NORTHVILLE, Mich., April 28, 2011 /PRNewswire/ -- Amerigon
Incorporated (NASDAQ-GS: ARGN), a leader in developing and
marketing products based on advanced thermoelectric (TE)
technologies, today announced record quarterly revenues for the
first quarter ended March 31, 2011,
with year-over-year gains in gross margins, and commented on the
status of the proposed acquisition of W.E.T. Automotive Systems
(W.E.T.).
Product revenues for this year's first quarter were up 48
percent to a record $35.8 million
from $24.2 million in the prior year
period. The increase in revenues was primarily driven by new
model introductions offering the Company's Climate Control Seat®
(CCS®) systems and a much improved automotive marketplace resulting
in higher vehicle production levels on existing vehicles. The
Company's first significant shipments of its new heated and cooled
cup holder, which was launched at the end of the 2010 fourth
quarter, and modest shipments of the Company's TE technology used
in a new suite of actively heated and cooled luxury mattresses,
which was launched at the end of the 2010 third quarter, also
contributed to higher product revenue levels. CCS systems
include both TE-based heated and cooled systems and heated and
ventilated seat systems.
Amerigon President and Chief Executive Officer Daniel R. Coker said, "We had a strong start to
what promises to be a transformative year for Amerigon. We
are benefiting from the recovery of global automotive production
levels. Our seat systems remain popular with consumers as
evidenced by continued strong take rates. The fact that we
are now in 54 automobile models gives us a broad base to drive
revenues. By the end of the year, we also expect other
applications of our technology like our cup holder and mattress
system to add more substantially to our revenue total."
Coker added that the proposed acquisition of W.E.T., a
publicly-traded German automotive electronic components company,
continued to be in progress. On March
31, 2011, the Company completed an offering of its Series C
Convertible Preferred Stock and entered into a new syndicated
credit facility in order to provide sufficient funding for the
proposed acquisition. On April 11,
2011, the Company launched a tender offer for all of the
voting shares of W.E.T. Pursuant to the previously announced
agreement between Amerigon and the holders of 75.6 percent of
W.E.T.'s voting shares, those shares will be sold to Amerigon under
the tender offer. The initial acceptance period under the
tender offer expires on May 9, 2011.
The acquisition is contingent upon final review by the
appropriate regulatory authorities.
Gross margin as a percentage of revenue for the first quarter of
this year was 29.2 percent compared with 27.5 percent in the first
quarter of 2010. The year-over-year increase was primarily
attributable to a favorable shift in the mix of products sold and
higher coverage of fixed cost at the higher volume levels.
Associated with the proposed acquisition of W.E.T., Amerigon
recorded one-time fees and expenses (not deductible for current tax
purposes) totaling $3.8 million, or
$0.17 per basic and $0.16 per diluted share, during the first quarter
of 2011. As a result, the Company reported a net loss for the
first quarter of 2011 of $666,000, or
$0.03 per basic and diluted share,
compared with net income in the year-earlier period of $1.7 million, or $0.08 per basic share and $0.07 per diluted share. Excluding this
one-time charge, net income for this year's first quarter was
$3.1 million, or $0.14 per basic and $0.13 per diluted share, on an adjusted basis as
follows:
|
|
|
Net
income
(loss)
|
Basic
earnings
(loss) per
share
|
Diluted
earnings
(loss) per
share
|
|
As reported (per US
GAAP)
|
$ (666,000)
|
$ (0.03)
|
$ (0.03)
|
|
Acquisition transaction
expenses
|
3,754,000
|
0.17
|
0.16
|
|
As adjusted
|
$
3,088,000
|
$
0.14
|
$
0.13
|
|
|
|
|
|
|
|
In December of last year, Amerigon launched a heated and cooled
cup holder that is now available in the 2011 Dodge Charger.
It is the first Amerigon product offered in a Chrysler
vehicle, and revenue on this program during the first quarter was
$1.1 million. Last September,
Amerigon also launched its active heating and cooling technology in
a suite of luxury mattresses that is being marketed by Mattress
Firm Inc., which has more than 580 store locations in 22 states.
These new mattresses are the first ever bedding products to
offer individually controlled heating and cooling capabilities.
Coker added, "Our cup holders and the heated and cooled luxury
mattresses have both been received very well in the marketplace.
These products not only diversify our portfolio of commercial
products, but they both have the potential over time to be high
volume products for us. We expect one more automobile
platform to feature our cup holder this year and we believe the cup
holders could generate $8 million-$10
million in product revenues in 2011. The heated and
cooled luxury mattress line should begin to generate meaningful
revenues this year as well."
The Company's balance sheet as of March
31, 2011, had total cash and cash equivalents of
$6.6 million, restricted cash of
$182 million reflecting funds raised
for the proposed acquisition of W.E.T., total assets of
$243.3 million, and shareholders'
equity of $59.8 million. Total
debt was $87.2 million. Series
C Convertible Preferred Stock was $61.5
million.
CCS systems are currently offered as an optional or standard
feature on 54 automobile models produced by Ford, General Motors,
Toyota, Nissan, Hyundai, Kia and Jaguar/Land Rover. New
vehicles equipped with CCS systems and launched since the end of
the 2010 first quarter included the Ford Explorer, Kia Mohave,
Kia Borrego, Kia Optima and Hyundai
Sonata. Additionally, several new vehicles which were
launched during the first quarter of 2010 had higher revenue during
this year's first quarter due to reaching a full production run
rate. These vehicles included the Ford F-250, Kia Sportage
and Hyundai Tucson.
Unit shipments of CCS systems for the 2011 first quarter were
501,000 compared with 349,000 for the year-earlier period. As
of March 31, 2011, the Company had
shipped approximately 7.4 million CCS units to customers since
2000.
The 2011 first quarter results include a year-over-year increase
in net research and development expenses of $665,000, primarily due to the advanced TE
materials program at the Company's wholly-owned subsidiary, ZT
Plus. In March 2010, Amerigon
purchased all of its partner's 50 percent interest of ZT Plus and
became the 100 percent owner of that operation. The Company's
research and development efforts have resulted in the development
of new products, such as the heated and cooled cup holder and the
heated and cooled mattress. The Company is also developing
new products, including a cold storage box and an improved CCS
system. The costs associated with research and development
projects increased during this year's first quarter as several of
the projects reached the commercial launch phase of
development.
Selling, general and administrative expenses for the 2011 first
quarter increased $904,000, due
primarily to the opening of offices in Germany and China and other higher expenses.
Guidance
The Company expects product revenues in the 2011 second quarter
to be slightly lower compared with the record 2011 first quarter
due to the uncertainty in the automotive industry driven by recent
events in Japan that has resulted
in disruptions to certain of the Company's customers' production of
vehicles and to the flow of parts from production facilities in
Japan that supply the worldwide
automotive industry. Product revenues in this year's second
quarter should be higher compared with the 2010 second quarter
product revenues of $28.8
million.
Conference Call
As previously announced, Amerigon is conducting a conference
call today to be broadcast live over the Internet at 11:30 AM Eastern Time to review these financial
results. The dial-in number for the call is 1-877-941-1427.
The live webcast and archived replay of the call can be
accessed in the Events page of the Investor section of Amerigon's
website at www.amerigon.com.
About Amerigon
Amerigon (NASDAQ-GS: ARGN) develops products based on its
advanced, proprietary, efficient thermoelectric (TE) technologies
for a wide range of global markets and heating and cooling
applications. The Company's current principal product is its
proprietary Climate Control Seat® (CCS®) system, a solid-state,
TE-based system that permits drivers and passengers of vehicles to
individually and actively control the heating and cooling of their
respective seats to ensure maximum year-round comfort. CCS uses no
CFCs or other environmentally sensitive coolants. Amerigon
maintains sales and technical support centers in Southern California, Southeast Michigan, Japan, Germany, England and Korea. For more information,
visit the Company's website at www.amerigon.com.
Certain matters discussed in this release are forward-looking
statements that involve risks and uncertainties, and actual results
may be different. Important factors that could cause the
Company's actual results to differ materially from its expectations
in this release are risks that sales may not significantly
increase, additional financing, if necessary, may not be available,
new competitors may arise and adverse conditions in the automotive
industry may negatively affect its results. The liquidity and
trading price of its common stock may be negatively affected by
these and other factors. Please also refer to Amerigon's
Securities and Exchange Commission filings and reports, including,
but not limited to, its Form 10-K for the year ended December 31, 2010.
Contact:
|
Allen & Caron Inc
|
|
|
Jill Bertotti
(investors)
|
|
|
jill@allencaron.com
|
|
|
Len Hall (media)
|
|
|
len@allencaron.com
|
|
|
(949) 474-4300
|
|
|
|
TABLES
FOLLOW
|
|
AMERIGON
INCORPORATED
|
|
CONSOLIDATED
CONDENSED STATEMENTS OF OPERATIONS
|
|
(In
thousands, except per share data)
|
|
(Unaudited)
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
|
2011
|
2010
|
|
Product revenues
|
$ 35,796
|
$ 24,188
|
|
Cost of sales
|
25,340
|
17,545
|
|
Gross margin
|
10,456
|
6,643
|
|
Operating expenses:
|
|
|
|
Research and
development
|
2,661
|
2,979
|
|
Research and
development reimbursements
|
(192)
|
(1,175)
|
|
Net research and development expenses
|
2,469
|
1,804
|
|
Acquisition
transaction expenses
|
3,754
|
–
|
|
Selling, general
and administrative
|
3,364
|
2,460
|
|
Total operating expenses
|
9,587
|
4,264
|
|
Operating income
|
869
|
2,379
|
|
Interest income
(expense)
|
9
|
(3)
|
|
Loss from equity
investment
|
–
|
(22)
|
|
Other income
|
227
|
65
|
|
Earnings before income
tax
|
1,105
|
2,419
|
|
Income tax expense
|
1,771
|
876
|
|
Net income (loss)
|
(666)
|
1,543
|
|
Plus: Loss attributable to
non-controlling interest
|
–
|
107
|
|
Net income (loss) attributable
to Amerigon, Inc.
|
$
(666)
|
$
1,650
|
|
|
|
|
|
Basic earnings (loss) per
share
|
$
(0.03)
|
$
0.08
|
|
Diluted earnings (loss) per
share
|
$
(0.03)
|
$
0.07
|
|
|
|
|
|
Weighted average number of
shares – basic
|
22,081
|
21,532
|
|
Weighted average number of
shares – diluted
|
22,081
|
22,345
|
|
|
|
|
|
|
|
|
AMERIGON
INCORPORATED
|
|
CONSOLIDATED
BALANCE SHEETS
|
|
(In
thousands, except share data)
|
|
|
|
|
|
|
March
31,
|
December
31,
|
|
ASSETS
|
2011
|
2010
|
|
|
(unaudited)
|
|
|
Current Assets:
|
|
|
|
Cash & cash
equivalents
|
$ 6,584
|
$ 26,584
|
|
Short-term
investments
|
–
|
9,761
|
|
Restricted
cash
|
182,002
|
–
|
|
Accounts
receivable, less allowance of $786 and $545,
respectively
|
25,661
|
18,940
|
|
Inventory
|
7,326
|
6,825
|
|
Deferred income tax
assets
|
1,460
|
4,905
|
|
Prepaid expenses
and other assets
|
1,570
|
1,421
|
|
Total current assets
|
224,603
|
68,436
|
|
Property and equipment,
net
|
4,507
|
4,197
|
|
Patent costs, net of accumulated
amortization of $761 and $706, respectively
|
5,019
|
4,653
|
|
Deferred financing
costs
|
4,024
|
–
|
|
Deferred income tax
assets
|
4,217
|
1,279
|
|
Other non-current
assets
|
887
|
857
|
|
Total assets
|
$
243,257
|
$
79,422
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
Current Liabilities:
|
|
|
|
Accounts
payable
|
$ 19,337
|
$ 15,275
|
|
Accrued
liabilities
|
11,943
|
5,872
|
|
Debt
|
87,233
|
–
|
|
Derivative
financial instruments
|
2,675
|
–
|
|
Deferred
manufacturing agreement – current portion
|
–
|
50
|
|
Total current liabilities
|
121,188
|
21,197
|
|
Pension Benefit
Obligation
|
764
|
688
|
|
Total liabilities
|
121,952
|
21,885
|
|
|
|
|
|
Series C Convertible Preferred
Stock
|
61,465
|
–
|
|
Shareholders' equity:
|
|
|
|
Common
Stock:
|
|
|
|
No
par value; 30,000,000 shares authorized, 22,150,780 and 22,037,446
issued and
|
|
|
|
outstanding at March 31,
2011 and December 31, 2010, respectively
|
66,009
|
65,148
|
|
Paid-in
capital
|
21,344
|
20,128
|
|
Accumulated other
comprehensive income
|
985
|
93
|
|
Accumulated
deficit
|
(28,498)
|
(27,832)
|
|
Total
shareholders' equity
|
59,840
|
57,537
|
|
Total
liabilities and shareholders' equity
|
$
243,257
|
$
79,422
|
|
|
|
|
|
|
|
|
|
|
AMERIGON
INCORPORATED
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
(In
thousands)
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
|
2011
|
2010
|
|
Operating Activities:
|
|
|
|
Net income
(loss)
|
$ (666)
|
$ 1,543
|
|
Adjustments to reconcile net income (loss) to cash provided
by operating activities:
|
|
|
|
Depreciation and amortization
|
390
|
322
|
|
Deferred tax provision
|
1,596
|
823
|
|
Stock option compensation
|
357
|
313
|
|
Defined benefit plan expense
|
75
|
63
|
|
Loss from equity investment
|
–
|
22
|
|
Acquisition transaction expenses
|
3,754
|
–
|
|
Changes in operating assets and liabilities:
|
|
|
|
Accounts receivable
|
(6,722)
|
(3,034)
|
|
Inventory
|
(500)
|
(582)
|
|
Prepaid expenses and other assets
|
(182)
|
546
|
|
Accounts payable
|
4,062
|
2,279
|
|
Accrued liabilities
|
(101)
|
49
|
|
Net cash provided by operating activities
|
2,063
|
2,344
|
|
|
|
|
|
Investing Activities:
|
|
|
|
Purchases of
short-term investments
|
–
|
(5,240)
|
|
Maturities of
short-term investments
|
9,761
|
1,348
|
|
Purchase of ZT
Plus assets, net of cash acquired
|
–
|
(1,500)
|
|
Acquisition
transaction costs
|
(699)
|
–
|
|
Cash restricted
for acquisition
|
(182,002)
|
–
|
|
Purchase of
property and equipment
|
(696)
|
(372)
|
|
Patent
costs
|
(418)
|
(162)
|
|
Net cash used in investing activities
|
(174,054)
|
(5,926)
|
|
|
|
|
|
Financing Activities:
|
|
|
|
Revolving note borrowings
|
19,011
|
–
|
|
Borrowing of debt
|
68,000
|
–
|
|
Cash paid for financing costs
|
(3,890)
|
–
|
|
Proceeds from the sale of Series C Convertible Preferred
Stock
|
64,513
|
–
|
|
Proceeds from the sale of derivative financial
instruments
|
2,610
|
–
|
|
Proceeds from the exercise of Common Stock
options
|
633
|
421
|
|
Net cash provided by financing activities
|
150,877
|
421
|
|
Foreign currency effect
|
1,114
|
(3)
|
|
Net decrease in cash and cash equivalents
|
(20,000)
|
(3,164)
|
|
Cash and cash equivalents at beginning of period
|
26,584
|
21,677
|
|
Cash and cash equivalents at end of period
|
$
6,584
|
$
18,513
|
|
|
|
|
|
Supplemental disclosure of cash
flow information:
|
|
|
|
Cash paid for
taxes
|
$
–
|
$
–
|
|
|
|
|
|
|
SOURCE Amerigon Incorporated