"Importantly, the global regulatory environment, automotive industry trends and commodity price dynamics further strengthen our unique value proposition. With our streamlined operations, lower cost base and clean balance sheet, CDTi is ideally positioned to capitalize on its growing commercial pipeline."
Financial Highlights: Third Quarter 2017 compared to Third Quarter 2016
- Total revenue was
$6.9 million, compared to $10.1 million.
- Coated catalyst revenue was
$3.5 million, compared to $7.1 million.
- Emissions control systems revenue was
$2.9 million, compared to $2.8 million.
- Technology and advanced materials revenue was
$0.5 million, compared to $0.2 million.
- Gross margin was 22%, compared to 27%. The decrease primarily reflects the impact of overhead on lower sales.
- Total operating expenses in the third quarter of 2017 were
$3.3 million, compared to $3.7 millionin the third quarter of 2016 including severance costs and a significant investment in outside testing as we partner with OEMs in Chinaon our powder-to-coat implementations. As we realize the full benefit of headcount reductions executed in the third and fourth quarter resulting from the sale of Durafit™ and the exit of our high-volume coating activities, along with other cost cutting measures, our operating expenses will decrease to $2 millionper quarter in 2018.
- Net loss was
$360,000, or $0.02per share, compared to a net loss of $12.6 million, or $2.14per share in the third quarter of 2016.
- Cash at
September 30, 2017was $3.3 million, compared to $7.8 millionat December 31, 2016.
Financial Highlights: Nine months ended
- Total revenue for the first nine months of 2017 was
$23.5 million, compared to $28.3 millionfor the same prior year period.
- Gross margin was 21%, compared to 25% in the same prior year period.
- Total operating expenses for the first nine months of 2017 were
$9.3 millioncompared to $14.4 millionin the same prior year period.
- Net loss for the first nine months of 2017 was
$3.8 million, or $0.24per share, compared to net loss of $15.6 million, or $3.49per share, in the same prior year period.
Based on CDTi's current business configuration as well as its third quarter results, the company now expects full-year revenue to be approximately
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 Sheet|
|(in thousands, except per share amounts)|
|Accounts receivable, net||3,669||5,398|
|Prepaid expenses and other current assets||961||968|
|Total current assets||11,505||21,330|
|Property and equipment, net||935||1,158|
|Intangible assets, net||1,158||1,483|
|Deferred tax assets||670||554|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Line of credit||$||—||$||1,458|
|Shareholder notes payable||—||1,803|
|Accrued expenses and other current liabilities||3,972||6,345|
|Income taxes payable||765||642|
|Total current liabilities||8,980||16,227|
|Commitments and contingencies|
stock, par value ||—||—|
|Common stock, par value |
|15,802,936 and 15,703,301 shares at ||158||157|
|Additional paid-in capital||238,340||237,838|
|Accumulated other comprehensive loss||(5,979||)||(6,329||)|
|Total stockholders' equity||5,614||8,603|
|Total liabilities and stockholders' equity||$||14,594||$||24,830|
|Condensed Consolidated Statement of Operations|
|(in thousands, except percentage and per share amounts)|
|Three Months Ended||Nine Months Ended|
|2017||% of Revenues||2016||% of Revenues||2017||% of Revenues||2016||% of Revenues|
|As Restated||As Restated|
|Emission control systems||2,948||43||%||2,778||27||%||9,500||40||%||9,565||34||%|
|Technology and advanced materials||453||7||%||244||3||%||1,223||5||%||1,093||4||%|
|Cost of revenues||5,370||7,425||18,605||21,153|
|Research and development||1,155||762||3,211||3,955|
|Selling, general and administrative||1,877||2,322||6,519||8,549|
|Severance and other charges||235||571||(384||)||1,945|
|Total operating expenses||3,267||3,655||9,346||14,449|
|Loss from operations||(1,780||)||(948||)||(4,481||)||(7,318||)|
|Other income (expense):|
|Gain on bifurcated derivative liability||—||—||—||2,754|
|Loss on extinguishment of debt||—||(10,780||)||(194||)||(12,410||)|
|Gain (loss) on change in fair value of liability-classified warrants||738||(705||)||404||883|
|Gain on sale of DuraFit||805||—||805||—|
|Other (expense) income, net||(149||)||196||(67||)||824|
|Total other income (expense)||1,301||(11,747||)||688||(9,490||)|
|Loss from operations before income taxes||(479||)||(12,695||)||(3,793||)||(16,808||)|
|Income tax (benefit) expense||(119||)||(113||)||49||(1,232||)|
|Basic and diluted net loss per common share:|
|Weighted average shares outstanding - basic and diluted||15,760||5,876||15,724||4,462|
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