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TULSA, OK–(Marketwire – Jun 7, 2011) – Totally Green, Inc. (PINKSHEETS: TLGN), a pioneer in organic food processing systems and compostable packaging alternatives, reported financial results for the first quarter ended March 31, 2011.
Q1 2011 Operational Highlights for Totally Green, Inc.
- Totally Green entered into a five-year sponsorship agreement with the Dallas Cowboys. The company’s ORCA Green Machine™, an on-site rapid organic food composting solution, was installed at Cowboys Stadium, which provides food services to more than 2 million visitors annually.
- Totally Green’s Green Ingeo™ Bottle Spring Water qualified for the U.S. Department of Agriculture’s (USDA) Certified Biobased Product label.
- New ORCA Green Machine installations totaled seven during the quarter, up from four in the previous quarter.
Q1 2011 Summary of Financial Results for Totally Green, Inc.
Revenue in the first quarter of 2011 was $247,000,
compared to $29,000 in the same year-ago quarter, as the company emerges from its development stage. The increase in revenue was primarily due to improving sales of the company’s ORCA Green Machine, as well as by recurring related supply revenue.
Gross profit in the first quarter of 2011 was $130,000 or 53% of revenue, as compared to 22,000 or 76% of revenue in the same year-ago quarter.
Net loss in the first quarter of 2011 was $252,000 or $(0.00) per share, as compared to $52,000 or $(0.00) per share in the same year-ago quarter. The first quarter 2011 net loss included depreciation and amortization costs of $129,000, versus $3,000 in the first quarter of 2010.
Cash at March 31, 2011 totaled $145,000, an increase from $43,000 at December 31, 2010. The increase is primarily due to cash generated by new product sales. Totally Green has a $2 million line of credit designated for operations, of which the company used $855,000 at the end of the first quarter.
Management Commentary from Totally Green, Inc.
“During the first quarter, Totally Green continued to transition from the developmental stage to increasing product commercialization,” said Rob Phillips, president of Totally Green. “We installed nearly twice the number of our revolutionary ORCA Green Machines in the first quarter versus the previous quarter, and we’re on track to double this again by the end of the current second quarter.
“As we continue through the first half of the year, we are continuing to expand our client base and key partnerships across a number of verticals. For example, our partnership with Nature’s Fresh enables us to penetrate new markets more quickly and cost effectively, and expanded our sales force to more than 250 representatives. Our pilot program with Admiral Express Office Supply is also helping us to distribute our Green Bottle Spring Water across five markets in the U.S. These efforts are supported by the USDA’s Certified Biobased Product label we received in Q1, and then earlier this month, our Green Bottle Spring Water received another validation as the USDA’s ‘BioPreferred Product-of-the-Month.’
“We continue to see tremendous opportunity in the federal market, and this outlook has been supported by the recent initial installation of our ORCA Green Machine at the U.S. Coast Guard base in Portsmouth, Virginia, and in the U.S. General Services Administration’s Regional Office Building in Washington, D.C. Our efforts in the federal market have recently received a boost by our long-time friend and supporter, the former USDA’s Assistant Secretary for Administration, Boyd K. Rutherford, joining us as a strategic advisor.
“Driven by rising sustainability mandates and the need to reduce disposal costs of organic wastes, we are also realizing increased interest across commercial markets. Our ORCA Green Machine was recently installed at the University of Texas Southwestern Medical Center and a major five-star hotel in Boston, as well as purchased by the BOK Center and Tulsa Convention Center. After successful testing periods and subsequent approval of technology, we are in advanced discussions for a number of new installations, including a multibillion-dollar retail supermarket chain and a national wholesale club. Although our primary focus is the U.S., we are also in discussions with several potential international clients as well.
“All-in-all, we achieved an excellent start to the year, with momentum building across the board, and we expect to report greater market penetration and product traction throughout the rest of 2011.
“I should also note that we are working toward becoming a fully reporting company by the end of the current second quarter, and we have retained Sartain Fischbein & Co., Tulsa’s largest independent certified public accounting firm, to perform the requisite financial audit. This also represents our preparation for an up-listing on another stock exchange that would provide us greater liquidity and visibility in the financial markets.”
About Totally Green, Inc.
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.