SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 14, 2003
EVERCEL, INC. | |||
(Exact name of registrant as specified in its charter) | |||
| |||
Delaware | |||
(State or other jurisdiction of incorporation) | |||
|
| ||
001-14919 |
| 06-1528142 | |
(Commission File Number) | (IRS Employer Identification No.) | ||
| |||
5 Pond Park Road, Hingham, Massachusetts | 02043 | ||
(Address of Principal Executive Offices) | (Zip Code) | ||
| |||
(781) 741-8800 | |||
(Registrant's telephone number, including area code) | |||
ITEM 9.
Evercel, Inc. has made public its results for the three months ended June 30, 2003, on the attached press release.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: August 14, 2003
EVERCEL, INC.
By: /s/ Garry Prime
Garry Prime
President
Evercel, Inc.
5 Pond Park Road
Hingham, MA 02043
Tel: (781)741-8800 Fax: (781)740-8919
Investor Contact: | Media Contact: |
Anthony Kiernan | Bill Baker |
Evercel | Baker Communications Group, LLC |
781-741-8800 | 860-350-9100 |
Evercel, Inc., Reports 2003 Second Quarter Results
Hingham, Mass., August 14, 2003 -- Evercel, Inc. (NASDAQ: EVRC), a developer and manufacturer of advanced rechargeable batteries, reported second quarter revenue of $59,000, up from $19,000 in the second quarter of 2003. Net loss available to common shareholders was $869,000 ($0.08 per basic and diluted loss per share) compared to a loss of $691,000 ($0.06 per basic and diluted loss per share) in last year's second quarter.
For the six months ended June 30, 2003, the company reported revenues of $148,000, down from $171,000 for the six months ended June 30, 2002. Net loss available to common shareholders was $1.7 million ($0.16 per basic and diluted loss per share) compared with a net loss of $1.3 million for the same period in 2002 ($0.12 per basic and diluted loss per share).
The revenues in the 2003 and 2002 periods were from the sale of scooter and marine batteries.
"Interest in the unique performance characteristics of our batteries remains high among OEM manufacturers of battery-powered products and we plan to translate that interest into sales in the second half of this year and into next year, " said Garry Prime, president and CEO. "In addition to educating the market about our products, we are simultaneously pursuing business opportunities that will help ensure the long-term financial stability and health of the company and which will enable us to fully realize the commercial potential of our battery products."
A conference call to discuss the second quarter results of the company has been scheduled for Thursday August 14, 2003, at 10:00 A.M. EDT. Interested parties can listen in via a live webcast at www.evercel.com A replay version of the conference call will be available for two weeks after the call at (719) 457-0820.
About Evercel
Evercel, Inc. (www.evercel.com) is a manufacturer of proprietary high-performance, environmentally friendly and cost-effective nickel-zinc rechargeable batteries for a range of applications, including light electric vehicles such as scooters, bicycles, wheelchairs and other neighborhood electric vehicles, as well as other applications including trolling motors for boats, lawn mowers, and other specialized commercial products. The Company is based in Hingham, MA and operates a manufacturing facility though a Wholly Owned Foreign Enterprise in Xiamen, China.
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Evercel Second Quarter 2003 Results
Page 2
This press release contains forward-looking statements, including statements regarding the Company's plans and expectations regarding the development and commercialization of its battery technology. All forward-looking statements are subject to risk and uncertainties that could cause actual results to differ materially from those projected. Factors that could cause such a difference include, without limitation, general risks associated with product development, manufacturing, rapid technological change, and competition, as well as other risks set forth in the Company's filings with the Securities and Exchange Commission. The forward-looking statements contained herein speak only as of the date of this press release. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statement to reflect any change in the Company's expectations or any change in events, conditions or circumstances on which any such statement is based.
(Financial tables attached)
Evercel Second Quarter 2003 Results
EVERCEL, INC. AND SUBSIDIARY
STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
(Unaudited)
| Three Months Ended | ||
| June 30, | June 30, | |
| 2003 | 2002 | |
Revenues | $ 59 | $ 19 | |
Cost and expenses: | |||
Cost of revenues | 193 | 102 | |
Administrative and selling expenses | 588 | 598 | |
Research and development | 45 | 37 | |
Total operating costs and expenses | 826 | 737 | |
Loss from operations | (767) | (718) | |
Interest income, net | 5 | 67 | |
Other income (expense), net | (2) | 3 | |
Minority interest | - | 52 | |
Loss before income taxes | (764) | (596) | |
Income tax expense (benefit) | - | - | |
Net loss | (764) | (596) | |
Preferred stock dividends | (105) | (95) | |
Net loss - common shareholders | $ (869) | $ (691) | |
Basic and diluted loss per share | $ (.08) | $ (.06) | |
Basic and diluted shares outstanding | 10,435 | 10,404 | |
See condensed notes to consolidated financial statements.
EVERCEL, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except per share amounts)
(Unaudited)
|
|
| June 30, | December 31, | |
ASSETS |
| 2003 | 2002 | ||
| Current assets: | |||||
| Cash and cash equivalents | $ 6,183 | $ 10,377 | |||
| Accounts receivable | 74 | 172 | |||
| Inventories | 582 | 728 | |||
| Other current assets | 517 | 520 | |||
| Total current assets | 7,356 | 11,797 | |||
| Property, plant and equipment, net | 1,215 | 1,312 | |||
| Other assets, net | 2,776 | 2,977 | |||
| Goodwill | 342 | - | |||
| TOTAL ASSETS | $ 11,689 | $ 16,086 | |||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||
| Current liabilities: | |||||
| Accounts payable | $ 116 | $ 142 | |||
| Accrued liabilities | 241 | 470 | |||
| Total current liabilities | 357 | 612 | |||
| Other non-current liabilities | 21 | 44 | |||
| Note payable | 2,361 | ||||
| Minority interest | - | 5,005 | |||
| Total liabilities | 2,739 | 5,661 | |||
| Shareholders' equity: | |||||
| Preferred Stock ($0.01 par value); 1,000,000 shares authorized: 214,839 and 210,029 issued and outstanding at June 30, 2003 and December 31, 2002, respectively (with cumulative dividends at 8%). | 2 | 2 | |||
| Common Stock ($0.01 par value); 30,000,000 shares authorized: 10,435,260 and 10,422,156 issued and outstanding at June 30, 2003 and December 31, 2002, respectively. | 104 | 104 | |||
| Additional paid-in-capital | 58,225 | 58,225 | |||
| Accumulated other comprehensive income | 1 | ||||
| Accumulated deficit | (49,382) | (47,906) | |||
| Total shareholders' equity | 8,950 | 10,425 | |||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 11,689 | $ 16,086 | |||
See condensed notes to consolidated financial statements
EVERCEL, INC. AND SUBSIDIARY
STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
(Unaudited)
| Six Months Ended | ||
| June 30, | June 30, | |
| 2003 | 2002 | |
Revenues | $ 148 | $ 171 | |
Cost and expenses: | |||
Cost of revenues | 397 | 250 | |
Administrative and selling expenses | 1,186 | 1,224 | |
Research and development | 57 | 118 | |
Total operating costs and expenses | 1,640 | 1,592 | |
Loss from operations | (1,492) | (1,421) | |
Interest income, net | 25 | 111 | |
Other income (expense), net | (9) | 37 | |
Loss attributable to minority interest | - | 135 | |
Loss before income taxes | (1,476) | (1,138) | |
Income tax expense (benefit) | - | - | |
Net loss | (1,476) | (1,138) | |
Preferred stock dividends | (210) | (190) | |
Net loss - common shareholders | $ (1,686) | $ (1,328) | |
Basic and diluted loss per share | $ (0.16) | $ (0.12) | |
Basic and diluted shares outstanding | 10,435 | 10,397 | |
See condensed notes to consolidated financial statements.