Unique Mobility Reports Q2 and First Half Operating Results
25 October 2000
Unique Mobility Reports Second Quarter and First Half Operating Results; Second Quarter Revenue Rises 21 Percent as Company Invests for Continued Growth
GOLDEN, Colo., Oct. 24 Unique Mobility, Inc. (Amex: UQM),
a developer of alternative energy technologies, announced today that revenue
for the second quarter rose 21 percent to $6,431,333. This increase was
achieved despite continued softness in the over-the-road truck and
agricultural markets serviced by the Company's Unique Power Products unit and
lower revenue from a significant customer at the Company's Franklin
Manufacturing unit associated with a production changeover. Revenue for the
first half rose 16 percent to a record $12,896,823 versus $11,098,574 for the
comparable period last year.
"We are pleased with our revenue performance for the quarter and first
half as we continue to position the Company for accelerating growth," said
Donald A. French, Treasurer and Chief Financial Officer. "This is especially
true in light of the shutdown of production for a major electronics customer
for nearly two months as we transferred manufacturing equipment from the
customer's site to our facility. The re-launch of production of this value-
added assembly earlier this month is expected to generate an additional $1.6
million in annual revenue and contribute to improved financial performance
going forward. The production shutdown and changeover for this customer
reduced revenue for the second quarter by nearly $.7 million and adversely
impacted the bottom line by approximately $.3 million and included the
purchase of the customers raw material inventory of $.6 million. Throughout
the first half we continued to invest in infrastructure improvements that will
position us to effectively and profitably execute growth in existing and
pending order volume at our electronics operation. The areas of spending
included the purchase of an additional quick changeover ball grid array high
component density placement machine that will improve throughput and lower
material usage in the construction of surface mount boards, the hiring and
training of additional personnel for multiple shift operations and a re-layout
and balancing of our manufacturing lines. As a result of these actions, we
impaired the carrying value of certain older machines that were taken out of
service, resulting in a charge to earnings during the second quarter of $.22
million."
Added William G. Rankin, President and Chief Executive Officer, "Our
increased revenue during the first half and a breadth of new opportunities
have caused us to make the investments now that will allow a continuation of
growth that we have experienced over the last couple of years. Our gear
business is beginning to show signs of recovery. However, the rapid growth of
our electronics business will require capacity expansion of our Franklin
operation and additional cash investments necessary to achieve continued
record growth and to meet our profitability goals. We believe these
investments are not only prudent, but necessary for the high volume
manufacturing requirements of customers for which we are currently developing
proprietary motor and control products."
Operations for the quarter ended September 30, 2000 resulted in a net loss
of $1,075,690 or $0.06 per common share compared to a net loss of $5,196,206
or $0.31 per common share for the comparable quarter last year. Earnings
before interest, taxes, depreciation and amortization ("EBITDA") for the
quarter were $(377,994) or $(0.02) per common share compared to $(4,545,272)
or $(0.27) per common share for the comparable quarter last year. Operations
for the six months ended September 30, 2000 resulted in a net loss of
$1,408,568 or $0.08 per common share compared to a net loss of $5,541,957 or
$0.33 per common share last year. EBITDA for the first half was $(59,984) or
nil per common share compared to $(4,247,412) or $(0.25) per common share for
the comparable period last year.
UNIQUE MOBILITY, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(unaudited)
Quarter Ended Six Months Ended
September 30, September 30,
2000 1999 2000 1999
Revenue:
Contract services $352,881 381,984 897,899 815,423
Product sales 6,078,452 4,952,179 11,998,924 10,283,151
6,431,333 5,334,163 12,896,823 11,098,574
Operating costs and
expenses:
Costs of contract
services 380,479 294,017 866,341 737,444
Costs of product
sales 5,625,913 4,199,503 10,824,411 8,625,924
Research and
development 27,501 108,267 65,410 134,446
General and
administrative 1,064,499 1,481,527 1,965,232 2,355,528
Write-down of
investments - 4,104,628 - 4,104,628
Impairment of
assets 216,818 - 216,818 -
Amortization of
goodwill 83,167 83,166 166,333 166,045
7,398,377 10,271,108 14,104,545 16,124,015
Operating loss (967,044) (4,936,945) (1,207,722) (5,025,441)
Other income (expense):
Interest income 16,140 21,759 42,853 38,155
Interest expense (104,798) (122,787) (201,212) (239,939)
Equity in loss of
joint ventures - (139,602) - (280,170)
Minority interest
share of earnings
of consolidated
subsidiary (19,992) (18,631) (39,577) (36,893)
Other 4 - (2,910) 2,331
(108,646) (259,261) (200,846) (516,516)
Net loss $ (1,075,690) (5,196,206) (1,408,568) (5,541,957)
EBITDA $(377,994) (4,545,272) (59,984) (4,247,412)
Net loss per common
share basic and
diluted $(.06) (.31) (.08) (.33)
EBITDA per common
share $(.02) (.27) - (.25)
Weighted average
number of shares
of common stock
outstanding 17,269,444 16,572,161 17,242,489 16,484,458
UNIQUE MOBILITY, INC. AND SUBSIDIARIES
Consolidated Condensed Balance Sheets
September 30, March 31,
Assets 2000 2000
(unaudited)
Current assets:
Cash and cash equivalents $1,678,014 2,085,115
Accounts receivable, net 3,597,468 2,821,894
Costs and estimated earnings in excess
of billings on uncompleted contracts 269,930 329,111
Inventories 5,817,695 3,120,279
Prepaid expenses 119,804 192,492
Other 136 400,068
Total current assets 11,483,047 8,948,959
Property and equipment, at cost:
Land 517,080 517,080
Building 2,678,525 2,678,525
Molds 102,113 102,113
Transportation equipment 146,386 146,386
Machinery and equipment 11,451,474 10,462,893
14,895,578 13,906,997
Less accumulated depreciation (6,115,285) (5,365,304)
Net property and equipment 8,780,293 8,541,693
Patent and trademark costs,
net of accumulated amortization of
$145,447 and $125,078 744,714 731,282
Goodwill, net of accumulated amortization
of $823,029 and $656,696 5,829,130 5,995,463
Other assets 99,206 40,446
$ 26,936,390 24,257,843
September 30, March 31,
Liabilities and Stockholders' Equity 2000 2000
(unaudited)
Current liabilities:
Accounts payable $2,140,570 1,379,316
Other current liabilities 1,717,705 845,462
Current portion of long-term debt 1,123,155 972,123
Revolving line-of-credit 956,000 -
Billings in excess of costs and estimated
earnings on uncompleted contracts 456,406 79,499
Total current liabilities 6,393,836 3,276,400
Long-term debt, less current portion 3,478,390 3,422,459
Total liabilities 9,872,226 6,698,859
Minority interest in consolidated subsidiary 418,971 413,066
Stockholders' equity:
Common stock, $.01 par value, 50,000,000
shares authorized; 17,332,877 and
17,194,192 shares issued 173,329 171,942
Additional paid-in capital 50,289,333 49,382,877
Accumulated deficit (33,433,169) (32,024,601)
Accumulated other comprehensive loss (384,300) (384,300)
Total stockholders' equity 16,645,193 17,145,918
Commitments
$26,936,390 24,257,843