About Transtech Industries, Inc.
RECENT HISTORY (2011 – 2014)
Transtech Industries, Inc. (TRTI) was incorporated under the laws of the state of Delaware in 1965. TRTI is a Delaware Holding Company which manages five active subsidiaries including Kinsley’s Landfill, Inc. (“Kinsley’s Landfill”) and United Environmental Services, Inc. in Deptford, New Jersey.
As a result of shareholder litigation filed in 2011, a new Board of Directors was elected and a new management team was appointed in early 2012. Upon taking over the operations of TRTI, the new management found the Company to be in dire financial condition with doubts about its future as a going concern. At that time in 2012, TRTI had minimal cash to operate, significant outstanding receivables, a sizable IRS liability, substantial professional services expenses from previous years, and declining revenues from diminishing methane / electricity production. Moreover, the Company had few prospects to generate additional revenue, and important local and state political and regulatory relationships of the Company were strained.
On May 13, 2010, TRTI’s former management filed SEC Form 15 with the U.S. Securities and Exchange Commission pursuant to which TRTI ceased to be a reporting company and the Company is, therefore, currently under no obligation to report any financial information or other material events given its status as a “no information” company. However, the current management for the Company seeks to make the operations and financial condition of TRTI more transparent for its shareholders and customers and is expanding its website to include information about its operations and financial condition.
RECOVERING OPERATIONS
Beginning in late 2012 and throughout 2013, the new management improved cash flow by selling off certain excess land and recovering settlements from insolvent insurance carriers. The Company also reduced excessive regulatory and professional operating expenses as compared to prior years. Such additional cash proceeds allowed the Company to pay off IRS obligations incurred over previous years totaling approximately $280,000.
During 2013 and 2014, Kinsley’s Landfill negotiated and executed fee generating material fill agreements for importation of NJDEP-approved soils from various sources including public works projects involving the NJDOT Rt. 295 / 42 / I-76 Direct Connect Project in Gloucester County, NJ. Also, during this period, TRTI believes that it improved its working relationship with the NJDEP relating to post-closure care activities at the Company’s major operating subsidiary, Kinsley’s Landfill, as well as improving its collection of billings to the NJDEP escrow account for such post-closure landfill care.
During 2013 and 2014, Kinsley’s Landfill negotiated and executed a ground lease with PSE&G for the installation of an 11.18 Megawatt – (dc) solar facility placed on 31 acres at the top of the Kinsley landfill site. Such solar facility was brought online in December 2014 and rental revenue from the solar lease agreement is scheduled to commence on a quarterly basis in April 2015 for the extended term of the lease.
In connection with the solar project, Kinsley’s Landfill also negotiated a fee generating service agreement with a major contractor to provide weighing scale services at the landfill.
In addition to the Company’s improving financial condition, Kinsley’s Landfill improved its regulatory and governmental relationships when it filed with the NJDEP an updated financial plan as part of its post-closure financial plan. TRTI believes Kinsley’s Landfill became the first (and perhaps only) New Jersey closed landfill currently complying with the new, closed landfill requirements of New Jersey’s new Legacy Landfill Law to help insure the long-term, post closure care of the facility.
To attract and continue to retain current management and personnel, the Company has entered into certain employment and change in control agreements with key employees and has issued key employee / consultant stock warrant awards.
COMPANY FINANCIAL CONDITION
As a result of the Company’s revenues and cash receipts from multiple sources and recoveries of operating costs from the Kinsley’s Landfill escrow account controlled by NJDEP, the Company attained positive cash flow during the year ended 12/31/14.
The Company has no short term or long term debt except ordinary course financing of trucks and equipment for the operation of the landfill site.
With such current and anticipated cash receipts from a variety of sources, including various ongoing and new fill material agreements, and its substantially reduced professional and regulatory expenses as compared to previous years, along with its anticipated cash receipts from the PSE&G solar facility lease beginning in April 2015 for an extended term, the Company’s management believes the Company will continue to grow as a viable going concern and build long-term shareholder value.
TRTI’S FUTURE PROSPECTS
The Company’s management is currently exploring additional potential projects to increase the Company’s cash position and build long-term shareholder value. Such potential projects may include pursuing alternative fuel and renewable energy projects and an additional solar facility on the Company’s landfill sites. The Company also anticipates entering into additional material fill agreements for new fill soil that meet the Company’s material acceptance protocol or meet approved variances by NJDEP, all for the purpose of regrading the contours of the landfill to preserve and maintain its functionality in connection with its post closure care activities.
For further information regarding the prior years’ operations of the Company, please see Transtech’s annual report on Form 10-K filed for the year ended December 31, 2009, which was filed with the SEC on March 31, 2010.
Safe Harbor Statement
The information set forth on Transtech’s website contains forward-looking statements which involve risks and uncertainties, including statements regarding the Company’s possible capital needs, business strategy and expectations. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements, which may be identified by terminology such as “may,” “should,” “will,” “expect,” “plan,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “forecast,” “project,” or “continue,” the negative of such terms or other comparable terminology. Readers should not rely on forward-looking statements as predictions of future events or results. Any or all of the Company’s forward-looking statements may turn out to be wrong. They can be affected by inaccurate assumptions, risks and uncertainties and other factors which could cause actual events or results to be materially different from those expressed or implied in the forward-looking statements. Factors may cause the Company’s actual results to differ materially from any forward-looking statement. In addition, new factors emerge from time to time and it is not possible for the Company to predict all factors that may cause actual results to differ materially from those contained in any forward-looking statements. The Company disclaims any obligation to publicly update any forward-looking statements to reflect events or circumstances after the date of this document, except as required by applicable law.