ENER1 Reports First Quarter Results for 2010
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NEW YORK, May 10, 2010 -- ENER1, Inc. , today announced financial results for its first quarter ended March 31, 2010. Net sales were $11 million in the first quarter of 2010 compared to net sales of $8.2 million in the prior year first quarter. Net loss was $15.3 million in the first quarter of 2010 compared to $7.3 million in the 2009 first quarter. Basic and diluted net loss per share were $.12 and $.13 in the first quarter of 2010 compared to $.06 and $.08 in the first quarter of 2009. Weighted diluted shares outstanding were 125 million in the first quarter of 2010 compared to 113.5 million in the prior year quarter.
First quarter highlights include: -- EnerDel entire production system meets stringent product safety, reliability and quality standards required for high volume automotive programs in successful completion of Production Parts Approvals Process (PPAP) for THINK -- Completion of first volume production run and shipment of commercial battery packs to THINK at rate 25 packs per week; manufacturing systems enter acceleration phase to ramp capacity to 900 packs or 23.4 megawatt-hours per month -- EnerDel confirmed as exclusive supplier for Volvo C30 Pure Electric Vehicle (PEV)
"This has been a productive quarter with EnerDel rapidly scaling up production at its three Indiana facilities to launch commercial production for THINK, the first fully homologated battery electric vehicle available for purchase today," commented Ener1 Chairman and CEO Charles Gassenheimer. "The completion of this substantial milestone positions EnerDel as among the first lithium-ion battery companies in the world producing automotive grade, high volume lithium-ion batteries, for which it will recognize revenues in the second quarter. With the Production Parts Approval Process in place on April 29, EnerDel has entered an acceleration phase to ramp up to 900 packs per month, a run-rate at which EnerDel expects to be EBITDA break-even."
"EnerDel continues to focus on building collaborative relationships with manufacturers of innovative electric vehicle platforms to produce industry-leading standards of quality and safety," continued Gassenheimer. "With today's announcement, EnerDel has been named as the exclusive battery supplier for the Volvo C30 Pure Electric Vehicle, set for production in 2011 and mass release in 2013. We are truly excited about the C30 program, believing it to be a leapfrog product to a second generation electric vehicle design, currently undergoing the most rigorous set of crash-testing and safety systems in the industry."
"Volvo Cars is pleased to confirm EnerDel as the exclusive supplier of the C30 Pure Electric Vehicle after a successful development phase," commented President of Special Vehicles for Volvo Cars Lennart Stegland. "Our relationship with EnerDel is more than just a supply agreement; it is a true partnership, founded on the quality and safety of the EnerDel technology and chemistry and the excellent collaboration between the teams."
"There are many challenges to commercializing electric vehicle platforms, and EnerDel prides itself as being among the early leaders in the industry, delivering commercial product today," continued Gassenheimer. "We continue to collaborate closely with our customers over the life of the program to overcome technical hurdles, to deliver the highest quality performance and reliability standards in our product offerings and manufacturing systems. Our reputation in the industry has opened doors to new partnerships and strategic ventures, that we intend to leverage to gain access to new markets and new opportunities."
To view a short video of the first battery packs coming off the production line for THINK, please access the EnerDel YouTube page: http://www.youtube.com/user/ENER1inc.
About Ener1, Inc.
Ener1 develops and manufactures compact, high performance lithium-ion batteries to power the next generation of hybrid, plug-in hybrid and pure electric vehicles. The publicly traded company is led by an experienced team of engineers and energy system experts at its EnerDel subsidiary located in Indiana. In addition to the automobile market, applications for Ener1 lithium-ion battery technology include the military, grid storage and other growing markets. Ener1 also develops commercial fuel cell products through its EnerFuel subsidiary and nanotechnology-based materials and manufacturing processes for batteries and other applications through its NanoEner subsidiary.
ENER1, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
March 31, December 31,
2010 2009
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ASSETS
Current Assets
Cash and cash equivalents $7,646 $14,314
Restricted cash 4,547 3,668
Accounts receivable, net 8,306 6,350
Grant receivable 12,828 -
Inventories, net 15,525 10,415
Deferred financing costs, net 2,384 268
Prepaid expense and other 4,404 2,020
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Total current assets 55,640 37,035
Property and equipment, net 90,393 52,903
Intangible assets, net 12,746 13,230
Investment in unconsolidated
entity 24,929 19,177
Goodwill 52,086 51,019
Other 1,247 1,043
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Total assets $237,041 $174,407
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LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities
Accounts payable and accrued
expenses $48,914 $14,268
Income taxes payable 340 329
Deferred grant proceeds,
current 100 -
Convertible line of credit,
related party 16,560 10,516
Short-term borrowings 23,243 13,001
Capital lease obligations,
current 2,651 2,372
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Total current liabilities 91,808 40,486
Deferred income tax
liabilities 373 402
Derivative liabilities 7,215 6,871
Deferred grant proceeds, less
current 18,863 -
Long-term borrowings 4,422 4,282
Other long-term liabilities 4,239 4,367
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Total liabilities 126,920 56,408
Commitments and contingencies
Stockholders' equity
Common stock 1,256 1,245
Paid in capital 457,597 451,592
Accumulated other
comprehensive income 6,409 4,860
Accumulated deficit (356,842) (341,505)
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Total Ener1, Inc.
stockholders' equity 108,420 116,192
Noncontrolling interest 1,701 1,807
----- -----
Total stockholders' equity 110.121 117,999
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Total liabilities and
stockholders' equity $237,041 $174,407
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ENER1, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands except per share data)
Three Months Ended
------------------
March 31,
---------
2010 2009
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Net sales $10,975 $8,192
Cost of sales 9,828 6,803
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Gross profit 1,147 1,389
Operating expenses:
General and administrative 5,229 4,617
Research and development, net 9,866 6,262
Grant proceeds recognized (28) -
Depreciation and amortization 1,349 1,108
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Total operating expenses 16,416 11,987
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Loss from operations (15,269) (10,598)
Other income (expense) (178) 3,366
---- -
Loss before income taxes (15,447) (7,232)
Income tax expense 16 37
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Net loss (15,463) (7,269)
Net income (loss) attributable to
noncontrolling interest (126) 39
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Net loss attributable to Ener1, Inc. $(15,337) $(7,308)
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Net loss per share attributable to
Ener1, Inc.:
basic $(0.12) $(0.06)
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diluted $(0.13) $(0.08)
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Weighted average shares outstanding
basic 124,904 113,470
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diluted 124,968 113,484
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The above financial statements should be read in conjunction with the unaudited consolidated financial statements filed with our quarterly report on Form 10-Q.