Totally Green Reports First Quarter 2012 Results

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TULSA, OK--(Marketwire -06/29/12)- Totally Green, Inc. (TLGN), a pioneer in organic food processing systems and compostable packaging alternatives, reported results for the first quarter ended March 31, 2012.

Q1 2012 Operational Highlights

  • New ORCA Green™ Machine installations totaled eight machines in the first quarter of 2012, versus five in the previous quarter and seven in the same year-ago quarter.
  • ORCA Green Machine continued to provide on-site, rapid composting of most organic material at more than 45 institutional and commercial sites nationwide, including in commercial kitchens and food processing plants. The resulting liquefied compost was then either returned to the soil as nourishment or released to a sewer system, rather than filling landfills.
  • ORCA Green Machines trial program maintains a 100% sales conversion rate of pilot-to-sales during the quarter, as compared to a 90% conversion rate since initial product roll-out in Q3 of 2010.
  • All current production models of the ORCA Green Machine were approved to carry the ETL certification mark, which represents a globally recognized standard that ensures consumers of product quality and safety. The certification involved an extensive process where the company's manufacturing facility and ORCA Green Machines were subjected to multiple inspections and tests. This certification was subsequently instrumental in placing machines at additional locations in the U.S. and Canada.

Q1 2012 Major Client Wins for the ORCA Green Machine
In the first quarter of 2012, the company recorded multiple ORCA Green Machine sales wins and test pilots across its target industry verticals:

  • The Marine Corps Air Ground Combat Center at Twentynine Palms, California 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 purchased its 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 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 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 purchased two ORCA Green Machines after a successful six-month 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 entered the international markets with purchase agreements from key Canadian companies. Subsequent to the end of the quarter, a machine was placed into operation at the Scarborough Town Centre shopping mall in Toronto, Ontario.
  • The Federal Bureau of Prisons/USP Hazelton purchased its first ORCA Green Machine, which shipped in May.

Management Commentary
"The first quarter of 2012 was highlighted by many new high-profile ORCA Green Machine installations, as we advanced the national as well as now international roll-out of our revolutionary ORCA Green Machine," said Nate Baker, president and interim CFO of Totally Green. "Our pilot trial program continued to open doors and generate conversions across our target verticals, which includes government, convention center, hospital, hospitality, retail and higher education markets.

"This momentum has continued into the second quarter, especially after the ETL certification that we received in April. The ETL certification is now opening doors to some of the largest consumer companies in the United States and Canada. In fact, the ETL certification has solidified many RFPs in Canada, which maintains more stringent product safety standards than the U.S. It has also helped to convert several existing pilot trials, as well as initiate others among the numerous institutional and commercial prospects in our pipeline.

"Our increasing market penetration is being driven not only by the ETL-certified, high-ROI aspects of our ORCA Green Machine but by the intensifying waste reduction and sustainability initiatives of federal and local government agencies as well as the private sector. This is being reflected in food waste bans and new composting regulations which are being increasingly enacted, and which are then being enthusiastically supported by businesses and institutions seeking to 'Go Green.'

"While there is certainly increasing excitement pervading our industry, there has been also much excitement occurring internally at Totally Green. As we mentioned previously, we are currently engaged in the process of forming a new major partnership that could totally transform Totally Green, including introducing a new business model which would allow us to better address the worldwide market for the ORCA Green Machine. Meanwhile, we are continuing to advance toward our initial SEC filings, and this is still planned to coincide with an up-listing to the OTCQX stock exchange.

"As always, we appreciate the continued support of our shareholders as we transition from a developmental stage company to full commercialization with our ORCA Green Machine and Ingeo™ Green Bottle Spring Water. As we arrive at the end of the first half, 2012 is shaping up to be another strong year for Totally Green."

Q1 2012 Financial Results
Revenue in the first quarter of 2012 was $146,284 versus $199,238 in the same year-ago quarter. The decrease in revenue was primarily attributed to the process associated with obtaining the ETL certification during the first quarter, which resulted in temporary delays in sales and order shipments.

"While we report these financials to provide transparency to our shareholder, it is important to recognize that at this stage of our development and product release our financial results are not the best indicators of our performance," noted Baker. "As a development stage company emerging into initial commercial sales of a revolutionary product, our focus has been on educating our target customer base and gaining footholds in each our target verticals. Given how we have been successfully penetrating these verticals, which include a number of Fortune 100 customers and major government agencies, we believe we are setting the stage to translate this into significant revenue growth and profitability in coming quarters."

Gross profit was $58,394 or 39.9% of revenue in the first quarter, as compared to gross profit of $81,854 or 41.1% of revenue a year ago.

Net loss was $360,237, as compared to a net loss of $252,100 in the same year-ago quarter. The first quarter 2012 net loss included depreciation and amortization costs of $153,182 versus $129,247 in the same year-ago quarter.

Cash and cash equivalents at March 31, 2012 totaled $105,493, versus $99,186 at December 31, 2011.

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 SHEET

ASSETS

March 31, December 31,
2012 2011
(Unaudited) (Unaudited)
------------ ------------

Current Assets
Cash & Cash Equivalents 105,493 99,816
Temporary Investments - Restricted 25,000 25,000
Trade Accounts Receivable, net 146,961 116,157
Accounts Receivable - Other 19,000 20,000
Prepaid Expenses 350,000 350,000
Inventory 314,732 222,824
------------ ------------
Total Current Assets 961,186 833,797
------------ ------------

Property and Equipment
Furniture and Fixtures 1,620 1,620
Machinery and Equipment 43,780 43,780
Accumulated Depreciation (10,890) (9,013)
------------ ------------
Property and Equipment, net 34,510 36,387
------------ ------------

Intangible Assets, net 630,815 659,616

Prepaid Marketing Fees 962,550 1,050,050

Other Assets 13,527 13,527

Discontinued Operations - Assets 445,135 480,139
------------ ------------

Total Assets 3,047,723 3,073,516
============ ============


LIABILITIES AND EQUITY

March 31, December 31,
2012 2011
(Unaudited) (Unaudited)
------------ ------------

Current Liabilities
Accounts Payable 101,112 157,876
Related Party Payables 122,587 61,635
Accrued Interest 101,955 76,928
Dividends Payable 128,000 128,000
Fees Payable 54,727 153,780
Other Liabilities 13,580 9,299
------------ ------------
Total Current Liabilties 521,961 587,518
------------ ------------

Fees Payable - Long-Term 203,494 203,494
Related Party Line of Credit 2,250,000 1,850,000

------------ ------------
Total Liabilities 2,975,455 2,641,012
------------ ------------

Equity
Common Stock - $0.001 Par Value, 750,000,000
shares authorized 625,777,894 and 587,732,546
shares issued and outstanding 625,778 625,778
Preferred Stock
Series A - $0.001 Par Value 1,900,000 shares
authorized, issued and outstanding 1,900 1,900
Series B - $0.001 Par Value, 3,000 shares
authorized, issued and outstanding 3 3
Additional Paid in Capital:
Common Stock 4,715,373 4,715,373
Preferred Stock - Series A 55,100 55,100
Preferred Stock - Series B 1,149,997 1,149,997
Retained Earnings (Deficit) (6,475,883) (6,115,647)
------------ ------------
Total Equity 72,268 432,504
------------ ------------

Total Liabilities and Equity 3,047,723 3,073,516
============ ============



 
TOTALLY GREEN, INC.
CONDENSED STATEMENTS OF OPERATIONS

Three Months Three Months
Ended Ended
March 31, March 31,
2012 2011
(Unaudited) (Unaudited)
------------ ------------

Net Sales 146,284 199,238

Cost of Goods Sold 87,890 117,384
------------ ------------

Gross Profit 58,394 81,854

Selling, General and Administrative Expenses 525,228 378,994
------------ ------------

Loss on Continuing Operations (466,834) (297,140)
------------ ------------

Other Income (Expenses)
Other Income 132,398 48,000
Interest Expense (25,801) (2,960)
------------ ------------
Total Other Income (Expenses) 106,597 45,040
------------ ------------

Net Loss Attributable to Common Stockholders (360,237) (252,100)
============ ============
Contact:
Company
Nate Baker
President & Interim CFO
Totally Green, Inc.
Tel 918-619-9700
Investor Relations
Liolios Group, Inc.
Scott Liolios or Chris Tyson
Tel 949-574-3860

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