“We expect to make tangible progress in both vehicle applications and fundamental catalyst design projects with OEMs and other partners during the balance of 2018. In addition, this year we expect to complete partnerships that will provide for local production of our materials in
“We also realigned our Board of Directors with the nomination of two seasoned executives who will bring significant business acumen in international markets, including
Financial Highlights: First Quarter 2018 compared to First Quarter 2017
- Total revenue was
$4.9 million, compared to $8.2 million.
- Coated catalyst revenue was
$2.7 million, compared to $4.7 million. The first quarter 2018 is the last quarter in which CDTi will generate revenue from shipments to Honda.
- Emissions control systems revenue was
$1.8 million, compared to $3.3 million.
- Technology and advanced materials revenue was
$0.4 million, compared to $0.2 million.
- Coated catalyst revenue was
- Gross margin was 35%, compared to 17%, primarily due to product mix which reflected the sale of the company’s 2017 DuraFit product line and final shipments to
- Total operating expenses in the first quarter of 2018 were
$2.2 million, compared to $3.8 millionin the first quarter of 2017 due to decreases in sales and support staff resulting from the sale of the company’s DuraFit product line and the completion of its Hondaproduction.
- Net loss was
$0.3 million, or $0.02per share, compared to a net loss of $3.1 million, or $0.20per share in the first quarter of 2017.
- Cash at
March 31, 2018, was $2.1 million, compared to $2.8 millionat December 31, 2017.
The company currently expects 2018 revenue of approximately
In addition to materials applications generating revenue in 2018, the company expects that its materials technology will be selected by at least one global OEM for inclusion in next generation exhaust systems and that CDTi will have established at least one partnership for deployment of its Spinel™ technology in fuel cell and advanced battery applications during the year.
Conference Call and Webcast Information
CDTi will host a conference call and live webcast beginning at
Certain information contained in this press release constitutes forward-looking statements, including any statements that are not statements of historical fact. You can identify these forward-looking statements by the use of the words “believes”, “expects”, “anticipates”, “plans”, “may”, “will”, “would”, “intends”, “estimates”, and other similar expressions, whether in the negative or affirmative. Forward-looking statements are based on a series of expectations, assumptions, estimates and projections, which involve substantial uncertainty and risk. In this document, the Company includes forward-looking statements regarding the acceleration of the Company’s business transformation into an advanced materials company, global trends in the automotive and heavy duty diesel markets, the Company’s future financial performance, and the performance of the Company’s technology, are all subject to risks and uncertainties that could cause our actual results and financial position to differ materially. In general, actual results may differ materially from those indicated by such forward-looking statements as a result of risks and uncertainties, including, but not limited, to (i) that the Company may not be able to (a) successfully implement, or implement at all, its strategic priorities; (b) streamline its operations or align its organization and infrastructure with the anticipated business; (c) meet expectations or projections; (d) decrease costs; (e) increase sales; (f) obtain adequate funding; (g) retain or secure customers; (h) increase its customer base; (i) protect its intellectual property; (j) successfully evolve into an advanced materials supplier or, even if successful, increase profitability; (k) successfully market new products; (l) obtain product verifications or approvals; (m) attract or retain key personnel; (n) validate, optimize and scale our powder-to-coat capability; or (o) realize benefits from investments; (ii) funding for and enforcement and tightening of emissions controls, standards and regulations; (iii) prices of PGM and rare earth metals; (iv) royalty and other restrictions on sales in certain Asian countries; (v) supply disruptions or failures; (vi) regulatory, marketing and competitive factors; (vii) environmental harm or damages; and (viii) other risks and uncertainties discussed or referenced in the Company’s filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and any subsequent periodic reports on Form 10-Q and Form 8-K. In addition, any forward-looking statements represent the Company’s estimates only as of the date of such statements and should not be relied upon as representing the Company’s estimates as of any subsequent date. The Company specifically disclaims any obligation to update forward-looking statements. All forward-looking statements in this press release are qualified in their entirety by this cautionary statement.
[Tables to follow]
|CDTi ADVANCED MATERIALS, INC.|
|Condensed Consolidated Statement of Operations|
|(in thousands, except percentage and per share amounts)|
|Three Months Ended
||% of Revenues||2017
||% of Revenues|
|Emission control systems||1,786||37||%||3,342||41||%|
|Technology and advanced materials||410||8||%||203||2||%|
|Research and development||757||1,069|
|Selling, general and administrative||1,453||2,726|
|Total operating expenses||2,210||3,795|
|Loss from operations||(492||)||(2,361||)|
|Other income (expense):|
|Interest expense, net||—||(103||)|
|Loss on extinguishment of debt||—||(194||)|
|Gain (loss) on change in fair value of liability-classified warrants||364||(338||)|
|Other expense, net||(130||)||(101||)|
|Total other income (expense)||234||(736||)|
|Loss before income taxes||(258||)||(3,097||)|
|Income tax expense (benefit)||37||(1||)|
|Basic and diluted net loss per common share:|
|Weighted average shares outstanding – basic and diluted||15,804||15,703|
|CDTi ADVANCED MATERIALS, INC.|
|Condensed Consolidated Balance Sheet|
|(in thousands, except share and per share amounts)|
|March 31, 2018||December 31, 2017|
|Accounts receivable, net||2,992||2,097|
|Prepaid expenses and other current assets||1,108||667|
|Total current assets||8,068||8,218|
|Property and equipment, net||676||714|
|Intangible assets, net||1,010||1,051|
|Deferred tax assets||644||644|
|LIABILITIES AND STOCKHOLDERS’ EQUITY|
|Accrued expenses and other current liabilities||2,958||3,585|
|Income taxes payable||796||789|
|Total current liabilities||6,219||6,433|
|Commitments and contingencies|
|Preferred stock, par value $0.01 per share: authorized 100,000; no shares issued and outstanding||—||—|
|Common stock, par value $0.01 per share: authorized 50,000,000; issued and outstanding 15,803,736 shares at March 31, 2018 and December 31, 2017, respectively||158||158|
|Additional paid-in capital||238,556||238,455|
|Accumulated other comprehensive loss||(5,706||)||(5,886||)|
|Total stockholders’ equity||4,367||4,381|
|Total liabilities and stockholders’ equity||$||10,586||$||10,814|
Source: CDTi Advanced Materials, Inc.