Unique Mobility, Inc. Announces Results for the Fourth Quarter and Fiscal Year
22 June 1999
Unique Mobility, Inc. Announces Results for the Fourth Quarter and Fiscal Year
Franklin Electronics and Unique Power Products Units Drive
Fiscal Year Revenue to Record $15.8 Million
GOLDEN, Colo., June 21 -- Unique Mobility, Inc. (Amex: UQM)
today reported its financial results for the fourth quarter and fiscal year
ended March 31, 1999.
Revenue for the quarter ended March 31, 1999, reached a record
$5,191,039, an increase of 18.9 percent from the previous high reported in the
third quarter and more than a four-fold increase over the $1,236,420 reported
for the fourth quarter last year. Operating losses for the quarter were cut
to $418,346 or $0.03 per share, down from $1,731,379 or $0.12 per share for
the comparable quarter last year.
Product sales (motors, gears and electronic components) continued to drive
revenue up, increasing 20.6 percent over the third quarter to $4,802,708 and
up over six-fold from the $779,642 reported for the fourth quarter last year.
Operating cash flow (net loss reduced by non-cash expenses) was $259,638 for
the quarter compared to operating cash usage of $1,242,564 for the final
quarter of fiscal 1998 -- an improvement of $1,502,202.
Revenue for the year ended March 31, 1999, was a record $15,798,418, a
near four-fold increase over the $4,064,732 reported for the prior year.
Operations for the year resulted in a net loss of $3,754,070 or $0.24 per
share compared to a net loss of $3,266,360 or $0.23 per share for the prior
year. Of this, non-cash expenses (primarily depreciation and amortization
charges arising from recent acquisitions) accounted for $2,417,829 or
$0.15 per share of the fiscal 1999 net loss. Operating cash usage declined
42 percent to $1,336,241 during fiscal 1999 compared to operating cash usage
of $2,305,081 in fiscal 1998.
"Revenue grew to record levels during the year even though operations were
adversely impacted by the General Motors strike and weak demand in the
agricultural sector," said Donald A. French, Treasurer and Chief Financial
Officer. "The sharp upswing in revenue resulted from strong sales at our
Unique Power Products unit for the year and an excellent post strike second
half at our Franklin Manufacturing unit. The resulting turnaround in cash
usage was especially gratifying inasmuch as operations contributed positive
cash flow of $259,638 during the fourth quarter."
In commenting on these results, Ray A. Geddes, Chairman and Chief
Executive Officer said, "Our ability to chalk up record revenue and positive
cash flow is proof that our strategy for growth is on track. We've put in
place a solid manufacturing and marketing infrastructure to serve today's fast
growing market for motors, gears and electronic controls. In addition, we're
moving rapidly to enter the emerging market for integrated electric power
systems for a wide range of vehicles from power wheelchairs to electric
scooters to passenger cars, trucks and buses."
Referring to the highlights of the year just past, Mr. Geddes said,
"During fiscal 1999, Franklin Manufacturing contributed $10.1 million or
64.1 percent of consolidated revenue and we invested approximately
$1.6 million to expand Franklin's capacity to meet future growth. Last fall,
Unique Power Products launched production of a revolutionary new
gearless-brushless motor for Invacare's new line of Action power wheelchairs
and, during the fourth quarter, Taiwan UQM Electric Co., Ltd., the Company's
joint venture in the Republic of China, launched pilot production of electric
scooter motors for KYMCO."
"Our goal from here on out is to build on this momentum through a
combination of new product development, a continuous build-up of manufacturing
operations, accretive acquisitions and the creation of strategic partnerships
to access new markets," added Mr. Geddes. "A big step in this direction was
our formation last month of a new joint venture company, Unique Mobility
Europa GmbH, to manufacture Unique powered minivans in the State of Saxony,
Germany. Our partners in the venture include Energy Conversion Devices, led
by former-GM Chairman Bob Stempel, and EV Global Motors, led by former
Chrysler Chairman Lee Iacocca."
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 is headquartered in Golden, Colorado, with manufacturing
facilities in Frederick, Colorado (precision gears and motors) and St.
Charles, Missouri (electronic components).
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. 333-78525) filed by the Company
with the SEC, which identifies important risk factors that could cause actual
results to differ from those contained in the forward-looking statements,
including the Company's ability to obtain additional financing, the Company's
ability to integrate acquired businesses into existing operations, potential
impacts from Year 2000 issues and the possibility that product liability
insurance may become unavailable. All forward-looking statements represent
the Company's judgment as of the date of this release. The Company disclaims,
however, any intent or obligation to update these forward-looking statements.
Quarter Ended March 31, Year Ended March 31,
1999 1998 1999 1998
Revenue:
Contract services $388,331 456,778 1,517,960 2,790,496
Product sales 4,802,708 779,642 14,280,458 1,274,236
5,191,039 1,236,420 15,798,418 4,064,732
Costs and expenses:
Costs of revenue 4,664,042 1,061,130 14,505,757 3,615,633
Research and
development 78,330 415,764 667,989 902,407
General and
administrative 881,412 1,000,096 3,461,161 2,121,340
Write-down of
inventory -- -- -- 416,736
Other (14,399) 490,809 917,581 274,976
5,609,385 2,967,799 19,552,488 7,331,092
Net loss $(418,346) (1,731,379) (3,754,070) (3,266,360)
Net loss per
common share
basic and
diluted $(.03) (.12) (.24) (.23)