UQM Technologies Reports Third Quarter Operating Results
FREDERICK, Colo., Jan. 27, 2005 -- UQM TECHNOLOGIES, INC. (AMEX:UQM) , a developer of alternative energy technologies, announced today operating results for the quarter ended December 31, 2004. Continuing operations for the third quarter resulted in a loss of $367,172 or $0.02 per common share on total revenue of $1,307,583 versus a loss from continuing operations of $260,552 or $0.02 per common share on total revenue of $1,187,181 for the third quarter last year. Net loss for the quarter was $392,980 or $0.02 per common share versus a net loss of $1,511,768 or $0.08 per common share for the comparable quarter last year.
Continuing operations for the nine months ended December 31, 2004 resulted in a loss of $1,443,354 or $0.07 per common share on total revenue of $3,226,056 versus a loss from continuing operations of $902,774 or $0.05 per common share on total revenue of $4,276,100 for the comparable period last year. Net loss for the nine month period was $1,488,134 or $0.07 per common share versus a net loss of $2,904,075 or $0.15 per common share for the comparable period last year.
"The demand for hybrid vehicle technology, specifically electric propulsion systems and under-the-hood auxiliaries, is spreading beyond the automobile market to trucks, buses, as well as off-road and military vehicles," said William G. Rankin, President and Chief Executive Officer of UQM Technologies, Inc. "The Company is well positioned to participate in this emerging market with its breadth of advanced products and established relationships with industry-leading customers. We are also making progress in penetrating existing niche markets where we expect that the superior size, weight, efficiency and performance of our systems will allow us to displace current electric motor suppliers and lead to near-term production programs. We expect to continue to invest the cash proceeds of our recent follow-on offering in the further expansion of our production engineering group and the selective investment in high production potential programs."
"Total revenue for the quarter rose 10 percent to $1,307,583 versus the comparable quarter last year driven by increased shipments of wheelchair propulsion motors. Mechanical products segment revenue more than doubled to $507,031 versus $218,302 for the third quarter last year. Contract services revenue for the quarter declined to $598,323 from $870,210 for the comparable quarter last year due to a decrease in billable engineering hours associated with the allocation of engineering manpower to bid and proposal opportunities, programs with cost overruns and production engineering support activities. Loss from continuing operations for the quarter rose to $367,172 versus $260,552 for the same quarter last year due to the launch of a production engineering group, which resulted in additional operating costs of $93,479 for the quarter, and lower gross profit margins on contract services. During the quarter we completed a follow-on offering of our common stock which increased our available cash balances and short-term investments to $8.6 million," said Donald A. French, UQM Technologies Treasurer and Chief Financial Officer.
The Company will host a conference call today at 4:30 p.m. Eastern Standard Time to discuss operating results for the quarter and nine months ended December 31, 2004. To attend the conference call, please dial 1-877-236-1078 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 approximately four hours after the call. To access the playback dial 1-800-938-1584. International callers should dial 1-402-220-1542.
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 propulsion systems for electric, hybrid electric 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. 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 are contained in our Form 10-Q filed January 27, 2005 and is available through our website at www.uqm.com or at www.sec.gov.
UQM TECHNOLOGIES, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(unaudited)
Quarter Ended Nine Months Ended
December 31, December 31,
2004 2003 2004 2003
Revenue:
Contract services $598,323 870,210 1,605,622 2,209,514
Product sales 709,260 316,971 1,620,434 2,066,586
1,307,583 1,187,181 3,226,056 4,276,100
Operating costs and
expenses:
Costs of contract
services 612,544 645,401 1,776,612 1,685,198
Costs of product sales 581,591 280,196 1,366,324 1,739,669
Research and
development 42,875 97,892 138,550 394,405
Production engineering 93,479 -- 93,479 --
General and
administrative 357,062 410,815 1,295,053 1,313,242
1,687,551 1,434,304 4,670,018 5,132,514
Loss from continuing
operations before
other income
(expense) (379,968) (247,123) (1,443,962) (856,414)
Other income (expense):
Interest income 30,947 7,886 47,736 18,956
Interest expense (18,151) (21,315) (57,128) (65,916)
Other -- -- 10,000 600
12,796 (13,429) 608 (46,360)
Loss from continuing
operations (367,172) (260,552) (1,443,354) (902,774)
Discontinued operations:
Loss from operations
of discontinued
electronic products
segment (25,808) (1,251,216) (44,780) (2,001,301)
Net loss $(392,980) (1,511,768) (1,488,134) (2,904,075)
Net loss per
common share --
basic and diluted
Continuing
operations $(0.02) (0.02) (0.07) (0.05)
Discontinued
operations -- (0.06) -- (0.10)
$(0.02) (0.08) (0.07) (0.15)
Weighted average number
of shares of common
stock outstanding --
basic and diluted 21,805,231 19,423,379 20,320,749 19,040,352
UQM TECHNOLOGIES, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
December 31, March 31,
2004 2004
(unaudited)
Assets
Current assets:
Cash and cash equivalents $7,530,856 2,958,590
Short-term investment 1,024,669 47,119
Accounts receivable 789,930 512,995
Costs and estimated earnings in excess
of billings on uncompleted contracts 399,720 245,984
Inventories 741,974 428,438
Prepaid expenses and other current assets 145,825 72,649
Assets of discontinued operations -- 1,226,943
10,632,974 5,492,718
Property and equipment, at cost:
Land 181,580 181,580
Building 2,292,687 2,292,687
Machinery and equipment 2,787,087 2,793,343
5,261,354 5,267,610
Less accumulated depreciation (2,846,095) (2,732,291)
Net property and equipment 2,415,259 2,535,319
Patent and trademark costs, net of
accumulated amortization of
$424,832 and $360,266 661,325 692,371
Other assets 850 850
$13,710,408 8,721,258
December 31, March 31,
2004 2004
(unaudited)
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $721,506 392,474
Other current liabilities 275,617 258,258
Current portion of long-term debt 134,319 125,611
Liabilities and commitments of
discontinued operations 148,744 554,564
Billings in excess of costs and
estimated earnings on uncompleted
contracts 161,189 189,252
Total current liabilities 1,441,375 1,520,159
Long-term debt, less current portion 844,432 946,423
Long-term portion of accrued
lease obligation 70,745 192,118
Total long-term liabilities 915,177 1,138,541
Total liabilities 2,356,552 2,658,700
Stockholders' equity:
Common stock, $.01 par value,
50,000,000 shares authorized;
23,174,843 and 19,572,625 shares
issued and outstanding 231,748 195,726
Additional paid-in capital 64,762,728 58,025,631
Accumulated deficit (53,631,115) (52,142,981)
Note receivable from officer (9,505) (15,818)
Total stockholders' equity 11,353,856 6,062,558
$13,710,408 8,721,258
The following table summarizes significant financial statement
information for continuing operations of each of the reportable segments
as of and for the quarter ended December 31, 2004:
Mechanical
Technology Products Total
Revenue $800,552 507,031 1,307,583
Interest income 28,949 1,998 30,947
Interest expense (283) (17,868) (18,151)
Depreciation and amortization (58,318) (27,963) (86,281)
Segment earnings (loss) from
continuing operations (484,558) 117,386 (367,172)
Assets of continuing operations 10,533,453 3,176,955 13,710,408
Expenditures for segment assets $(28,007) (5,165) (33,172)
The following table summarizes significant financial statement
information for continuing operations of each of the reportable segments
for the quarter ended December 31, 2003 except for assets of continuing
operations which are as of March 31, 2004:
Mechanical
Technology Products Total
Revenue $968,879 218,302 1,187,181
Interest income 6,850 1,036 7,886
Interest expense (497) (20,818) (21,315)
Depreciation and amortization (58,155) (32,639) (90,794)
Segment loss from continuing
operations (208,065) (52,487) (260,552)
Assets of continuing operations 4,705,076 2,789,239 7,494,315
Expenditures for segment assets $(29,640) (19,123) (48,763)
The following table summarizes significant financial statement
information for continuing operations of each of the reportable segments
as of and for the nine months ended December 31, 2004:
Mechanical
Technology Products Total
Revenue $2,091,489 1,134,567 3,226,056
Interest income 43,087 4,649 47,736
Interest expense (2,108) (55,020) (57,128)
Depreciation and amortization (183,103) (83,805) (266,908)
Segment earnings (loss) from
continuing operations (1,649,846) 206,492 (1,443,354)
Assets of continuing operations 10,533,453 3,176,955 13,710,408
Expenditures for segment assets $(112,124) (5,912) (118,036)
The following table summarizes significant financial statement
information for continuing operations of each of the reportable segments
for the nine months ended December 31, 2003 except for assets of
continuing operations which are as of March 31, 2004:
Mechanical
Technology Products Total
Revenue $2,708,581 1,567,519 4,276,100
Interest income 15,743 3,213 18,956
Interest expense (3,704) (62,212) (65,916)
Depreciation and amortization (191,986) (134,158) (326,144)
Segment loss from continuing
operations (844,088) (58,686) (902,774)
Assets of continuing operations 4,705,076 2,789,239 7,494,315
Expenditures for segment assets $(134,272) (24,104) (158,376)