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Copel - 2011 Results

Totally Green Reports Fourth Quarter and Full Year 2011 Results


Published on 2012-03-27 05:40:16 - Market Wire
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March 27, 2012 08:31 ET

Totally Green Reports Fourth Quarter and Full Year 2011 Results

Pilot-to-Purchase Conversion Rate Reaches 100% in Q4, Driving 2011 Revenues up 508% Versus 2010

TULSA, OK--(Marketwire - Mar 27, 2012) - Totally Green, Inc. (PINKSHEETS: [ TLGN ]), a pioneer in organic food processing systems and compostable packaging alternatives, reported results for the fourth quarter and full year ended December 31, 2011.

Q4 2011 Operational Highlights

  • Installed two revolutionary ORCA Green™ Machines at the U.S. Army base in Fort Hood, Texas. Building upon sales to U.S. Coast Guard and other government installations, this installation represents a ground-floor opportunity for further adoption at Fort Hood as well as by the U.S. Army overall.
  • ORCA Green Machines trial program achieves 100% sales conversion rate of pilot-to-sales during the quarter, versus overall 90% conversion rate since initial product roll-out in Q3 of 2010.
  • Introduced a redesigned Ingeo™ Green Bottle Spring Water bottle and label.
  • Partnered with Air Cycle, a premier provider of recycling solutions, and Sodexo, the leading provider of integrated food and facilities management services in the U.S. and Canada.
  • Presented at Merriman Capital's Investor Summit 2012.
  • New ORCA Green Machine installations totaled five machines for the fourth quarter.

Full Year 2011 Operational Highlights

  • Installed 31 revolutionary ORCA Green Machines versus two in 2010 (first year of product roll-out).
  • Expanded the ORCA Green Machine into several new markets, including the convention center, hospital, hotel, cruise line, retail grocery, supermarket chains, university, U.S. government, and wholesale clubs market. Some of these installations are attributed to successful pilot trails, and were followed by further market penetration.
  • Totally Green's Ingeo Green Bottle Spring Water qualified for the U.S. Department of Agriculture's (USDA) Certified Biobased Product label, as well as initiated a Direct-to-Business distribution agreement.
  • Appointed former U.S. Department of Agriculture Official, Boyd K. Rutherford, as a strategic advisor.

Full Year 2011 Financial Results
Revenue in 2011 was $822,000, up 508% from $135,000 a year ago, as the company emerges from its development stage to initial commercial sales. The increase in revenue was primarily due to improving sales and market penetration of the company's ORCA Green Machine, as well as an increasing amount of recurring supply-related revenue.

Gross profit in 2011 was $299,000 or 36.4% of revenue, as compared to gross profit of $19,000 or 14.1% of revenue a year ago.

Net loss in 2011 was $1.9 million, as compared to a net loss of $909,000 a year ago. The 2011 net loss included depreciation and amortization costs of $632,000, versus $244,000 a year ago.

Cash and cash equivalents at December 31, 2011 totaled $100,000, versus $18,000 at December 31, 2010.

Management Commentary
"2011 was a milestone year for Totally Green, highlighted by a dramatic increase in revenue and new installations, as we continued the roll-out of our revolutionary ORCA Green Machine and Green Bottle Spring Water," said Nate Baker, president and interim CFO of Totally Green. "Our pilot-trial program for the ORCA Green Machine led to a number of key wins, including one of the nation's largest wholesale clubs. We also experienced greater traction in our convention center, government, hospital and university verticals.

"2012 is already setting up as another strong year, as we leverage broad market penetration we achieved in 2011 and benefit from newly-formed partnerships. We experienced a minor delay with the ETL certification approval for the ORCA Green Machine, which will help increase our sales opportunities, but we expect approval in the beginning of Q2 2012. Our initial timeline for 2012 had included conducting an investor update call mid-Q1 2012. However, we've rescheduled this for early Q2 due to timing around a new major partnership that could transform Totally Green, including a new business model which would allow us to better address the market for the ORCA Green Machine.

"In line with our previously announced plan to become a fully reporting company with the SEC, we are in the process of completing an independent audit of our 2011 financial statements. The unaudited 2011 financials will be available on our website starting today and we expect to release the audited numbers within 45 days. We anticipate our first SEC filings will be completed in the first half of 2012, and for this to coincide with our up-listing to the OTCQX stock exchange.

"After engaging Merriman Capital to help us with the OTCQX listing, we participated in their 2012 Investor Summit in February that was held in New York City. At the summit, we introduced the Totally Green story to more than 50 institutional funds during our presentation and one-on-one meetings. Merriman Capital will continue to advise Totally Green on investment banking and listing strategies over the next 6-12 months as we execute on our up-listing plans.

"We look forward to providing a more comprehensive report on new partnerships and customer wins in the upcoming weeks, and appreciate the support of our shareholders as we transition from a developmental stage company to full commercialization with our ORCA Green Machine and Green Bottle Spring Water."

Q1 2012 Events-to-date and 2012 Outlook
For the first quarter of 2012, the company recorded multiple sales wins and test pilots in each of the target verticals it established in 2011:

  • The Marine Corps Air Ground Combat Center at Twentynine Palms, California recently installed its first ORCA Green Machine. The installation is serving as a test pilot not only for additional installations on this base, but also for wider potential adoption by the U.S. Dept. of Defense for other military bases and the Pentagon.
  • Lowes Improvement Center of Albuquerque, New Mexico recently purchased their first ORCA Green Machine to process food-based organic wastes produced by more than 600 employees at its new customer support center.
  • Costco Wholesale purchased its second ORCA Green Machine for use in its Houston, Texas warehouse.
  • AFLAC recently purchased an ORCA Green Machine for its corporate headquarters in Columbus, Georgia to support its SmartGreen philosophy. With more than 8,200 employees worldwide, the installation supports AFLAC's mission to find innovative ways to reduce its environmental impact.
  • Reasor's grocery chain has slated two additional locations for deployment of an ORCA Green Machine. The chain has 15 locations and two convenience stores that employ nearly 3,000 people across Northeastern Oklahoma.
  • Royal Caribbean Cruises recently purchased two ORCA Green Machines after a successful six-month test pilot trial on a cruise ship based out of Miami, Florida. With 42 ships in service and several more under construction, Royal Caribbean controls 24% share of the world cruise market.

Totally Green has entered the Canadian marketplace with purchase agreements with key Canadian companies that are similar target markets as in the United States. For competitive reasons, the company has not disclosed which specific companies made the purchase or test pilot study.

About Totally Green
Totally Green, Inc. develops, manufactures, and markets the company's ORCA Green™ Machine and markets the Ingeo™ Green Bottle Spring Water. The ORCA (Organic Refuse Conversion Alternative) machine allows for rapid composting of most organic material in institutional and commercial end-user applications, after which the liquid compost is either returned to the soil as nourishment or disposed of through the ordinary sewer system. The machine creates meaningful cost savings for customers while diverting food waste from landfills and reducing methane gas production. Both products offer businesses and consumers innovative and affordable solutions for food & beverage by-product disposal. For more information, please visit [ www.totallygreen.com ].

Important Cautions Regarding Forward-Looking Statements
This press release contains "forward-looking statements." Forward-looking statements are statements concerning plans, objectives, goals, strategies, expectations, intentions, projections, developments, future events, or performance, underlying (expressed or implied) assumptions and other statements that are other than historical facts. These forward-looking statements are only predictions. All statements relating to the Company's plans to upgrade its listing to OTCQX, to becoming a reporting company, and other plans are subject to risks and uncertainties beyond the Company's control. No assurances can be given that such predictions will prove correct. Actual events or results may differ materially. Forward-looking statements should be read in light of the cautionary statements and risks that include, but are not limited to, the risks associated with a small company, our comparatively limited financial resources, the uncertainty of market trends, the competition faced from other current and future technologies and the uncertainties of competitive pressures we face. These or other risks could cause actual results to differ materially from the future results indicated or implied in such forward-looking statements. We undertake no obligation to update or revise such statements.

TOTALLY GREEN, INC.
CONDENSED BALANCE SHEETS
ASSETS
December 31,December 31,
20112010
(Unaudited)
Current Assets
Cash & Cash Equivalents99,81617,538
Temporary Investments - Restricted25,00025,000
Trade Accounts Receivable, net116,157700
Accounts receivable - Other94,8805,000
Prepaid Expenses350,00012,641
Inventory222,825130,816
Total Current Assets908,678191,695
Property and Equipment
Machinery and Equipment45,40038,640
Accumulated Depreciation(9,245)(2,760)
Property and Equipment, net36,15535,880
Intangible Assets, net659,616774,827
Prepaid Marketing Fees1,050,050-
Other Assets13,52713,527
Discontinued Operations - Assets497,058681,167
Total Assets3,165,0841,697,096
TOTALLY GREEN, INC.
CONDENSED BALANCE SHEETS
LIABILITIES AND EQUITY
December 31,December 31,
20112010
(Unaudited)
Current Liabilities
Accounts Payable191,219172,014
Sales Tax Payable1,751-
Customer Deposits-27,962
Dividends Payable105,50048,000
Fees Payable106,280106,280
Total Current Liabilities404,750354,256
Fees Payable - Long-Term216,773216,773
Line of Credit1,864,069603,009
Total Liabilities2,485,5921,174,038
Equity
Common Stock - $0.001 Par Value, 750,000,000 shares authorized 625,777,894 and 587,732,546 shares issued and outstanding625,778587,733
Preferred Stock
Series A - $0.001 Par Value 1,900,000 shares authorized, issued and outstanding1,9001,900
Series B - $0.001 Par Value, 3,000 shares authorized, issued and outstanding33
Additional Paid in Capital:
Common Stock4,715,3732,703,418
Preferred Stock - Series A55,10055,100
Preferred Stock - Series B1,149,9971,149,997
Retained Earnings (Deficit)(5,868,659)(3,975,093)
Total Equity679,492523,058
Total Liabilities and Equity3,165,0841,697,096
TOTALLY GREEN, INC.
CONDENSED STATEMENTS OF OPERATIONS
Year EndedYear Ended
December 31, 2011December 31, 2010
(Unaudited)
Net Sales821,905135,179
Cost of Goods Sold522,448116,181
Gross Profit299,45718,998
Selling, General and Administrative Expenses2,254,916809,182
Loss on Continuing Operations(1,955,459)(790,184)
Other Income (Expenses)
Other Income132,62325,675
Interest Expense(13,230)(66,891)
Total Other Income (Expenses)119,393(41,216)
Loss on Discontinued Operations-(29,749)
Series B Preferred Stock Dividends(57,500)(48,000)
Net Loss Attributable to Common Stockholders(1,893,566)(909,149)