GreenMan Technologies Delays Filing Year-End Results

GreenMan Technologies has announced that it expects to report “aggregate net loss for the fiscal year ended 30 September 2005 [of] between $14 and $15 million.” The company also said it will delaying filing its 10-KSB for the year. According to the company, this will take no more than 30 days and is necessary for it to finalise the accounting treatment of the pending divestiture of its Georgia operating assets. Greenman is recycles over 20 million scrap tyres per year in the US.
Chuck Coppa, GreenMan’s CFO stated: “Due to the magnitude of the operating losses incurred by our Georgia subsidiary, management adopted a plan in September 2005 to dispose of all Georgia operating assets. Accordingly, we have written down these assets to their estimated fair market value and anticipate recording an estimated non-cash loss on disposal of between $2.5 and $3.5 million dollars at 30 September 2005.

“During the past ninety days we have substantially curtailed Georgia operations and reduced operating expenses and anticipate completing the Georgia divestiture within the next several weeks. In addition, in October we completed the divestiture of our Tennessee operations announced on 13 September 2005 and anticipate recording an estimated loss on disposal of $416,000 at 30 September 2005.

“We estimate the aggregate losses associated with our Georgia and Tennessee subsidiaries included in the results for the fiscal year ended 30 September 2005 to be between $8 and $9 million. In addition, we have determined the net book value of corporate-wide goodwill exceeded the estimated fair market value and, accordingly will record a non-cash impairment loss of $3.5 million associated with the write off of all goodwill at 30 September 2005. We estimate the aggregate net loss for the fiscal year ended 30 September 2005 to be between $14 and $15 million as compared to approximately $2.6 million for the year ended September 30, 2004.”

Mr Coppa added: “The business fundamentals for our remaining Midwest and Western regions remain sound and we believe the divestiture of our Southeastern operations to be in the best interest of shareholder value. In addition, we continue to reduce corporate-wide overheads in an effort to align our overall corporate structure with a new leaner, GreenMan.”