CARLISLE, IA--(Marketwire - February 10, 2010) - GreenMan Technologies, Inc. (
OTCBB:
GMTI)
today announced results for the three months ended December 31, 2009.
Concurrently, the Company has announced that it will debut its upgraded APG
V-3000 Vehicular Dual Fuel Upgrade System at the Mid-America Trucking Show
in March 2010.
Lyle Jensen, GreenMan's President and Chief Executive Officer, stated,
"During the December quarter we reported our first ever dual fuel revenue
and expect to see increased dual fuel related revenue in the March
quarter. During the past 180 days, our dual fuel subsidiary, American
Power Group, has been on both an evolutionary and revolutionary path of
upgrading and enhancing both our dual fuel and related emission reduction
solutions and has achieved several product and marketing milestones. With
an open bid pipeline in excess of $10 million, we are diligently working to
close several important near-term domestic and international orders.
"Our first quarter results reflected seasonality and the continuing effects
of the economy on our Green Tech subsidiary, which nonetheless remained
cash flow self-sufficient during the first quarter. We anticipate
increased playground installations during the seasonally stronger second
half of the year as the warmer spring and summer months and vacation
closures create more favorable installation conditions. Additionally, we
are currently evaluating new products and marketing opportunities for Green
Tech's patented cold-cure process beyond traditional recreational
applications in order to expand our target markets."
Jensen further stated, "We are especially pleased to announce that our
American Power Group subsidiary will debut its APG V-3000 Vehicular Diesel
Dual Fuel Upgrade System at the Mid-America Trucking Show ("MATS") in
Louisville, Kentucky, March 25th - 27th. American Power Group through its
technical advisory board has accessed the best automotive minds in Detroit
for assistance in upgrading our existing analog dual fuel system to a
state-of-the-art digital engine controller. This improved, proprietary
technology for blending diesel and CNG results in dramatic net fuel savings
and reduced emissions. American Power Group's primary initial focus for
the upgraded system will be the retrofit market, i.e. fleet owners with
vehicles currently on the road. MATS is a premier trade show for trucking
professionals with participants from all 50 states and 51 foreign
countries, providing an optimal venue for our product launch. We will have
an outfitted Sprinter van and heavy-duty truck on display, as well as a
"Ride and Drive" demonstration utilizing our dual fuel Ford truck."
Conference Call
Please join us today, February 10, 2010 at 11:00 AM Eastern Time for a
conference call in which we will discuss the results for the quarter ended
December 31, 2009. To participate, please call 1-877-874-1588 and ask for
the GreenMan call using passcode 3400240. A replay of the conference call
can be accessed until 11:50 PM on February 28, 2010 by calling
1-888-203-1112 and entering pass code 3400240.
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 December 31, 2009 Compared to the Three Months ended
December 31, 2008
Net sales from continuing operations for the three months ended December
31, 2009 decreased $222,000 or 34 percent to $440,000 as compared to net
sales of $662,000 for the three months ended December 31, 2009 and 2008,
respectively. The decrease is primarily attributable to decreased
playground tile and equipment sales in the Midwestern region of the U.S.
during the three months ended December 31, 2009. The decrease was offset
by $65,000 of revenue from our American Power Group dual fuel subsidiary
during the three months ended December 31, 2009.
The company incurred a negative gross profit of $254,000 compared to a
positive gross profit of $169,000 or 26% of net sales in the three months
ended December 31, 2008. The decrease was due to lower revenue and
playground tile production during the three months ended December 31, 2009
and the inclusion of $388,000 of costs associated with our dual fuel
subsidiary which had minimal offsetting revenue. In addition, due to
anticipated seasonally slower tile sales and adequate existing product
inventory levels, management decoded to produce a minimal amount of
playground tiles during the quarter ended December 31, 2009. As a result,
we were unable to fully absorb all manufacturing overhead costs which
contributed to the negative gross profit during the quarter.
Selling, general and administrative expenses for the three months ended
December 31, 2009 increased slightly to $1,192,000 as compared to
$1,178,000 for the three months ended December 31, 2008. The increase was
primarily attributable to the inclusion of $361,000 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 which offset decreased performance based
incentives.
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, and research and development overhead was
$78,000 for the three months ended December 31, 2009.
As a result of the foregoing, our loss from continuing operations after
income taxes increased $517,000 to $1,594,000 for the three months ended
December 31, 2009 as compared to $1,077,000 for the three months ended
December 31, 2008.
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
Georgia vendor.
Our net loss for the three months ended December 31, 2009 was $1,594,000 or
$.05 per basic share as compared to net income of $13,688,000 or $.44 per
basic share for the three months ended December 31, 2008.
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.
Consolidated Statements of Operations (Unaudited)
Three Months Ended
December 31,
2009 2008
------------ ------------
Net sales $ 440,000 $ 662,000
Cost of sales 694,000 493,000
------------ ------------
Gross profit (254,000) 169,000
Selling, general and administrative 1,192,000 1,178,000
Research and development 78,000 --
------------ ------------
1,270,000 1,179,000
------------ ------------
Operating loss from continuing operations (1,524,000) (1,009,000)
------------ ------------
Other income (expense):
Interest income (expense), net 13,000 (59,000)
Other, net (83,000) (9,000)
------------ ------------
Other expense, net (70,000) (68,000)
Loss from continuing operations (1,594,000) (1,077,000)
Provision for income taxes -- --
------------ ------------
Loss after income taxes (1,594,000) (1,077,000)
Discontinued operations:
(Loss) gain on sale of discontinued
operations, net of taxes -- 14,347,000
Income from discontinued operations -- 418,000
------------ ------------
-- 14,765,000
------------ ------------
Net (loss) income $ (1,594,000) $ 13,688,000
============ ============
Loss from continuing operations per share -
basic $ (0.05) $ (0.03)
(Loss) income from discontinued operations per
share - basic -- 0.47
------------ ------------
Net (loss) income per share $ (0.05) $ 0.44
============ ============
Weighted average shares outstanding 33,077,000 30,880,000
============ ============
Condensed Consolidated Balance Sheet Data
December 31, September 30,
2009 2009
------------ ------------
Assets
Current assets $ 6,793,000 $ 9,218,000
Property, plant and equipment, net 936,000 872,000
Other assets 2,490,000 2,552,000
------------ ------------
$ 10,219,000 $ 12,642,000
============ ============
Liabilities and Stockholders' Equity
Current liabilities $ 2,869,000 $ 3,720,000
Notes payable, non-current 527,000 530,000
Obligations due under lease settlement 505,000 505,000
Stockholders' equity (deficit) 6,318,000 7,887,000
------------ ------------
$ 10,219,000 $ 12,642,000
============ ============
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