UQM Technologies Reports Fourth Quarter and Fiscal 2003 Operating Results
FREDERICK, Colo., May 28, 2003 -- UQM TECHNOLOGIES, INC. (AMEX:UQM) , a developer of alternative energy technologies, announced today operating results for the quarter and fiscal year ended March 31, 2003. Operations for the fourth quarter resulted in a net loss of $839,640 or $0.04 per common share on total revenue of $2,939,008 versus a net loss of $4,736,345 or $0.27 per common share on total revenue of $4,497,990 for the fourth quarter last year. Net loss for the fourth quarter this year included a charge for the impairment of inventory of $392,733 or $0.02 per common share and net loss for the fourth quarter of last fiscal year included a charge for the write-down of goodwill of $4,348,633 or $0.25 per common share.
Continuing operations for the fiscal year ended March 31, 2003 resulted in a loss of $3,413,679 or $0.18 per common share on total revenue of $15,486,408 versus a loss from continuing operations of $6,271,555 or $0.36 per common share on total revenue of $21,395,240 last fiscal year. Continuing operations this fiscal year included charges for the impairment of inventory of $942,733 or $0.05 per common share and for the write-down of assets of $140,471 or $0.01 per common share. Continuing operations last fiscal year included charges for the write-down of goodwill of $4,348,633 or $0.25 per common share and for the impairment of inventory of $341,632 or $0.02 per common share. Net loss for the fiscal year was $3,598,650 or $0.19 per common share versus a net loss last year of $8,592,655 or $0.49 per common share.
"Our contract electronics manufacturing business unit continued to be adversely impacted by the significant downturn in the industry, experiencing a further decline in revenue of 42 percent for the fiscal year. During the year, we increased our reserves for potentially unrealizable electronic component inventory by $942,733 to reflect lower market prices for these inventories and collection risk on inventory obligations of certain customers. As a result, losses for our electronic segment were $3,074,375 or $0.16 per common share representing 85 percent of consolidated losses for the year. As a result of the decline in revenue during the year, working capital needs to fund the business correspondingly declined resulting in $488,905 of net cash provided by operating activities for the fiscal year and an increase in cash on hand to $2.5 million at March 31, 2003," said Donald A. French, UQM Technologies' Treasurer and Chief Financial Officer.
"Although our contract manufacturing business experienced a serious decline in revenue during the fiscal year, our wheelchair motor sales increased 3 percent to $4.1 million and as a result our mechanical product segment net earnings for the year increased three-fold to $69,527," said William G. Rankin, UQM Technologies President and Chief Executive Officer. "On the technology front we had a very exciting and productive year announcing a number of important developments related to our technology portfolio and a significant expansion in the breadth of military programs incorporating our propulsion systems including the following:
-- The completion of the design and testing of a prototype modular power
electronic inverter that is 96 percent efficient and one-third the
size of similarly rated conventional inverters.
-- The fielding of four additional hybrid electric HUMVEEs powered by
UQM(R) propulsion systems and delivery of systems for two additional
HUMVEEs capable of operation at a depth of 60 inches below water
allowing the hybrid electric HUMVEE to achieve fordable operations.
-- A contract to provide high torque wheel mounted propulsion motors for
the Unmanned Ground Combat Vehicle being developed by a team
consisting of Carnegie Mellon, Boeing, PEI Electronics and Timoney.
-- The deployment of a UQM(R) motor/generator and electronic controller
in a strategic power assist hybrid electric system developed and
patented by Electromotive, Inc.
-- Selection as the propulsion system lead on the Carnegie Mellon
Gladiator Tactical Unmanned Ground Vehicle Program.
-- The award of a U.S. Department of Defense contract to evaluate the
optimum configuration for an advanced electric vehicle.
-- The development and successful testing of a UQM(R) permanent magnet
motor system that achieves a 10 to 1 constant power speed ratio, which
is greater than twice that of the next best performing motor
technology.
-- The award of a U.S. Marine Corps contract to define a hybrid electric
propulsion system for small unmanned ground combat vehicles.
-- Receipt of a U.S. Patent on our innovative and low cost method for
accurately sensing rotor position.
In addition to these developments, CNBC's "Squawk Box" aired a segment featuring hybrid electric vehicles powered by UQM(R) propulsion systems including a United Parcel Service delivery vehicle, a military HUMVEE and two John Deere products, a 7000 series farm tractor and a 300 series lawn and garden tractor. This is the second time the Company and its technology were featured to a national television audience in fifteen months," added Mr. Rankin. "Although the economic downturn has weighed heavily on the performance of our contract electronics business, it was an exciting and productive year for our technology operations."
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 1-415-537-1862 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 1-800-633-8284 and give reservation number 21145077. For international callers, dial 1-402-977-9140.
UQM Technologies, Inc. is a developer and manufacturer of power dense, high efficiency electric motors, generators and power electronic controllers for the automotive, aerospace, medical, military and industrial markets. A major emphasis of the Company is developing products for the alternative energy technologies sector including power systems for battery hybrid and fuel cell electric vehicles, 42 volt under-the-hood power accessories and other vehicle auxiliaries and distributed power generation applications. The Company's headquarters, engineering and product development center and motor manufacturing operation are located in Frederick, Colorado. Its electronic products manufacturing facility is located in St. Charles, Missouri. For more information on the Company, please visit its worldwide website at www.uqm.com .
This press release contains statements that constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act. These statements appear in a number of places in this press release and include statements regarding our plans, beliefs or current expectations, including those plans, beliefs and expectations of our officers and directors with respect to, among other things, the development of markets for our products. Important risk factors that could cause actual results to differ from those contained in the forward- looking statements include our ability to be profitable, our ability to obtain additional financing, our reliance on major customers and suppliers, our ability to commercialize our products and the possibility that product liability insurance may become available to us.
UQM TECHNOLOGIES, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
Quarter Ended March 31, Year Ended March 31,
2003 2002 2003 2002
Revenue:
Contract services $759,828 793,331 2,985,639 2,999,342
Product sales 2,179,180 3,704,659 12,500,769 18,395,898
2,939,008 4,497,990 15,486,408 21,395,240
Operating costs
and expenses:
Costs of contract
services 643,793 451,496 2,583,889 2,053,745
Costs of product
sales 2,415,474 3,668,532 12,775,074 17,231,561
Research and
development 15,004 11,746 117,735 98,940
General and
administrative 667,643 771,451 3,579,407 3,729,064
Amortization of
goodwill -- 67,587 -- 270,348
Write-down
of assets 40,358 2,443 140,471 --
Write-down
of goodwill -- 4,348,633 -- 4,348,633
3,782,272 9,321,888 19,196,576 27,732,291
Loss from
continuing
operations
before other
income
(expense) (843,264) (4,823,898) (3,710,168) (6,337,051)
Other income
(expense):
Interest income 6,444 5,767 28,035 64,067
Interest expense (21,684) (79,283) (68,050) (372,084)
Gain on sale of
real estate -- 161,069 322,139 379,997
Other 18,864 -- 14,365 (6,484)
3,624 87,553 296,489 65,496
Loss from
continuing
operations (839,640) (4,736,345) (3,413,679) (6,271,555)
Discontinued
operations:
Loss from
operations of
discontinued
gear division -- -- -- (644,650)
Loss on disposal
of gear division
including
operating losses
during phase-out
period -- -- (184,971) (1,676,450)
(839,640) -- (184,971) (2,321,100)
Net loss $(839,640) (4,736,345) (3,598,650) (8,592,655)
Net loss per
common share
basic and
diluted:
Continuing
operations ($0.04) (.27) (.18) (.36)
Discontinued
operations -- -- (.01) (.13)
($0.04) (.27) (.19) (.49)
Weighted average
number of shares of
common stock
outstanding - basic
and diluted 18,844,504 17,670,511 18,789,243 17,548,130
UQM TECHNOLOGIES, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
March 31, March 31,
Assets 2003 2002
Current assets:
Cash and cash equivalents $2,476,276 1,411,509
Accounts receivable 1,034,002 2,662,554
Costs and estimated earnings in excess
of billings on uncompleted contracts 187,484 442,213
Inventory obligations of certain
customers, net 789,767 402,962
Inventories 1,620,262 4,233,350
Prepaid expenses 112,568 220,528
Equipment of discontinued operations
held for sale, net -- 1,253,432
Other -- 130,934
Total current assets 6,220,359 10,757,482
Property and equipment, at cost:
Land 181,580 181,580
Building 2,296,957 1,247,265
Machinery and equipment 6,962,596 8,622,471
9,441,133 10,051,316
Less accumulated depreciation (4,944,608) (5,482,194)
Net property and equipment 4,496,525 4,569,122
Patent and trademark costs, net of
accumulated amortization of $276,218
and $219,084 751,473 757,059
Other assets 24,205 45,872
$11,492,562 16,129,535
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $975,344 2,693,312
Other current liabilities 794,575 568,554
Current portion of deferred gain
on sale of real estate -- 322,139
Current portion of long-term debt 116,921 562,043
Term debt and accrued future losses
of discontinued operations -- 789,960
Revolving line-of-credit -- 2,254,000
Billings in excess of costs and
estimated earnings on uncompleted
contracts 223,378 382,739
Total current liabilities 2,110,218 7,572,747
Long-term debt, less current portion 1,072,341 1,108,023
Total liabilities 3,182,559 8,680,770
Stockholders' equity:
Common stock, $.01 par value,
50,000,000 shares authorized;
18,844,515 and 17,679,848
shares issued 188,445 176,798
Additional paid-in capital 55,885,486 51,444,359
Accumulated deficit (47,356,028) (43,757,378)
Accumulated other comprehensive loss (384,300) (384,300)
Note receivable from officer (23,600) (30,714)
Total stockholders' equity 8,310,003 7,448,765
$11,492,562 16,129,535
The following table summarizes significant financial statement information
for continuing operations of each of the reportable segments for the year
ended March 31, 2003:
Mechanical Electronic
Technology Products Products Total
Revenue $3,416,032 4,136,328 7,934,048 15,486,408
Interest income 26,586 1,449 -- 28,035
Interest expense -- (60,761) (7,289) (68,050)
Depreciation and
amortization (311,440) (203,732) (840,687) (1,355,859)
Write-down of
other assets (15,886) (10,498) (114,087) (140,471)
Segment earnings
(loss) from
continuing
operations (408,831) 69,527 (3,074,375) (3,413,679)
Net loss (408,831) (115,444) (3,074,375) (3,598,650)
Total segment
assets 4,167,175 3,055,249 4,270,138 11,492,562
Expenditures for
segment assets $(319,224) (1,093,430) (5,493) (1,418,147)
The following table summarizes significant financial statement information
for continuing operations of each of the reportable segments for the year
ended March 31, 2002:
Mechanical Electronic
Technology Products Products Total
Revenue $3,747,725 4,001,270 13,646,245 21,395,240
Interest income 61,207 2,860 -- 64,067
Interest expense -- (34,459) (337,625) (372,084)
Depreciation and
amortization (321,466) (164,324) (849,778) (1,335,568)
Goodwill
amortization -- -- (270,348) (270,348)
Write-down
of goodwill -- -- (4,348,633) (4,348,633)
Segment earnings
(loss) from
continuing
operations 32,078 23,160 (6,326,793) (6,271,555)
Net earnings (loss) 32,078 (2,297,940) (6,326,793) (8,592,655)
Assets of
continuing
operations 5,019,416 2,755,640 6,873,779 14,648,835
Assets of
discontinued
operations -- 1,480,700 -- 1,480,700
Total segment
assets 5,019,416 4,236,340 6,873,779 16,129,535
Expenditures for
segment assets $(258,079) (14,454) (315,672) (588,205)