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GreenMan Technologies, Inc. (OTCBB: GMTI), today announced results for the three months ended December 31, 2010.
Lyle Jensen, GreenMan's President and Chief Executive Officer stated, "We are very pleased with the revenue growth we achieved this quarter, which reflects the traction being gained from our American Power Group's (APG) dual fuel offering, thanks not only to our unique technology but also to our diligent sales and marketing efforts. In fact, APG's revenue performance this quarter surpasses the revenues achieved from AGP during the entire fiscal 2010 time period. We are continuing to build momentum and since the close of the first quarter we have signed two important agreements in the United States for the dual fuel upgrade of refuse trucks on a test trial basis, with Casella Waste Systems and Waste Connections of Iowa, respectively. These testing opportunities are significant because we believe the aftermarket refuse industry is a prime candidate for the use of effective diesel fuel and diesel emission reduction technologies and successful testing will validate our solution to the domestic marketplace. We continue to market our technology as an effective retrofit solution for vehicular and stationary engines worldwide and have been leveraging our existing partnerships and successes, to secure additional international opportunities."
Please join us Tuesday, February 15, 2011 at 11:00 AM EST for a conference call in which we will discuss the results for the quarter ended December 31, 2010. To participate, please call 1-888-819-8015 and ask for the GreenMan call using pass code 9838356. A replay of the conference call can be accessed until 11:50 PM on March 1, 2011 by calling 1-888-203-1112 and entering pass code 9838356.
Results of Operations
Three Months ended December 31, 2010 Compared to the Three Months ended December 31, 2009
Net sales from continuing operations for the three months ended December 31, 2010 increased $352,000 or 80 percent to $792,000 as compared to net sales of $440,000 for the three months ended December 31, 2009. The increase is primarily attributable to increased revenue associated with our dual fuel subsidiary during the three months ended December 31, 2010 and a $57,000 increase in our molded products subsidiary.
During the three months ended December 31, 2010, we incurred a negative gross profit of $22,000 as compared to a negative gross profit of $254,000 for the three months ended December 31, 2009. The reduction in the negative gross profit was primarily attributable to a $295,000 increase in dual fuel related revenue as compared to only $65,000 of revenue during the three months ended December 31, 2009. Due to lower playground tile production during the three months ended December 31, 2010 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, 2010 decreased $49,000 to $1,143,000 as compared to $1,192,000 for the three months ended December 31, 2009. The decrease was primarily attributable to fewer marketing and business development initiatives during the three months ended December 31, 2010.
Expenses for internal research and development projects relating to the introduction of new dual fuel products, enhancements made to the current family of duel fuel products, and research and development overhead increased $112,000 to $190,000 for the three months ended December 31, 2010 as compared to $78,000 for the three months ended December 31, 2009.
During the three months ended December 31, 2010, interest expense increased $96,000 to $111,000 as compared to $15,000 for the three months ended December 31, 2009 due to increased borrowings.
Our net loss for the three months ended December 31, 2010 was $1,485,000 or ($.04) per basic share as compared to $1,594,000 or ($.05) per basic share for the three months ended December 31, 2009.
Condensed Consolidated Statements of Operations
Three Months Ended December 31, 2010 2009 ----------- ----------- Net sales $ 792,000 $ 440,000 Cost of sales 814,000 694,000 ----------- ----------- Gross (loss) (22,000) (254,000) Selling, general and administrative 1,143,000 1,192,000 Research and development 190,000 78,000 ----------- ----------- 1,333,000 1,270,000 ----------- ----------- Operating loss from continuing operations (1,355,000) (1,524,000) ----------- ----------- Other income (expense): Interest and financing expense (111,000) (15,000) Interest income 14,000 28,000 Other, net (33,000) (83,000) ----------- ----------- Other (expense), net (130,000) (70,000) ----------- ----------- Net loss $(1,485,000) $(1,594,000) Net loss per share - basic $ (0.04) $ (0.05) Net loss per share - diluted $ (0.04) $ (0.05) Weighted average shares outstanding, basic and diluted 33,439,000 33,077,000
Condensed Consolidated Balance Sheet Data
December 31, September 30, 2010 2010 ------------- ------------- Assets Current assets $ 2,957,000 $ 3,804,000 Property, plant and equipment, net 966,000 975,000 Other assets 1,916,000 2,149,000 ------------- ------------- $ 5,839,000 $ 6,928,000 Liabilities and Stockholders' Equity Current liabilities $ 3,710,000 $ 2,768,000 Notes payable, non-current 452,000 1,136,000 Obligations due under lease settlement 506,000 506,000 Stockholders' equity 1,171,000 2,518,000 ------------- ------------- $ 5,839,000 $ 6,928,000
About GreenMan TechnologiesGreenMan 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 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 (http://www.americanpowergroupinc.com) and www.playgroundcompliance.com (http://www.playgroundcompliance.com/)
"Safe Harbor" Statement: Under the Private Securities Litigation Reform ActWith 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, 2010. The Company disclaims any intent or obligation to update these "forward-looking" statements.