Probex Reports Fourth Quarter/Year End Results
Business Editors
DALLAS--Nov. 8, 2001--Probex Corp. (AMEX:PRB),
an energy technology company, today reported revenues for the fourth
fiscal quarter ended September 30, 2001, of approximately $4.2
million, compared with revenues of approximately $1.7 million for the
same period a year earlier. The net loss for the fourth fiscal quarter
was approximately $3.6 million, or 13 cents per basic and diluted
share, compared with a net loss of approximately $3.2 million, or 15
cents per basic and diluted share, in the year-ago quarter.
Revenues for the fiscal year ended September 30, 2001, were
approximately $15.5 million, compared with revenues of approximately
$2.7 million for the same period in 2000. The net loss for the fiscal
year ended September 30, 2001, was approximately $16.5 million, or 61
cents per basic and diluted share, compared with a net loss of
approximately $6.3 million, or 29 cents per basic and diluted share,
for the same period in the previous year.
Bruce A. Hall, Probex Senior Vice President and Chief Financial
Officer, noted that; "The losses for the fiscal quarter and year ended
September 30, 2001, primarily reflect a combination of expenses and
non-cash interest charges related to business and financing activities
which are required as the Company commercializes its proprietary
reprocessing technology for the production of premium quality
lubricating base oils and associated products." Hall added that:
"While revenues were above the targeted range due to higher prices,
cash flow generated by the Company's collection system was below
expectations for the fourth fiscal quarter. This was primarily due to
lower than anticipated growth in our collection business, resulting
from the final integration of previously acquired collection companies
and higher cost of sales. As expected, cash flow from the collection
system continued to be more than offset by ongoing research,
engineering and development activities necessary to bring the
Company's environmentally beneficial lube base oil technology to
market, he said."
PROBEX CORP.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(unaudited)
Three Months Ended Sept. 30, Year Ended Sept. 30,
2001 2000 2001 2000
---- ---- ---- ----
REVENUES $ 4,200,604 $ 1,651,861 $ 15,528,606 $ 2,684,869
COST OF SALES 2,450,194 808,612 7,218,380 1,306,386
--------------------------------------------------
GROSS PROFIT 1,750,410 843,249 8,310,226 1,378,483
EXPENSES:
Operating 1,558,029 330,754 6,875,328 544,752
Research and
development 368,001 833,663 2,970,225 1,995,604
Selling, general and
administrative 1,200,880 2,628,091 6,082,398 4,691,797
Depreciation and
amortization 352,498 163,684 1,220,759 399,038
--------------------------------------------------
TOTAL EXPENSES 3,479,408 3,956,192 17,148,710 7,631,191
--------------------------------------------------
OPERATING LOSS (1,728,998) (3,112,943) (8,838,484) (6,252,708)
Interest - net (1,826,391) (72,041) (7,637,351) (28,290)
Other - net (3,804) 4,575 (2,713) 15,508
Equity in net income
in affiliate 6,771 - 25,257 -
Provision for income
tax 14,800 - (22,000) -
--------------------------------------------------
NET LOSS $(3,537,622) $(3,180,409) $(16,475,291)$(6,265,490)
==================================================
NET LOSS PER SHARE $ (0.13) $ (0.15) $ (0.61) $ (0.29)
==================================================
PROBEX CORP.
CONSOLIDATED CONDENSED BALANCE SHEETS
(unaudited)
September 30, September 30,
2001 2000
ASSETS
Cash and cash equivalents $ 586,173 $ 434,812
Accounts and notes receivable 2,714,505 1,737,173
Inventories 614,374 98,161
Prepaid and other current assets 370,249 115,848
----------------------------------
Total current assets 4,285,301 2,385,994
Property, plant and equipment - net 15,317,481 6,382,595
Goodwill - net 5,808,841 6,925,837
Patents - net 419,861 148,106
Investments in affiliate - at equity 719,704 -
Deferred financing costs - net 4,892,623 -
Other assets 357,930 417,683
----------------------------------
TOTAL ASSETS $ 31,801,741 $ 16,260,215
==================================
LIABILITIES
Accounts payable $ 3,593,326 $ 1,158,936
Accrued liabilities 6,351,950 1,959,954
Current maturities of capital
lease obligations 186,531 25,732
Short-term debt - net of note
discount 7,370,264 7,214,037
Current maturities of long-tem debt 279,496 300,000
----------------------------------
Total current liabilities 17,781,567 10,658,659
Capital lease obligations, long-term 158,727 43,491
Long-term debt 13,482,927 1,200,000
----------------------------------
TOTAL LIABILITIES 31,423,221 11,902,150
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Series A 10% Cumulative Convertible
Preferred Stock, $0.001 par
value, authorized 10,000,000
shares:
issued - 532,500 at Sep. 30, 2001
and at Sep. 30, 2000 533 4,634,412
Common Stock, $0.001 par value,
authorized 100,000,000 shares:
issued-30,680,685 at Sep. 30, 2001
and 25,531,137 at Sep. 30, 2000 30,681 12,705,748
subscribed-None at Sep. 30, 2001
and at Sep. 30, 2000 - -
Additional Paid In Capital 32,722,140 2,889,731
Deferred stock compensation expense (547,516) (1,233,153)
Accumulated Deficit (31,648,358) (14,638,046)
Less: Treasury Stock (common:
167,011 shares at Sep. 30, 2001
and 62,690 shares at Sep.30,2000)
at cost (178,960) (627)
----------------------------------
TOTAL STOCKHOLDERS' EQUITY 378,520 4,358,065
----------------------------------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $ 31,801,741 $ 16,260,215
==================================
PROBEX CORP.
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(unaudited)
Year Ended September 30,
2001 2000
------------------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $(16,475,291) $(6,265,490)
Adjustments:
Depreciation and amortization 1,220,759 399,038
Provision for doubtful accounts 50,000 -
Income from investment in affiliate (25,257) -
Stock option compensation 684,595 635,023
Gain on disposition of assets - (4,576)
Stock issued for consulting services 83,094 146,626
Warrants issued to advisory board
members 17,403 -
Stock issued for employee compensation 1,042 87,500
Stock issued for interest expense 1,024,024 -
Interest expense related to 7%
convertible notes 3,125,000 -
Amortization of discount on notes 2,058,718 -
Amortization of deferred financing costs 441,342 -
Changes in operating assets and
liabilities: -
(Increase) decrease in accounts and
notes receivable (1,027,332) (337,580)
(Increase) decrease in inventories (516,213) (24,883)
(Increase) decrease in prepaid and
other (254,401) (102,161)
(Increase) decrease in other assets 59,753 -
Increase (decrease) in accounts payable (110,914) 821,172
Increase (decrease) in accrued
liabilities 267,376 1,696,373
------------------------------
NET CASH USED BY OPERATING ACTIVITIES (9,376,302) (2,948,958)
CASH FLOWS USED BY INVESTING ACTIVITIES
Business acquisitions - (8,984,090)
Investments in affiliates (1) -
Purchase of property, plant and
equipment (4,426,665) (2,992,673)
Proceeds from sale of property, plant
and equipment - 35,326
Cost of patents (289,267)
------------------------------
NET CASH USED BY INVESTING ACTIVITIES (4,715,933) (11,941,437)
CASH FLOWS PROVIDED BY FINANCING ACTIVITIES
Principal payment on capital lease
obligation (150,487) -
Proceeds from short-term borrowings 9,880,000 7,840,472
Principal payment on short-term
borrowings (7,227,091) -
Proceeds from long-term borrowings 12,500,000 1,200,000
Principal payment on long-term
borrowings (237,577) -
Deferred financing costs (2,562,112) -
Proceeds from sale of preferred stock - 3,026,185
Proceeds from sale of common stock 2,040,863 600,495
------------------------------
NET CASH PROVIDED BY FINANCING
ACTIVITIES 14,243,596 12,667,152
NET INCREASE IN CASH 151,361 (2,223,243)
CASH AT BEGINNING OF PERIOD 434,812 2,658,055
------------------------------
CASH AT END OF PERIOD $ 586,173 $ 434,812
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