Amerigon Reports Second Quarter, Six-Month Results
11 August 2000
Amerigon Reports Second Quarter, Six-Month Results; CCS(TM) Shipments To-Date Approach 40,000
IRWINDALE, Calif., Aug. 11 Amerigon Incorporated
today announced results for its second quarter and first six
months ended June 30, 2000. According to Amerigon President and CEO Richard
A. Weisbart, the second quarter was one of significant achievement for the
Company including continued strong demand for the Company's proprietary
Climate Control Seat(TM) (CCS(TM)) system in the Lincoln Navigator sports
utility vehicle (SUV), which is the initial automotive platform to use CCS.
Highlights of the quarter also included signing a non-binding memorandum of
understanding to form an alliance with Motorola to develop a new
generation of electronic control modules (ECMs) for managing thermal outputs
of the CCS system, receipt of a 1999 Truck Significant Achievement Award from
the Ford Motor Company Truck Vehicle Center for the inclusion of CCS
in the Lincoln Navigator SUV and raising gross proceeds of $12.5 million
through the private placement to selected institutional and other accredited
investors of an aggregate of 2.5 million restricted shares of Common Stock.
Weisbart said that the strong consumer demand for the CCS option in the
Lincoln Navigator has propelled Amerigon's total shipments of CCS to-date to
almost 40,000. Amerigon continues its forward progress in working with more
than 20 automotive platform teams worldwide to incorporate its CCS technology
in future vehicle platforms.
Second quarter 2000 revenue increased significantly to $1.0 million,
compared to revenue in the prior year's second quarter of $93,000. The
substantial increase in second quarter revenues from the year-earlier period
is attributable wholly to revenues generated by the Company's CCS product
line, principally from shipments of CCS for use as an option in the Lincoln
Navigator. The net loss for this year's second quarter was $4.0 million, or a
$1.66 net loss per share, which includes net non-cash charges of $1.8 million
relating to the bridge financing done before the completion of the private
placement. This year's second quarter net loss compares to a net loss of
$9.9 million, or a $5.17 net loss per share, in the prior year's second
quarter, which includes the effect of a previously announced, deemed non-cash
dividend to preferred shareholders of $8.3 million. Without the dividend, the
net loss per share for last year's second quarter would have been a loss per
share of $0.84.
For the first six months of this year, revenues were $2.1 million,
compared to revenues of $313,000 for the year-earlier period. The net loss
for this year's first six months was $6.0 million, or a $2.80 net loss per
share, which includes the net non-cash charges of $1.8 million related to the
bridge financing. This compares to a net loss of $11.5 million, or a $6.03
net loss per share, in the year-earlier period, which also includes the effect
of the previously disclosed $8.3 million deemed non-cash dividend to preferred
shareholders. Without the dividend, the net loss per share for last year's
first six months would have been a loss per share of $1.70.
Excluding the net non-cash items, this year's second quarter and six-month
loss increased over the prior year periods due to higher research and
development and SG&A expense associated with both the launch of CCS for the
Lincoln Navigator and marketing and engineering support for future CCS
programs. As expected, gross profit margins for this year's second quarter
and first six months reflected the early stages of production ramp up of CCS.
They are expected to improve in the future as volume increases through the
introduction of CCS in additional automotive platforms.
Weisbart commented, "We continued to make significant progress in the
sales and marketing of our CCS system during the second quarter of 2000, and
are encouraged by our revenue growth over the prior year. The consumer demand
for the CCS in the Navigator should help pave the way for inclusion in
additional Ford platforms, as well as with other automotive manufacturers."
The proceeds from the $12.5 million private placement will be instrumental
in enabling the Company to pursue its long-term strategic objectives of future
growth in sales, profits and shareholder value and will be used to help fund
the development of future products and the expansion of the Company's
marketing efforts.
The Company's balance sheet as of June 30, 2000 showed cash and cash
equivalents of $8.3 million, a current ratio of 5.3:1, total assets of
$13.1 million and shareholders' equity of $11.1 million.
"We expect that our proposed agreement with Motorola will assist us in
further improving on our next generation of CCS systems," Weisbart said. "The
use of Motorola's world-class automotive electronic products will help drive
sales to existing platforms, and will enable us to expand the reach of our
current discussions with automotive manufacturers, as well as to open up
additional platforms."
The 1999 Truck Significant Achievement Award from the Truck Vehicle Center
of Ford Motor Company was given to the application engineering team
responsible for the introduction of CCS into the model year 2000 Lincoln
Navigator SUV. The Award is among those given annually to a number of winners
for exemplary achievement in a variety of engineering, manufacturing and
product development categories. Gurminder Bedi, Vice President, Ford North
American Truck, presented the Award at a banquet in Dearborn, MI where Ford
Motor Company Chairman William Clay Ford gave the keynote address.
Amerigon, a technology-driven supplier to the global automotive industry,
develops and supplies proprietary products for automotive OEMs. In addition
to the Climate Control Seat(TM) (CCS(TM)) technology, the Company's products
include the AmeriGuard(TM) radar sensing system, designed to improve driver's
field of view in vehicle applications such as enhanced parking aids, back-up
warning and side object detection for collision avoidance.
Certain matters discussed in this release, including operating expenses,
customer demand, profitability, increase in sales volume, the number of
platforms using CCS, new technological developments, and 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, 1999.
AMERIGON INCORPORATED
STATEMENT OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Six Months
Ended June 30, Ended June 30,
2000 1999 2000 1999
Revenues:
Product sales $944 $10 $1,898 $27
Development contracts 79 83 159 286
Total revenues 1,023 93 2,057 313
Costs and expenses:
Product 811 11 1,663 43
Development contracts 551 439 825 886
Research and development 611 472 1,258 1,006
Selling, general and
administrative 1,150 741 2,470 1,601
Total costs
and expenses 3,123 1,663 6,216 3,536
Operating loss (2,100) (1,570) (4,159) (3,223)
Interest income 31 -- 41 16
Interest expense (2,592) (23) (2,607) (25)
Loss on disposal of asset -- (19) -- (19)
Loss before
extraordinary item (4,661) (1,612) (6,725) (3,251)
Extraordinary gain from
extinguishment of debt 707 -- 707 --
Net loss $(3,954) $(1,612) $(6,018) $(3,251)
Net loss available to
common shareholders $(3,954) $(9,879) $(6,018) $(11,518)
Basic and diluted
net loss per share:
Loss before
extraordinary item $(1.96) $(5.17) $(3.13) $(6.03)
Extraordinary gain from
extinguishment of debt $0.30 -- $0.33 --
Net loss $(1.66) $(5.17) $(2.80) $(6.03)
Weighted average number of
common shares outstanding 2,382 1,910 2,147 1,910
AMERIGON INCORPORATED
BALANCE SHEET
(In thousands)
June 30, December 31,
ASSETS 2000 1999
(Unaudited)
Current Assets:
Cash & cash equivalents $8,341 $1,647
Accounts receivable net of allowance 1,035 282
Inventory 1,025 490
Prepaid expenses and other assets 415 251
Total current assets 10,816 2,670
Property and equipment, net 1,025 1,051
Deferred exclusivity fee 1,307 --
Total assets $13,148 $3,721
LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)
Current Liabilities:
Accounts payable $1,356 $592
Accrued liabilities 554 597
Deferred revenue 126 --
Total current liabilities 2,036 1,189
Long term portion of capital lease 8 11
Total liabilities 2,044 1,200
Mandatorily redeemable preferred stock:
Series A - Preferred Stock
- no par value; redeemable
and convertible; 9 shares
authorized, none and 9 issued
and outstanding at June 30,
2000 and December 31, 1999 -- 8,267
Shareholders' equity (deficit):
Preferred stock:
Series A - no par value;
convertible; 9 shares authorized,
9 and none issued and outstanding
at June 30, 2000 and
December 31, 1999; liquidation
preference of $9,630 8,267 --
Common stock:
No par value; 20,000 shares authorized,
4,427 and 1,910 issued and outstanding
at June 30, 2000 and December 31, 1999 38,040 28,149
Class B - no par value; 600 shares
authorized, none issued and outstanding -- --
Paid-in capital 14,797 10,059
Deferred compensation (102) (74)
Accumulated deficit (49,898) (43,880)
Total shareholders' equity (deficit) 11,104 (5,746)
Total liabilities and
shareholders' equity (deficit) $13,148 $3,721
For more information contact: Investors, Rene Caron, rene@allencaron.com
or Jill Cieslak, jill@allencaron.com, 949-474-4300, or Media, Kari
Rinkeviczie, kari@allencaron.com, 616-647-0780, all of Allen & Caron Inc for
Amerigon Incorporated.