TIDMCDT TIDMCDTI
RNS Number : 0829S
Clean Diesel Technologies, Inc
12 May 2009
CLEAN DIESEL TECHNOLOGIES, INC. (CDTI) REPORTS FIRST QUARTER 2009 RESULTS
BRIDGEPORT, CT - May 12, 2009 - Clean Diesel Technologies, Inc. (Nasdaq: CDTI),
the cleantech emissions reduction company, today announced its operating results
for the first quarter ended March 31, 2009.
Business Highlights
· Sales declined in the first quarter as a result of several factors including
project delays in some key retrofit opportunities and the overall economic
downturn which continued to decimate the automotive industry and the
transportation industry in general. First quarter 2009 revenues were $346,000 as
compared to $2.6 million for the first quarter of 2008. Net losses were $2.47
million versus $1.59 million for the respective periods.
· Frost & Sullivan gave CDTI its Excellence in Technology Award in Class 6-8
Truck Emission Reduction Technologies for developing and making available a
comprehensive portfolio of EGR/SGR solutions that help diesel commercial trucks
deliver peak efficiency and meet EPA emissions regulations.
· CDTI's new focus on the off-road markets for fuel economy and emissions
reduction continues to gain traction. Increased penetration into the regional
rail, marine and mining sectors is a direct result of the Company's structural
changes and a more strategic approach to the business via CDTI's new Systems
Group.
Management's Comments
CDTI's CEO and President Michael Asmussen stated, "The world-wide economic
downturn in combination with delays in key retrofit projects produced
disappointing first quarter results. While disappointed, we are by no means
discouraged as we believe that the extensive strategic and structural changes we
made in the first quarter will be the foundation for long-term success. We
received positive endorsement of our actions in the form of the Frost & Sullivan
Excellence in Technology Award for Emission Reduction Technologies. As we
continue the process of restructuring and refocusing our Company, the new
strategies, focus and process-based tools now at our disposal will help grow and
diversify our business so that we are better able to withstand future economic
downturns and capitalize on opportunities when the markets rebound"
"In similar fashion, recent public policy events indicate that our decision to
more actively pursue the retrofit market is sound. Increasing awareness of the
negative environmental impact of CO2 and black carbon bode well for future
retrofit market growth. The EPA has added black carbon to its list of dangerous
pollutants, noting that it as dangerous to human health and is the second most
important global warming agent after CO2. Congress, in turn, instructed the EPA
to study its effect and identify reduction technologies." The fact that more
than 40 million diesel engines exist in this country is key to this movement as
diesel engine emissions are responsible for 50% of U.S. black carbon production.
Mr. Asmussen concluded, "In sum, as the core market drivers increase demand for
products based on our intellectual property, we believe our revitalized business
model and corporate structure should enable us to capitalize on appropriate
business opportunities and increase shareholder value for Clean Diesel."
Financial Results
Total revenue for the first quarter of 2009 was $346,000 compared to $2.6
million in the first quarter of 2008. The comparative period in 2008
corresponded with the successful completion of the London Low Emission Zone July
2008 compliance deadline and postponements in the implementation of other
programs for which our customers apply our technologies. Net loss for the first
quarter of 2009 was $2.47 million, or $0.30 per share, compared to
$1.59 million, or $0.20 per share for the first quarter of 2008. Operating
expenses for the first quarter of 2009 included severance charges totaling
$510,000 to be paid in monthly installments until September 2010 and $206,000
non-cash charges for the fair value of stock options compared to $530,000
non-cash charges in the first quarter of 2008.
Additional information about the Company's financial results is available in its
Quarterly Report on Form 10-Q filed with the U.S. Securities & Exchange
Commission: http://www.sec.gov. A copy of the 10-Q will be posted on the
Company's website.
Conference Call
Clean Diesel Technologies will host an investor conference call at 10:30 AM
Eastern Daylight Time (EDT) on Wednesday, May 13, 2009 from the Annual Meeting
of Stockholders at The Bridgeport Holiday Inn, 1070 Main Street, Bridgeport,
Connecticut 06604, U.S.A. During the call, Michael Asmussen, CEO and President,
and Ms. Ann Ruple, CFO and Vice President, will review results for the year
ended 2008 and the first quarter of this year which ended on March 31, 2009.
To participate in the conference call, please use the following U.S. toll free
number five minutes before 10:30 AM (EDT): 1-877-718-5111. To participate in the
conference call using an international phone number, use: 1-719-325-4754.
You also may attend the conference call via the web at:
http://investor.cdti.com/events.cfm. The teleconference will be archived at that
location for future reference.
About Clean Diesel Technologies
Clean Diesel Technologies (Nasdaq: CDTI) is a cleantech company providing
sustainable solutions to reduce emissions, increase energy efficiency and lower
the carbon intensity of on- and off-road engine applications. Clean Diesel's
patented technologies and products allow manufacturers and operators to comply
with increasingly strict regulatory emissions and air quality standards, while
also improving fuel economy and power.
The Company's solutions significantly reduce emissions formed by the combustion
of fossil fuels and biofuels (without increasing secondary emissions such as
nitrogen dioxide, NO2), including particulate matter (PM), nitrogen oxides
(NOx), carbon monoxide (CO) and hydrocarbons (HC). As a result, they are
effective for: OEMs, Tier 1 suppliers and retrofit providers; businesses
entering the emissions control market seeking solutions and expertise; operators
requiring compliant emissions solutions; fuel, biofuels and additive suppliers
seeking low emissions and energy efficient products; and regulators creating
public policy. Clean Diesel's solutions, therefore, are ideal for such markets
as: on-road vehicles, construction, mining, agriculture, port/freight handling,
locomotive, marine, and power generation.
Clean Diesel develops and manages intellectual property from original concept to
full-scale commercial deployment. Building on its almost 300 granted and pending
patents, its offerings include ARIS selective catalytic reduction (SCR); the
patented combination of SCR and exhaust gas recirculation (EGR); hydrocarbon
injection for emissions control applications; Platinum Plus Fuel-Borne Catalyst
(FBC); the Purifier(TM) family of particulate filter systems; and its wire mesh
filter particulate filter technologies. The Company was founded in 1995 and is
headquartered in Bridgeport, Connecticut. A wholly-owned subsidiary, Clean
Diesel International, LLC is based in London, England. For more information,
please visit www.cdti.com.
Safe Harbor
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 U.S. 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 TO FOLLOW
Contact Information
Target 3 Communications
Jerry Cahn, Ph.D., J.D., President
+1-646-290-7664
jerry@target3.com
Clean Diesel Technologies, Inc.
Ann Ruple, CFO, Vice President & Treasurer
+1-203-416-5290
aruple@cdti.com
Charles Stanley Securities
Charles Stanley Securities
Nominated Adviser
Philip Davies (and Freddy Crossley)
+44 20 7149 6457
philip.davies@csysecurities.com
CLEAN DIESEL TECHNOLOGIES, INC.
Condensed Consolidated Balance Sheets
(in thousands, except share data)
+---------------------------------------------+--+-------------+--+-----------+
| | | March | | December |
| | | 31, | | 31, |
+---------------------------------------------+--+-------------+--+-----------+
| | | 2009 | | 2008 |
+---------------------------------------------+--+-------------+--+-----------+
| | | (unaudited) | | |
+---------------------------------------------+--+-------------+--+-----------+
| Assets | | | | |
+---------------------------------------------+--+-------------+--+-----------+
| Current assets: | | | | |
+---------------------------------------------+--+-------------+--+-----------+
| Cash and cash equivalents | | $ 5,506 | | $ 3,976 |
+---------------------------------------------+--+-------------+--+-----------+
| Accounts receivable, net of | | 402 | | 637 |
| allowance of $355 and $359, | | | | |
| respectively | | | | |
+---------------------------------------------+--+-------------+--+-----------+
| Investments | | 6,413 | | 6,413 |
+---------------------------------------------+--+-------------+--+-----------+
| Inventories, net | | 963 | | 974 |
+---------------------------------------------+--+-------------+--+-----------+
| Other current assets | | 207 | | 219 |
+---------------------------------------------+--+-------------+--+-----------+
| Total current assets | | 13,491 | | 12,219 |
+---------------------------------------------+--+-------------+--+-----------+
| | | | | |
+---------------------------------------------+--+-------------+--+-----------+
| Investments | | 5,055 | | 5,127 |
+---------------------------------------------+--+-------------+--+-----------+
| Patents, net | | 1,040 | | 1,027 |
+---------------------------------------------+--+-------------+--+-----------+
| Fixed assets, net of accumulated | | 376 | | 296 |
| depreciation of $541 and $505, | | | | |
| respectively | | | | |
| | | | | |
+---------------------------------------------+--+-------------+--+-----------+
| Other assets | | 78 | | 78 |
| | | | | |
+---------------------------------------------+--+-------------+--+-----------+
| Total assets | | $ | | $ |
| | | 20,040 | | 18,747 |
+---------------------------------------------+--+-------------+--+-----------+
| | | | | |
+---------------------------------------------+--+-------------+--+-----------+
| Liabilities and Stockholders' Equity | | | | |
+---------------------------------------------+--+-------------+--+-----------+
| Current liabilities: | | | | |
+---------------------------------------------+--+-------------+--+-----------+
| Accounts payable | | $ 367 | | $ 501 |
+---------------------------------------------+--+-------------+--+-----------+
| Accrued expenses | | 796 | | 534 |
+---------------------------------------------+--+-------------+--+-----------+
| Short-term debt | | 6,459 | | 3,013 |
+---------------------------------------------+--+-------------+--+-----------+
| Customer deposits | | 3 | | 8 |
+---------------------------------------------+--+-------------+--+-----------+
| Total current liabilities | | 7,625 | | 4,056 |
+---------------------------------------------+--+-------------+--+-----------+
| | | | | |
+---------------------------------------------+--+-------------+--+-----------+
| Commitments | | | | |
+---------------------------------------------+--+-------------+--+-----------+
| | | | | |
+---------------------------------------------+--+-------------+--+-----------+
| Stockholders' equity: | | | | |
+---------------------------------------------+--+-------------+--+-----------+
| Preferred stock, par value $0.01 per share: | | | | |
+---------------------------------------------+--+-------------+--+-----------+
| authorized 100,000; no shares issued and | | - | | - |
| outstanding | | | | |
+---------------------------------------------+--+-------------+--+-----------+
| Common stock, par value $0.01 per share: | | | | |
+---------------------------------------------+--+-------------+--+-----------+
| authorized 12,000,000; issued and | | 82 | | 81 |
| outstanding 8,178,304 and 8,138,304 shares, | | | | |
| respectively | | | | |
+---------------------------------------------+--+-------------+--+-----------+
| Additional paid-in capital | | 74,107 | | 73,901 |
+---------------------------------------------+--+-------------+--+-----------+
| Accumulated other comprehensive loss | | (416) | | (406) |
+---------------------------------------------+--+-------------+--+-----------+
| Accumulated deficit | | (61,358) | | (58,885) |
+---------------------------------------------+--+-------------+--+-----------+
| Total stockholders' equity | | 12,415 | | 14,691 |
+---------------------------------------------+--+-------------+--+-----------+
| Total liabilities and stockholders' equity | | $ | | $ |
| | | 20,040 | | 18,747 |
+---------------------------------------------+--+-------------+--+-----------+
| | | | | |
+---------------------------------------------+--+-------------+--+-----------+
| |
+---------------------------------------------+--+-------------+--+-----------+
CLEAN DIESEL TECHNOLOGIES, INC.
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts) (Unaudited)
+-----------------------------------------+------------+----------+-----------+
| | | | |
+-----------------------------------------+------------+----------+-----------+
| | Three Months Ended |
| | March 31, |
+-----------------------------------------+-----------------------------------+
| | 2009 | | 2008 |
+-----------------------------------------+------------+----------+-----------+
| Revenue: | | | |
+-----------------------------------------+------------+----------+-----------+
| Product sales | $ 312 | | $ 2,527 |
+-----------------------------------------+------------+----------+-----------+
| Technology licensing fees | 34 | | 74 |
| and royalties | | | |
+-----------------------------------------+------------+----------+-----------+
| Total revenue | 346 | | 2,601 |
+-----------------------------------------+------------+----------+-----------+
| | | | |
+-----------------------------------------+------------+----------+-----------+
| Costs and expenses: | | | |
+-----------------------------------------+------------+----------+-----------+
| Cost of product sales | 234 | | 2,065 |
+-----------------------------------------+------------+----------+-----------+
| Cost of licensing fees | - | | - |
| and royalties | | | |
+-----------------------------------------+------------+----------+-----------+
| Selling, general and | 1,952 | | 2,322 |
| administrative | | | |
+-----------------------------------------+------------+----------+-----------+
| Severance charge | 510 | | - |
+-----------------------------------------+------------+----------+-----------+
| Research and development | 59 | | 65 |
+-----------------------------------------+------------+----------+-----------+
| Patent amortization and | 35 | | 36 |
| other expense | | | |
+-----------------------------------------+------------+----------+-----------+
| Operating costs and | 2,790 | | 4,488 |
| expenses | | | |
+-----------------------------------------+------------+----------+-----------+
| | | | |
+-----------------------------------------+------------+----------+-----------+
| Loss from operations | (2,444) | | (1,887) |
+-----------------------------------------+------------+----------+-----------+
| | | | |
+-----------------------------------------+------------+----------+-----------+
| Other income (expense): | | | |
+-----------------------------------------+------------+----------+-----------+
| Interest income | 92 | | 243 |
+-----------------------------------------+------------+----------+-----------+
| Other | (121) | | 54 |
+-----------------------------------------+------------+----------+-----------+
| | | | |
+-----------------------------------------+------------+----------+-----------+
| Net loss | $ (2,473) | | $ (1,590) |
+-----------------------------------------+------------+----------+-----------+
| Basic and diluted loss per common share | $ (0.30) | | $ (0.20) |
+-----------------------------------------+------------+----------+-----------+
| Basic and diluted | 8,138 | | 8,137 |
| weighted-average number | | | |
| of | | | |
| common shares outstanding | | | |
+-----------------------------------------+------------+----------+-----------+
| | | | |
+-----------------------------------------+------------+----------+-----------+
| | | | |
+-----------------------------------------+------------+----------+-----------+
| |
+-----------------------------------------+------------+----------+-----------+
CLEAN DIESEL TECHNOLOGIES, INC.
Condensed Consolidated Statements of Cash Flows
(in thousands) (Unaudited)
+-----------------------------------------------+----------+----------+----------+----------+
| | | |
+-----------------------------------------------+----------+--------------------------------+
| | | Three Months Ended |
| | | March 31, |
+-----------------------------------------------+----------+--------------------------------+
| | | 2009 | | 2008 |
+-----------------------------------------------+----------+----------+----------+----------+
| Operating activities | | | | |
+-----------------------------------------------+----------+----------+----------+----------+
| Net loss | | $ | | $ |
| | | (2,473) | | (1,590) |
+-----------------------------------------------+----------+----------+----------+----------+
| Adjustments to reconcile net loss to | | | | |
| cash used in operating activities: | | | | |
+-----------------------------------------------+----------+----------+----------+----------+
| Depreciation and amortization | | 47 | | 34 |
+-----------------------------------------------+----------+----------+----------+----------+
| Provision for doubtful accounts, net | | - | | 18 |
+-----------------------------------------------+----------+----------+----------+----------+
| Compensation expense for equity instruments | | 206 | | 530 |
+-----------------------------------------------+----------+----------+----------+----------+
| Loss on investment, net | | 72 | | - |
+-----------------------------------------------+----------+----------+----------+----------+
| Changes in operating assets and liabilities: | | | | |
+-----------------------------------------------+----------+----------+----------+----------+
| Accounts receivable | | 235 | | (1,341) |
+-----------------------------------------------+----------+----------+----------+----------+
| Inventories | | 11 | | 281 |
+-----------------------------------------------+----------+----------+----------+----------+
| Other current assets and other assets | | 12 | | 73 |
+-----------------------------------------------+----------+----------+----------+----------+
| Accounts payable, accrued expenses and | | 123 | | 64 |
| other liabilities | | | | |
+-----------------------------------------------+----------+----------+----------+----------+
| Net cash used for operating | | (1,767) | | (1,931) |
| activities | | | | |
+-----------------------------------------------+----------+----------+----------+----------+
| | | | | |
+-----------------------------------------------+----------+----------+----------+----------+
| Investing activities | | | | |
+-----------------------------------------------+----------+----------+----------+----------+
| Sale of investments | | - | | 7,100 |
+-----------------------------------------------+----------+----------+----------+----------+
| Patent costs | | (24) | | (52) |
+-----------------------------------------------+----------+----------+----------+----------+
| Purchase of fixed assets | | (116) | | (20) |
+-----------------------------------------------+----------+----------+----------+----------+
| Net cash (used for) provided by | | (140) | | 7,028 |
| investing activities | | | | |
+-----------------------------------------------+----------+----------+----------+----------+
| | | | | |
+-----------------------------------------------+----------+----------+----------+----------+
| Financing activities | | | | |
+-----------------------------------------------+----------+----------+----------+----------+
| Proceeds from short-term debt | | 3,471 | | - |
+-----------------------------------------------+----------+----------+----------+----------+
| Repayment of short-term debt | | (25) | | - |
+-----------------------------------------------+----------+----------+----------+----------+
| Proceeds from exercise of stock options | | - | | 19 |
+-----------------------------------------------+----------+----------+----------+----------+
| Net cash provided by financing | | 3,446 | | 19 |
| activities | | | | |
+-----------------------------------------------+----------+----------+----------+----------+
| | | | | |
+-----------------------------------------------+----------+----------+----------+----------+
| Effect of exchange rate changes on cash | | (9) | | (12) |
+-----------------------------------------------+----------+----------+----------+----------+
| | | | | |
+-----------------------------------------------+----------+----------+----------+----------+
| Net increase in cash and cash equivalents | | 1,530 | | 5,104 |
+-----------------------------------------------+----------+----------+----------+----------+
| Cash and cash equivalents at beginning of the | | 3,976 | | 1,517 |
| period | | | | |
+-----------------------------------------------+----------+----------+----------+----------+
| Cash and cash equivalents at end of the | | $ 5,506 | | $ 6,621 |
| period | | | | |
+-----------------------------------------------+----------+----------+----------+----------+
| | | | | |
+-----------------------------------------------+----------+----------+----------+----------+
| Supplemental non-cash activities: | | | | |
+-----------------------------------------------+----------+----------+----------+----------+
| Unrealized loss on available-for-sale | | $ - | | $ 586 |
| securities | | | | |
+-----------------------------------------------+----------+----------+----------+----------+
| | | | | |
+-----------------------------------------------+----------+----------+----------+----------+
| Supplemental disclosures: | | | | |
+-----------------------------------------------+----------+----------+----------+----------+
| Cash paid for interest | | $ 20 | | $ - |
+-----------------------------------------------+----------+----------+----------+----------+
| | | | | |
+-----------------------------------------------+----------+----------+----------+----------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
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