| 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 |
For Immediate Release
Evercel, Inc., Reports Third Quarter 2003 Results
HINGHAM, MA - November 19, 2003-Evercel, Inc. (NASDAQ: EVRC), a developer and manufacturer of advanced rechargeable batteries, reported third quarter revenue of $59,000. Net loss available to common shareholders was $879,000 ($0.08 loss per basic and diluted share). This compares to a loss of $661,000 ($0.06 loss per basic and diluted share) in last year's third quarter.
For the nine months ended September 30, 2003, the company reported a net loss available to common shareholders of $2.565 million ($0.25 loss per basic and diluted share) compared with a net loss of $1.991 million ($0.19 loss per basic and diluted share) for the same period in 2002.
"We continued to ship a nominal number of batteries during the third quarter and are enthusiastic about the potential for the current line-up of rechargeable battery products we are now offering," said Garry Prime, president and CEO of Evercel. "Also during the quarter, we looked for additional opportunities to maximize shareholder value and our recently announced restructuring enables us to continue the development and marketing of our battery products out of China, while our investment in ZipCar provides opportunities for growth outside of the core battery business."
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.
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, INC. AND SUBSIDIARY | |||
| Three Months Ended | ||
| September 30, | September 30, | |
| 2003 | 2002 | |
Revenues | $ 59 | $ 81 | |
Cost and expenses: | |||
Cost of revenues | 193 | 160 | |
Administrative and selling expenses | 597 | 582 | |
Research and development | 27 | 46 | |
Total operating costs and expenses | 817 | 788 | |
Loss from operations | (758) | (707) | |
Interest income (expense), net | (5) | 42 | |
Other income (expense), net | (13) | 9 | |
Minority interest | - | 90 | |
Loss before income taxes | (776) | (566) | |
Income tax expense (benefit) | - | - | |
Net loss | (776) | (566) | |
Preferred stock dividends | (103) | (95) | |
Net loss - common shareholders | $ (879) | $ (661) | |
Basic and diluted loss per share | $ (.08) | $ (.06) | |
Basic and diluted shares outstanding | 10,446 | 10,404 | |
EVERCEL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
(Unaudited)
| Nine Months Ended | ||
| September 30, | September 30, | |
| 2003 | 2002 | |
Revenues | $ 207 | $ 252 | |
Cost and expenses: | |||
Cost of revenues | 590 | 409 | |
Administrative and selling expenses | 1,782 | 1,807 | |
Research and development | 85 | 164 | |
Total operating costs and expenses | 2,457 | 2,380 | |
Loss from operations | (2,250) | (2,128) | |
Interest income, net | 23 | 153 | |
Other income (expense), net | (25) | 46 | |
Loss attributable to minority interest | - | 224 | |
Loss before income taxes | (2,252) | (1,705) | |
Income tax expense (benefit) | - | - | |
Net loss | (2,252) | (1,705) | |
Preferred stock dividends | (313) | (286) | |
Net loss - common shareholders | $ (2,565) | $ (1,991) | |
Basic and diluted loss per share | $ (0.25) | $ (0.19) | |
Basic and diluted shares outstanding | 10,434 | 10,400 | |
EVERCEL, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEET
(Dollars in thousands)
|
|
| September 30, | December 31, | ||
ASSETS |
|
| 2003 | 2002 | ||
Current assets: | ||||||
Cash and cash equivalents | $ 5,414 | $ 10,377 | ||||
Accounts receivable | 96 | 172 | ||||
Inventories | 689 | 728 | ||||
Other current assets | 515 | 520 | ||||
Total current assets | 6,714 | 11,797 | ||||
Property, plant and equipment, net | 1,151 | 1,312 | ||||
Other assets, net | 2,733 | 2,977 | ||||
Goodwill | 342 | - | ||||
TOTAL ASSETS |
| $ 10,940 | $ 16,086 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY |
| |||||
Current liabilities: | ||||||
Accounts payable | $ 139 | $ 142 | ||||
Accrued liabilities | 173 | 470 | ||||
Total current liabilities | 312 | 612 | ||||
Other non-current liabilities | 74 | 44 | ||||
Note payable | 2,380 | - | ||||
Minority interest | - | 5,005 | ||||
Total liabilities | 2,766 | 5,661 | ||||
Shareholders' equity: | ||||||
Preferred Stock ($0.01 par value); 1,000,000 shares authorized: 209,573 and 210,029 issued and outstanding at September 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: 10,469,344 and 10,422,156 issued and outstanding at September 30, 2003 and December 31, 2002, respectively. | 105 | 104 | ||||
Additional paid-in-capital | 58,224 | 58,225 | ||||
Accumulated other comprehensive income | 1 | - | ||||
Accumulated deficit | (50,158) | (47,906) | ||||
Total shareholders' equity |
| 8,174 | 10,425 | |||
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 10,940 | $ 16,086 | ||||