USA: GreenMan Posts Q3 Fiscal 2011 Results

GreenMan Technologies, Inc. today announced results for the three and nine months ended June 30, 2011. Revenues at the company’s American Power Group (APG) subsidiary increased to $542,000 from $33,000 for the same quarter last year. The Company has recently made progress in several areas including:

United States

• United States Environmental Protection Agency (EPA) announced new regulations for Alternative Fuel Aftermarket Conversions which open up the U.S. aftermarket and enable APG to submit their conversion technology for EPA approval on a broad range of engine model year families.
• Completed conversions and put five vehicles into test trials serving the refuse, logistics, and food distribution industries with positive post-install feedback.
• Debuted the new S3000 Turbocharged Natural Gas™ system which brings APG’s automotive CAN-Bus read-only technology to stationary generators. First six installations were in the demanding environment of oil & gas drilling rigs and performance-to-date has exceeded expectations creating a promising new addressed market.

International

• Completed Australian test trials and have taken pre-production orders for additional trucks that will be used to complete our APG Certified Installer and Maintenance Program which is the next step in launching production in Australia.
• Entered a dual fuel distribution agreement with Caribbean Power Group CPG S.R.L. in the Dominican Republic. The agreement will cover sales, marketing and installation of APG’s dual fuel system for both diesel generators and diesel-powered vehicles.

Corporate

• Completed divestiture of Green Tech Products molded rubber recycled products subsidiary allowing the Company to focus its resources solely on the continued growth of APG.
• Re-negotiated original APG License Agreement, reducing future royalty fees and applying all paid fees towards the eventual ownership of the patent and technology as certain revenue milestones are achieved.

Lyle Jensen, GreenMan’s President and Chief Executive Officer, stated, “We are very pleased with the progress we have made during the third quarter, not only demonstrated by the significant revenue increase from APG, but also in terms of our continued outreach to new addressed markets as well as new geographies. We view the new EPA regulations for Alternative Aftermarket Conversions as a landmark development that will enable the launch of our vehicular strategy in the U.S. and we are very pleased to have successfully completed test trials in Australia that have allowed us to move to the next phase toward beginning production in that country. This is a very exciting time in our Company’s development and we believe the cumulative effects of our accomplishments during the last few months will help generate additional revenue growth in the second half of the calendar year.”

APG’s dual fuel system converts diesel engines and diesel generators to function more efficiently and at a lower operating cost (average net fuel cost savings of 20%-35%) by seamlessly displacing up to 40%-60% of the normal diesel fuel consumption with either CNG, LNG, pipeline gas, well-head gas, or other qualified bio-methane gases. APG’s system is non-invasive to the OEM engine and operates within all OEM performance controls with the flexibility to return to 100% diesel operation at any time. APG’s dual fuel conversion and emissions reduction systems can help users achieve their sustainability goals through lower carbon monoxide, nitrogen oxide, and particulate matter emissions. In addition, the introduction of natural gas through APG’s dual fuel system does not impact diesel engine power or torque and will assist in extending the engine’s oil life as natural gas is a cleaner burning fuel compared to diesel.

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Source: GreenMan Technologies , August 8, 2011;