Clean Diesel Technologies Reports 2005 Third-Quarter Results
STAMFORD, Conn.--Nov. 1, 20054, 2005--Clean Diesel Technologies Inc. ("Clean Diesel") (OTCBB:CDTI) (AIM:CDT) (AIM:CDTS), a developer of chemical and technological solutions to reduce harmful engine emissions, today reported revenues for the third quarter of 2005 and for the nine-month period ended Sept. 30, 2005.Revenues in the third quarter were lower than in the same period of 2004 but revenues for the nine-month period ended Sept. 30, 2005, increased compared to the same period of 2004. Total revenue for this year's third quarter was $166,000 with a net loss of $1,489,000, or $0.09 loss per share. This compares to total revenue of $241,000 and a net loss of $1,243,000, or $0.08 loss per share, for the same period in 2004. For the nine months ended Sept. 30, 2005, total revenue was $626,000 with a net loss of $3,966,000, or $0.23 loss per share. In the comparable 2004 period, revenue was $528,000, with a net loss of $2,936,000, or $0.19 loss per share.
Revenues increased for the nine months ended Sept. 30, 2005, in both additive and hardware sales as a result of a successful program completion with the state of Pennsylvania for the EPA-verified Platinum Plus(R) Purifiers and increased additive sales in the mining and off-road sectors. In the third quarter Clean Diesel committed significant resources to responding to questions posed by the EPA, as well as finalizing agreements with Mitsui for the transfer of the wire mesh filter intellectual property and completing the Fleetguard blending and distribution agreement for Platinum Plus. These programs were all completed and announced in September. The results from testing of the Platinum Plus fuel-borne catalyst over eight months by EPA-approved laboratories confirmed that any potential allergenic platinum emissions from use of the product were hundreds to thousands of times below the lowest published safe exposure level and were consistent with reported platinum emissions from catalyzed emission control devices.
The acquisition of the wire mesh filter technology and the distribution agreement with Fleetguard are expected to support revenue growth in the near term.
General and administrative expenses increased in 2005 versus 2004 as a result of higher personnel and related costs in the U.S. and Europe. In the last 12 months, Clean Diesel hired a new CEO, vice president and chief technology officer and a manager in Europe in order to strengthen its commercialization effort. Clean Diesel also incurred increased expenses in 2005 related to the EPA testing.
As previously announced on Nov. 7, 2005, Clean Diesel completed a $6.3 million (GBP 3.6 million) private placement of its common stock with several existing and new shareholders, as well as directors and management.
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 Inc. and its U.K. representative office, Clean Diesel International LLC, is a developer of chemical and technological solutions to reduce harmful engine emissions. Clean Diesel Technologies has patented products that reduce emissions from combustion engines while simultaneously improving fuel economy and power. Products include Platinum Plus(R) fuel-borne catalysts (FBC), the Platinum Plus Purifier System and the ARIS(R) 2000 urea-injection systems for selective catalytic reduction of NOx. Platinum Plus and ARIS are registered trademarks of Clean Diesel Technologies Inc. For more information, visit CDT at www.cdti.com or contact the company directly.
TABLES FOLLOW
CLEAN DIESEL TECHNOLOGIES INC.
STATEMENTS OF OPERATIONS
(Unaudited)
(in thousands except per share data)
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30,
2005 2004 2005 2004
Revenue:
Additive revenue $97 $88 $283 $199
Hardware revenue 56 135 314 280
License and royalty revenue 13 18 29 49
Total revenue 166 241 626 528
Costs and expenses:
Cost of revenue 102 149 373 334
General and administrative 1,260 1,150 3,635 2,761
Research and development 222 174 369 344
Patent amortization and other
expense 61 22 125 61
Loss from operations (1,479) (1,254) (3,876) (2,972)
Foreign currency exchange
gain/(loss) (12) -- (106) --
Interest income 2 11 16 36
Net loss attributable to common
stockholders $(1,489) $(1,243) $(3,966) $(2,936)
Basic and diluted loss per common
share $(0.09) $(0.08) $(0.23) $(0.19)
Weighted average number of common
shares outstanding - basic and
diluted 17,193 15,757 17,176 15,719
CLEAN DIESEL TECHNOLOGIES INC.
BALANCE SHEETS
(in thousands, except per share data)
Sept. 30, Dec. 31,
2005 2004
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $494 $4,265
Accounts receivable, net of allowance of $10 and
$3 in 2004 and 2003, respectively 101 145
Inventories 265 387
Other current assets 85 71
Total current assets 945 4,868
Patents, net 530 418
Fixed assets, net of accumulated depreciation of
$233 in 2005 and $188 in 2004, respectively 193 200
Other assets 27 27
Total assets $1,695 $5,513
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable and accrued expenses $468 $391
Total current liabilities 468 391
STOCKHOLDERS' EQUITY:
Preferred Stock, par value $0.05 per share,
authorized 100,000 and 80,000 respectively, no
shares issued and outstanding -- --
Common Stock, par value $0.05 per share,
authorized 30,000,000 shares, issued and
outstanding 17,193,047 and 17,165,868 shares
respectively 860 858
Additional paid-in capital 38,500 38,431
Accumulated deficit (38,133) (34,167)
Total stockholders' equity 1,227 5,122
Total liabilities and stockholders' equity $1,695 $5,513