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DGAP-News: Clean Diesel Technologies, Inc. Reports Fourth Quarter and Fiscal Year 2010 Financial Results
ID: 378711
(firmenpresse) - Clean Diesel Technologies, Inc.
31.03.2011 22:32
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VENTURA, Calif., 2011-03-31 22:32 CEST (GLOBE NEWSWIRE) --Clean Diesel Technologies, Inc. (Nasdaq:CDTI) ('Clean Diesel' or the
'Company'), a cleantech emissions reduction company, announced today its
financial results for the fourth quarter and year ended December 31, 2010.
On October 15, 2010, Clean Diesel completed its business combination with
Catalytic Solutions, Inc. ('CSI') following which CSI became a wholly-owned
subsidiary of Clean Diesel. Clean Diesel refers to this transaction as the
'Merger.' In light of the Merger, Clean Diesel is now a vertically integrated
global manufacturer and distributor of emissions control systems and products.
The Merger was accounted for as a reverse acquisition and, as a result, Clean
Diesel's (the legal acquirer) consolidated financial statements are now those
of CSI (the accounting acquirer), with the assets and liabilities, and revenues
and expenses, of Clean Diesel being included with those of CSI effective from
the date of the closing of the Merger. The current and historical information
released today reflects the accounting treatment of the Merger.
Earnings per share information is based upon a weighted average of (1)
outstanding shares of CSI for 2009 and for the period up to October 15, 2010,
recast for the conversion of CSI common shares to Clean Diesel shares to take
into account the Merger; and (2) the total Clean Diesel shares outstanding
after October 15, 2010, including shares issued in connection with the Merger.
Weighted average shares for the years ended 2010 and 2009 were 1,238,198 and
550,189, respectively. Weighted average shares for the fourth quarter of 2010
and 2009 were 3,279,792 and 550,189, respectively. Total shares outstanding as
of December 31, 2010 was 3,959,208.
Financial Summary and Recent Business Developments
-- Total revenue for the fourth quarter of 2010 was $11.8 million compared to
$18.0 million for the same quarter in 2009. Net loss for the fourth quarter
of 2010 was $5.7 million, or $1.73 per share, compared to net income of
$3.3 million, or $6.00 per share on a fully diluted basis, in the
comparable period in 2009.
-- Total revenue for 2010 was $48.1 million compared to $50.5 million for the
year 2009. Net loss for 2010 was $8.4 million, or $6.77 per share, compared
to a loss of $8.0 million, or $14.50 per share for 2009. Gross margin
increased to 25.0% for the year ended December 31, 2010 from 23.7% for the
year ended December 31, 2009. Operating expenses of $15.9 million in the
year ended December 31, 2010 were down $4.0 million from the year ended
December 31, 2009.
-- Finalized a new financing agreement in February 2011 as part of the
continuing effort to improve working capital.
-- Following ISO9001 certification at its newly formed UK subsidiary, named by
Transport for London (TfL) as an accredited supplier of approved diesel
emission reduction systems for vehicles to comply with the London Low
Emission Zone (LEZ). Clean Diesel estimates that approximately 150,000
vehicles will be affected by the new regulations, with approximately 20,000
of these vehicles requiring diesel emission retrofit solutions by January
2012.
Comments on 2010 and 2011
Charles F. Call, Chief Executive Officer of Clean Diesel, stated, 'While the
financial results for the quarter and full year weren't as strong as we would
like, there is much to be positive about as we look forward into 2011. We
accomplished a number of important strategic and operational initiatives to
position the Company for growth in 2011. The most prominent of these
initiatives was our successful completion of the business combination between
Clean Diesel and CSI, which strengthened our product offering, expanded our
geographic presence and enhanced our operating efficiencies.
'Our Heavy Duty Diesel Systems division continues to strengthen with expanded
distribution channels in the United States, and continues to benefit from
funding allocated to diesel emission control under the American Recovery and
Reinvestment Act of 2009 (commonly referred to as the Stimulus Bill), which
provides customers with an incentive to acquire our emission control products.
Fourth quarter sales for this business were in line with our expectations but
compare unfavorably to an exceptionally strong fourth quarter in 2009 where we
benefited from a major diesel retrofit program in California. Full year sales
were up 20% from last year.
'Our Catalyst division sales in 2010 decreased as a result of an automaker
accelerating the manufacture of a vehicle that requires a catalyst product
meeting a higher regulatory standard than the product we supplied to the
automaker. We expect that sales of our Catalyst products to this automaker will
resume towards the end of 2011 once we have received the necessary regulatory
approvals and customer qualifications. Our focus is on the technology-driven
automotive industry customer and we are very pleased that we have added a new
OEM customer and expect revenues in the Catalyst division for the first quarter
of 2011 to exceed the fourth quarter of 2010.
'Looking at our operating performance for the full year, we continued to
improve gross margins, despite a difficult operating environment, due to a
combination of better product mix and from our efforts at cost improvement. We
anticipate that following approval by the regulatory agencies (expected
sometime in the second quarter of 2011) we will have the ability to supply our
own manufactured catalyst products to our Heavy Duty Diesel Systems division,
which we believe will improve our total gross margins. CSI's restructuring
activity in 2008 and 2009 to realign its Catalyst division operations to
improve operating efficiencies was the right decision given the slowdown in the
automotive market. We have seen the full benefit of that action in 2010 having
reduced the cost structure of this division by approximately $12 million on an
annualized basis.
'In 2011, depending on the timing of certain heavy duty diesel retrofit
programs, we expect to see continued improvement in our business as we capture
the opportunities available in both the London LEZ and in the U.S. We believe
there are more than 160 LEZs in operation throughout Europe, with others being
planned in Europe and Asia. The London LEZ regulations are estimated to require
20,000 heavy duty diesel vehicles entering the LEZ to meet certain emission
standards by January 2012. With a broad array of existing products, new
products in the pipeline and our advanced catalyst technology, we expect to
benefit from this market growth. Although it is early in the process, we have
begun to receive orders for the London LEZ program and we anticipate that most
of the retrofit activity for this program will take place in the second half of
2011. Additionally, we see renewed commitment for on-road diesel emission
reductions from state governments, such as California, which has mandated that
all 1996 through 2006 Class 7 and 8 diesel trucks be retrofitted with diesel
particulate filters to meet state emission standards between 2012 and 2014.'
Commenting on the balance sheet, Mr. Call said, 'We successfully finalized a
new financing facility that replaced a credit line which was operated under
forbearance from the lender. The Merger was expected to provide sufficient cash
to the combined Company, however, unforeseen delays in completing the Merger
led to significantly higher transactional costs for both Clean Diesel and CSI.
In addition, the reduction in Catalyst sales discussed above has resulted in
lower cash inflows. Due to these circumstances, we will need additional cash on
our balance sheet to support sales, marketing and product verification
expenditures in advance of realizing sales in the London LEZ and to complete
verification of certain catalyst products for use by our Heavy Duty Diesel
Systems division. We are pursuing various alternatives to secure additional
financing; however, failure to secure additional funding will result in the
Company not having sufficient cash to operate. We will keep our shareholders
informed of progress made in this respect over the next few months.'
Mr. Call concluded, 'Heading into 2011, we are excited about our growth
prospects. We plan to continue to invest in our businesses, as well as in new
growth areas and markets, to deliver value to both our customers and
stockholders.'
Financial Results
Fourth Quarter 2010
Total revenue for the fourth quarter ended December 31, 2010, was $11.8 million
compared to $18.0 million for the same period in 2009.
-- Revenue for Clean Diesel's Heavy Duty Diesel Systems division for the
fourth quarter ended December 31, 2010 decreased $2.8 million, or 25%, to
$8.4 million from $11.2 million for the fourth quarter ended December 31,
2009. Revenue for the fourth quarter ended December 31, 2010 includes $0.4
million from Clean Diesel's business as a result of the Merger.
-- Revenue for Clean Diesel's Catalyst division for the fourth quarter ended
December 31, 2010 decreased $3.1 million, or 45%, to $3.8 million from $6.9
million for the fourth quarter ended December 31, 2009.
Net loss for the fourth quarter ended December 31, 2010 was $5.7 million, or
$1.73 per share, compared to net income of $3.3 million, or $6.00 per share on
a fully diluted basis, for the comparable period in 2009.
-- Results for the fourth quarter of 2010 include a non-cash interest expense
of $1.4 million (pre-tax) related to the convertible debt issued in 2010
and converted to equity at the time of the merger and non-cash losses of
$0.9 million (pre-tax) related to the value of liability classified
warrants and the convertible notes, compared to zero in both categories for
the year ended 2009. Additionally, the net loss in the fourth quarter
included a pre-tax loss of $0.7 million from Clean Diesel's business as a
result of the merger. For the fourth quarter net income from discontinued
operations was $0.4 million in 2010 compared to $2.6 million in 2009.
Full Year 2010
Total revenue for the year ended December 31, 2010, was $48.1 million compared
to $50.5 million for the same period in 2009.
-- Revenue for Clean Diesel's Heavy Duty Diesel Systems division for the year
ended December 31, 2010 increased $5.3 million, or 20%, to $31.2 million
from $25.9 million for the year ended December 31, 2009. Revenue for the
year ended December 31, 2010 includes $0.4 million from Clean Diesel's
business as a result of the Merger.
-- Revenue for Clean Diesel's Catalyst division for the year ended December
31, 2010 decreased $7.4 million, or 29%, to $17.7 million from $25.1
million for the year ended December 31, 2009.
The Company's net loss increased for the year ended December 31, 2010 to $8.4
million, or $6.77 per share, compared to $8.0 million, or $14.50 per share on a
fully diluted basis, for the comparable period in 2009.
-- Results for the year ended 2010 include a non-cash interest expense of $3.1
million (pre-tax) related to the secured convertible notes issued by CSI in
2010 and converted to CSI equity immediately prior to the Merger and into
Clean Diesel equity at the effective time of the Merger, and non-cashlosses of $1.1 million (pre-tax) related to the value of liability
classified warrants and the secured convertible notes, compared to $0.2
million of non-cash gain related to the value of liability classified
warrants for the year ended 2009. Additionally, the net loss for 2010
included a pre-tax loss of $0.7 million from Clean Diesel's business as a
result of the merger. Full year net income from discontinued operations was
$1.0 million in 2010 compared to $1.5 million in 2009.
At December 31, 2010 and 2009, respectively, Clean Diesel had cash and cash
equivalents of $5.0 million and $2.3 million. Working capital surplus was $2.9
million at December 31, 2010 compared to a deficit of $4.4 million at December
31, 2009. Additional information about the Company's financial results is
available in its Annual Report on Form 10-K filed with the U.S. Securities&Exchange Commission: http://www.sec.gov. A copy of the 10-K is posted on the
Company's website at www.cdti.com.
Conference Call and Webcast Information
Clean Diesel will host a conference call and simultaneous webcast over the
Internet beginning at 2:00 p.m. Pacific Time today to discuss its financial
results and its business outlook. This conference call will contain
forward-looking information. To participate in the conference call, dial (877)
303-9240 and use confirmation code 55585999. International participants should
dial +1 (760) 666-3571 and use the same confirmation code. The conference call
will be webcast live on the Clean Diesel website at www.cdti.com under the
'Investor Relations' section. To listen to the live webcast, participants
should visit the site at least 15 minutes prior to the conference to download
any required streaming media software. An archived recording of the conference
call will be available on the Clean Diesel website for 30 days.
About Clean Diesel Technologies, Inc.
Clean Diesel Technologies ('CDT') is, a vertically integrated global
manufacturer and distributor of emissions control systems and products, focused
on the heavy duty diesel and light duty vehicle markets. CDT utilizes its
proprietary patented Mixed Phase Catalyst (MPC(r)) technology, as well as its
ARIS(r) selective catalytic reduction; Platinum Plus(r) Fuel-Borne Catalyst, and
other technologies to provide high-value sustainable solutions to reduce
emissions, increase energy efficiency and lower the carbon intensity of on- and
off-road engine applications. CDT is headquartered in Ventura, California,
along with its wholly-owned subsidiary, CSI, and currently has operations in
the U.S., Canada, U.K., France, Japan and Sweden as well as an Asian joint
venture. For more information, please visit www.cdti.com and www.catsolns.com.
The Clean Diesel Technologies, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=5742
Forward-Looking Statements Safe Harbor
Certain statements in this news release, such as statements about market share,
cost-savings, spending on government emission reduction programs, ability to
capitalize on LEZ opportunities, regulatory approvals for Catalyst products,
sales of Catalyst products to a new OEM customer and resumption of sales to
former automaker customer, constitute 'forward-looking statements' within the
meaning of the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements involve known or unknown risks, including those
detailed in the Company's filings with the U.S. Securities and Exchange
Commission, uncertainties and other factors that may cause the actual results,
performance or achievements of the Company to be materially different from any
future results, performance or achievements expressed or implied by such
forward-looking statements. Readers are cautioned not to place undue reliance
on these forward-looking statements, which speak only as of the date hereof.
The Company assumes no obligation to update the forward-looking information
contained in this release.
Clean Diesel Technologies, Inc.Summary Income Statements
($ millions)
3 Months Ended Year Ended
December 31 December 31
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2010 2009 2010 2009
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Revenues $11.8 $18.0 $48.1 $50.5
Gross profit 2.7 5.1 12.0 12.0
Operating expenses:
Selling, general and administrative 3.5 3.3 11.9 12.5
Research and development 1.2 1.4 4.4 7.3
Recapitalization expense 1.8 0.3 3.2 1.3
Severance expense 0.2 1.2 0.3 1.4
Gain on sale of intellectual property -- -- (3.9) (2.5)
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Total operating expenses $6.7 $6.2 $15.9 $19.9
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Loss from operations $ (3.9) $ (1.1) $ (3.9) $ (8.0)
Other (expense) income (2.6) 0.8 (5.5) (2.6)
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Loss from continuing operations before (6.5) (0.2) (9.3) (10.5)
income tax
Income tax (benefit) expense (0.4) (0.9) -- (1.0)
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Net (loss) income from continuing operations (6.1) 0.7 (9.3) (9.5)
Discontinued operations 0.4 2.6 1.0 1.5
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Net (loss) income $ (5.7) $3.3 $ (8.4) $ (8.0)
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Clean Diesel Technologies, Inc.
Segment Information
($ millions)
3 Months Ended Year Ended
December 31 December 31
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2010 2009 2010 2009
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Revenue
Heavy Duty Diesel Systems $8.4 $11.2 $31.2 $25.9
Catalyst 3.8 6.9 17.7 25.1
Eliminations (0.4) (0.1) (0.8) (0.5)
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Total $11.8 $18.0 $48.1 $50.5
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Income (loss) from operations
Heavy Duty Diesel Systems $ (0.5) $1.4 $1.9 $1.9
Catalyst 0.4 (1.9) (2.6) (5.7)
Corporate (3.8) (0.6)(3.2) (4.2)
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Total $ (3.9) $ (1.1) $ (3.9) $ (8.0)
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Clean Diesel Technologies, Inc.
Summary Balance Sheets
($ millions)
As of
December 31
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2010 2009
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Total current assets $17.6 $18.6
Total assets $32.6 $30.2
Total current liabilities $14.8 $22.9
Total long-term liabilities $2.6 $1.4
Stockholders' equity $15.3 $5.9
Short-term debt $2.4 $8.1
Long-term debt $1.5 $0.1
CONTACT: Kristi Cushing, Investor Relations Manager
Tel: +1 (805) 639-9458
News Source: NASDAQ OMX
31.03.2011 Dissemination of a Corporate News, transmitted by DGAP -
a company of EquityStory AG.
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Language: English
Company: Clean Diesel Technologies, Inc.
United States
Phone:
Fax:
E-mail:
Internet:
ISIN: US18449C3025
WKN:
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Datum: 31.03.2011 - 22:32 Uhr
Sprache: Deutsch
News-ID 378711
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