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BRIDGEPORT, Conn., Mar 25, 2010 (GlobeNewswire via COMTEX News Network) -- Clean Diesel Technologies, Inc. (Nasdaq:CDTI), the cleantech emissions reduction company providing sustainable solutions to reduce emissions, increase energy efficiency and lower the carbon intensity of on- and off-road engine applications, today announced its operating results for the fourth quarter and year ended December 31, 2009.
Business Highlights
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-- Total revenue for 2009 was $1.2 million compared to $7.5 million for the
year 2008. The net loss for 2009 was $6.7 million, or $0.83 per share,
compared to a loss of $9.4 million, or $1.15 per share for 2008.
-- Total revenue for the fourth quarter of 2009 was $0.2 million compared
to $0.7 million for the same quarter in 2008. Net loss for the fourth
quarter of 2009 was $1.3 million, or $0.16 per share, compared to $3.3
million, or $0.40 per share, in the comparable period in 2008.
-- Severance charges of approximately $1.0 million were incurred by the
Company in 2009 reflecting the resignation of the former President and
CEO in the first quarter and reductions in force made in the third
quarter. The company-wide reduction, while difficult, was necessary to
position the business for long term, profitable growth.
-- The Company's work for the California Showcase is ongoing along with
certain supplemental environmental programs sponsored by California Air
Resources Board ("CARB") and resulted in $130,000 revenue in 2009.
-- Clean Diesel received a diesel emissions reduction technology
development grant under the New Technology Research and Development
(NTRD) program from the Houston Advanced Research Center (HARC). This
award totaled $960,971 of which $29,000 is included in 2009 revenue. The
project's goal is to develop and verify, with the U.S. Environmental
Protection Agency (EPA), a nitrogen oxide-particulate matter (NOx-PM)
reduction retrofit system for on- and off-road engines.
-- The Company received an order from Metroline, a leading London bus
operator, valued at approximately $528,000, which amount will be
included in first half 2010 revenue upon fulfillment of the order.
Metroline confirmed that Clean Diesel Technologies' Platinum Plus(R) and
Purifier particulate filter technologies were the most efficient and
effective solution for Metroline's inner city operating conditions. In
addition, Metroline gained added benefits of greater longevity of
particulate filtration components and a significant maintenance and
operating cost reduction due to Clean Diesel's Platinum Plus fuel-borne
catalyst.
Comments on 2009
"Much of 2009 was spent building a strong foundation and infrastructure upon which Clean Diesel's future will be built. While that work was time and resource intensive, we believe the Company's long-term prospects have been enhanced, and we remain committed to a strategic course change that is focused on the global retrofit market," said Michael L. Asmussen, President and Chief Executive Officer of Clean Diesel Technologies. "We made progress in 2009 as evidenced by several of the highlights mentioned above."
"Given that there are over 63 million diesel engines on the roads today and over 11 million new engines going into service annually, diesel will continue to play a major role in on-road markets. As the call for worldwide regulatory emission controls grows and current legislation such as the U.S. EPA 2010 limits and California's Off-Road Equipment Rule take effect, our market will continue to expand. Further, if the global economy continues to recover and financial markets continue toward normalcy, we should be operating in an environment that is more stable and conducive to growth."
Financial Results
Total revenue for the year ended December 31, 2009, was $1.2 million compared to $7.5 million for the same period in 2008 with the 84% decline primarily due to completion of retrofit activity to meet 2008 deadlines for the London Low Emission Zone. 2009 revenue consisted of approximately 85.3% in product sales, 12.3% in technology licensing fees and royalties, and 2.4% in grant revenue compared to 2008 operating revenue with 94.0% from product sales and 6.0% from technology licensing fees and royalties. Total revenue for the fourth quarter of 2009 was $0.2 million compared to $0.7 million for the same quarter in 2008.
Despite lower revenue, the Company's net loss declined in 2009 to $6.7 million, or $0.83 per share, compared to $9.4 million, or $1.15 per share, in 2008. Net loss for the fourth quarter of 2009 was $1.3 million, or $0.16 per share, compared to $3.3 million, or $0.40 per share, in the comparable period in 2008.
The Company's total gross profit as a percentage of revenue was 34.4% and 23.5% in 2009 and 2008, respectively, with the increase attributable to the mix of higher margin product sales.
Selling, general and administrative expenses were $6.1 million in 2009 compared to $10.0 million in 2008, a decrease of $3.9 million, or 39%, primarily attributable to lower professional services, particularly investor relations and financial advisory services, lower compensation and benefits, travel, marketing and bad debts. The Company made a concerted effort in 2009 to contain its costs and eliminate those costs that were redundant or deemed unnecessary.
Aggregate non-cash charges for the fair value of stock options, warrants and stock awards included in operating expenses in 2009 were $0.7 million compared to $1.4 million in 2008. Excluding the non-cash stock-based charges, compensation and benefit expenses were $3.5 million in 2009 compared to $4.4 million in 2008 primarily due to a reduction in workforce in 2009.
Total severance charges in 2009 were $1.0 million reflecting a company-wide restructuring in the third quarter related to the reduction of approximately 44% of the company's workforce and severance for the former CEO recorded in the first quarter.
Foreign currency transaction gains, net of losses, were $0.1 million in 2009 compared to net transaction losses of $0.8 million in 2008. Interest income was $0.2 million in 2009 compared to $0.6 million in 2008 due to lower invested balances and rates of return during 2009. Interest expense was $0.1 million in each of 2009 and 2008. The Company recognized a $0.2 million net unrealized gain on investments in 2009 compared to a $0.2 million net unrealized loss on investments in 2008.
At December 31, 2009 and 2008, respectively, the Company had cash and cash equivalents of $2.8 million and $4.0 million. Working capital was $7.3 million at December 31, 2009 compared to $8.2 million at December 31, 2008. Net cash used for operating activities was $5.7 million in 2009 and was used primarily to fund the net loss of $6.7 million, adjusted for non-cash items. The Company has a put right to receive par value for its investments, net of the related debt, starting June 30, 2010, of approximately $4.0 million.
Additional information about the Company's financial results is available in its Annual Report on Form 10-K filed with the U.S. Securities & Exchange Commission: http://www.sec.gov. A copy of the 10-K is posted on the Company's website.
About Clean Diesel Technologies, Inc.
Clean Diesel Technologies is a cleantech company providing sustainable solutions to reduce emissions, increase energy efficiency and lower the carbon intensity of on- and off-road engine applications. Clean Diesel's patented technologies and products allow manufacturers and operators to comply with increasingly strict regulatory emissions and air quality standards, while also improving fuel economy and power.
The Company's solutions significantly reduce emissions formed by the combustion of fossil fuels and biofuels, including particulate matter (PM), nitrogen oxides (NOx), carbon monoxide (CO) and hydrocarbons (HC)--without increasing secondary emissions, such as nitrogen dioxide (NO2). As a result, they are effective for: OEMs, Tier 1 suppliers and retrofit providers; businesses seeking solutions and expertise upon entering the emissions control market; operators requiring compliant emissions solutions; fuel, biofuel and additive suppliers seeking low emissions and energy efficient products; and regulators creating public policy. Clean Diesel's solutions, therefore, are ideal for on-road vehicles and applications in a wide range of industries, including construction, mining, agriculture, port/freight handling, locomotive, marine and power generation.
Clean Diesel develops and manages intellectual property from original concept to full-scale commercial deployment. Building on almost 200 granted and pending patents, its offerings include ARIS(R) selective catalytic reduction (SCR); the patented combination of SCR and exhaust gas recirculation (EGR); hydrocarbon injection for emissions control applications; Platinum Plus(R) Fuel-Borne Catalyst (FBC); the Purifier(TM) family of particulate filter systems; and its wire mesh particulate filter technologies. The Company was founded in 1995 and is headquartered in Bridgeport, Connecticut. A wholly-owned subsidiary, Clean Diesel International, LLC is based in London.
For more information, please visit www.cdti.com.
The Clean Diesel Technologies, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5742
Safe Harbor
Certain statements in this news release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known or unknown risks, including those detailed in the company's filings with the U.S. Securities and Exchange Commission, uncertainties and other factors which may cause the actual results, performance or achievements of the company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof.
CLEAN DIESEL
TECHNOLOGIES, INC.
Consolidated Balance
Sheets
(in thousands, except
share data)
December 31,
------------------
2009 2008
-------- --------
Assets
Current assets:
Cash and cash equivalents $2,772 $3,976
Accounts receivable, net
of allowance of $232 and
$359, respectively 148 637
Investments 11,725 6,413
Inventories, net 1,059 974
Other current assets 294 219
-------- --------
Total current assets 15,998 12,219
Investments -- 5,127
Patents, net 1,083 1,027
Fixed assets, net of
accumulated depreciation
of $369 and $505,
respectively 294 296
Other assets 57 78
-------- --------
Total assets $17,432 $18,747
======== ========
Liabilities and
Stockholders' Equity
Current liabilities:
Accounts payable $301 $501
Accrued expenses 675 534
Short-term debt 7,693 3,013
Customer deposits -- 8
-------- --------
Total current
liabilities 8,669 4,056
Commitments
Stockholders' equity:
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 12,000,000;
issued and outstanding
8,213,988 and 8,138,304
shares, respectively 82 81
Additional paid-in
capital 74,694 73,901
Accumulated other
comprehensive loss (381) (406)
Accumulated deficit (65,632) (58,885)
-------- --------
Total stockholders'
equity 8,763 14,691
-------- --------
Total liabilities and
stockholders' equity $17,432 $18,747
======== ========
CLEAN DIESEL TECHNOLOGIES, INC.
Consolidated Statements of
Operations
(in thousands, except per share
amounts)
For the years ended December
31,
----------------------------
2009 2008 2007
-------- -------- --------
Revenue:
Product sales $1,042 $7,024 $1,466
Technology licensing fees and
royalties 150 451 3,459
Consulting and other 29 -- --
-------- -------- --------
Total revenue 1,221 7,475 4,925
-------- -------- --------
Costs and expenses:
Cost of product sales 801 5,717 1,126
Cost of licensing fees and
royalties -- -- --
Cost of consulting and other
revenue -- -- --
Selling, general and administrative 6,073 9,992 8,041
Severance charge 958 -- --
Research and development 386 430 428
Patent amortization and other
expense 207 227 364
-------- -------- --------
Operating costs and expenses 8,425 16,366 9,959
-------- -------- --------
Loss from operations (7,204) (8,891) (5,034)
Other income (expense):
Foreign currency exchange gain
(loss) 112 (845) (11)
Interest income 245 602 509
Change in fair value of investments
and interest expense 100 (239) 1
-------- -------- --------
Net loss $(6,747) $(9,373) $(4,535)
======== ======== ========
Basic and diluted loss per common
share $(0.83) $(1.15) $(0.66)
======== ======== ========
Basic and diluted weighted-average
number of common shares outstanding 8,147 8,138 6,886
======== ======== ========
Consolidated Statements of
Comprehensive Loss
(in thousands)
For the years ended December
31,
----------------------------
2009 2008 2007
-------- -------- --------
Net loss $(6,747) $(9,373) $(4,535)
Other comprehensive income (loss):
Foreign currency translation
adjustment 25 (390) (20)
-------- -------- --------
Comprehensive loss $(6,722) $(9,763) $(4,555)
======== ======== ========
CLEAN DIESEL TECHNOLOGIES, INC.
Consolidated Statements of Cash Flow
(in thousands)
For the years ended December
31,
----------------------------
2009 2008 2007
-------- -------- --------
Operating activities
Net loss $(6,747) $(9,373) $(4,535)
Adjustments to reconcile net loss to cash
used in operating activities:
Depreciation and amortization 184 142 112
(Recovery)/provision for doubtful
accounts, net (157) 629 28
Compensation expense for options,
warrants and stock awards 735 1,444 2,208
Loss on disposition/abandonment of fixed
assets/patents 16 38 58
Unrealized (gain)/loss on investments,
net (185) 185 --
Changes in operating assets and
liabilities:
Accounts receivable 646 661 (1,855)
Inventories, net (85) 119 (728)
Other current assets and other assets (54) 12 (177)
Accounts payable and accrued expenses (59) (572) 677
Other liabilities (8) (48) 56
-------- -------- --------
Net cash used for operating activities (5,714) (6,763) (4,156)
-------- -------- --------
Investing activities
Sale (purchase) of investments, net -- 7,100 (18,825)
Patent costs (123) (299) (313)
Purchase of fixed assets (124) (212) (154)
-------- -------- --------
Net cash (used for) provided by
investing activities (247) 6,589 (19,292)
-------- -------- --------
Financing activities
Proceeds from short-term debt 4,735 3,013 --
Repayment of short-term debt (55) -- --
Proceeds from issuance of common stock,
net 59 -- 4,313
Proceeds from exercise of warrants -- -- 15,173
Proceeds from exercise of stock options -- 24 353
Stockholder-related charges -- (14) (168)
-------- -------- --------
Net cash provided by financing
activities 4,739 3,023 19,671
-------- -------- --------
Effect of exchange rate changes on cash 18 (390) (20)
Net (decrease) increase in cash and cash
equivalents $(1,204) $2,459 $(3,797)
Cash and cash equivalents at beginning of
the year 3,976 1,517 5,314
-------- -------- --------
Cash and cash equivalents at end of the
year $2,772 $3,976 $1,517
======== ======== ========
Supplemental non-cash activities:
Accumulated depreciation of abandoned
assets $270 $ -- $ --
Payment of accrued directors' fees in
common stock -- -- 140
Supplemental disclosures:
Cash paid for interest $85 $32 $ --
This news release was distributed by GlobeNewswire, www.globenewswire.com
SOURCE: Clean Diesel Technologies, Inc.
CONTACT: Clean Diesel Technologies, Inc. Ann B. Ruple, CPA, Chief Financial Officer, Vice President & Treasurer (203) 416-5290 aruple@cdti.com
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