Amerigon Reports 2001 Second Quarter, Six-Month Results
Amerigon Reports 2001 Second Quarter, Six-Month Results
IRWINDALE, Calif., Aug. 3 Amerigon Incorporated
today announced that year-to-year increases in demand for its
proprietary Climate Control Seat(TM) (CCS(TM)) system, when compared to the
prior year periods, led to an increase in revenues and a reduction in net
losses for this year's second quarter and first six months ended June 30,
2001. Revenue for the second quarter of this year was $1.12 million with a
net loss of $1.74 million, or a net loss per basic and diluted share of
$0.37, compared to revenues of $944,000 with a net loss of $3.95 million, or a
loss per basic and diluted share of $1.66 for the prior year quarter. For the
first six months of this year, revenues increased to $3.45 million with a net
loss of $3.57 million, or a loss per basic and diluted share of
$0.79, compared to revenues of $1.90 million with a net loss of $6.02 million,
or a loss per basic and diluted share of $2.80 in the first of six months of
2000.
Amerigon President and CEO Richard A. Weisbart said the option "take-rate"
for the CCS system remains very strong, continuing at levels seen in prior
quarters, which were higher than originally expected. The take-rate is the
percentage of customers who select a specific option based on the total number
of that vehicle model sold that offer the option.
Weisbart added that the worldwide automotive industry slowdown in vehicle
sales and the postponement of key vehicle introductions by manufacturers
resulted in a decline in the Company's 2001 second quarter revenues compared
to this year's first quarter. "However, the continued strength of the
take-rate gives us confidence that when worldwide vehicle sales begin to
rebound, the Company's revenues will increase substantially," Weisbart said.
"The ongoing strength of the take-rate for the CCS system is a clear
indication that it remains a preferred option," Weisbart said. The acceptance
of the CCS system by consumers and the automotive industry is reflected by the
more than 158,000 CCS systems shipped from late November 1999 through June 30,
2001.
In spite of the revenue decline from this year's first quarter, the net
loss in the second quarter of this year was reduced modestly from this year's
first quarter loss as a result of cost reduction measures and an improvement
in gross margins.
Amerigon has announced that it currently has eight automotive platforms
where the CCS system has been selected to be included as either an optional or
standard feature. Of these, those currently shipping and offering the CCS
system 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 Company will begin shipping the CCS system this month for use as a
standard feature in the all-new 2002 model year Lincoln Blackwood luxury
utility vehicle, which is scheduled to be in dealer showrooms by the end of
August.
"As the automotive industry bounces back and as we bring the additional
committed automotive platforms on-line over the next 12 to 15 months, we
believe our revenues will begin to increase at an accelerating rate,"
Weisbart added. "All of the four new automotive platform programs we
announced last quarter are progressing nicely and remain on track. CCS
shipments for the first of these new automotive platforms are scheduled to
occur in early 2002. We are more confident than ever that we are well
positioned to generate the levels of revenue required to reach future
profitability and meet our goal of being the dominant supplier to the
worldwide market for heated and cooled or heated and ventilated seat systems."
In addition to the eight committed CCS programs, the product is being
evaluated for introduction in a large number of additional automotive
platforms around the world. Several of these have either selected CCS or are
considering it for introduction in future automotive platforms.
Total operating expenses for the second quarter and first six months of
2001 were $2.02 million and $4.16 million, respectively, down from total
operating expenses of $2.24 million and $4.41 million for the respective prior
year periods.
Gross margins, as a percentage of sales, increased in the second quarter
and first six months of this year, when compared to the same periods last
year, but as expected, the gross margins 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.
The results for last year's second quarter and first six months included
net non-cash charges of $1.9 million related to a bridge financing done in the
second quarter of last year before the completion of a subsequent private
placement. The weighted average number of shares outstanding used in the
calculation of the net loss per share for the second quarter and first six
months of 2001 was 4.649 million and 4.539 million, respectively, and
2.382 million and 2.147 million for the prior year's respective periods.
Weisbart said Amerigon will continue to seek additional needed financing
over the next several months to strengthen its balance sheet and for working
capital purposes. Amerigon is currently exploring a number of alternatives.
Conference Call:
Management will host a conference call today, August 3, 2001 at 11:30 a.m.
EDT (Eastern) to discuss the second quarter and six-month 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.
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 for a period of
10 days.
About Amerigon:
Amerigon, headquartered in Irwindale, CA, develops, manufactures and
markets proprietary high technology products for automotive original equipment
manufacturers (OEMs). The Company's Climate Control Seat(TM) (CCS(TM))
significantly enhances individual driver and passenger comfort in virtually
all climatic conditions by providing cooling and heating to seat occupants, as
desired, through an active, thermoelectric-based temperature management
system. Amerigon maintains a sales and technical support center in Detroit,
and sales and technical support centers in both Japan and Germany.
For additional investor relations information visit the Allen & Caron Inc
web site at http://www.allencaron.com.
Certain matters discussed in this release, including customer demand,
worldwide vehicle sales and take rates, revenue growth, future profitability,
market position, gross margins, potential geographic markets, financing
requirements and sources of financing and Amerigon's prospects for the
acceptance on platforms with other major automotive manufacturers, are
forward-looking statements that involve risks and uncertainties, and actual
results may be different. Such risks and uncertainties include the acceptance
and performance of Amerigon's products, Amerigon's ability to develop new
products successfully and the ability to obtain financing. Please also refer
to Amerigon's Securities and Exchange Commission filings and reports,
including but not limited to the Registration Statement on Form S-3 filed on
July 24, 2000, the Form 10-K for the year ended December 31, 2000 and the Form
10-Q for the quarter ended March 31, 2001.
For further information, please contact investors, Jill Cieslak,
jill@allencaron.com, or media, Len Hall, len@allencaron.com both of Allen &
Caron Inc, +1-949-474-4300, for Amerigon Incorporated.
AMERIGON INCORPORATED
STATEMENT OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Six Months
Ended June 30, Ended June 30,
2001 2000 2001 2000
Product revenues $1,117 $944 $3,452 $1,898
Cost of sales 870 801 2,905 1,646
Gross margin 247 143 547 252
Operating costs and expenses:
Research and development 924 1,093 1,804 1,941
Selling, general and
administrative 1,097 1,150 2,356 2,470
Total operating costs
and expenses 2,021 2,243 4,160 4,411
Operating loss (1,774) (2,100) (3,613) (4,159)
Interest income 25 31 41 41
Interest expense -- (2,592) -- (2,607)
Minority interest in subsidiary 7 -- 7 --
Loss before extraordinary item (1,742) (4,661) (3,565) (6,725)
Extraordinary gain from
extinguishment of debt -- 707 -- 707
Net loss $(1,742) $(3,954) $(3,565) $(6,018)
Net loss available to
common shareholders $(1,742) $(3,954) $(3,565) $(6,018)
Basic and diluted net
loss per share:
Loss before extraordinary
item $(0.37) $(1.96) $(0.79) $(3.13)
Extraordinary gain from
extinguishment of debt -- 0.30 -- 0.33
Net loss $ (0.37) $(1.66) $(0.79) $(2.80)
Weighted average number common
shares outstanding 4,649 2,382 4,539 2,147
AMERIGON INCORPORATED
BALANCE SHEET
(In thousands)
June 30, December 31,
ASSETS 2001 2000
(Unaudited)
Current Assets:
Cash & cash equivalents $ 749 $2,852
Restricted cash 873 --
Accounts receivable less allowance
of $49 at June 30, 2001 and $55
at December 31, 2000 988 1,375
Inventory 1,233 1,478
Prepaid expenses and other assets 124 487
Total current assets 3,967 6,192
Property and equipment, net 1,382 1,383
Deferred exclusivity fee 1,024 1,170
Total assets $ 6,373 $8,745
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $104 $1,376
Accrued liabilities 831 1,446
Deferred manufacturing agreement 1,950 --
Deferred revenue -- 170
Total current liabilities 2,885 2,992
Long term portion of capital lease 3 5
Minority interest in subsidiary 54 --
Total liabilities 2,942 2,997
Shareholders' equity:
Preferred stock:
Series A -- no par value; convertible;
9 shares authorized, 9 issued
and outstanding at June 30, 2001
and December 31, 2000; liquidation
preference of $10,260 at June 30, 2001 8,267 8,267
Common stock;
No par value; 20,000 shares authorized,
4,717 and 4,428 issued and outstanding
at June 30, 2001 and December 31, 2000 39,192 37,947
Paid-in capital 14,746 14,689
Deferred compensation (55) (1)
Accumulated deficit (58,719) (55,154)
Total shareholders' equity 3,431 5,748
Total liabilities and
shareholders' equity $ 6,373 $8,745
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