Unique Mobility, Inc. Reports Q1 Results
14 August 1998
Unique Mobility, Inc. Reports First Quarter Financial Results; Acquisitions Push Revenue to New High
GOLDEN, Colo., Aug. 14 -- Unique Mobility, Inc. (Amex: UQM)
today reported its financial results for the first quarter ended June 30,
1998.
For the first quarter ended June 30, 1998, total revenues more than
doubled, to $2,852,781 from the $1,257,162 reported for the comparable quarter
last year. Product sales for the quarter increased approximately eleven-fold
to $2,553,447 from $227,551 in the first quarter last year. Revenues from
contract services decreased from $1,029,611 to $299,334 between the respective
periods. The net loss for the first quarter, was $942,252, or $0.06 per share
compared with a net loss of $245,348, or $0.02 per share reported for the
comparable quarter last year.
The increase in product revenue was driven by all three of the Company's
business segments. The mechanical products segment, which was enhanced by the
acquisition of Aerocom Industries in January 1998, contributed $578,681 to
consolidated product revenues. The electronic products segment, which
includes the results of recently acquired Franklin Manufacturing contributed
two months' revenue of $1,541,494 to consolidated product revenues for the
quarter. Franklin's revenues were negatively impacted by the United Auto
Workers' strike against General Motors. Franklin is a Tier 2 supplier to
General Motors with shipments approximating $300,000 per month. With the UAW
strike settled, the electronic products segment production should reach pre-
strike levels in early September. Unique's technology segment contributed
$346,557 in product sales during the quarter to consolidated product revenues
representing a 55 percent increase over revenue for the comparable quarter
last year.
The Company incurred certain expenses during the quarter related to the
relocation of Aerocom operations to Frederick, CO, and the acquisition of
Franklin Manufacturing. These expenses in aggregate totaled $211,658 and
contributed to the increase in general and administrative expense during the
quarter. Product sales margins during the quarter at 15 percent were somewhat
lower than normal reflecting non-cash depreciation charges totaling $214,500
for Aerocom and Franklin. This non-cash charge to cost of product sales
resulted from depreciation of production assets, which were written-up to
appraised value upon completion of the acquisitions of Aerocom and Franklin.
The non-cash charge had the effect of reducing margin by 8 percent for the
quarter.
The balance sheet remained strong at June 30, 1998, with $2,659,991 in
cash and cash equivalents, working capital of $3,352,679, term debt of
$2,550,187 and shareholders' equity of $19,229,376.
In commenting on the quarter, Ray Geddes, Chairman and Chief Executive
Officer, said, "We are very pleased with our first quarter results and the
contributions of all three business segments. Our first quarter revenue
comparison marks the beginning of a ramp-up in product revenue we expect this
fiscal year. The revenue growth this quarter, while very encouraging, has yet
to reflect the magnitude of the cross-marketing opportunities we have
encountered and begun to exploit in the short time since we acquired Aerocom
and Franklin. The synergies resulting from these acquisitions are even
greater than we expected and should provide us an impressive path to building
shareholder value."
Unique Mobility, Inc., is a leading developer and manufacturer of power
dense, high efficiency motors, gear assemblies and electronic components for
the aerospace, telecommunications, automotive, medical and industrial markets.
The Company's corporate headquarters and Engineering and Product Development
Center are in Golden, Colorado. Manufacturing facilities are located at
Frederick, Colorado (motors and gears) and St. Charles, Missouri (electronic
assemblies).
This release may contain forward-looking statements that involve risks and
uncertainties. These statements may differ materially from actual future
events or results. Readers are referred to the Risk Factors section of the
Registration Statement on Form S-3 (File No. 333-52861) filed by Unique with
the SEC, which identifies important risk factors that could cause actual
results to differ from those contained in the forward-looking statements,
including Unique's history of operating losses, its ability to obtain
additional financing, competition, the Company's ability to integrate acquired
businesses into existing operations, Unique's ability to protect its
proprietary information, and Unique's limited experience in manufacturing
processes and procedures and marketing and distribution.
UNIQUE MOBILITY, INC. AND SUBSIDIARIES
Consolidated Condensed Statements of Operations
(unaudited)
Quarter Ended June 30,
1998 1997
Revenue:
Contract services $ 299,334 1,029,611
Product sales 2,553,447 227,551
2,852,781 1,257,162
Operating costs and expenses:
Cost of contract services 260,791 869,991
Cost of product sales 2,176,758 158,381
Research and development 277,448 98,239
General and administrative 805,287 322,797
Depreciation and amortization 161,397 51,724
3,681,681 1,501,132
Operating loss (828,900) (243,970)
Other income (expense), net (113,352) (1,378)
Net loss $ (942,252) (245,348)
Net loss per common share $ (.06) (.02)
Weighted average number of
shares of common stock
outstanding 15,743,062 13,084,151