- We began shipments under new private label agreements to several downstream partners in the North American heavy-duty market, achieving higher volumes in the quarter. As these relationships mature over the next several quarters, CDTi's contribution will increasingly reside in the provision of technology and high-value coating, driving higher margins and lower capital requirements.
- We entered into discussions with commercial and manufacturing partners to directly serve DuraFit™ customers and enable us to continue providing our key technology through coating the cores for that product line.
- We scheduled into 2017 the remaining shipments under our high-volume, low-value coating arrangement providing us the visibility to execute manufacturing overhead reductions as we exit that business.
- We entered into supply agreements with catalyst manufacturers in
Chinato provide CDTi's enabling technologies, which we anticipate will begin shipment in the second half of 2017.
"Once these initiatives are complete, we expect CDTi will be a scalable technology company with approximately
Financial Highlights: First Quarter 2017 compared to First Quarter 2016
- Total revenue was
$8.2 million, compared to $9.7 million.
- Coated catalyst revenue was
$4.7 million, compared to $6.5 million.
- Emissions control systems revenue was
$3.3 million, compared to $3.0 million.
- Technology and advanced materials revenue was
$0.2 millionfor both periods.
- Gross margin was 17%, compared to 28%. The decrease primarily reflects the launch of new private label programs in the North American heavy-duty aftermarket, the elimination of certain non-core product offerings, and an increase in the price of palladium, which impacted the company's PGM liability.
- Total operating expenses in the first quarter of 2017 were
$3.8 million, compared to $6.0 millionin the first quarter of 2016. The decrease reflects the positive effects of the company's cost reduction initiatives undertaken in 2016, offset by increased year-end accounting expenses. The company anticipates operating expenses will continue to decline in 2017, and will reach between $3.0 millionand $3.5 millionper quarter by the end of 2017.
- Net loss was
$3.1 million, or $0.20per share, compared to a net loss of $2.8 million, or $0.76per share in the first quarter of 2016.
- Cash at
March 31, 2017was $2.4 million, compared to $7.8 millionat December 31, 2016.
Based on CDTi's current business configuration as well as its first quarter results, the company continues to expect revenue to be between
Conference Call and Webcast Information
CDTi will host a conference call and live webcast beginning at
CDTi develops advanced materials technology for the emissions control market. CDTi's proprietary technologies provide high-value sustainable solutions to reduce hazardous emissions, increase energy efficiency and lower the carbon intensity of on- and off-road combustion engine systems. With a continuing focus on innovation-driven commercialization and global expansion, CDTi's breakthrough Powder-to-Coat (P2C™) technology exploits the Company's high-performance, advanced low-platinum group metal (PGM) emission reduction catalysts. Key technology platforms include Mixed Phase Catalyst (MPC®), Base Metal Activated Rhodium Support (BMARS™), Synergized PGM (SPGM™), Zero PGM (ZPGM™) and Spinel™. For more information, please visit www.cdti.com.
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
[Tables to follow]
|Condensed Consolidated Balance Sheets|
|Accounts receivable, net||4,971||5,398|
|Prepaid expenses and other current assets||1,214||968|
|Total current assets||15,051||21,330|
|Property and equipment, net||1,086||1,158|
|Intangible assets, net||1,377||1,483|
|Deferred tax asset||560||554|
|Liabilities and stockholders' equity|
|Line of Credit||$||1,238||$||1,458|
|Shareholder note payable||-||1,803|
|Accrued expenses and other current liabilities||6,376||6,345|
|Income taxes payable||711||642|
|Additional paid in capital||237,949||237,838|
|Accumulated other comprehensive (loss)||(6,319||)||(6,329||)|
|Total stockholders' equity||5,628||8,603|
|Total liabilities and stockholders' equity||$||18,382||$||24,830|
|Condensed Consolidated Statements of Operations|
|(in thousands, except percentage and per share amounts)|
|Three Months Ended|
|Emission control systems||3,342||41||%||2,983||31||%|
|Technology and advanced materials||203||2||%||220||2||%|
|Selling, general and administrative||2,726||3,400|
|Research and development||1,069||1,762|
|Severance and other charges||-||792|
|Total operating expenses||3,795||5,954|
|Loss from continuing operations||(2,361||)||(3,217||)|
|Other income (expense)|
|Loss on extinguisment of debt||(194||)||-|
|(Loss) gain on change in fair value of liability-classified warrants||(338||)||796|
|Other expense, net||(101||)||(380||)|
|Loss from operations before income taxes||(3,097||)||(3,193||)|
|Income tax benefit||(1||)||(422||)|
|Basic and diluted EPS||$||(0.20||)||$||(0.76||)|
|Weighted shares outstanding||15,703||3,647|
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