UQM Technologies Reports Record Fiscal Year 2001
Revenues
GOLDEN, Colo., May 23 UQM TECHNOLOGIES, INC. (Amex: UQM),
a developer of alternative energy technologies achieved record fiscal year
2001 revenues, exceeding target, and fiscal year losses were modestly higher
despite the midyear slow-down in the Company's consumer and automotive
electronics markets, William G. Rankin, President and Chief Executive Officer,
announced today.
Donald A. French, Treasurer and Chief Financial Officer, noted that
"During the fourth quarter we wrote down slow moving or not readily marketable
electronic component raw material inventories in our electronics unit.
Stringent fiscal management throughout the year permitted us to absorb
increased infrastructure costs essential to our continued growth, while also
expanding our research and development programs. The ability to drive
revenues forward at a 31 percent pace, put in place new products and programs
to facilitate continued strong growth, while containing losses during an
economic slow-down in key markets is an achievement of which we are proud. We
expect to again achieve record revenue in fiscal 2002, together with improved
bottom line results."
Operations for the year ended March 31, 2001, excluding asset write-down
charges, resulted in a net loss of $2,427,523 or $.14 per common share on
total revenue of $26,897,071 compared to a net loss of $2,367,179 or $0.14 per
common share on total revenue of $20,597,860 for the fiscal year ended
March 31, 2000. Earnings before interest, taxes, depreciation and
amortization ("EBITDA") for the fiscal year, before the foregoing charges, was
$386,760 or $.02 per common share versus EBITDA of $236,612 or $.01 per common
share last year. Net loss for the fiscal year ended March 31, 2001, including
charges was $3,140,122 or $.18 per common share compared to a net loss of
$6,471,807 or $.39 per common share. EBITDA, including charges, for the
fiscal year was $(325,839) or $(.02) per common share versus $(3,868,016) or
$(.23) per common share last year.
Operations for the quarter ended March 31, 2001, before charges related to
the write-down of assets, resulted in a net loss of $806,234 or $.05 per
common share on total revenue of $6,587,615 compared to a net profit of
$13,866 or nil per common share on total revenue of $5,831,444 for the fourth
quarter last year. EBITDA for the fourth quarter, excluding charges, was
$(69,386) or nil per common share compared to EBITDA of $660,330 or $0.04 per
common share for the same quarter last year. Net loss for the quarter ended
March 31, 2001, including charges was $1,302,015 or $.08 per common share
compared to a net earnings of $13,866 or nil per common share. EBITDA,
including charges, for the fourth quarter was $(565,167) or $(.03) per common
share versus $660,330 or $.04 per common share last year.
Elaborating on the Company's financial performance, Mr. French pointed out
that "the fourth quarter was adversely impacted by write-downs of slow-moving,
not readily marketable electronic component raw material inventories in our
electronics unit. The fourth quarter charges together with a write-down in
the second quarter related to the upgrading of our production lines with 'ball
grid array' component placement technology, negatively impacted financial
performance for the fiscal year. Despite this setback, revenue growth was
strong, the level of funded activities with commercial potential at our
engineering and product development center is significantly higher and we have
made the adjustments necessary to improve financial performance for fiscal
2002."
Mr. Rankin noted that "Of equal importance to our operating results was
the expansion of our technology portfolio to establish a platform for future
growth and profitability, as evidenced by a number of key events during the
year including:
* Our exclusive collaboration with John Deere to apply our technology to
enhance the capability of John Deere products. This relationship is
directed toward the development of hybrid electric vehicle systems and
components for future John Deere products, including such evolving
technologies as the new 42 volt electrical system standard and
controller area network communication protocol.
* Completion of performance testing by General Motors of a UQM(R)
motor/generator "multipurpose unit" as an integral part of GM's
Precept high-mileage prototype hybrid electric passenger car developed
under the Partnership for a New Generation of Vehicles. The UQM(R)
motor/generator was a key contributor in enabling the Precept to be
the first vehicle to achieve the nearly 80 miles per gallon goal set
by automakers and the Federal Government in 1994. According to GM,
the Precept achieved mileage ratings of 90.0 mpg on the highway and
72.2 mpg in the city for a combined fuel economy of 79.6 mpg based on
testing similar to what the Environmental Protection Agency uses to
measure vehicle fuel economy.
* The introduction of our Integrated Electric Traction System (INTETS)
at the 2001 Society of Automotive Engineers World Congress in Detroit.
INTETS is an advanced propulsion system designed to offer high levels
of performance and efficiency in electric, hybrid electric and fuel
cell electric vehicles. INTETS measures in at just 15 inches total
length with an 11 inch diameter, without the system's optional
inverter, and delivers 94 horsepower which will propel a mid-size
vehicle to speeds exceeding 100 mph top speed, depending on tire size.
* A Department of Energy contract to continue development of a modular
line of high performance motors for electric, hybrid electric and fuel
cell electric vehicles that is expected to improve the continuous
power output of our industry-leading motors and generators by
approximately 25 percent without increasing the size or weight of the
machine.
In addition, two other events occurred during the year that could have a
significant impact on our future product revenue stream:
* Just last week we announced that we will supply UQM(R) propulsion
motors, generators and power electronic controllers to PEI Electronics
Inc. as part of a program with AM General Corporation to develop a
pre-production High Mobility Multipurpose Wheeled Vehicle (HMMWV
pronounced HUMVEE(R)) powered by a hybrid electric powertrain. If
this production intent program is successful, we expect to see
continually increasing shipments of our Powerphase 100 propulsion
system as prototypes and field test units are produced over the next
several years, and ultimately substantially higher volumes should AM
General launch production of hybrid electric HUMVEES(R) for its
military customers worldwide.
* We were recently selected by Ecostar Electric Powertrain and Power
Conversion Systems, a joint venture between Ford Motor Company,
Ballard Power Systems and Daimler Chrysler, to supply fuel cell
compressor drive motors for use in Ford's and DaimlerChrysler's next
generation fuel cell engine vehicles. The UQM(R) compressor drive
motor is a critical component of the air transfer system in the fuel
cell which is necessary in substantially all fuel cell engines to
facilitate the chemical reaction inside the fuel cell that leads to
the production of energy. If fuel cells are broadly commercialized
over the next decade, as many experts predict, sales of our
proprietary and highly energy efficient, volume production ready
compressor drive motors could generate substantial revenue for the
Company.
Contract services revenue for the year rose 34 percent over the comparable
level last year. This revenue is a measure of the development activity
underway in our engineering and product development center for the advancement
of our technology portfolio and the application of our proprietary technology
to products with future commercialization potential."
Mr. Rankin, added that "This past year was a challenging year for the
Company. Unfortunately, the economic climate deteriorated quite rapidly
during the second half of the fiscal year, which slowed our rate of growth,
particularly in the consumer and automotive electronics markets. The
combination of a slower growth rate and continued infrastructure and human
resource investments, including installation of new enterprise operating
software at our electronics unit, contributed to decreased financial
performance. Although the economic climate appears uncertain during the first
half of the current fiscal year for our manufacturing operations, we are
seeing strong demand for application engineering activities, which is the
precursor to higher proprietary product revenue in the future."
The Company will host a conference call today at 4:30 p.m. Eastern
Daylight Time to discuss operating results for the fourth quarter and fiscal
year. To attend the conference call, please dial 212-231-6049 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 Daylight Time today. To access the
playback call 800-633-8284 and give reservation number 18853189. For
international callers, dial 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 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 become 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
Quarter Ended March 31, Year Ended March 31,
2001 2000 2001 2000
Revenue:
Contract services $790,685 544,288 2,283,292 1,702,937
Product sales 5,796,930 5,287,156 24,613,779 18,894,923
6,587,615 5,831,444 26,897,071 20,597,860
Operating costs and expenses:
Costs of contract
services 594,131 394,435 1,930,601 1,300,052
Costs of product
sales 5,519,966 4,386,932 22,586,279 16,133,891
Research and
development 23,771 41,485 103,231 378,954
General and
administrative 1,119,096 778,731 3,990,301 4,036,732
Amortization of
goodwill 83,167 83,166 332,666 332,377
Write-down of
investments
and other assets 103,583 -- 320,401 4,104,628
Write-down of
inventory 392,198 -- 392,198 --
7,835,912 5,684,749 29,655,677 26,286,634
Operating
earnings
(loss) (1,248,297) 146,695 (2,758,606) (5,688,774)
Other income (expense):
Interest income 14,040 11,769 66,833 59,369
Interest expense (132,431) (122,801) (450,322) (483,298)
Equity in loss of
joint ventures -- -- -- (280,170)
Minority interest share
of earnings of
consolidated
subsidiary (5,636) (25,134) (65,426) (80,823)
Other 70,309 3,337 67,399 1,889
(53,718) (132,829) (381,516) (783,033)
Net earnings
(loss) $(1,302,015) 13,866 (3,140,122) (6,471,807)
EBITDA $(565,167) 660,330 (325,839) (3,868,016)
Net loss per
common share basic
and diluted $(.08) -- (.18) (.39)
EBITDA per
common share $(.03) .04 (.02) (.23)
Weighted average
number of shares
of common stock
outstanding 17,359,914 16,750,845 17,314,891 16,573,391
UQM TECHNOLOGIES, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
March 31, March 31,
Assets 2001 2000
Current assets:
Cash and cash equivalents $2,399,006 2,085,115
Accounts receivable 3,899,041 2,821,894
Costs and estimated earnings in excess
of billings on uncompleted contracts 572,009 329,111
Inventories 6,656,236 3,120,279
Prepaid expenses 184,405 192,492
Other 52,065 400,068
Total current assets 13,762,762 8,948,959
Property and equipment, at cost:
Land 181,580 517,080
Building 1,240,435 2,678,525
Machinery and equipment 12,433,475 10,711,392
13,855,490 13,906,997
Less accumulated depreciation (6,577,035) (5,365,304)
Net property and equipment 7,278,455 8,541,693
Patent and trademark costs,
net of accumulated amortization
of $170,204 and $125,078 731,707 731,282
Goodwill, net of accumulated
amortization of $989,362 and $656,696 5,662,797 5,995,463
Other assets 45,872 40,446
$27,481,593 24,257,843
March 31, March 31,
Liabilities and Stockholders' Equity 2001 2000
Current liabilities:
Accounts payable $2,467,259 1,379,316
Other current liabilities 1,341,506 845,462
Current portion of deferred gain
on sale of real estate 115,713 --
Current portion of long-term debt 865,685 972,123
Revolving line-of-credit 4,037,000 --
Billings in excess of costs and
estimated earnings on
uncompleted contracts 197,819 79,499
Total current liabilities 9,024,982 3,276,400
Deferred gain on sale of real estate 636,423 --
Long-term debt, less current portion 2,606,075 3,422,459
Total liabilities 12,267,480 6,698,859
Minority interest in consolidated subsidiary -- 413,066
Stockholders' equity:
Common stock, $.01 par value,
50,000,000 shares authorized; 17,423,358
and 17,194,192 shares issued 174,233 171,942
Additional paid-in capital 50,626,120 49,382,877
Accumulated deficit (35,164,723) (32,024,601)
Accumulated other comprehensive income (384,300) (384,300)
Notes receivable from officers (37,217) --
Total stockholders' equity 15,214,113 17,145,918
$27,481,593 24,257,843
