1st Quarter Results
May 14 2003 - 2:30AM
UK Regulatory
RNS Number:0632L
Clean Diesel Technologies, Inc
14 May 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 May 14, 2003 at 7:30 AM London Time & 2:30 AM EDT
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
2003 FIRST-QUARTER RESULTS
STAMFORD, CT (May 14, 2003) ... Clean Diesel Technologies, Inc. (CDT) (EBB:CDTI
& AIM:CDT/CDTS) today reported an increase in revenue in the first-quarter of
2003 compared to the prior year period. Total revenue for this year's first
quarter was $96,000 with a net loss attributable to common stockholders of
$907,000, or a $0.08 loss per share. This compares to total revenue of $71,000
and a net loss attributable to common stockholders of $662,000 or a $0.06 loss
per share for the same period in 2002. Total expenses in the 2003 first
quarter increased from the first quarter of 2002 as a result of field testing
and verification expenses and higher sales and marketing costs for the Company's
fuel borne catalyst (FBC).
President and Chief Operating Officer James M. Valentine commented, "There have
been a series of significant developments for the Company and its technologies
during the first quarter. Looking forward, the US diesel retrofit
emission-reduction market is beginning to open up for CDT. CARB has
requirements which begin phasing in at the end of 2003, for retrofitting
California's 1.2 million diesel engines for reductions in diesel particulate
emissions. CARB recently issued a technology assessment for refuse trucks,
highlighting CDT's Platinum Plus(R) FBC and flow through filter as one of the
systems likely to be applicable to a wide range of vehicle types and operating
conditions."
"The Environmental Protection Agency's (EPA) voluntary retrofit program in the
other 49 states is also gaining momentum with the recent announcement of
specific diesel emission-reduction programs by the EPA," Valentine said. "These
include programs such as the "Smartway Transport Program" for major corporate
fleets and the "Clean School Bus" initiative that targets the retrofit of
290,000 school buses. The Company's approach of using Platinum Plus FBC and
lightly catalyzed aftertreatment devices reduces the cost and improves the
performance of diesel retrofits."
CDT recently announced a partnership with Coca-Cola Enterprises (CCE), a charter
member of the Smartway Transport Program, to complete engine and field trials of
CDT's patented and EPA registered FBC with specially catalyzed aftertreatment
devices to reduce diesel emissions on CCE's delivery fleets. The CCE engines
are the same as those widely used in delivery fleets, refuse trucks and school
buses.
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CLEAN DIESEL TECHNOLOGIES REPORTS 2003 FIRST QUARTER RESULTS
Page 2-2-2
The Company is proceeding with its first verification under CARB and EPA test
protocols for its Platinum Plus FBC and an aftertreatment device. Field
durability testing was recently
completed on one of several systems and CDT expects to complete the final engine
verification test later in the second quarter assuming engine test cell
availability.
In conjunction with New Mexico based CleanAIR Systems, the Company is actively
marketing to the mining industry its Platinum Plus FBC in combination with a
specially catalyzed filter that reduces particulates in underground mines by 85
percent without increasing NO2. CDT and CleanAIR Systems recently received
formal acceptance from the Mining Safety Health Administration's (MSHA) for the
FBC and specially catalyzed filter. 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.
Traditional heavily catalyzed systems cause a large increase in NO2 emissions.
Their use has recently been prohibited in mines. MSHA has mandated a reduction
in particulates in mines, with commitments for compliance required by July 2003.
As previously announced, during the first quarter, testing of the Platinum Plus
FBC with a proprietary diesel particulate filter supplied by Mitsui and
PUREarth was conducted at SouthWest Research Institute. The results showed
dramatic emission reductions while meeting CARB NO2 limits." The parties expect
to have further announcements in the near future on the joint technology. Power
generation applications for the FBC were expanded from stationary utility
diesels to offshore drilling platforms and home heating oil-fired furnaces for
the control of soot and opacity.
The Company continues to add ARIS(R) licensees for its urea selective catalytic
reduction (SCR) technology. In April, CDT announced a mobile ARIS retrofit
license for the US with Monroe, CT-based Combustion Component Associates, Inc.
under which CDT received an upfront license fee of $150,000 plus royalties on
systems sold. In addition, late last year, CDT completed an exclusive license
agreement with Mitsui Co. Ltd. for the mobile application of CDT's ARIS
technology in Japan. Mitsui has previously licensed the stationary ARIS
technology for Japan. The Company is also in discussions for ARIS licenses with
several other US and European companies. The Company's patented exhaust gas
recirculation/selective catalytic reduction (EGR/SCR) combination can already
achieve NOx limits for new engines that are required in 2007.
Full financial information is included in the Company's Form 10-Q
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
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CLEAN DIESEL TECHNOLOGIES REPORTS 2003 FIRST QUARTER RESULTS
Page 3-3-3
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 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 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 2003 FIRST QUARTER RESULTS
Page 4-4-4
CLEAN DIESEL TECHNOLOGIES, INC.
STATEMENT OF OPERATIONS
(in thousands except per share data)
Three Months Ended
March 31
2003 2002
Revenue:
Product revenue $88 $60
License and royalty revenue 8 11
Total revenue 96 71
Costs and expenses:
Cost of sales 57 44
General and administrative 692 556
Research and development 248 111
Patent filing and maintenance 10 28
Loss from operations (911) (668)
Interest income (4) (15)
Interest expense - 9
Net loss attributed to common stockholders $ (907) $ (662)
Basic and diluted loss per common share $ (0.08) $ (0.06)
Weighted average number of common shares
Outstanding - basic and diluted 11,968 11,214
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CLEAN DIESEL TECHNOLOGIES REPORTS 2003 FIRST QUARTER RESULTS
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CLEAN DIESEL TECHNOLOGIES, INC.
BALANCE SHEET
(in thousands except share data)
March 31, December 31,
2003 2002
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 1,409 $ 2,083
Accounts receivable 76 284
Inventories 295 314
Other current assets 125 76
Total current assets 1,905 2,757
Other assets 285 222
Total assets $ 2,190 $ 2,979
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued expenses $ 328 $ 223
Total current liabilities 328 223
Deferred compensation and pension benefits431 418
Total long term liabilities 431 418
Stockholders' Equity:
Preferred stock, par value $.05 per share, authorized
80,000 shares, 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 11,976,903 shares 598 598
Additional paid-in capital 28,519 28,519
Accumulated deficit (27,686) (26,779)
Total stockholders' equity 1,431 2,338
Total liabilities and stockholders' equity $2,190 $ 2,979
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This information is provided by RNS
The company news service from the London Stock Exchange
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