Clean Diesel Technologies, Inc. (Nasdaq:CDTI) ("CDTi" or the
"Company"), a cleantech emissions control company, announced today
its financial results for the fourth quarter and fiscal year ended
December 31, 2012. The highlights are as follows:
- Fourth quarter revenue of $12.4 million, down 41.8%
- Retrofit sales in California sequentially stronger but below
expectations
- Prior fourth quarter retrofit sales included over $6 million
for the London LEZ
- Continued strength in catalyst sales to Honda
- Fiscal year 2012 revenue of $60.5 million, down 1.7% year over
year
- Net loss of $1.34 per diluted share for fiscal year 2012
compared to net loss of $1.31 per share for prior year
- Cash used in operating activities of $0.2 million for fiscal
year 2012 versus $14.6 million used in the prior year
- Cash and cash equivalents of $6.9 million as of December 31,
2012 versus $3.5 million for the year ago period
"Disappointedly, we did not achieve our financial objectives in
2012 and the fourth quarter was a challenging one for the Company.
We expected greater retrofit sales under the California Truck and
Bus mandate and believe that the late and weak regulation
enforcement coupled with a delayed product approval were
contributing factors," said Craig Breese, Chief Executive Officer
of CDTi. "We're guardedly optimistic that with a full suite of
verified retrofit solutions, the strengthening of our team with
experienced industry veterans and the exit of a significant
competitor, Cleaire, from the market, we will see increased sales
momentum driven by more vigorous CARB enforcement. While we expect
improvement in our retrofit sales from state-sponsored initiatives,
we are continuing to make progress expanding our Heavy Duty Diesel
Systems sales from non-retrofit sources that represent a more
sustainable OEM and aftermarket business. Our recently announced
joint venture with a subsidiary of Pirelli Group to sell emissions
control products in Europe is an excellent example of a more
strategic approach to growing our OEM and aftermarket business.
"Our Catalyst division reported a much improved performance,
with external sales up more than 40 percent compared to the prior
year, driven largely by growth in our Honda business. Strong Q4
Catalyst sales were negatively impacted by lower gross margin due
to an unsatisfactory rate for rare earth metal reimbursement. We
recently finalized a reimbursement agreement with Honda to
alleviate this issue as we progress through 2013. Operationally, we
continue to be pleased with the execution of the cost reduction
activities that we began last year which are positively impacting
the results of both of our business segments.
"Going forward, our key strategic objective will be to
capitalize on our unique and disruptive catalyst technology. We are
energized by a number of initiatives we have underway to leverage
our core material science technology. These initiatives include an
aggressive enhancement of our IP and patent portfolio, which
comprise the pursuit of zero-platinum group metal automotive
emission solutions and the pursuit of new market opportunities
through licensing arrangements, joint development agreements and
partnerships. We believe the actions taken in 2012 and those
planned for 2013 to strategically reposition the business to serve
the global OEM customer and expand our addressable markets to
better monetize our materials technology platform will result in
our ability to improve the Company's long-term growth,
profitability and shareholder value."
Fourth Quarter 2012 Financial Results
Total revenue for the fourth quarter of 2012 was $12.4 million,
a decrease of $8.9 million, or 41.8%, from $21.3 million for the
prior year quarter. Revenue, excluding intercompany sales, for
CDTi's Catalyst division for the quarter ended December 31, 2012
was $4.0 million, unchanged from the prior year quarter. Revenue
for CDTi's Heavy Duty Diesel Systems division for the quarter ended
December 31, 2012 decreased $8.9 million, or 51.7%, to $8.4 million
from $17.3 million for the same prior year quarter.
Total operating expenses for the fourth quarter of 2012 were
$5.1 million, including severance and other charges of $0.5
million, compared to $5.7 million in the prior year quarter.
Gross margin was 22.0%, compared to 27.6% in the prior year
period.
Net loss for the fourth quarter of 2012 was $2.8 million, or
$0.39 per diluted share, compared to net income of $0.5 million, or
$0.06 per share, in the prior year quarter. Diluted common shares
outstanding were 7,240,000 in the current quarter compared to
7,217,000 in the same quarter a year ago.
At December 31, 2012 and December 31, 2011, CDTi had cash and
cash equivalents of $6.9 million and $3.5 million,
respectively.
Full Year 2012 Financial Results
Total revenue for the year ended December 31, 2012 was $60.5
million, a decrease of $1.1 million, or 1.7%, from $61.6 million
for the prior year. Revenue, excluding intercompany sales, for
CDTi's Catalyst division for the year ended December 31, 2012
increased $5.6 million, or 40.5%, to $19.8 million from $14.2
million for the prior year. Revenue for CDTi's Heavy Duty Diesel
Systems division for the year ended December 31, 2012 decreased
$6.7 million, or 14.3%, to $40.7 million from $47.4 million for the
prior year.
Total operating expenses for the year ended December 31, 2012
were $22.5 million, compared to $24.1 million for the prior
year.
Gross margin was 24.3%, compared to 28.5% in the prior year.
Net loss for the year ended December 31, 2012 was $9.7 million,
or $1.34 per share, compared to a net loss of $7.3 million, or
$1.31 per share, in the prior year. Diluted common shares
outstanding were 7,227,000 for the year ended December 31, 2012
compared to 5,574,000 for the prior year, with the increase in the
number of shares due principally to the public offering completed
on July 5, 2011.
Conference Call and Webcast Information
CDTi will host a conference call and simultaneous webcast over
the Internet beginning at 8:00 a.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 +1 (877) 303-9240 and use confirmation
code 20871814. International participants should dial +1 (760)
666-3571 and use the same confirmation code. The conference call
will be webcast live on CDTi's 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.
About CDTi
CDTi 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. CDTi utilizes
its proprietary patented Mixed Phase Catalyst (MPC®) technology, as
well as its ARIS® selective catalytic reduction, Platinum Plus®
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. CDTi is headquartered in Ventura, California
and currently has operations in the U.S., Canada, U.K., France,
Japan and Sweden. For more information, please visit
www.cdti.com.
The CDTi 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
regarding future sales volumes and momentum, changes to customer
reimbursement rates for raw materials and any impact such rates may
have on future growth or margins and improved long-term growth,
profitability and shareholder value, 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 CDTi's filings with
the U.S. Securities and Exchange Commission, uncertainties and
other factors that may cause the actual results, performance or
achievements of CDTi 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. CDTi assumes no obligation to update
the forward-looking information contained in this release.
|
Clean Diesel
Technologies, Inc. |
Summary Statements of
Operations (unaudited) |
($
millions) |
|
|
|
|
|
|
3 Months
Ended December 31, |
Year
Ended December 31, |
|
2012 |
2011 |
2012 |
2011 |
Revenues |
$ 12.4 |
$ 21.3 |
$ 60.5 |
$ 61.6 |
Gross profit |
2.7 |
5.9 |
14.7 |
17.6 |
Gross margin |
22.0% |
27.6% |
24.3% |
28.5% |
|
|
|
|
|
Operating expenses: |
|
|
|
|
Selling, general and
administrative |
3.4 |
3.7 |
14.9 |
16.7 |
Research and development |
1.2 |
2.0 |
6.7 |
7.4 |
Severance and other
charges |
0.5 |
─ |
0.9 |
─ |
Total operating expenses |
$ 5.1 |
$ 5.7 |
$ 22.5 |
$ 24.1 |
|
|
|
|
|
(Loss) income from operations |
$ (2.4) |
$ 0.2 |
$ (7.8) |
$ (6.5) |
Other expense |
(0.4) |
(0.5) |
(2.3) |
(0.4) |
Loss from continuing operations before income
tax |
(2.8) |
(0.3) |
(10.1) |
(6.9) |
Income tax (benefit) expense from continuing
operations |
(0.1) |
(0.7) |
(0.4) |
0.3 |
Net (loss) income from continuing
operations |
(2.7) |
0.4 |
(9.7) |
(7.2) |
Discontinued operations |
(0.1) |
0.1 |
─ |
(0.1) |
Net (loss) income |
$ (2.8) |
$ 0.5 |
$ (9.7) |
$ (7.3) |
|
|
|
|
|
Basic and diluted EPS |
$ (0.39) |
$ 0.06 |
$ (1.34) |
$ (1.31) |
Weighted shares outstanding (in
thousands) |
7,240 |
7,217 |
7,227 |
5,574 |
|
|
Clean Diesel
Technologies, Inc. |
Segment
Information |
($
millions) |
|
|
3 Months
Ended December 31, |
Year
Ended December 31, |
|
2012 |
2011 |
2012 |
2011 |
Revenue |
|
|
|
|
Heavy Duty Diesel Systems |
$ 8.4 |
$ 17.3 |
$ 40.7 |
$ 47.4 |
Catalyst |
5.1 |
5.8 |
24.3 |
20.8 |
Eliminations |
(1.1) |
(1.8) |
(4.5) |
(6.6) |
Total |
$ 12.4 |
$ 21.3 |
$ 60.5 |
$ 61.6 |
|
|
|
|
|
Income (loss) from operations |
|
|
|
|
Heavy Duty Diesel Systems |
$ (0.1) |
$ 1.3 |
$ (0.6) |
$ 1.4 |
Catalyst |
(1.1) |
0.1 |
(1.8) |
(1.0) |
Corporate |
(1.2) |
(1.2) |
(5.5) |
(6.7) |
Eliminations |
─ |
─ |
0.1 |
(0.2) |
Total |
$ (2.4) |
$ 0.2 |
$ (7.8) |
$ (6.5) |
|
|
Clean Diesel
Technologies, Inc. |
Summary Balance Sheets
(unaudited) |
($
millions) |
|
|
As of
December 31 |
|
2012 |
2011 |
Total current assets |
$ 22.8 |
$ 27.1 |
Total assets |
$ 35.4 |
$ 41.1 |
Total current liabilities |
$ 15.7 |
$ 15.8 |
Total long-term liabilities |
$ 8.3 |
$ 5.4 |
Stockholders' equity |
$ 11.4 |
$ 19.9 |
|
|
|
Short-term debt |
$ 5.6 |
$ 4.5 |
Long-term debt |
$ 7.5 |
$ 4.5 |
CONTACT: Kristi Cushing, Investor Relations Manager
Tel: +1 (805) 639-9555
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