Amerigon Reports First Quarter Results
CCS(TM) to Be Offered in Four Additional Automotive Platforms, Bringing Total
To Eight
IRWINDALE, Calif., May 8 Amerigon Incorporated
today announced that demand for the Company's proprietary
Climate Control Seat(TM) (CCS(TM)) system led to revenue of $2.3 million for
the first quarter ended March 31, 2001, almost 2.5 times the prior year's
first quarter revenue of $954,000. The net loss for the 2001 first quarter
declined to $1.8 million, or a loss per basic and diluted share of $0.41,
compared to a net loss of $2.1 million, or a loss per basic and diluted share
of $1.08, for the year-earlier period. The weighted average number of shares
outstanding used in the calculation of the net loss per share was
4.428 million for the first quarter of 2001 and 1.912 million for the prior
year's first quarter. The continued acceptance of CCS by consumers and the
automotive industry is reflected by the more than 140,000 CCS systems shipped
from late November 1999 through March 31, 2001.
The Company also announced that CCS has been selected to be included in
four additional automotive platforms. According to Amerigon President and CEO
Richard A. Weisbart, these automotive platforms equipped with CCS are expected
to be introduced over the next 18 months. "This brings to eight the total
number of automotive platforms where CCS has been selected to be included as
either an optional or standard feature," Weisbart said. For confidentiality
reasons, Amerigon is not permitted to identify the four additional automotive
platforms and the automotive and seat manufacturers at this time. The Company
expects to disclose that information in the future, which could be just prior
to first deliveries of the vehicles to dealer showrooms.
Of the eight automotive platforms, those currently shipping and offering
CCS as an option include the 2001 model year Lexus LS 430 luxury sedan sold in
the U.S., Canada and Europe, the Toyota Celsior luxury sedan sold in Japan and
the Lincoln Navigator sports utility vehicle sold in the U.S. The all-new
2002 model year Lincoln Blackwood luxury utility vehicle includes CCS as a
standard feature and is scheduled to be in dealer showrooms by July.
"The selection of CCS in four additional automotive platforms is another
significant step in our drive to become the premier supplier of heated and
cooled or heated and ventilated seat systems to the worldwide market,"
Weisbart said. "The strong year-to-year growth of CCS sales in the first
quarter was a solid indication that it is a preferred option amongst buyers of
vehicles that offer CCS, even though sales in the quarter were impacted
somewhat by temporary cut backs in automobile production.
"Reaching the level of revenue required to attain profitability remains
our single most important objective," Weisbart added. "The current slowdown
in automobile sales will impact our deliveries in the short term and has
created delays in some vehicle introductions. We believe, however, we are
well positioned over the long term. If you take away the current economic
environment and its effect on the automotive industry, we have a number of
very important reasons to be optimistic: We now have eight committed programs
and CCS is being seriously evaluated for introduction in a large number of
additional automotive platforms around the world; we have a solid revenue base
to build on and are penetrating additional geographic markets such as Asia;
the development of our next generation of CCS is proceeding very well; the
option 'take rate' for CCS remains considerably higher than originally
expected; and surveys show us that CCS customers are very happy with our
product."
Weisbart said the Company will continue to seek additional needed
financing over the next several months to help fund operations and is
currently exploring a number of alternatives including both commercial and
equity financings.
At the end of this year's first quarter Amerigon entered into a 10-year
agreement with Tokyo-based Ferrotec Corporation, one of the world's leading
developers and manufacturers of thermoelectric devices, granting Ferrotec the
exclusive manufacturing rights for CCS in Asia. As part of the agreement,
Ferrotec paid Amerigon $2 million for the Asian manufacturing rights and
$1 million for 200,000 shares of Amerigon common stock, which was a
significant premium over the market price of the stock at the time of the
agreement. The funds were received from Ferrotec in early April after the
close of the first quarter.
Including the funds received from the Ferrotec relationship, the March 31,
2001 balance sheet on a pro forma basis would show cash & cash equivalents of
$3.5 million, total assets of $8.9 million, a current ratio of 3.25:1 and
shareholder's equity of $4.9 million.
First quarter 2001 total operating costs and expenses of $2.1 million
remained relatively the same over the year-earlier period of $2.2 million,
while the Company scaled up revenue. As expected, gross profit margins for
the first quarter 2001 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.
AMERIGON INCORPORATED
STATEMENT OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months
Ended March 31,
2001 2000
Product revenues $2,335 $954
Cost of sales 2,035 845
Gross margin 300 109
Operating costs and expenses:
Research and development 735 848
Selling, general and administrative 1,404 1,320
Total operating costs and expenses 2,139 2,168
Operating Loss (1,839) (2,059)
Interest income 16 10
Interest expense -- (15)
Net loss $(1,823) $(2,064)
Basic and diluted net loss per share $(0.41) $(1.08)
Weighted average number of shares outstanding 4,428 1,912
AMERIGON INCORPORATED
BALANCE SHEET
(In thousands)
March 31, 2001
Pro Forma (1),
April 6, 2001
completion
March 31, of Ferrotec December 31,
ASSETS 2001 transaction 2000
(Unaudited) (Unaudited)
Current Assets:
Cash & cash equivalents $520 $3,520 $2,852
Accounts receivable less
allowance of $55 at
March 31, 2001 and
December 31, 2000 1,247 1,247 1,375
Inventory 1,283 1,283 1,478
Prepaid expenses and
other assets 438 438 487
Total current assets 3,488 6,488 6,192
Property and equipment, net 1,340 1,340 1,383
Deferred exclusivity fee 1,097 1,097 1,170
Total assets $5,925 $8,925 $8,745
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $436 $436 $1,376
Accrued liabilities 1,560 1,560 1,446
Deferred revenue -- -- 170
Total current liabilities 1,996 1,996 2,992
Long term portion of capital
lease 2 2 5
Other liability -- 2,000 --
Total liabilities $1,998 $3,998 2,997
Shareholders' equity:
Preferred Stock:
Series A - no par value;
convertible; 9 shares
authorized, 9 issued and
outstanding at
March 31, 2001 and
December 31, 2000;
liquidation preference
of $10,103 and $9,945
at March 31, 2001
and December 31, 2000 8,267 8,267 8,267
Common Stock;
No par value; 20,000 shares
authorized, 4,428 issued and
outstanding at March 31, 2001
and December 31, 2000, and
4,628 at April 6, 2001
(pro forma) 37,947 38,947 37,947
Paid-in capital 14,745 14,745 14,689
Deferred compensation (55) (55) (1)
Accumulated deficit (56,977) (56,977) (55,154)
Total shareholders' equity $3,927 $4,927 $5,748
Total liabilities and
shareholders' equity $5,925 $8,925 $8,745
(1) Pro forma after giving effect to the entering into of a manufacturing
and supply agreement for $2 million and the sale of 200,000 shares of
common stock for $1 million with Ferrotec Corporation on April 6, 2001.
