000) (1,680,000)
------------ ------------ ------------ ------------
Other income
(expense):
Interest and
financing
expense (15,000) (43,000) (88,000) (114,000)
Other, net 47,000 (27,000) 70,000 (77,000)
------------ ------------ ------------ ------------
Other
(expense),
net 32,000 (70,000) (18,000) (191,000)
Loss from
continuing
operations (726,000) (519,000) (2,620,000) (1,871,000)
Provision for
income taxes -- -- -- --
------------ ------------ ------------ ------------
Loss after income
taxes (726,000) (519,000) (2,620,000) (1,871,000)
Discontinued
operations:
Gain on sale of
discontinued
operations 65,000 -- 14,413,000 --
Income from
discontinued
operations (28,000) 3,511,000 290,000 4,001,000
------------ ------------ ------------ ------------
37,000 3,511,000 14,703,000 4,001,000
------------ ------------ ------------ ------------
Net loss $ (689,000) $ 2,992,000 $ 12,083,000 $ 2,130,000
============ ============ ============ ============
Loss from
continuing
operations per
share - basic $ (0.02) $ (0.02) $ (0.08) $ (0.06)
Income from
discontinued
operations per
share - basic -- 0.12 0.47 0.13
------------ ------------ ------------ ------------
Net loss per share $ (0.02) $ 0.10 $ 0.39 $ (0.07)
============ ============ ============ ============
Weighted average
shares outstanding 31,170,000 30,880,000 30,977,000 30,880,000
============ ============ ============ ============
Condensed Consolidated Balance Sheet Data
June 30, September 30,
2009 2008
------------- ------------
Assets
Current assets $ 10,117,000 $ 2,960,000
Assets related to discontinued operations,
current -- 10,145,000
Property, plant and equipment, net 540,000 551,000
Goodwill 2,290,000 2,290,000
Other assets 1,684,000 1,094,000
Assets related to discontinued operations,
non-current -- 6,567,000
------------- ------------
$ 14,631,000 $ 23,607,000
============= ============
Liabilities and Stockholders’ Equity (Deficit)
Current liabilities $ 1,503,000 $ 3,069,000
Liabilities related to discontinued operations,
current -- 16,140,000
Notes payable, non-current 673,000 483,000
Obligations due under lease settlement 505,000 581,000
Liabilities related to discontinued operations,
non-current -- 3,396,000
Stockholders’ equity (deficit) 11,950,000 (62,000)
------------- ------------
$ 14,631,000 $ 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 Green Tech Products 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
Lyle Jensen, CEO
GreenMan Technologies
781-224-2411
www.greenman.biz
Investor Relations:
Jennifer Belodeau
John Nesbett
Institutional Marketing Services (IMS)
203-972-9200