RNS Number:1436J
Clean Diesel Technologies, Inc
25 March 2003
Clean Diesel Technologies, Inc.
300 Atlantic Street, Suite 702, Stamford, CT 06901-2522 Tel: (203) 327-7050 Fax:
(203) 323-0461
NEWS RELEASE for March 25, 2002 at 7:30 AM London Time & 2:30 AM EST
Contact: Allen & Caron Inc or Clean Diesel Technologies, Inc.
Jay F. McKeage (investors) James M. Valentine, President
(212) 691-8087 David W. Whitwell, CFO
jay@allencaron.com (203) 327-7050
Len Hall (media)
(949) 474-4300
len@allencaron.com
CLEAN DIESEL TECHNOLOGIES REPORTS
2002 FOURTH-QUARTER, YEAR-END RESULTS
Mitsui ARIS Mobile License Drives Fourth-Quarter Revenue
STAMFORD, CT (March 25, 2003) ... Clean Diesel Technologies, Inc. (CDT) (EBB:
CDTI & AIM:CDT/CDTS) today reported an increase in license and royalty revenue
in the fourth-quarter of 2002 compared to the prior year period. For the
fourth-quarter, CDT reported total revenue of $300,000 and a net loss
attributable to common stockholders of $403,000, or a $0.04 loss per share.
This compares to revenue of $158,000 and a net loss attributable to common
stockholders of $1.92 million, or a $0.63 loss per share for the same period in
2001. The 2001 fourth-quarter loss includes a one-time non-cash preferred stock
conversion premium of $1.28 million related to the conversion of all of the
Company's preferred stock to common stock in December 2001. Excluding the
one-time preferred stock conversion premium, the 2001 fourth-quarter loss was
$647,000, or a $0.21 loss per share.
For the twelve months ended December 31, 2002, CDT reported total revenue of
$441,000 with a net loss of $2.6 million, or a $0.23 loss per share, compared
to total revenue of $1.6 million with a net loss of $3.0 million, or a $1.08
loss per share for the comparable year-earlier period. Excluding the one-time
preferred stock conversion premium, the 2001 year-end loss was $1.7 million, or
a $0.62 loss per share.
Chairman and CEO Jeremy Peter-Hoblyn commented, "A large US diesel retrofit
emission-reduction market is beginning to develop and it is expected to grow
substantially in 2003. The California Air Resources Board's (CARB) requirement
to retrofit 1.2 million diesel vehicles in California begins phasing in at the
end of 2003. In addition, the Environmental Protection Agency's (EPA) voluntary
retrofit program in the other 49 states has gained momentum with the recent
announcement of specific diesel emission-reduction programs by the EPA such as
the "Smartway Transport Program" for major corporate fleets and the "Clean
School Bus" initiative that targets the retrofit of 300,000 school buses."
Peter-Hoblyn also noted that CDT has formally applied for the verification of
its patented Platinum Plus(R) fuel borne catalyst (FBC) and low-cost
aftertreatment devices with both the EPA and the CARB. The Company's new FBC
and a Flow through Filter (FTF) combination is designed to provide 50 to 60
percent emission reduction, be very durable and apply to older and dirtier
CLEAN DIESEL TECHNOLOGIES REPORTS 2002 RESULTS
Page 2-2-2
engines. The Company has completed its initial pre-verification testing and
recently reached the 1000-hour commercial in-field durability requirement on the
first of several vehicles. CDT expects to complete the required verification
testing of the first 1000-hour aged system in the next 60 days.
Recently the Company announced a partnership with Santa Fe-based CleanAIR
Systems to gain the Mining Safety Health Administration's (MSHA) acceptance of
the Platinum Plus FBC in combination with a specially catalyzed filter that
reduces particulates in underground mines by 85 percent without increasing NO2.
This combination is the only catalytic precious metal system accepted for use in
underground mines. NO2 is a strong lung irritant and both CARB and MSHA have
put restrictions on NO2 emissions. In addition, MSHA has mandated a reduction
in particulates, with commitments for compliance required by July 2003. Just
last week, CDT announced its first commercial order for diesel particulate
reduction in underground mines.
In the fourth-quarter of 2002, CDT completed an exclusive license agreement with
Mitsui Ltd. for the mobile application of CDT's ARIS(R) urea selective catalyst
reduction (SCR) technology in Japan. Mitsui had also previously licensed the
stationary ARIS technology for Japan. Under the ARIS mobile license agreement
Mitsui paid CDT $250,000 and agreed to invest an additional $200,000 in further
development and testing of the ARIS mobile system. CDT also recently announced
a letter of intent for a mobile ARIS retrofit license with Monroe, CT-based
Combustion Component Associates, Inc., and the Company is in discussions for
ARIS licenses with several other US and European companies.
Full financial information is included in the Company's Form 10-K
filed with the Securities and Exchange Commission (www.SEC.gov).
About Clean Diesel Technologies, Inc.
Clean Diesel Technologies, Inc. is a specialty chemical company with
patented products that reduce emissions from diesel engines while simultaneously
improving fuel economy. Products include Platinum Plus(R) fuel borne catalysts
which reduce engine out emissions of particulate (PM), carbon monoxide (CO) and
hydrocarbons (HC), while improving fuel economy and also increasing the
regeneration of diesel particulate filters, and the ARIS(R) 2000 urea injection
systems for selective catalytic reduction of NOx. Platinum Plus and ARIS are
registered trademarks of Clean Diesel Technologies, Inc.
Certain statements in this news release constitute "forward-looking statement"
within the meaning of the Private Securities Litigation Reform Act of 1995.
Such forward-looking statement involve known or unknown risks, including those
detailed in the Company's filings with the Securities and Exchange Commission,
uncertainties and other factors which may cause the actual results, performance
or achievements of the Company, or industry results, 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.
TABLES FOLLOW
CLEAN DIESEL TECHNOLOGIES REPORTS 2002 RESULTS
Page 3-3-3
CLEAN DIESEL TECHNOLOGIES, INC.
STATEMENT OF OPERATIONS
(in thousands except per share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
2002 2001 2002 2001
Revenue:
Product revenue $ 29 $ 23 $ 142 $ 176
License and royalty revenue 271 135 299 1,424
Total revenue 300 158 441 1,600
Costs and expenses:
Cost of sales 13 8 86 117
General and administrative 591 512 2,291 1,858
Research and development 97 111 693 365
Patent filing and maintenance 9 58 43 196
Profit/(Loss) from operations (410) (531) (2,672) (936)
Interest income/ (expense) 7 (116) 39 (170)
Net profit/(loss)before
preferred stock dividend (403) (647) (2,642) (1,106)
Preferred stock dividend
(non-cash) 0 0 0 (621)
Preferred stock conversion
premium 0 (1,276) 0 (1,276)
Net profit/(loss)attributed to
common stockholders $ (403) $ (1,923) $ (2,642) $ (3,003)
Basic and diluted
profit/(loss) per common
share $(0.03) $ (0.63) $ (0.23) $ (1.08)
Weighted average number of
common
Shares outstanding 11,419 3,073 11,419 2,777
CLEAN DIESEL TECHNOLOGIES REPORTS 2002 RESULTS
Page 4-4-4
CLEAN DIESEL TECHNOLOGIES, INC.
BALANCE SHEET
(in thousands)
December 31,
2002 2001
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 2,083 $ 4,023
Accounts receivable 284 197
Inventories 314 296
Other current assets 76 96
Total current assets 2,757 4,612
Other assets 222 46
Total assets $ 2,979 $ 4,658
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Notes payable $ -- $ 250
Accounts payable and accrued expenses 223 558
Total current liabilities 223 808
Deferred compensation and pension benefits 418 368
Total long-term liabilities 418 368
STOCKHOLDERS' EQUITY:
Preferred Stock, par value $0.05 per share,
authorized 80,000 , No shares issued and
outstanding -- --
Series A Convertible Preferred Stock, par
value $0.05 per share, $500 per share
liquidation preference, authorized
20,000 shares,
No shares issued and outstanding -- --
Common Stock, par value $0.05 per share,
authorized 15,000,000 shares, issued and
outstanding 11,968,387 and 11,214,280 shares 598 561
Additional paid-In capital 28,519 27,058
Accumulated deficit (26,779) (24,137)
Total stockholders' equity 2,338 3,482
Total liabilities and stockholders' equity $ 2,979 $ 4,658
CLEAN DIESEL TECHNOLOGIES REPORTS 2002 RESULTS
Page 5-5-5
CLEAN DIESEL TECHNOLOGIES, INC.
STATEMENTS OF CASH FLOWS
(in thousands)
For the years ended December 31,
2002 2001 2000
OPERATING ACTIVITIES
Net loss attributable to common stockholder $(2,642) $(1,106) $(2,001)
Adjustments to reconcile net loss to cash used
in operating activities:
Depreciation 26 11 10
Amortization of deferred financing costs 8 91 --
Interest expense from term loans converted
to common -- 65 --
Compensatory stock warrant 95 120 61
Changes in operating assets and liabilities:
Accounts receivable (87) (147) (4)
Inventories (18) (9) 34
Other current assets 20 (9) (35)
Accounts payable and accrued expenses (238) 259 63
Net cash used in operating activities (2,836) (725) (1,872)
INVESTING ACTIVITIES
Patent activities (122) -- --
Purchase of fixed assets (88) (17) (7)
Net cash used in investing activities (210) (17) (7)
FINANCING ACTIVITIES
Proceeds from exercise of stock options -- 3 7
Proceeds from (repayment of) term loans (250) 500 500
Proceeds from issuance of common stock, net 1,356 3,721 1,021
Net cash provided by financing activities 1,106 4,224 1,528
Net increase (decrease) in cash and cash
equivalents (1,940) 3,482 (351)
Cash and cash equivalents at beginning of period 4,023 541 892
Cash and cash equivalents at end of period $ 2,083 $ 4,023 $ 541
NON-CASH ACTIVITIES
Preferred Stock dividend $ -- $ 621 $ 712
Preferred Stock conversion premium (non-cash) -- 1,276 --
Conversion of term loans and related interest into
common stock -- 817 --
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