Amerigon Reports Third Quarter, Nine-Month Results
8 November 2000
Amerigon Reports Third Quarter, Nine-Month Results
CCS(TM) Sales for Third Quarter Almost Double From Second Quarter,
Shipments To-date Approach 60,000
IRWINDALE, Calif., Nov. 8 Amerigon Incorporated
today announced results for its third quarter and first nine
months ended September 30, 2000. According to Amerigon President and CEO
Richard A. Weisbart, this year's third quarter was marked by increasingly
strong demand for the Company's proprietary Climate Control Seat(TM) (CCS(TM))
system and the introduction of CCS as an option in the new 2001 Lexus LS 430
luxury sedan and as a standard feature in the all-new 2002 Lincoln Blackwood
luxury utility vehicle. Sales of CCS for the third quarter of this year
almost doubled from this year's second quarter, approaching total CCS sales
for the entire first half of this year.
The ongoing strong consumer demand for CCS as an option in the Lincoln
Navigator sports utility vehicle since it was first introduced late last year
and the first shipments of CCS for the Lexus LS 430 have propelled total CCS
shipments to-date to almost 60,000 systems.
Third quarter 2000 revenue increased significantly to $1.8 million,
compared to revenue in the prior year's third quarter of $102,000, with the
substantial increase in third quarter revenues from both the year-earlier
period and this year's second quarter attributable wholly to revenues
generated by CCS. The net loss for this year's third quarter was
$2.4 million, or a $0.54 net loss per share, compared to a net loss of
$2.0 million, or a $1.04 net loss per share, in the prior year's third
quarter. The weighted average common shares outstanding used to calculate the
net loss per share were 4,428,000 in this year's third quarter and 1,910,000
in last year's third quarter.
"We are very encouraged by the acceptance of CCS by consumers and the
automotive industry as can be seen by the introduction of CCS in the Lexus
LS 430 and the Lincoln Blackwood during the third quarter and the continuing
growth in CCS shipments," Weisbart said. "The Lexus LS 430 arrived in dealer
showrooms in mid-October and the Blackwood will begin deliveries in the spring
of 2001, and we are continuing to make important progress working with more
than 20 automotive platform teams worldwide to incorporate CCS in future
vehicles. To meet current and anticipated future levels of demand for CCS, we
are now in the process of ramping up our manufacturing."
For the first nine months of this year, revenues were $3.8 million, with a
net loss of $8.4 million, or a $2.88 net loss per share, compared to revenues
for the year-earlier nine-month period of $415,000, with a net loss of
$13.5 million, or a $7.07 net loss per share. This year's first nine-month
results include the effects of net non-cash charges of $1.8 million related to
the bridge financing done before the completion of the private placement in
the second quarter of this year. These non-cash charges included a one-time
extraordinary gain of $707,000, or $0.24 per share, related to the
extinguishment of debt in the first half of this year. Results for the first
nine months of last year include 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 nine months would have
been a loss per share of $2.75. The weighted average common shares
outstanding used to calculate the net loss per share for this year's first
nine months were 2,913,000 and 1,910,000 for the year-earlier period.
This year's third quarter and nine-month SG&A expense increased
substantially over the same periods last year due primarily to the launch of
CCS in the Lincoln Navigator and the Lexus LS 430, and stepped up marketing
costs associated with pursuing future CCS programs. As expected, gross profit
margins for this year's third quarter and first nine months continue to
reflect the early stages of the production ramp up of CCS. Gross margins are
expected to improve in the future as volume increases through the introduction
of CCS in additional automotive platforms.
Weisbart commented, "While CCS results to date have been excellent, we are
committed to the goals of expanding the penetration of CCS into additional
vehicle platforms and effectively enhancing and extending our marketing
reach."
Following the close of the third quarter, the Company deposited
$1.0 million in escrow in connection with its discussions to acquire a
manufacturer of related automotive products. The $1 million could either be
forfeited or returned under certain circumstances. Successful completion of a
transaction will be dependent upon the satisfactory completion of due
diligence, entering into a definitive acquisition agreement, final approval by
the Amerigon Board of Directors, as well as financing and other customary
closing conditions. There is no guarantee that a transaction will be
completed.
"To enhance our presence in Europe, we announced yesterday the hiring of
Dr. Jurgen Brachetti as Vice President, European Operations," Weisbart added.
"Jurgen is a veteran marketing and sales executive and engineer with an
outstanding record of accomplishment in the European automotive industry. He
will give us a strong presence on the ground in Europe and should be
instrumental in helping to establish relationships with a number of key
European automotive manufacturers."
AMERIGON INCORPORATED
STATEMENT OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Nine Months
Ended September 30, Ended September 30,
2000 1999 2000 1999
(Restated)
Revenues:
Product sales $1,779 $20 $3,677 $47
Development contracts -- 82 159 368
Total revenues 1,779 102 3,836 415
Costs and expenses:
Product 1,625 178 3,288 221
Development contracts 458 409 1,283 1,295
Research and development 611 670 1,869 1,676
Selling, general and
administrative 1,573 924 4,043 2,525
Total costs and expenses 4,267 2,181 10,483 5,717
Operating loss (2,488) (2,079) (6,647) (5,302)
Interest income 111 85 152 101
Interest expense -- -- (2,607) (25)
Loss on disposal of asset -- -- -- (19)
Loss before
extraordinary item (2,377) (1,994) (9,102) (5,245)
Extraordinary gain from
extinguishment of debt -- -- 707 --
Net loss $(2,377) $(1,994) $(8,395) $(5,245)
Net loss available to
common shareholders $(2,377) $(1,994) $(8,395) $(13,512)
Basic and diluted net
loss per share:
Loss before
extraordinary item $(0.54) $(1.04) $(3.12) $(2.75)
Extraordinary gain from
extinguishment of debt -- -- $0.24 --
Net loss $(0.54) $(1.04) $(2.88) $(7.07)
Weighted average number
of common shares outstanding 4,428 1,910 2,913 1,910
AMERIGON INCORPORATED
BALANCE SHEET
(In thousands)
September 30, December 31,
ASSETS 2000 1999
(Unaudited)
Current Assets:
Cash & cash equivalents $5,678 $1,647
Accounts receivable net of allowance 1,397 282
Inventory 1,161 490
Prepaid expenses and other assets 726 251
Total current assets 8,962 2,670
Property and equipment, net 956 1,051
Deferred exclusivity fee 1,239 --
Total assets $11,157 $3,721
LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)
Current Liabilities:
Accounts payable $1,140 $592
Accrued liabilities 940 597
Deferred revenue 401 --
Total current liabilities 2,481 1,189
Long term portion of capital lease 7 11
Total liabilities 2,488 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 September 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 September 30, 2000
and December 31, 1999; liquidation
preference of $9,788 8,267 --
Common Stock:
No par value; 20,000 shares authorized,
4,428 and 1,910 issued and outstanding
at September 30, 2000 and
December 31, 1999 37,984 28,149
Paid-in capital 14,719 10,059
Deferred compensation (26) (74)
Accumulated deficit (52,275) (43,880)
Total shareholders' equity (deficit) 8,669 (5,746)
Total liabilities and
shareholders' equity (deficit) $11,157 $3,721