UQM Technologies Reports Third Quarter and Nine Month Operating Results
FREDERICK, Colo., Jan. 26, 2006 -- UQM TECHNOLOGIES, INC. (AMEX:UQM) , a developer of alternative energy technologies, announced today operating results for the quarter and nine months ended December 31, 2005. Continuing operations for the third quarter resulted in a loss of $536,106 or $0.02 per common share on total revenue of $1,144,156 versus a loss from continuing operations of $367,172 or $0.02 per common share on total revenue of $1,307,583 for the third quarter last year. Net loss for the quarter was $518,064 or $0.02 per common share versus a net loss of $392,980 or $0.02 per common share for the comparable quarter last year.
Continuing operations for the nine months ended December 31, 2005 resulted in a loss of $1,799,918 or $0.08 per common share on total revenue of $3,181,361 versus a loss from continuing operations of $1,443,354 or $0.07 per common share on total revenue of $3,226,056 last fiscal year. Net loss for the nine months was $1,825,577 or $0.08 per common share versus a net loss for the nine month period last year of $1,488,134 or $0.07 per common share.
"Operating results for the quarter and nine months ended December 31, 2005 reflect the impact of additional investment in establishing a production engineering group. Production engineering expenditures rose to $224,792 and $564,358 for the quarter and nine months versus $93,479 for each comparable period last fiscal year," said William G. Rankin, President and Chief Executive Officer of UQM Technologies, Inc. "This investment is beginning to bear fruit, evidenced by an initial order for 10,000 motors we received from a new customer in November 2005 that will begin to generate revenue in February 2006 and by numerous additional opportunities identified by our recently hired National Sales Manager, Doug Smeltzer, that we are aggressively pursuing."
"Contract services revenue for the quarter rose 11 percent to $664,481, driven by a strong backlog of projects while low volume product sales rose 43 percent to $289,551 due to shipments to the Denver Regional Transportation District for their hybrid electric bus fleet. Higher volume product sales declined to $190,124 for the quarter and $784,341 for the nine months ended December 31, 2005, primarily due to the cessation of production of wheelchair propulsion motors in November 2005. General and administrative expenses rose $191,591 for the quarter and $122,887 for the nine month period as a result of the write-off of a trade account receivable in conjunction with the bankruptcy filing of a customer, higher levels of professional fees related to our compliance with the provisions of the Sarbanes-Oxley Act and higher marketing, selling and employee benefit costs. Loss from continuing operations for the quarter and nine months ended December 31, 2005 rose due to these factors and our continuing investment in our production engineering group," 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 Time to discuss operating results for the quarter and nine months ended December 31, 2005. To attend the conference call, please dial 1-800-313-8009 approximately ten minutes before the conference is scheduled to begin. International callers should dial 1-415-908-6248. 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 Time today. To access the playback call 1-800-633-8284 and give reservation number 21282099. 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.
UQM TECHNOLOGIES, INC. AND SUBSIDIARIES
Consolidated Balance Sheets (unaudited)
December 31, March 31,
2005 2005
Assets
Current assets:
Cash and cash equivalents $3,913,044 5,788,232
Short-term investments 6,533,342 2,220,594
Accounts receivable 684,224 890,509
Costs and estimated earnings in excess
of billings on uncompleted contracts 467,093 435,925
Inventories 463,133 648,173
Prepaid expenses and other current assets 222,081 109,198
Total current assets 12,282,917 10,092,631
Property and equipment, at cost:
Land 181,580 181,580
Building 2,295,067 2,292,687
Machinery and equipment 2,586,813 2,422,034
5,063,460 4,896,301
Less accumulated depreciation (2,636,353) (2,443,590)
Net property and equipment 2,427,107 2,452,711
Patent and trademark costs, net of
accumulated amortization of $520,061
and $450,011 557,794 613,448
Other assets 850 850
Total assets $15,268,668 13,159,640
December 31, March 31,
2005 2005
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $368,063 678,007
Other current liabilities 275,417 269,746
Current portion of long-term debt 142,662 135,255
Liabilities and commitments of
discontinued operations 72,846 154,287
Billings in excess of costs and
estimated earnings on uncompleted
contracts 293,231 66,510
Total current liabilities 1,152,219 1,303,805
Long-term debt, less current portion 703,066 810,915
Long-term liabilities and commitments
of discontinued operations 10,877 57,051
713,943 867,966
Total liabilities 1,866,162 2,171,771
Commitments and contingencies
Stockholders' equity:
Common stock, $.01 par value, 50,000,000
shares authorized; 24,681,214 and
23,177,133 shares issued and
outstanding, respectively 246,812 231,771
Additional paid-in capital 68,993,148 64,767,975
Accumulated deficit (55,837,454) (54,011,877)
Total stockholders' equity 13,402,506 10,987,869
Total liabilities and
stockholders' equity $15,268,668 13,159,640
UQM TECHNOLOGIES, INC. AND SUBSIDIARIES
Consolidated Statements of Operations (unaudited)
Quarter Ended Nine Months Ended
December 31, December 31,
2005 2004 2005 2004
Revenue:
Contract services $664,481 598,323 1,602,345 1,605,622
Product sales 479,675 709,260 1,579,016 1,620,434
1,144,156 1,307,583 3,181,361 3,226,056
Operating costs
and expenses:
Costs of contract
services 546,919 612,544 1,681,233 1,776,612
Costs of product
sales 407,891 581,591 1,338,775 1,366,324
Research and
development 50,258 42,875 184,110 138,550
Production
engineering 224,792 93,479 564,358 93,479
General and
administrative 548,653 357,062 1,415,706 1,292,819
Impairment of
long-lived assets 353 -- 1,808 2,234
1,778,866 1,687,551 5,185,990 4,670,018
Loss from
continuing
operations
before other
income
(expense) (634,710) (379,968) (2,004,629) (1,443,962)
Other income
(expense):
Interest income 114,048 30,947 252,046 47,736
Interest expense (15,444) (18,151) (47,860) (57,128)
Other -- -- 525 10,000
98,604 12,796 204,711 608
Loss from
continuing
operations (536,106) (367,172) (1,799,918) (1,443,354)
Discontinued
operations -
earnings (loss)
from operations
of discontinued
electronic
products segment 18,042 (25,808) (25,659) (44,780)
Net loss $(518,064) (392,980) (1,825,577) (1,488,134)
Net loss per
common share
- basic and
diluted:
Continuing
operations $(0.02) (0.02) (0.08) (0.07)
Discontinued
operations -- -- -- --
$(0.02) (0.02) (0.08) (0.07)
Weighted average
number of shares
of common stock
outstanding -
basic and diluted 24,669,688 21,805,231 24,141,970 20,320,749
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, 2005:
Power
Technology Products Total
Revenue $954,032 190,124 1,144,156
Interest income 110,965 3,083 114,048
Interest expense -- (15,444) (15,444)
Depreciation and amortization (60,820) (27,925) (88,745)
Segment loss from
continuing operations (499,968) (36,138) (536,106)
Assets of continuing
operations 12,544,942 2,723,726 15,268,668
Expenditures for segment
assets $(102,172) (3,595) (105,767)
Segment information below has been reclassified to reflect corporate overhead allocation consistent with the current year presentation. 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:
Power
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 as of and for the nine months ended December 31, 2005:
Power
Technology Products Total
Revenue $2,397,020 784,341 3,181,361
Interest income 244,116 7,930 252,046
Interest expense -- (47,860) (47,860)
Depreciation and amortization (181,989) (84,029) (266,018)
Segment loss from
continuing operations (1,757,525) (42,393) (1,799,918)
Assets of continuing
operations 12,544,942 2,723,726 15,268,668
Expenditures for segment
assets $(172,792) (13,776) (186,568)
Segment information below has been reclassified to reflect corporate overhead allocation consistent with the current year presentation. 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:
Power
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)