UQM Technologies Reports Record Nine Month Revenue Spurred by Doubling of Third Quarter Revenue
GOLDEN, Colo., Jan. 25 UQM TECHNOLOGIES, INC. (Amex: UQM), whose name was changed yesterday from Unique Mobility after shareholder approval, today reported record nine month revenue, spurred by a more than doubling of third quarter revenue. William G. Rankin, President and Chief Executive Officer of this developer of alternative energy technologies, noted that, "We anticipate record annual revenue and year-over-year revenue growth exceeding 30 percent, and clearly are in the best overall position since the founding of the Company." "Our engineering and product development center is currently performing twenty separate customer funded development projects, the most in the Company's history. We are shipping a variety of prototypes and pre-production units to military and commercial customers for evaluation and in-vehicle testing, with many of these systems aimed at potentially high volume markets," Mr. Rankin said. "With current strong contributions from all three segments of our business and a pipeline of products and projects under development, we are excited about the potential future growth prospects for the Company." Operations for the quarter ended December 31, 2000 resulted in a net loss of $429,539 or $0.02 per common share, a reduction of 54 percent from last year's third quarter net loss of $943,716 or $0.06 per common share. Earnings before interest, taxes, depreciation and amortization ("EBITDA") for the quarter was $299,312 or $0.02 per common share compared to $(280,934) or $(0.02) per common share for the comparable quarter last year. Operations for the nine months ended December 31, 2000 resulted in a net loss of $1,838,107 or $0.10 per common share compared to a net loss of $6,485,673 or $0.39 per common share last year. EBITDA for the nine month period was $239,328 or $0.01 per common share compared to $(4,528,346) or $(0.27) per common share for the comparable period last year. Donald A. French, UQM Technologies' Treasurer and Chief Financial Officer, pointed out that "revenues at UQM Electronics grew 110% over the comparable quarter last year due to the launch of a value-added automotive assembly for an existing customer together with strong shipments of handheld computers. Revenue at UQM Power Products rose 148%, despite seasonal weakness in wheelchair motor shipments, due to improved demand for precision gears and shipments of wheelchair motors for use as replacement parts. Technology segment revenues rose 18% for the quarter and 36% for the nine-month period. Overall we are pleased with the improved revenue performance by each of our units." The Company's name change to UQM Technologies, Inc. was approved yesterday at a special meeting of shareholders. Its common stock will continue to trade under the symbol UQM on the American, Midwest and Pacific Stock Exchanges. The Company will host a conference call today at 4:30 p.m. Eastern Standard Time to discuss third quarter and nine month results. To attend the conference call, please dial 1-212-231-6048 approximately ten minutes before the conference is scheduled to begin. For anyone who is unable to participate in the conference, a recording will be available for 48 hours beginning at 6:30 p.m. Eastern Standard Time today. To access the playback call 1-800-633-8284 and give reservation number 17598661. For international callers, dial 1-858-812-6440. UQM Technologies, Inc. is a leading developer and manufacturer of power dense, high efficiency motors, gear assemblies and electronic assemblies for the automotive, aerospace, telecommunications, medical and industrial markets. A major emphasis of the Company is developing products for the alternative energy technologies sector including power systems for electric, hybrid electric and fuel cell electric vehicles, 42 volt vehicle auxiliaries and distributed power applications. The Company's headquarters and engineering and product development center are located in Golden, Colorado. Manufacturing facilities are located in Frederick, Colorado (electric motors and gear assemblies) and St. Charles, Missouri (electronic assemblies and wire harnesses). For more information on the Company, please visit its worldwide website at http://www.uqm.com. This press release contains forward-looking statements that involve risks and uncertainties. These statements may differ materially from actual future events or results. Readers are referred to the Risk Factors section of the Registration Statement on Form S-3 (File No. 333-78525) filed by the Company with the SEC, which identifies important risk factors that could cause actual results to differ from those contained in the forward-looking statements, including the Company's ability to be profitable, its ability to obtain additional financing, the Company's reliance on major customers and suppliers and the possibility that product liability insurance may become unavailable. These forward-looking statements represent the Company's judgment as of the date of the press release. The Company disclaims, however, any intent or obligation to update these forward-looking statements. UQM TECHNOLOGIES, INC. AND SUBSIDIARIES Consolidated Statements of Operations (unaudited) Quarter Ended Nine Months Ended December 31, December 31 2000 1999 2000 1999 Revenue: Contract services $594,708 343,226 1,492,607 1,158,649 Product sales 6,817,925 3,324,616 18,816,849 13,607,767 7,412,633 3,667,842 20,309,456 14,766,416 Operating costs and expenses: Costs of contract services 470,129 168,173 1,336,470 905,617 Costs of product sales 6,241,902 3,121,035 17,066,313 11,746,959 Research and development 14,050 203,023 79,460 337,469 General and administrative 905,973 902,473 2,871,205 3,258,001 Write-down of investments -- -- -- 4,104,628 Impairment of assets -- -- 216,818 -- Amortization of goodwill 83,166 83,166 249,499 249,211 7,715,220 4,477,870 21,819,765 20,601,885 Operating loss (302,587) (810,028) (1,510,309) (5,835,469) Other income (expense): Interest income 9,940 9,448 52,800 47,600 Interest expense (116,679) (120,558) (317,891) (360,497) Equity in loss of joint ventures -- -- -- (280,170) Minority interest share of earnings of consolidated subsidiary (20,213) (18,796) (59,790) (55,689) Other -- (3,782) (2,917) (1,448) (126,952) (133,688 (327,798) (650,204) Net loss $(429,539) (943,716) (1,838,107) (6,485,673) EBITDA $299,312 (280,934) 239,328 (4,528,346) Net loss per common share basic and diluted $ (.02) (.06) (.10) (.39) EBITDA per common share $ .02 (.02) .01 (.27) Weighted average number of shares of common stock outstanding 17,363,215 16,574,409 17,282,878 16,514,551 UQM TECHNOLOGIES, INC. AND SUBSIDIARIES Consolidated Balance Sheets December 31, March 31, Assets 2000 2000 (unaudited) Current assets: Cash and cash equivalents $1,417,327 2,085,115 Accounts receivable, net 4,555,753 2,821,894 Costs and estimated earnings in excess of billings on uncompleted contracts 582,932 329,111 Inventories 6,803,210 3,120,279 Prepaid expenses 201,849 192,492 Other 1,386 400,068 Total current assets 13,562,457 8,948,959 Property and equipment, at cost: Land 517,080 517,080 Buildings 2,678,525 2,678,525 Molds 102,113 102,113 Transportation equipment 146,386 146,386 Machinery and equipment 12,206,170 10,462,893 15,650,274 13,906,997 Less accumulated depreciation (6,633,556) (5,365,304) Net property and equipment 9,016,718 8,541,693 Patent and trademark costs, net of accumulated amortization of $156,182 and $125,078 739,885 731,282 Goodwill, net of accumulated amortization of $906,195 and $656,696 5,745,964 5,995,463 Other assets 99,205 40,446 $29,164,229 24,257,843 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $3,408,698 1,379,316 Other current liabilities 1,668,105 845,462 Current portion of long-term debt 1,083,489 972,123 Revolving line-of-credit 2,480,000 -- Billings in excess of costs and estimated earnings on uncompleted contracts 422,691 79,499 Total current liabilities 9,062,983 3,276,400 Long-term debt, less current portion 3,236,097 3,422,459 Total liabilities 12,299,080 6,698,859 Minority interest in consolidated subsidiary 422,347 413,066 Stockholders' equity: Common stock, $.01 par value, 50,000,000 shares authorized; 17,385,671 and 17,194,192 shares issued 173,857 171,942 Additional paid-in capital 50,515,953 49,382,877 Accumulated deficit (33,862,708) (32,024,601) Accumulated other comprehensive loss (384,300) (384,300) Total stockholders' equity 16,442,802 17,145,918 $29,164,229 24,257,843