Company Contact: UQM Technologies, Inc.
Donald A. French
Treasurer
(303) 278-2002
UQM TECHNOLOGIES REPORTS FIRST QUARTER OPERATING RESULTS
FOR IMMEDIATE RELEASE: 03-12
GOLDEN, COLORADO, July 23, 2002- UQM TECHNOLOGIES, INC. (AMEX: UQM), a developer of alternative energy technologies, today reported operating results for the quarter ended June 30, 2002. "Despite a continuing weak economy, revenue for the first quarter increased 6 percent compared to our previous fourth quarter," said William G. Rankin, UQM Technologies' President and Chief Executive Officer. "Our contract electronics manufacturing operation continues to be challenged by the business slowdown and we are working diligently to improve their financial performance. On the technology front, customer funded product development remains strong and production of our proprietary products is on track to achieve our predicted double digit annual growth rate this year."
Continuing operations for the first quarter resulted in a loss of $412,920 or $0.02 per common share on total revenue of $4,772,613 versus a loss from continuing operations of $172,679 or $0.01 per common share on total revenue of $6,509,793 for the first quarter last year. Earnings before interest, taxes, depreciation and amortization from continuing operations ("EBITDA") for the quarter was $(50,858) or nil per common share versus EBITDA from continuing operations of $319,650 or $0.02 per common share for the comparable quarter last year.
"Business conditions during the first quarter in the contract electronics manufacturing sector continued to be difficult. Order flow during the quarter at our electronics manufacturing unit remained weak. Electronic segment revenues declined 39 percent for the first quarter versus the first quarter last year, and segment losses for the quarter increased to $417,774 versus a loss of $65,179 for the first quarter last year. However, segment revenue rose 11 percent versus the fourth quarter and segment losses declined 41 percent to $417,774 versus a fourth quarter loss before the write-down of goodwill of $711,977. Collectively, technology and motor manufacturing operations had a 3 percent increase in revenue for the quarter versus the comparable quarter last year and turned in their second consecutive quarter of profitability from continuing operations," said Donald A. French, UQM Technologies' Treasurer and Chief Financial Officer. "Cash balances rose to $2.4 million at June 30, 2002 and term debt levels and line-of-credit borrowings were reduced substantially during the quarter to $535,681 at June 30, 2002 from $4,375,738 at the beginning of the quarter, reflecting the partial application of cash proceeds from a secondary offering of common stock and warrants to the reduction of debt. Overall, we are pleased with our financial performance for the quarter in what continues to be a difficult economic environment. "
Net loss for the quarter ended June 30, 2002 was $597,891 or $0.03 per share versus a net loss for the comparable quarter last year of $487,805 or $0.03 per share. EBITDA for the quarter was $(235,829) or $(0.01) per share compared to $281,716 or $0.02 per share for the same quarter last year.
Continued Mr. French, "During the quarter we completed the divestiture of our gearing operations resulting in an additional charge of $184,971 or $0.01 per share for discontinued operations reflecting lower than anticipated resale value for the gear manufacturing equipment. With the divestiture completed we can focus additional attention on our core business operations and there will be no further financial impact on the Company from the winding-down and divestiture of this non-core operation".
EBITDA is a broadly used financial term which many investment professionals use as an approximation of the operating cash flow generated by a business. Management believes that this information may be useful to investors in the Company due to the amount of noncash depreciation and amortization charges reported by the Company. Investors are cautioned, however, that EBITDA is not a replacement or substitute for net earnings or loss determined by the application of generally accepted accounting principles and our calculation of EBITDA may not be comparable to similarly titled disclosures made by other companies.
The Company will host a conference call today at 4:30 p.m. Eastern Daylight Time to discuss operating results for the first quarter. To attend the conference call, please dial 1-212-346-0283 approximately ten minutes before the conference is scheduled to begin. For anyone who is unable to participate in the conference, a recording will be available for 48 hours beginning at 6:30 p.m. Eastern Daylight Time today. To access the playback call 1-800-633-8284 and give reservation number 20765946. For international callers, dial 1-402-977-9140.
UQM Technologies, Inc. is a developer and manufacturer of power dense, high efficiency electric motors, generators and power electronic inverters for the automotive, aerospace, telecommunications, medical, military and industrial markets. A major emphasis of the Company is developing products for the alternative energy technologies sector including power systems for electric, hybrid electric and fuel cell electric vehicles, 42 volt under-the-hood power accessories and distributed power generation applications. The Company's headquarters and engineering and product development center are located in Golden, Colorado. Manufacturing facilities are located in Frederick, Colorado (electric motors) and St. Charles, Missouri (electronic assemblies and wire harnesses). For more information on the Company, please visit its worldwide website at http://www.uqm.com.
This press release contains statements that constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act. These statements appear in a number of places in this press release and include statements regarding our plans, beliefs or current expectations, including those plans, beliefs and expectations of our officers and directors with respect to, among other things, the development of markets for our products. Important risk factors that could cause actual results to differ from those contained in the forward-looking statements include our ability to be profitable, our ability to obtain additional financing, our reliance on major customers and suppliers, our ability to commercialize our products, our ability to manage growth and the possibility that product liability insurance may become unavailable to us.
####Table Follows####
UQM TECHNOLOGIES, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(unaudited)
UQM TECHNOLOGIES, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(unaudited)
Quarter Ended
June 30, June 30, March 31,
2002 2001 2002
Revenue:
Contract services $771,152 676,231 793,331
Product sales 4,001,461 5,833,562 3,704,659
4,772,613 6,509,793 4,497,990
Operating costs and expenses:
Costs of contract services 658,489 517,426 451,496
Costs of product sales 3,736,817 5,074,266 3,668,532
Research and development 64,381 64,143 11,746
General and administrative 875,833 905,950 773,894
Amortization of goodwill - 67,587 67,587
Writedown of goodwill - - 4,348,633
5,335,520 6,629,372 9,321,888
Loss from continuing
operations before other
income (expense) (562,907) (119,579) (4,823,898)
Other income (expense):
Interest income 8,150 24,781 5,767
Interest expense (19,233) (106,817) (79,283)
Gain on sale of real estate 161,070 28,936 161,069
149,987 (53,100) 87,553
Loss from continuing
operations (412,920) (172,679) (4,736,345)
Discontinued operations:
Loss from operations of
discontinued gear division -- (315,126) --
Loss on disposal of gear
division including
operating losses during
phase-out period (184,971) -- --
(184,971) (315,126) --
Net loss $(597,891) (487,805) (4,736,345)
EBITDA from continuing
operations (50,858) 319,650 (4,202,904)
EBITDA (235,829) 281,716 (4,202,904)
Net loss per common
share - basic and
diluted
Continuing operations $(.02) (.01) (.27)
Discontinued operations (.01) (.02) --
$(.03) (.03) (.27)
EBITDA per common share
from continuing operations $-- .02 (.24)
EBITDA per common share $(.01) .02 (.24)
Weighted average number of
shares of common stock
outstanding 18,624,606 17,435,414 17,670,511
UQM TECHNOLOGIES, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
June 30, March 31,
Assets 2002 2002
(unaudited)
Current assets:
Cash and cash equivalents $2,434,960 1,411,509
Accounts receivable 2,561,740 2,662,554
Costs and estimated earnings in excess
of billings on uncompleted contracts 422,411 442,213
Inventories 4,242,004 4,636,312
Prepaid expenses 439,277 220,528
Equipment of discontinued operations
held for sale, net -- 1,253,432
Other 125 130,934
Total current assets 10,100,517 10,757,482
Property and equipment, at cost:
Land 181,580 181,580
Building 1,329,840 1,247,265
Machinery and equipment 8,747,891 8,622,471
10,259,311 10,051,316
Less accumulated depreciation (5,864,161) (5,482,194)
Net property and equipment 4,395,150 4,569,122
Patent and trademark costs, net of accumulated
amortization of $232,030 and $219,084 748,658 757,059
Other assets 45,872 45,872
$15,290,197 16,129,535
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $2,448,988 2,693,312
Other current liabilities 691,322 568,554
Current portion of deferred gain on
sale of real estate 161,070 322,139
Current portion of long-term debt 64,774 562,043
Term debt and accrued future losses of
discontinued operations -- 789,960
Revolving line-of-credit -- 2,254,000
Billings in excess of costs and estimated
earnings on uncompleted contracts 156,869 382,739
Total current liabilities 3,523,023 7,572,747
Long-term debt, less current portion 470,907 1,108,023
Total liabilities 3,993,930 8,680,770
Stockholders' equity:
Common stock, $.01 par value, 50,000,000 shares
authorized; 18,842,888 and 17,679,848 shares
issued 188,429 176,798
Additional paid-in capital 55,876,403 51,444,359
Accumulated deficit (44,355,269) (43,757,378)
Accumulated other comprehensive income (384,300) (384,300)
Note receivable from officer (28,996) (30,714)
Total stockholders' equity 11,296,267 7,448,765
Commitments $ 15,290,197 16,129,535
UQM TECHNOLOGIES, INC. AND SUBSIDIARIES
Consolidated Segment Operating Results
(unaudited)
Quarter Ended
June 30, June 30, March 31,
2002 2001 2002
Technology:
Revenue $845,821 955,516 1,048,991
Net earnings (loss) from
continuing operations (500) (143,918) 339,155
Net earnings (loss) (500) (143,918) 339,155
Mechanical products:
Revenue 1,094,963 932,535 900,555
Net earnings (loss) from
continuing operations 5,354 36,418 (14,890)
Net loss (179,617) (278,708) (14,890)
Electronic products:
Revenue 2,831,829 4,621,742 2,548,444
Net loss from continuing
operations (417,774) (65,179) (5,060,610)
Net loss (417,774) (65,179) (5,060,610)
# End Table #
# End #