Clean Diesel Technologies Reports 2003 Third-Quarter Results
STAMFORD, Conn.--Nov. 5, 2003--Clean Diesel Technologies Inc. (CDT) (EBB:CDTI) (AIM:CDT) (AIM:CDTS) today reported an increase in revenue for the third quarter of 2003 and year-to-date over prior year periods. Total revenue for this year's third quarter was $99,000 with a net loss of $664,000, or $0.05 loss per share. This compares to total revenue of $51,000 and a net loss of $717,000, or $0.06 loss per share, for the same period in 2002. For the first nine months ended Sept. 30, 2003, total revenue was $478,000 with a net loss of $2,156,000 or $0.18 loss per share. In the comparable 2002 period, revenue was $141,000 with a net loss of $2,240,000 or $0.20 loss per share. The rise in revenue was generated from both increased sales of its Platinum Plus(R) fuel-borne catalyst (FBC) and from increased ARIS(R) license, sales and royalty income.President and Chief Operating Officer James M. Valentine commented, "The increase in sales is attributable to the many applications of the FBC, including power generation, off-road and mining machinery, as well as the fuel-economy product. Early in 2003 the CDT-CleanAir Systems FBC/filter was accepted by Mining Safety Health Administration (MSHA) for use in underground mines as a result of the 85 percent particulate matter (PM) reduction without increasing nitrogen dioxide (NO2) which is a strong lung irritant produced from heavily-catalyzed systems. The CDT-CleanAir Systems FBC/filter is the only precious-metal catalytic system accepted by MSHA for use in underground mines."
In October 2003 CDT announced that its Platinum Plus Purifier System had been verified by the Environmental Protection Agency (EPA) under the rigorous Environmental Technology Verification (ETV) program for 40 percent (on normal No. 2 diesel fuel) to 50 percent (on ultra-low sulfur fuel) reduction in PM emissions on the retrofit of 1988-1993 diesel engines. The Platinum Plus Purifier System uses a lightly catalyzed diesel-oxidation catalyst (DOC) and the company's patented fuel-borne catalyst (FBC) to deliver twice as much particulate reduction as a traditional DOC at a lower cost.
Valentine also noted, "The company expects to receive its initial orders for the verified Platinum Plus System in the next few months. The system is being marketed to local delivery fleets, school buses, refuse trucks and municipal fleets with older, dirtier engines. The lower capital cost of the Platinum Plus Purifier system allows up to five vehicles to be retrofitted at the same cost as one vehicle retrofit for a traditional, heavily-catalyzed diesel particulate filter."
CDT intends to supply verified systems directly to end-users and through a planned network of licensed distributors. The Platinum Plus FBC can be delivered pre-blended in fuel by licensed fuel suppliers, or added to fuel on site by end-users using automatic dosing systems. Several on-board dosing systems are also under development.
Also during the third quarter, the company completed a $3.9 million private placement of its common stock with several current non-U.S. shareholders and PUREarth Inc., a wholly-owned subsidiary of Mitsui & Co. Ltd of Japan.
CDT and PUREarth have been working together for the last year on several programs to verify the emission reduction performance of PUREarth's catalyzed wire-mesh filter (CWMF) and CDT's Platinum Plus FBC. Initial testing of the FBC/CWMF system achieved particulate reductions of 65-70 percent which would qualify as a Level 2 reduction with the California Air Resources Board (CARB). Application for retrofit verification of the FBC/CWMF system has been submitted to the EPA and CARB. Final durability testing to complete verification testing requirements is awaiting test cell availability. Mitsui has also exclusively licensed the company's ARIS urea selective catalytic NOx reduction technology for stationary and mobile applications in Japan.
Full financial information is included in the company's Form 10-Q filed with the Securities and Exchange Commission (www.SEC.gov).
About Clean Diesel Technologies Inc.
Clean Diesel Technologies is a specialty chemical company with patented products that reduce emissions from diesel engines while simultaneously improving fuel economy. Products include Platinum Plus(R) fuel-borne catalysts which reduce engine-out emissions of particulate matter (PM), carbon monoxide (CO) and hydrocarbons (HC), while improving fuel economy and also increasing the regeneration of diesel particulate filters, and the ARIS(R) 2000 urea-injection systems for selective catalytic reduction of NOx.
Note to Editors:Platinum Plus and ARIS are registered trademarks of Clean Diesel Technologies Inc.
Certain statements in this news release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known or unknown risks, including those detailed in the Company's filings with the Securities and Exchange Commission, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof.
TABLES FOLLOW
CLEAN DIESEL TECHNOLOGIES INC.
STATEMENTS OF OPERATIONS
(Unaudited)
(in thousands except per share data)
Three Months Nine Months
Ended Ended
Sept. 30, Sept. 30,
2003 2002 2003 2002
Revenue:
Product revenue $ 81 $ 39 $ 291 $ 115
License and royalty revenue 18 12 187 26
Total revenue 99 51 478 141
Costs and expenses:
Cost of sales 47 17 167 72
General and administrative 517 569 1,855 1,704
Research and development 171 185 590 597
Patent filing and
maintenance 29 4 29 31
Loss from operations (665) (724) (2,163) (2,263)
Interest income 1 7 7 32
Interest expense -- -- -- (9)
Net loss $ (664) $ (717) $(2,156) $(2,240)
Basic and diluted loss per
common share $ (0.05) $ (0.06) $ (0.18) $ (0.20)
Weighted average number of
common shares
outstanding -- basic and
diluted 12,119 11,241 12,021 11,232
CLEAN DIESEL TECHNOLOGIES INC.
BALANCE SHEET
(in thousands except share data)
Sept. 30, Dec. 31,
2003 2002
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 3,994 $ 2,083
Accounts receivable 151 284
Inventories 299 314
Other current assets 63 76
Total current assets 4,507 2,757
Patents, net 230 114
Other assets 114 108
Total assets $ 4,851 $ 2,979
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued expenses $ 363 $ 223
Total current liabilities 363 223
Deferred compensation and pension benefits 441 418
Total long term liabilities 441 418
Stockholders' equity:
Preferred stock, par value $.05 per share,
authorized 80,000 shares, no shares issued
and outstanding -- --
Series A convertible preferred stock, par
value $.05 per share, $500 per share
liquidation preference, authorized 20,000
shares, no shares issued and outstanding -- --
Common stock, par value $0.05 per share,
authorized 30,000,000 and 15,000,000 shares,
issued and outstanding 14,381,016 and
11,968,387 shares, respectively 719 598
Additional paid-in capital 32,263 28,519
Accumulated deficit (28,935) (26,779)
Total stockholders' equity 4,047 2,338
Total liabilities and stockholders' equity $ 4,851 $ 2,979