USA: GreenMan Technologies Reports First Quarter Fiscal 2011 Results

GreenMan Technologies, Inc., 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.”

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.

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Source: GreenMan Technologies, February 15, 2011;