UQM Technologies Reports Fourth Quarter and Fiscal 2005 Operating Results
FREDERICK, Colo., May 26, 2005 -- UQM TECHNOLOGIES, INC. (AMEX:UQM) , a developer of alternative energy technologies, announced today operating results for the quarter and fiscal year ended March 31, 2005. Continuing operations for the fourth quarter resulted in a loss of $371,341 or $0.01 per common share on total revenue of $1,537,235 versus a loss from continuing operations of $519,541 or $0.03 per common share on total revenue of $764,804 for the fourth quarter last year. Net loss for the quarter was $380,762 or $0.01 per common share versus a net loss of $1,882,878 or $0.10 per common share for the comparable quarter last year.
Continuing operations for the fiscal year ended March 31, 2005 resulted in a loss of $1,814,695 or $0.09 per common share on total revenue of $4,763,291 versus a loss from continuing operations of $1,422,315 or $0.07 per common share on total revenue of $5,040,904 last fiscal year. Net loss for the fiscal year was $1,868,896 or $0.09 per common share versus a net loss last year of $4,786,953 or $0.25 per common share.
"Loss from continuing operations for the quarter ended March 31, 2005 declined to $371,341 or $0.01 per common share from $519,541 or $0.03 per common share due to higher levels of total revenue which were propelled by nearly a four-fold increase in product sales. Loss from continuing operations for the fiscal year ended March 31, 2005 rose to $1,814,695 or $0.09 per common share versus $1,422,315 or $0.07 per common share last fiscal year reflecting lower margins on contract services and expenditures associated with the expansion of our production engineering activities," said Donald A. French, UQM Technologies' Treasurer and Chief Financial Officer. "In November 2004, we completed a follow-on offering of our common stock which allowed us to complete the fiscal year with cash and short-term investments of nearly $8 million. We expect to continue the implementation of our strategy to invest in the expansion of our production engineering and manufacturing infrastructure to position ourselves to successfully execute on the commercialization of our proprietary technology in both existing and emerging markets."
"During the fiscal year, we continued to make progress in developing products and advancing our technology for both existing as well as new customers," said William G. Rankin, UQM Technologies President and Chief Executive Officer. "We received a number of important engineering development contracts and orders for prototype products for both commercial and military applications. These included:
* Motors, generators and controllers for large hybrid electric buses for
use at Los Angeles International Airport and the 16th Street Mall in
Denver
* Motor/generator and controller systems for Eaton Corporation's heavy
duty hybrid electric propulsion system program with the U.S.
Department of Energy
* An advanced vehicle developed for John Deere incorporating UQM's
latest technology
* Motors and controllers for under-the-hood auxiliaries for Delphi
Corporation, Engineered Machined Products, Inc. and Keith Products,
Inc.
* Motors, generators and controllers for additional large "Spinner"
unmanned ground combat vehicles for Carnegie Mellon's Robotics Center
* Motors, generators and controllers for the small "Gladiator" tactical
unmanned ground vehicle for the U.S. Marine Corps.
* Starter/motor/generators for Stewart & Stevenson's FMTV mid-sized
truck
* Advanced wheel motors and controllers for military vehicles for the
Tank Automotive Command (TACOM)
* An onboard generator for small unmanned military boats for the U.S.
Navy
* A DC to AC inverter for stationary power applications for the U.S.
Department of Energy
"The emergence of hybrid electric vehicles in the automobile market is driving vehicle makers in a wide range of other on-road and off-road markets to consider the strategic and competitive advantages of adopting hybrid electric technology. Customers in these markets typically require hybrid electric propulsion systems of different size and power level than that required in automotive applications. These customers seldom have the internal resources to develop their own systems which we believe will create a breadth of opportunities for our motor and generator products. Nearly every on-road, off-road and military vehicle maker, as well as their major drivetrain suppliers, have launched serious programs to accelerate the adoption of electric power in their products. This is clearly the time for our Company to aggressively pursue these opportunities -- to make selective investments in programs and product developments that we believe could lead to volume production." Added Mr. Rankin, "To support this strategy, we completed a follow-on stock offering during our third fiscal quarter which raised our cash balance and strengthened our balance sheet. This improvement in our financial position has given our existing customers, as well as new customers, a higher level of confidence that we have the financial resources to execute their production intent programs. In addition, we have significantly expanded our manufacturing management and production engineering organization and have plans to add additional human resources to meet the growing demands of our customers who are requiring much more comprehensive quoting and production planning. We are taking the steps which we believe are necessary to successfully participate in this potentially large market and are excited about our growth prospects."
The Company will host a conference call today at 4:30 p.m. Eastern Daylight Time to discuss operating results for the quarter and fiscal year ended March 31, 2005. To attend the conference call, please dial 1-800-725-9502 approximately ten minutes before the conference is scheduled to begin. International callers should dial 1-415-908-6291. 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 21247451. International callers should 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 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 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 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; the adequacy of our cash balances and liquidity to meet future operating needs, and our ability to issue equity or debt securities; and the effect of legal actions and claims that we are involved in. Important Risk Factors that could cause actual results to differ from those contained in the forward-looking statements are contained in our Form 10-K filed May 26, 2005 which is available through our website at www.uqm.com or at www.sec.gov.
UQM TECHNOLOGIES, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
Quarter Ended March 31, Year Ended March 31,
2005 2004 2005 2004
Revenue:
Contract services $675,805 538,319 2,281,427 2,747,833
Product sales 861,430 226,485 2,481,864 2,293,071
1,537,235 764,804 4,763,291 5,040,904
Operating costs
and expenses:
Costs of contract
services 719,611 529,998 2,496,223 2,215,196
Costs of product
sales 628,216 220,880 1,994,540 1,960,549
Research and
development 33,368 66,818 171,918 461,223
Production
engineering 118,454 -- 211,933 --
General and
administrative 391,356 488,394 1,686,409 1,799,472
Impairment of
long-lived assets 39,748 28,359 39,748 30,523
1,930,753 1,334,449 6,600,771 6,466,963
Loss from
continuing
operations
before other
income
(expense) (393,518) (569,645) (1,837,480) (1,426,059)
Other income (expense):
Interest income 49,452 7,406 97,188 26,362
Interest expense (16,877) (18,277) (74,005) (84,193)
Gain on sale of
Taiwan joint
venture -- 60,975 -- 60,975
Other (10,398) -- (398) 600
22,177 50,104 22,785 3,744
Loss from
continuing
operations (371,341) (519,541) (1,814,695) (1,422,315)
Discontinued operations:
Loss from operations
of discontinued
electronic
products segment
(including loss on
disposal in 2004
of $770,434) (9,421) (1,363,337) (54,201) (3,364,638)
(9,421) (1,363,337) (54,201) (3,364,638)
Net loss $(380,762) (1,882,878) (1,868,896) (4,786,953)
Net loss per
common share
- basic and
diluted
Continuing
operations $(.01) (.03) (.09) (.07)
Discontinued
operations -- (.07) -- (.18)
$(.01) (.10) (.09) (.25)
Weighted average
number of shares of
common stock
outstanding - basic
and diluted 23,175,893 19,572,571 21,024,757 19,172,680
UQM TECHNOLOGIES, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
March 31, 2005 March 31, 2004
Assets
Current assets:
Cash and cash equivalents $5,776,750 2,958,590
Short-term investment 2,210,727 47,119
Accounts receivable 911,416 512,995
Costs and estimated earnings
in excess of billings on
uncompleted contracts 435,925 245,984
Inventories 648,173 428,438
Prepaid expenses and other
current assets 109,640 72,649
Assets of discontinued operations -- 1,226,943
10,092,631 5,492,718
Property and equipment, at cost:
Land 181,580 181,580
Building 2,292,687 2,292,687
Machinery and equipment 2,422,034 2,793,343
4,896,301 5,267,610
Less accumulated depreciation (2,443,590) (2,732,291)
Net property and equipment 2,452,711 2,535,319
Patent and trademark costs, net of
accumulated amortization of $450,011
and $360,266 613,448 692,371
Other assets 850 850
$13,159,640 8,721,258
March 31, 2005 March 31, 2004
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $678,007 392,474
Other current liabilities 269,746 258,258
Current portion of long-term debt 135,255 125,611
Liabilities and commitments of
discontinued operations 154,287 554,564
Billings in excess of costs and
estimated earnings on
uncompleted contracts 66,510 189,252
Total current liabilities 1,303,805 1,520,159
Long-term debt, less current portion 810,915 946,423
Long-term liabilities and commitment
of discontinued operations 57,051 192,118
Total long-term liabilities 867,966 1,138,541
Total liabilities 2,171,771 2,658,700
Stockholders' equity:
Common stock, $.01 par value,
50,000,000 shares authorized;
23,177,133 and 19,572,625 shares
issued and outstanding 231,771 195,726
Additional paid-in capital 64,767,975 58,025,631
Accumulated deficit (54,011,877) (52,142,981)
Note receivable from officer -- (15,818)
Total stockholders' equity 10,987,869 6,062,558
$13,159,640 8,721,258
The following table summarizes significant financial statement information for continuing operations of each of the reportable segments for the year ended March 31, 2005:
Mechanical
Technology Products Total
Revenue $3,089,114 1,674,177 4,763,291
Interest income 89,869 7,319 97,188
Interest expense (2,108) (71,897) (74,005)
Depreciation and amortization (245,735) (109,682) (355,417)
Write-down of assets (39,748) -- (39,748)
Segment earnings (loss) from
continuing operations (1,869,518) 54,823 (1,814,695)
Assets of continuing
operations 9,967,003 3,192,637 13,159,640
Expenditures for
segment assets $(194,873) (49,434) (244,307)
The following table summarizes significant financial statement information for continuing operations of each of the reportable segments for the year ended March 31, 2004:
Mechanical
Technology Products Total
Revenue $3,339,939 1,700,965 5,040,904
Interest income 22,054 4,308 26,362
Interest expense (3,704) (80,489) (84,193)
Depreciation and amortization (278,894) (168,558) (447,452)
Write-down of assets (30,523) -- (30,523)
Segment loss from
continuing operations (1,289,738) (132,577) (1,422,315)
Assets of continuing
operations 4,705,076 2,789,239 7,494,315
Expenditures for
segment assets $(175,303) (27,554) (202,857)