CDTi Announces First Quarter 2017 Financial Results
May 15 2017 - 4:05PM
Clean Diesel Technologies, Inc. (Nasdaq:CDTI) (“CDTi” or “the
Company”), a leader in advanced emission control technology,
reported its financial results for the first quarter ended March
31, 2017.
Matthew Beale, CDTi’s CEO, stated, “We are making significant
progress in transitioning CDTi to an advanced materials and
specialty coating business model, the completion of which we expect
by the end of 2017. Following are the key initiatives we have
undertaken:
- We began shipments under new private label agreements to
several downstream partners in the North American heavy-duty
market, achieving higher volumes in the quarter. As these
relationships mature over the next several quarters, CDTi’s
contribution will increasingly reside in the provision of
technology and high-value coating, driving higher margins and lower
capital requirements.
- We entered into discussions with commercial and manufacturing
partners to directly serve DuraFit™ customers and enable us to
continue providing our key technology through coating the cores for
that product line.
- We scheduled into 2017 the remaining shipments under our
high-volume, low-value coating arrangement providing us the
visibility to execute manufacturing overhead reductions as we exit
that business.
- We entered into supply agreements with catalyst manufacturers
in China to provide CDTi’s enabling technologies, which we
anticipate will begin shipment in the second half of 2017.
“Once these initiatives are complete, we expect CDTi will be a
scalable technology company with approximately $5.0 million in
quarterly revenue, targeting 40% gross margins and approximately
$2.0 million in quarterly operating expenses. While we will begin
with less revenue than under our previous model, our improved
margins and streamlined infrastructure support a significantly
lower breakeven point – a very solid platform to support the ramp
of our new powder business in 2018 and 2019.”
Financial Highlights: First Quarter 2017 compared to
First Quarter 2016
- Total revenue was $8.2 million, compared to $9.7
million. - Coated catalyst revenue was $4.7 million, compared
to $6.5 million.- Emissions control systems revenue was $3.3
million, compared to $3.0 million.- Technology and advanced
materials revenue was $0.2 million for both periods.
- Gross margin was 17%, compared to 28%. The decrease primarily
reflects the launch of new private label programs in the North
American heavy-duty aftermarket, the elimination of certain
non-core product offerings, and an increase in the price of
palladium, which impacted the company’s PGM liability.
- Total operating expenses in the first quarter of 2017 were $3.8
million, compared to $6.0 million in the first quarter of 2016. The
decrease reflects the positive effects of the company’s cost
reduction initiatives undertaken in 2016, offset by increased
year-end accounting expenses. The company anticipates operating
expenses will continue to decline in 2017, and will reach between
$3.0 million and $3.5 million per quarter by the end of 2017.
- Net loss was $3.1 million, or $0.20 per share, compared to a
net loss of $2.8 million, or $0.76 per share in the first quarter
of 2016.
- Cash at March 31, 2017 was $2.4 million, compared to $7.8
million at December 31, 2016.
Tracy Kern, CDTI’s CFO, stated, “Our first quarter 2017 revenues
declined year-over-year primarily due to the timing of shipments of
our coated catalysts. We made progress in our North American
heavy-duty diesel technology provider strategy. As part of our
private label agreements, our first shipments reflect a lower
margin due to short-term introductory pricing. However, as volumes
ramp through 2017, we expect margins to recover.”
Financial OutlookBased on CDTi’s current
business configuration as well as its first quarter results, the
company continues to expect revenue to be between $32.0 million and
$35.0 million and gross margin to be between 23% and 25%.
CDTi continues to target achieving breakeven on an income from
continuing operations basis in the second half of 2017.
Conference Call and Webcast InformationCDTi
will host a conference call and live webcast beginning at 2:00 p.m.
Pacific Time today, May 15th to discuss its financial results and
its business outlook. This conference call will contain
forward-looking information. To participate in the conference call,
please dial +1 (877) 303-9240 and international participants should
dial +1 (760) 666-3571. The conference code is 15954609. The
conference call will be webcast live on the CDTi 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 CDTi website for 30 days. You may also access a
telephone replay for two business days following the conclusion of
the call by dialing +1 (855) 859-2056 or +1 (404) 537-3406 if
dialing in internationally. The passcode is 15954609.
About CDTiCDTi develops advanced materials
technology for the emissions control market. CDTi’s proprietary
technologies provide high-value sustainable solutions to reduce
hazardous emissions, increase energy efficiency and lower the
carbon intensity of on- and off-road combustion engine systems.
With a continuing focus on innovation-driven commercialization and
global expansion, CDTi’s breakthrough Powder-to-Coat (P2C™)
technology exploits the Company’s high-performance, advanced
low-platinum group metal (PGM) emission reduction catalysts. Key
technology platforms include Mixed Phase Catalyst (MPC®), Base
Metal Activated Rhodium Support (BMARS™), Synergized PGM (SPGM™),
Zero PGM (ZPGM™) and Spinel™. For more information, please visit
www.cdti.com.
Forward-Looking StatementsCertain information
contained in this press release constitutes forward-looking
statements, including any statements that are not statements of
historical fact. You can identify these forward-looking statements
by the use of the words “believes”, “expects”, “anticipates”,
“plans”, “may”, “will”, “would”, “intends”, “estimates”, and other
similar expressions, whether in the negative or affirmative.
Forward-looking statements are based on a series of expectations,
assumptions, estimates and projections, which involve substantial
uncertainty and risk. In this document, the Company includes
forward-looking statements regarding the acceleration of the
Company’s business transformation into an advanced materials
company, global trends in the automotive and heavy duty diesel
markets, the Company’s future financial performance, and the
performance of the Company’s technology, are all subject to risks
and uncertainties that could cause our actual results and financial
position to differ materially. In general, actual results may
differ materially from those indicated by such forward-looking
statements as a result of risks and uncertainties, including, but
not limited, to (i) that the Company may not be able to (a)
successfully implement, or implement at all, its strategic
priorities; (b) streamline its operations or align its organization
and infrastructure with the anticipated business; (c) meet
expectations or projections; (d) decrease costs; (e) increase
sales; (f) obtain adequate funding; (g) retain or secure customers;
(h) increase its customer base; (i) protect its intellectual
property; (j) successfully evolve into an advanced materials
supplier or, even if successful, increase profitability; (k)
successfully market new products; (l) obtain product
verifications or approvals; (m) attract or retain key personnel;
(n) validate, optimize and scale our powder-to-coat capability; or
(o) realize benefits from investments; (ii) funding for and
enforcement and tightening of emissions controls, standards and
regulations; (iii) prices of PGM and rare earth metals; (iv)
royalty and other restrictions on sales in certain Asian countries;
(v) supply disruptions or failures; (vi) regulatory, marketing and
competitive factors; (vii) environmental harm or damages; and
(viii) other risks and uncertainties discussed or referenced in the
Company’s filings with the Securities and Exchange Commission,
including its most recent Annual Report on Form 10-K and any
subsequent periodic reports on Form 10-Q and Form 8-K. In addition,
any forward-looking statements represent the Company’s estimates
only as of the date of such statements and should not be relied
upon as representing the Company’s estimates as of any subsequent
date. The Company specifically disclaims any obligation to update
forward-looking statements. All forward-looking statements in this
press release are qualified in their entirety by this cautionary
statement.
Contact Information: Becky
Herrick or Cathy MattisonLHA (IR Agency)+1 415 433
3777bherrick@lhai.com / cmattison@lhai.com
[Tables to follow]
CLEAN DIESEL TECHNOLOGIES |
Condensed Consolidated Balance
Sheets |
(in thousands) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2017 |
|
|
December 31, 2016 |
Assets |
|
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
|
Cash |
|
$ |
2,446 |
|
|
$ |
7,839 |
|
|
Accounts
receivable, net |
|
4,971 |
|
|
|
5,398 |
|
|
Inventories |
|
6,420 |
|
|
|
7,125 |
|
|
Prepaid
expenses and other current assets |
|
1,214 |
|
|
|
968 |
|
|
|
Total
current assets |
|
15,051 |
|
|
|
21,330 |
|
Property
and equipment, net |
|
1,086 |
|
|
|
1,158 |
|
Intangible
assets, net |
|
1,377 |
|
|
|
1,483 |
|
Deferred
tax asset |
|
560 |
|
|
|
554 |
|
Other
assets |
|
|
308 |
|
|
|
305 |
|
|
|
Total
assets |
$ |
18,382 |
|
|
$ |
24,830 |
|
|
|
|
|
|
|
|
|
|
Liabilities and stockholders’ equity |
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
Line of
Credit |
$ |
1,238 |
|
|
$ |
1,458 |
|
|
Shareholder
note payable |
|
- |
|
|
|
1,803 |
|
|
Accounts
payable |
|
4,429 |
|
|
|
5,979 |
|
|
Accrued
expenses and other current liabilities |
|
6,376 |
|
|
|
6,345 |
|
|
Income
taxes payable |
|
711 |
|
|
|
642 |
|
|
|
Total
liabilities |
$ |
12,754 |
|
|
$ |
16,227 |
|
|
|
|
|
|
|
|
|
|
Stockholders' equity: |
|
|
|
|
|
|
Common
stock |
|
157 |
|
|
|
157 |
|
|
Additional
paid in capital |
|
237,949 |
|
|
|
237,838 |
|
|
Accumulated
other comprehensive (loss) |
|
(6,319 |
) |
|
|
(6,329 |
) |
|
Accumulated
deficit |
|
(226,159 |
) |
|
|
(223,063 |
) |
|
|
Total
stockholders' equity |
|
5,628 |
|
|
|
8,603 |
|
|
|
Total
liabilities and stockholders' equity |
$ |
18,382 |
|
|
$ |
24,830 |
|
|
|
|
|
|
|
|
|
|
CLEAN DIESEL TECHNOLOGIES, INC. |
Condensed Consolidated Statements of
Operations |
(in thousands, except percentage and per share
amounts) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
|
2017 |
|
|
|
2016 |
|
Revenues |
|
|
|
|
|
|
Coated catalyst |
$ |
4,669 |
|
57 |
% |
|
$ |
6,543 |
|
67 |
% |
|
Emission control systems |
|
3,342 |
|
41 |
% |
|
|
2,983 |
|
31 |
% |
|
Technology and advanced materials |
|
203 |
|
2 |
% |
|
|
220 |
|
2 |
% |
Total
revenues |
|
8,214 |
|
100 |
% |
|
|
9,746 |
|
100 |
% |
Gross
profit |
|
1,434 |
|
17 |
% |
|
|
2,737 |
|
28 |
% |
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
Selling, general and administrative |
|
2,726 |
|
|
|
|
3,400 |
|
|
|
Research and development |
|
1,069 |
|
|
|
|
1,762 |
|
|
|
Severance and other charges |
|
- |
|
|
|
|
792 |
|
|
|
Total operating expenses |
|
3,795 |
|
|
|
|
5,954 |
|
|
Loss from
continuing operations |
|
(2,361 |
) |
|
|
|
(3,217 |
) |
|
Other
income (expense) |
|
|
|
|
|
|
Interest expense |
|
(103 |
) |
|
|
|
(392 |
) |
|
|
Loss on extinguisment of debt |
|
(194 |
) |
|
|
|
- |
|
|
|
(Loss) gain on change in fair value of liability-classified
warrants |
|
(338 |
) |
|
|
|
796 |
|
|
|
Other expense, net |
|
(101 |
) |
|
|
|
(380 |
) |
|
Loss from
operations before income taxes |
|
(3,097 |
) |
|
|
|
(3,193 |
) |
|
Income tax
benefit |
|
(1 |
) |
|
|
|
(422 |
) |
|
Net
loss |
|
$ |
(3,096 |
) |
|
|
$ |
(2,771 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted EPS |
$ |
(0.20 |
) |
|
|
$ |
(0.76 |
) |
|
Weighted
shares outstanding |
|
15,703 |
|
|
|
|
3,647 |
|
|
|
|
|
|
|
|
|
|
CDTI Advanced Materials (PK) (USOTC:CDTI)
Historical Stock Chart
From Mar 2024 to Apr 2024
CDTI Advanced Materials (PK) (USOTC:CDTI)
Historical Stock Chart
From Apr 2023 to Apr 2024