iPath Global Carbon (PK) (USOTC:GRNTF)
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GreenMan Technologies, Inc. (AMEX: GRN), a leading
recycler of over 20 million scrap tires per year in the United States,
today announced results for its fiscal year ended September 30, 2005.
Chuck Coppa, GreenMan's Chief Financial Officer stated, "As
previously released on January 4, 2006, due to the magnitude of the
operating losses incurred by our Georgia and Tennessee subsidiaries
during fiscal 2005, the anticipated financial impact of the pending
divestiture of our Georgia operations and the write-off of
corporate-wide goodwill, we estimated the aggregate net loss for the
fiscal year ended September 30, 2005 to be between $14 and $15 million
as compared to approximately $2.6 million for the year ended September
30, 2004. Today we announce a net loss of $15,173,000 for the fiscal
year ended September 30, 2005 (including a loss relating to
discontinued operations of $11,119,000; the non-cash write-off of
$1,362,000 of goodwill and approximately $1,548,000 of non-cash
deferred financing charges, in aggregate $14,029,000) as compared to a
net loss of $2,645,000 for the fiscal year ended September 30, 2004
(including a loss relating to discontinued operations of $2,067,000
and approximately $407,000 of non-cash deferred financing charges, in
aggregate $2,474,000)".
Mr. Coppa, added, "We are in the process of finalizing remaining
open items and intend to file our Form 10-KSB for the fiscal year
ended September 30, 2005 within the next five days and our Form 10-QSB
for the quarter ended December 31, 2005 within the next ten days.
Please join us on Thursday, April 20, 2006 at 11:30 AM EST for a
conference call in which we will discuss the results for fiscal 2005
and the quarter ended December 31, 2005 and provide more details about
actions which have been taken and are in the process of being taken to
accelerate GreenMan's financial turnaround including our initiatives
to address the going-concern opinion issued by the our auditors on the
September 30, 2005, audited financial statements. To participate,
please call 1-800-946-0782 and ask for the GreenMan call."
"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 risk and uncertainties that may individually
or collectively impact the matters herein described, including but not
limited to the possibility that we may not realize the benefits of ,
product acceptance, economic, competitive, governmental, seasonal,
management, technological 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 quarterly report on Form 10-QSB for the fiscal
period ended June 30, 2005. The Company disclaims any intent or
obligation to update these "forward-looking" statements.
In September 2005, due to the magnitude of continued operating
losses, our Board of Directors approved separate plans to divest the
operations of our Georgia and Tennessee subsidiaries and dispose of
their respective assets. Accordingly, we have classified their
respective results of operations as discontinued operations for all
periods presented in the accompanying consolidated financial
statements.
Fiscal Year ended September 30, 2005 Compared to Fiscal Year ended
September 30, 2004
Net sales from continuing operations for the fiscal year ended
September 30, 2005 were $22,075,000, a 16 percent increase, compared
to last year's net sales from continuing operations of $19,115,000.
Our continuing operations processed approximately 18.3 million
passenger tire equivalents during the fiscal year ended September 30,
2005, compared to approximately 17.5 million passenger tire
equivalents during the fiscal year ended September 30, 2004. The
increase in revenue was attributable to an 18 percent increase in
overall product revenues, a 5 percent increase in inbound scrap tires
volume and a 4 percent increase in overall tipping fees per passenger
tire. Included in the fiscal 2005 results were approximately $827,000
of revenue and 875,000 passenger tire equivalents associated with an
Iowa scrap tire cleanup project which was completed during fiscal
2005.
Overall end product sales increased 18 percent or $1,222,000 to
$7,857,000 during the fiscal year ended September 30, 2005, compared
to $6,635,000 for the same period last year. The increase in end
product sales is attributable to stronger crumb rubber and
tire-derived fuel sales during the fiscal year ended September 30,
2005.
Gross profit for the fiscal year ended September 30, 2005 was
$3,603,000 or 16 percent of net sales, compared to $3,908,000 or 20
percent of net sales for year ended September 30, 2004. Our cost of
sales increased $3,265,000 or 21 percent primarily due to increased
collection costs, reduced processing capacity and equipment
reliability issues at our California facility as well as unforeseen
decreases in inbound tire volumes in California due to severe weather
conditions during the first half of fiscal 2005.
Selling, general and administrative expenses for the fiscal year
ended September 30, 2005 increased $286,000 to $3,459,000 or 16
percent of net sales, compared to $3,173,000 or 17 percent of net
sales for the fiscal year ended September 30, 2004. The increase was
primarily attributable to increased outside professional expenses and
travel.
During June 2005 our Wisconsin subsidiary reached an agreement
with the lessor of certain transportation equipment to buy-out the
remaining term of the lease and recorded a $57,000 impairment loss
associated with writing down the assets to their estimated fair market
value. In addition, due to the magnitude of the fiscal 2005 losses,
management determined that the carrying value of corporate-wide
goodwill to be impaired and accordingly wrote-off all remaining
goodwill recording an additional non-cash impairment loss of
$1,362,000.
As a result of the foregoing, we had and operating loss of
$1,275,000 for the fiscal year ended September 30, 2005 as compared to
an operating profit of $735,000 for the fiscal year ended September
30, 2004.
Interest and financing costs for the fiscal year ended September
30, 2005 increased $1,000,000 to $2,409,000 (including $1,548,000 of
non-cash deferred financing costs), compared to $1,409,000 (including
$407,000 of non-cash deferred financing costs) during the fiscal year
ended September 30, 2004. The increase is primarily attributable to
increased non-cash deferred financing associated with the Laurus
credit facility and an increase in borrowing rates. During the fiscal
year ended September 30, 2004 we also recorded other income of
approximately $90,000 relating to a settlement for damaged product.
Based on the magnitude of our fiscal 2005 losses, we determined
the near-term realizability of a $270,000 non-cash deferred tax asset
to be uncertain and therefore have provided a valuation allowance on
the entire amount during the fiscal year ended September 30, 2005.
As a result of the foregoing, our net loss from continuing
operations for the fiscal year ended September 30, 2005 increased
$3,477,000 to $4,054,000 or $.21 per basic share, compared to a net
loss of $578,000 or $.03 per basic share for the fiscal year ended
September 30, 2004. The estimated loss on disposal of discontinued
operations of $5,966,000 includes approximately $1,335,000 relating to
our Tennessee operations and approximately $4,631,000 in connection
with our Georgia facility. Losses primarily relate to the write-off of
property, equipment, goodwill, an acquisition deposit and costs of
exit activities.
Our loss from discontinued operations increased $3,086,000 to
$5,153,000 for fiscal year ended September 30, 2005 as compared to a
net loss from discontinued operations of $2,067,000 for last year.
Our net loss for the fiscal year ended September 30, 2005
increased $12,528,000 to $15,173,000 as compared to a net loss of
$2,645,000 for the fiscal year ended September 30, 2004.
-0-
*T
Condensed Consolidated Statements of Operations
Year Ended
September September
30, 2005 30, 2004
------------ ------------
Net sales $22,075,000 $19,115,000
Cost of sales 18,472,000 15,207,000
------------- ------------
Gross profit 3,603,000 3,908,000
------------- ------------
Operating expenses:
Selling, general and administrative 3,459,000 3,173,000
Impairment loss - goodwill 1,362,000 --
Impairment loss - long lived assets 57,000 --
------------- ------------
4,878,000 3,173,000
------------- ------------
Operating income (loss) from continuing
operations (1,275,000) 735,000
Other (expenses) income, net (2,504,000) (1,313,000)
------------- ------------
Loss from continuing operations before
income taxes (3,779,000) (578,000)
Provision for income taxes (275,000) --
------------- ------------
Loss from continuing operations (4,054,000) (578,000)
Discontinued operations
Loss on disposal of discontinued
operations (5,966,000) --
Loss from discontinued operations (5,153,000) (2,067,000)
------------- ------------
(11,119,000) (2,067,000)
------------- ------------
Net loss $(15,173,000) $(2,645,000)
============= ============
Loss from continuing operations per share -
basic $(0.21) $(0.03)
Loss on disposal of discontinued operations
per share - basic (0.31) --
Loss from discontinued operations per share
- basic (0.27) (0.12)
------------- ------------
Net loss per share $(0.79) $(0.15)
============= ============
Weighted average shares outstanding 19,189,000 17,173,000
============= ============
Condensed Consolidated Balance Sheet Data
September 30, September 30,
2005 2004
--------------- ---------------
Assets
Current assets $4,041,000 $4,853,000
Property, plant and equipment (net) 6,342,000 7,542,000
Goodwill (net) -- 1,362,000
Other assets 699,000 1,618,000
Assets related to discontinued
operations 2,038,000 8,246,000
--------------- ---------------
$13,120,000 $23,621,000
=============== ===============
Liabilities and Stockholders' Equity
Current liabilities $10,065,000 $7,712,000
Notes payable, non-current 4,739,000 6,267,000
Capital lease obligations, non-current 1,369,000 1,577,000
Deferred gain on sale leaseback 380,000 419,000
Liabilities related to discontinued
operations 5,253,000 4,259,000
Stockholders' equity (deficit) (8,686,000) 3,387,000
--------------- ---------------
$13,120,000 $23,621,000
=============== ===============
*T