GreenMan Reports for Quarter, First Nine Months

GreenMan Technologies, Inc. announced results for the three and nine months ended June 30, 2006. Net sales from continuing operations for the most recent quarter decreased about $314,000 to $5.463 million, compared to last year's figure of $5,777,000. The company processed about 3.9 million passenger tire equivalents during the quarter, compared to 4.1 million passenger TEUs the same period last year.

Gross profit for quarter was $1.416 million, compared to $982,000 for three months ended June 30, 2005.

For the first nine months of the fiscal year GreenMan reported net sales decreased 7 percent to $14,486,000 compared to last year's figure of $15,660,000. During the nine months the company processed about 11 million passenger TEUs, compared to about 12.5 million passenger TEUs the same period last year.

The negative impact on overall revenue resulting from lower inbound tire volumes was partially offset by a 3 percent increase in the overall fee we are paid to collect and dispose of a scrap tire and a 1 percent increase in end product revenue during the nine months ended June 30, 2006.

Gross profit for the nine months ended June 30, 2006 was $3,242,000, compared to $2,180,000 the same time last year. The company’s cost of sales decreased $2,236,000 due to decreased collection and processing costs associated with lower inbound volume and our ongoing efforts to reduce operating costs where available.

Selling, general and administrative expenses for the nine months increased $858,000 to $3,417,000, compared to $2,559,000 for the nine months ended June 30, 2005.

As a result of the foregoing, our operating loss decreased $225,000 to $211,000 for the nine months ended June 30, 2006 as compared to an operating loss of $436,000 for the nine months ended June 30, 2005. As a result of the foregoing, the net loss from continuing operations for the nine months ended June 30, 2006 increased $761,000 to $3,095,000, compared to a net loss of $2,334,000 for the nine months ended June 30, 2005.

Lyle Jensen, GreenMan's president and CEO stated: "We are pleased to report that our previously discussed five-step turnaround plan is ahead of schedule. Positive accomplishments realized during the recent June quarter include the successful restructuring of our Laurus credit facility, the initiation and subsequent completion of our California divestiture and improved performance of our "core" Midwest operations during the quarter. During the quarter ended June 30, 2006 we realized a 50 percent improvement in our gross profit percentage as well as a 46 percent decrease in our net loss as compared to last year despite the inclusion of approximately $932,000 of one-time charges/gains associated with the Laurus refinancing, severance related costs and certain debt restructuring".