Amerigon Reports Fourth Quarter, Year-End Results
During First Full Year as Operating Company,
Sales in Second Half of 2000 Were More Than Double Sales in First Half
IRWINDALE, Calif., Feb. 20 Amerigon Incorporated
today announced that results for its fourth quarter and year
ended December 31, 2000 were marked by strong demand for the Company's
proprietary Climate Control Seat(TM) (CCS(TM)) system, which is currently
being offered as an option in the 2001 model year Lincoln Navigator sports
utility vehicle, the all new 2001 model year Lexus LS 430 premium luxury sedan
being sold in the U.S. and Europe and the new 2001 model year Toyota Celsior
premium luxury sedan being sold in Japan. A fourth automotive platform, the
all new 2002 model year Lincoln Blackwood luxury utility vehicle, includes CCS
as standard and is scheduled to be in dealer showrooms this spring.
According to the announcement by Amerigon President and CEO Richard A.
Weisbart, sales for the year-ended December 31, 2000, the Company's first full
year as an operating company and of making volume commercial shipments of CCS,
were $6.9 million, compared to minimal sales for 1999. Amerigon's sales in
the second half of 2000 were more than double its sales in the first half of
the year.
Sales in the fourth quarter of 2000 rose significantly to $3.2 million,
compared to sales of $289,000 in the prior year's fourth quarter, which was
comprised of initial shipments of CCS that began in November 1999.
Sequentially, fourth quarter 2000 sales increased 80 percent from sales of
$1.8 million in the third quarter of 2000. The net loss available to common
shareholders for the fourth quarter of 2000 was $2.9 million, or a $0.65 net
loss per share, compared to a net loss available to common shareholders of
$2.3 million, or a $1.22 net loss per share, in the prior year's fourth
quarter. The weighted average common shares outstanding used in the
calculation of the net loss per share were 4,428,000 for the fourth quarter of
2000 and 1,910,000 for the prior year's fourth quarter.
Weisbart commented, "Fiscal 2000 was a remarkable year for Amerigon. We
achieved a number of very significant milestones, all of which are helping
establish the Company as a recognized and respected supplier to automotive
industry OEMs. We started the year with some solid prospects and an
OEM-certified manufacturing operation that was shipping CCS for use in our
first automotive platform, the 2000 model year Lincoln Navigator. Then came
the five-year agreement with Ford Motor Company for its use of CCS exclusively
for its heated and cooled or heated and ventilated seat requirements. Next we
successfully completed a $12.5 million private placement and, while that was
occurring, we established a relationship with Motorola to develop a new
generation of electronic control modules for CCS.
"Throughout the year we experienced strong consumer demand for the CCS
option in the Lincoln Navigator," Weisbart added. "In fact, the order rate by
Lincoln Navigator buyers has been almost 50 percent higher than originally
planned; an excellent indicator of consumer acceptance. As the year went on
we continued to work with more than 20 automotive platform teams worldwide to
incorporate CCS technology in future vehicle platforms, and we aggressively
pursued the development of the next generation of CCS technology."
In early September 2000, Amerigon announced that Lexus had selected CCS to
be used in the all-new model year 2001 Lexus LS430 premium luxury sedan. And,
the following day the Company announced it had been selected to provide CCS as
a standard feature in the all-new 2002 model year Lincoln Blackwood, which is
the first automotive platform to offer CCS as a standard feature. By late
summer Amerigon had started to ship CCS for use in three 2001 model year
platforms -- the Lexus LS 430, the Toyota Celsior for the Japanese market, and
the Lincoln Navigator. As the year came to a close, CCS was selected for a
"Best of What's New" award for 2000 by the editors of Popular Science
magazine.
"Growing acceptance of CCS by consumers and the automotive industry,"
Weisbart continued, "is reflected not only in the increasing number of
automotive platforms now offering the system, but also in the more than
100,000 CCS systems shipped to date. To further determine the acceptance of
CCS, we commissioned an independent study of owners of Lincoln Navigator
sports utility vehicles, some equipped with the CCS option and some without.
The study showed us overwhelmingly that those who had ordered CCS were very
satisfied with the performance of the system, would not hesitate to recommend
it to others and would purchase the option again."
Sales for the year ended December 31, 2000, Amerigon's first full year as
an operating company, were $6.9 million, with a net loss available to common
shareholders of $11.3 million, or a $3.43 net loss per share. The results for
2000 included the effects of net non-cash charges of $1.8 million related to
the bridge financing done before the completion of the private placement in
the second quarter of the year. These non-cash charges included a one-time
extraordinary gain of $707,000, or $0.22 per share, related to the
extinguishment of debt in the first half of the year. Sales for the
year-ended December 31, 1999 were $336,000, with a net loss of $15.8 million
available to common shareholders, or a $8.29 net loss per share, which
included the effect of an $8.3 million deemed non-cash dividend to preferred
shareholders. The weighted average common shares outstanding used in the
calculation of the net loss per share for 2000 were 3,283,000 and 1,910,000
for the year-earlier period.
Fourth quarter and year-end 2000 SG&A expense increased substantially over
the same periods last year due primarily to the launches of CCS in the Lincoln
Navigator, Lexus LS 430, Toyota Celsior and Lincoln Blackwood, and stepped up
marketing costs associated with pursuing future CCS programs. As expected,
gross profit margins for the fourth quarter and year-end 2000 continue to
reflect the early stages of the production ramp up of CCS. Gross margins are
expected to improve in the future as volume increases through the introduction
of CCS in additional automotive platforms.
At December 31, 2000, cash & cash equivalents were $2.9 million, total
assets were $8.7 million, there was virtually no long-term debt and
shareholders' equity was $5.7 million. The current ratio at the end of 2000,
excluding deferred revenue, was 2.2:1.
During the fourth quarter of 2000, Amerigon discontinued the development
of its AmeriGuard(TM) radar sensing system. The associated costs were
recorded during the fourth quarter of 2000 and did not have a significant
impact on financial results.
Weisbart said, "After an intensive review of AmeriGuard's development
status and potential, the Company made the decision to put AmeriGuard on the
shelf and focus our resources exclusively on accelerating our marketing
efforts and on the development of the next generation of CCS rather than on
the commercialization of AmeriGuard."
Conference Call:
Management will host a conference call today, February 20, 2001, at
11:30 a.m. EST (Eastern) to discuss the fourth quarter and year-end results.
The call will be broadcast live over the Internet and interested participants
may listen to the live webcast of the call by accessing http://www.redchip.com or
http://www.vcall.com. Participants are encouraged to go to the web site 15 minutes
prior to the start of the call to register and, if needed, download and
install any necessary audio software. Shortly after the call is completed, an
online replay of the call will be available at http://www.redchip.com and
http://www.vcall.com for a period of 10 days.
TABLES FOLLOW
AMERIGON INCORPORATED
STATEMENT OF OPERATIONS
(In thousands, except per share data)
Three Months Twelve Months
Ended December 31, Ended December 31,
2000 1999 2000 1999
Product sales $3,209 $289 $6,886 $336
Product cost 2,992 715 6,274 778
Gross Margin 217 (426) 612 (442)
Operating expenses:
Research and development 1,101 960 4,099 3,721
Selling, general and
administrative 2,045 956 6,088 3,481
Total costs and expenses 3,146 1,916 10,187 7,202
Operating loss (2,929) (2,342) (9,575) (7,644)
Interest income 49 34 201 135
Interest expense -- (5) (2,607) (30)
Loss on disposal of assets -- (17) -- (36)
Loss before extraordinary
item (2,880) (2,330) (11,981) (7,575)
Extraordinary gain from
extinguishment of debt -- -- 707 --
Net loss $(2,880) $(2,330) $(11,274) $(7,575)
Net loss available to common
shareholders $(2,880) $(2,330) $(11,274) $(15,842)
Basic and diluted net loss
per share:
Loss before extraordinary
gain $(0.65) $(1.22) $(3.65) $(8.29)
Extraordinary gain from
extinguishment of debt -- -- 0.22 --
Net loss $(0.65) $(1.22) $(3.43) $(8.29)
Weighted average number of
common shares outstanding 4,428 1,910 3,283 1,910
AMERIGON INCORPORATED
BALANCE SHEET
(In thousands)
December 31, December 31,
ASSETS 2000 1999
Current Assets:
Cash & cash equivalents $2,852 $1,647
Accounts receivable less allowance of
$55 and $58, respectively 1,375 282
Inventory 1,478 490
Prepaid expenses and other assets 487 251
Total current assets 6,192 2,670
Property and equipment, net 1,383 1,051
Deferred exclusivity fee 1,170 --
Total assets $8,745 $3,721
LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)
Current Liabilities:
Accounts payable $1,376 $592
Accrued liabilities 1,446 597
Deferred Revenue 170 --
Total current liabilities 2,992 1,189
Long term portion of capital lease 5 11
Total liabilities 2,997 1,200
Mandatorily redeemable preferred stock:
Series A - Preferred Stock - no par
value; redeemable and convertible;
9 shares authorized, none and 9 issued and
outstanding at December 31, 2000 and 1999 -- 8,267
Shareholders' equity (deficit):
Preferred Stock:
Series A - no par value; convertible;
9 shares authorized, 9 and none issued
and outstanding at December 31, 2000 and 1999;
liquidation preference of $9,945 8,267 --
Common Stock;
No par value; 20,000 shares authorized,
4,428 and 1,910 issued and outstanding
at December 31, 2000 and 1999 37,947 28,149
Paid-in capital 14,689 10,059
Deferred compensation (1) (74)
Accumulated deficit (55,154) (43,880)
Total shareholders' equity (deficit) 5,748 (5,746)
Total liabilities and shareholders'
equity (deficit) $8,745 $3,721
