puraDYN Announces 45 Percent Revenue Growth in 2002
BOYNTON BEACH, Fla.--April 3, 2003--puraDYN Filter Technologies Inc. (AMEX:PFT), the global bypass oil filtration system company, today announced financial results for the year ended December 31, 2002. Net sales for the year totaled $2.14 million as compared with $1.47 million in 2001, an increase of 45%.puraDYN's President and Chief Operating Officer Kevin G. Kroger commented, "Results for 2002 reflected a substantial improvement in our operations. Our goal to increase our distributor network was met, as we signed international and domestic distributors throughout the year. In addition, we signed a strategic alliance with Honeywell Consumer Products Group, manufacturer of FRAM(R) filters, to co-brand and sell our systems through their dealer network. We expect continued significant revenue growth in the upcoming year as we continue to implement and build the quality of our expanding distribution network."
Current milestones include:
| -- | Significant inroads with one of the world's largest manufacturers of power generation sets; |
| -- | Dramatic increases in our domestic and international distributor networks; |
| -- | The addition of PACCAR (manufacturer of Peterbilt and Kenworth trucks) to our existing aftermarket programs with Mack Trucks and Volvo Trucks North America; |
| -- | Move to new headquarters which doubled the manufacturing space in anticipation of increased production needs through 2003 and forward; |
| -- | Further strengthening of the Sales, Manufacturing, Engineering and Quality Control departments with key personnel; |
| -- | Enhancements to the PFT product design to increase end user value and acceptance; |
| -- | Evaluations of puraDYN(R) systems undertaken by engine and truck manufacturers. |
In 2002, net loss was $3.52 million ($0.23 per share on a diluted basis) as compared with a net loss of $4.56 million the previous year ($0.31 per share on a diluted basis). A full summary of year-end results is attached.
Kroger said, "We are concentrating on further expanding sales with our existing business relationships and also developing new opportunities in other key market segments in which we are making significant inroads."
The puraDYN(R) bypass oil filtration system is designed to safely extend oil drain intervals by allowing engines to operate on continuously clean oil. The system will dramatically reduce end-user operating expenses, maintenance costs, capital expenses and environmental damage.
About puraDYN Filter Technologies Inc.
puraDYN (AMEX:PFT) designs, manufactures and markets the puraDYN(R) Bypass Oil Filtration System, the most effective filtration product on the market today. It continuously cleans lubricating oil and maintains oil viscosity to safely and dramatically extend oil change intervals and engine life. Effective for internal combustion engines, transmissions and hydraulic applications, the company's patented and proprietary system is a cost-effective and energy-conscious solution targeting an annual $13 billion potential market. The Company has established aftermarket programs with several of the transportation industry leaders such as Volvo Trucks NA, Mack Trucks, PACCAR; a strategic alliance with Honeywell Consumer Products Group, producers of FRAM(R) filtration products; and continues to market to major commercial fleets. puraDYN equipment has been certified as a 'Pollution Prevention Technology" by the California Environmental Protection Agency.
Statements in this press release which are not historical data are forward-looking statements which involve known and unknown risks, uncertainties or other factors not under the Company's control, including but not limited to the possible inability to raise capital funds, lack of protection from intellectual property, vulnerability because of manufacturing a limited number of products, dependence on distributors, and the possibility that the products do not meet customers' needs, which may cause actual results, performance or achievements of the Company to be materially different from the results, performance or other expectations implied by these forward-looking statements. These factors include, but are not limited to, those detailed in the Company's periodic filings with the Securities and Exchange Commission.
puraDYN Filter Technologies, Inc.
Consolidated Statements of Earnings
Year Ended December 31
2002 2001
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Net sales $2,137,118 $1,472,307
Costs and expenses:
Cost of products sold 2,058,439 1,850,404
Salaries and wages 1,871,723 1,755,300
Selling and administrative 1,522,337 2,878,510
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Total costs and expenses 5,452,499 6,484,214
Loss from operations (3,315,381) (5,011,907)
Other (expense) income:
Investment (loss) income (22,406) 484,367
Interest income 52,553 23,249
Interest expense (230,482) (52,459)
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Total other (expense) income (200,335) 455,157
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Net loss $(3,515,716) $(4,556,750)
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Basic and diluted loss per common share $(0.23) $(0.31)
Weighted average common shares
outstanding 15,588,539 14,733,287
Balance Sheet Highlights
As of December 31, 2002
Cash and cash equivalents $633,024
Total shareholders equity $735,062