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

Marketwired

TULSA, OK--(Marketwire -03/27/12)- Totally Green, Inc. (Pinksheets: TLGN.PK - News), 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,
                                                     2011          2010
                                                  (Unaudited)
                                                 ------------  ------------

Current Assets
  Cash & Cash Equivalents                              99,816        17,538
  Temporary Investments - Restricted                   25,000        25,000
  Trade Accounts Receivable, net                      116,157           700
  Accounts receivable - Other                          94,880         5,000
  Prepaid Expenses                                    350,000        12,641
  Inventory                                           222,825       130,816
                                                 ------------  ------------
    Total Current Assets                              908,678       191,695
                                                 ------------  ------------

Property and Equipment
  Machinery and Equipment                              45,400        38,640
  Accumulated Depreciation                             (9,245)       (2,760)
                                                 ------------  ------------
    Property and Equipment, net                        36,155        35,880
                                                 ------------  ------------

  Intangible Assets, net                              659,616       774,827

  Prepaid Marketing Fees                            1,050,050             -

  Other Assets                                         13,527        13,527

  Discontinued Operations - Assets                    497,058       681,167
                                                 ------------  ------------

Total Assets                                        3,165,084     1,697,096
                                                 ============  ============



                            TOTALLY GREEN, INC.
                          CONDENSED BALANCE SHEETS

                           LIABILITIES AND EQUITY

                                                 December 31,  December 31,
                                                     2011          2010
                                                  (Unaudited)
                                                 ------------  ------------

Current Liabilities
  Accounts Payable                                    191,219       172,014
  Sales Tax Payable                                     1,751             -
  Customer Deposits                                         -        27,962
  Dividends Payable                                   105,500        48,000
  Fees Payable                                        106,280       106,280
                                                 ------------  ------------
    Total Current Liabilities                         404,750       354,256
                                                 ------------  ------------

  Fees Payable - Long-Term                            216,773       216,773
  Line of Credit                                    1,864,069       603,009

                                                 ------------  ------------
Total Liabilities                                   2,485,592     1,174,038
                                                 ------------  ------------

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       587,733
  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     2,703,418
    Preferred Stock - Series A                         55,100        55,100
    Preferred Stock - Series B                      1,149,997     1,149,997
  Retained Earnings (Deficit)                      (5,868,659)   (3,975,093)
                                                 ------------  ------------
    Total Equity                                      679,492       523,058
                                                 ------------  ------------

Total Liabilities and Equity                        3,165,084     1,697,096
                                                 ============  ============



                            TOTALLY GREEN, INC.
                     CONDENSED STATEMENTS OF OPERATIONS

                                                  Year Ended    Year Ended
                                                 December 31,  December 31,
                                                     2011          2010
                                                  (Unaudited)
                                                 ------------  ------------

Net Sales                                             821,905       135,179

Cost of Goods Sold                                    522,448       116,181
                                                 ------------  ------------

Gross Profit                                          299,457        18,998

Selling, General and Administrative Expenses        2,254,916       809,182
                                                 ------------  ------------

  Loss on Continuing Operations                    (1,955,459)     (790,184)
                                                 ------------  ------------

Other Income (Expenses)
  Other Income                                        132,623        25,675
  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)
                                                 ============  ============


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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