Amerigon Reports Fourth Quarter, Year-End Results
27 March 2000
Amerigon Reports Fourth Quarter, Year-End Results; Comments on Significant Company Progress
IRWINDALE, Calif., March 27 Amerigon Incorporated
today announced results for its fourth quarter and year ended
December 31, 1999, and commented on recent significant progress made in
commercialization of its proprietary Climate Control Seat(TM) (CCS(TM))
system. Fourth quarter 1999 revenue was $369,000, principally from the
Company's first meaningful customer shipments of production CCS systems, which
commenced in late November of last year. This compares to revenue in the
prior year's fourth quarter of $121,000, which was comprised almost solely of
development contracts related to CCS. The net loss for the fourth quarter of
1999, was $2.3 million, or a $1.22 net loss per share, compared to a net loss
of $2.5 million, or a $1.29 net loss per share in the prior year's fourth
quarter.
According to Amerigon President and CEO Richard A. Weisbart, the Company
achieved a number of significant milestones in 1999 including signing its
first agreement for CCS with a major seat manufacturer; successfully raising
net proceeds of $8.3 million in a private equity financing; building, tooling
and putting into operation an OEM-approved CCS production line; and becoming a
full-fledged automotive parts manufacturer with the first production and
volume shipment of CCS systems. "We also launched, or expanded, development
programs for CCS with more than 20 seat and vehicle manufacturers in 1999, and
that pace is continuing to increase in 2000," Weisbart said.
Amerigon announced in early January of this year that Lincoln Mercury of
Ford Motor Company had incorporated CCS technology as an option in
its 2000 model year Navigator Sports Utility Vehicle (SUV). The first
shipments of production CCS systems for the Lincoln Navigator started in late
November of last year and by late February of this year, the Company announced
it had shipped 10,000 CCS systems for use in the Navigator. Currently the
number of CCS systems shipped for use in the Lincoln Navigator has increased
to over 15,000.
"In late January of this year," Weisbart said, "Ford selected Amerigon's
proprietary CCS system and signed a nonbinding agreement in principle under
which Ford will exclusively use CCS for heated and cooled or heated and
ventilated seats for a period of five years.
"We are currently in discussions with nearly every other major automotive
manufacturer in North America, Europe and Asia," Weisbart added, "and the
acceptance of our proprietary CCS system by Ford should help pave the way for
these discussions."
The successful private equity financing and move to full production of CCS
led Amerigon's transition from a development stage company to an operating
company at the end of 1999. For this important transition year ended
December 31, 1999, the Company reported revenue of $784,000 compared to
revenue of $770,000 for 1998. The 1999 net loss before the effect of an
$8.3 million one-time, non-cash deemed dividend related to the Company's
private placement of Series A Convertible Preferred Stock in June 1999 was
$7.6 million, or a $3.97 net loss per share. The net loss for the prior year
was $7.7 million, or a $4.03 net loss per share. The net loss available to
common shareholders in 1999, which included the impact of the one-time,
non-cash deemed dividend, was $15.8 million, or an $8.29 net loss per share
available to common shareholders.
The revised results for the first three quarters of 1999 reflect certain
non-cash accounting adjustments that have no operational impact on Amerigon's
business. The Company will file amended Reports on Form 10Q for each of its
1999 quarters. The adjustments include the one-time, non-cash, deemed
Preferred Stock dividend recorded in June 1999 and a historical
reclassification of the Preferred Stock to mezzanine capital from
shareholders' equity due to a term of the Preferred Stock that was interpreted
to provide the holders of the Preferred Stock with a redemption right outside
the control of the Company. That redemption language has been permanently
waived by the holders of the Preferred Stock. As a result, the Preferred
Stock is reflected as equity in the Company's historical financial statements
on a pro forma basis and will be shown as equity in the Company's regular
financial statements going forward. The revisions also include a change in
the way the Company reported the disposal of its Electric Vehicle Unit in the
second quarter of 1999. In prior quarters, the Electric Vehicle Unit
disposition was classified as a discontinued operation. The disposition will
no longer be reported as a discontinued operation for historical financial
reporting purposes. There are also revisions to revenues and interest expense
recorded in 1999 that increased the net loss in 1999 by $48,000.
Amerigon, an emerging player in the global automotive industry, develops
and markets proprietary products for automotive OEMs. Its proprietary Climate
Control Seat(TM) (CCS(TM)) technology provides active heating and cooling for
seat occupants and has debuted in the 2000 Lincoln Navigator. The Company's
other products include its AmeriGuard(TM) radar sensor systems designed to
extend the driver's field of view in such vehicle applications as enhanced
parking aids, back-up warning systems and side object detection.
Certain matters discussed in this release, including the Company's
prospects for the development of relationships with other major automotive
manufacturers, are forward-looking statements that involve risks and
uncertainties, and actual results may be different. Such risks and
uncertainties include the acceptance and performance of the Company's
products, the Company's ability to develop new products successfully and the
ability to obtain new sources of financing. Please also refer to the
Company's Securities and Exchange Commission reports, including but not
limited to the Form 10-K for the year ended December 31, 1998 and the Form
10-Q for the quarter ended September 30, 1999.
AMERIGON INCORPORATED
STATEMENT OF OPERATIONS
(In thousands, except per share data)
(unaudited)
Three Months Ended Year Ended
December 31, December 31,
1999 1998 1999 1998
Revenues:
Product $289 $-- $336 $18
Development contracts 80 121 448 752
Total revenues 369 121 784 770
Costs and expenses:
Product 741 -- 962 48
Development contracts 212 221 1,507 1,364
Research and development 802 1,098 2,478 3,202
Selling, general and administrative,
including reimbursable expense 956 1,243 3,481 4,098
Total costs and expenses 2,711 2,562 8,428 8,712
Operating Loss (2,342) (2,441) (7,644) (7,942)
Interest income 34 34 135 255
Interest expense (5) (17) (30) (17)
Loss on disposal of assets (17) (33) (36) --
Net loss $(2,330) $(2,457) $(7,575) $(7,704)
Net loss available to
common shareholders $(2,330) $(2,457) $(15,842) $(7,704)
Basic and diluted
net loss per share $(1.22) $(1.29) $(3.97) $(4.03)
Basic and diluted
net loss per share available
to common shareholders $(1.22) $(1.29) $(8.29) $(4.03)
Weighted average number
of shares outstanding 1,910 1,910 1,910 1,910
AMERIGON INCORPORATED
BALANCE SHEET
(In thousands)
(unaudited)
December 31,
1999 1998 Pro Forma
1999
(See 1 below)
ASSETS
Current Assets:
Cash & cash equivalents $1,647 $1,667 $1,647
Accounts receivable less allowance
of $58, and $80, respectively 282 174 282
Inventory 490 105 490
Prepaid expenses and other assets 251 136 251
Total current assets 2,670 2,082 2,670
Property and equipment, net 1,051 562 1,051
Total Assets $3,721 $2,644 $3,721
LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)
Current Liabilities:
Accounts payable $592 $363 $592
Deferred revenue -- 44 --
Accrued liabilities 597 485 597
Total current liabilities 1,189 892 1,189
Long term portion of capital lease 11 26 11
Redeemable and Convertible Preferred Stock;
Series A - no par value; 9 shares
authorized, 9 and none issued and
outstanding at December 31, 1999
and 1998 8,267 -- --
(liquidation preference of $9,315)
Commitments and Contingencies
Shareholders' Equity:
Convertible Preferred Stock;
Series A - no par value; 9 shares
authorized, 9 and none issued and
outstanding at December 31, 1999
and 1998 -- -- 8,267
Common stock;
Class A - no par value; 20,000
shares authorized, 1,910 issued and
outstanding at December 31, 1999
and 1998 28,149 28,149 28,149
Paid-in and contributed capital 10,059 9,882 10,056
Deferred compensation (74) -- (74)
Accumulated deficit (43,880) (36,305) (43,877)
Total shareholders'
equity (deficit) (5,746) 1,726 2,521
Total Liabilities and
Shareholders' Equity (Deficit) $3,721 $2,644 $3,721
1. In March 2000, the Series A Redeemable and Convertible Preferred Stock
was reclassified to shareholders' equity. The Pro Forma 1999 balance
sheet column reflects that reclassification as if it had occurred on
December 31, 1999.