Exhibit 99
[ZOLTEK logo]
FOR IMMEDIATE RELEASE
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ZOLTEK REPORTS FIRST QUARTER RESULTS
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ST. LOUIS, MISSOURI -- FEBRUARY 11, 2008 -- Zoltek Companies, Inc.
(Nasdaq: ZOLT) today reported results for the first quarter of its 2008 fiscal
year ended December 31, 2007.
Zoltek's net sales for the quarter totaled $40.1 million, compared to
$30.3 million in the first quarter of fiscal 2007 and to $43.6 million in the
fourth quarter of fiscal 2007. Operating income from continuing operations
before litigation charge totaled $4.8 million, compared to $3.0 million in the
first quarter of fiscal 2007 and to $7.9 million in the fourth quarter of
fiscal 2007. Zoltek's net income was $2.6 million in the first quarter of
fiscal 2008, which compared to net losses of $5.7 million and $1.8 million
reported for the first and fourth quarters of fiscal 2007, respectively.
Zsolt Rumy, Zoltek's Chairman and Chief Executive Officer, said that
although management had expected sales in the recent quarter to approximate
the level reported for the immediately preceding quarter, volume was
constrained by customer plant shutdowns in Europe over the holiday season and
by year-end inventory adjustments by several customers who previously had
built up their inventories to address concerns regarding possible shortages.
"With our increasing capacity, our customers are more confident that we will
be able to supply all their requirements and, consequently, they worked down
some safety stocks. Overall demand for our low-cost, high-performance carbon
fibers remains strong and we are optimistic that we can reach our sales
objective for fiscal 2008," Rumy said.
"Longer term, we expect that over the next few years our growth
trends will continue and we will achieve our sales and profitability targets,"
Rumy said.
Zoltek will host a conference call to review first quarter results
and answer questions on Tuesday, February 12, 2008, at 10:00 am CT. The
conference dial-in number is (800) 795-1259. The confirmation code is 4179867.
Individuals who wish to participate should dial in 5 to 10 minutes prior to
the scheduled start time.
FOR FURTHER INFORMATION CONTACT:
ZSOLT RUMY, CEO OR KEVIN SCHOTT, CFO
3101 MCKELVEY ROAD
ST. LOUIS, MO 63044
(314) 291-5110
This press release contains statements that are based on the current
expectations of our company. You are cautioned that any such forward-looking
statements are not guarantees of future performance and involve risks and
uncertainties, and that actual results may differ materially from those
projected in the forward-looking statements as a result of various factors.
The factors that might cause such differences include, among others, our
ability to: (1) successfully resolve pending litigation; (2) continue to
improve efficiency at our manufacturing facilities on a timely and
cost-effective basis to meet current order levels of carbon fibers; (3)
successfully add new planned capacity for the production of carbon fiber and
precursor raw materials and meet our obligations under long-term supply
agreements; (4) achieve profitable operations; (5) raise new capital and
increase our borrowing at acceptable costs; (6) manage changes in customers'
forecasted requirements for our products; (7) continue investing in
application and market development in a range of industries; (8) manufacture
low-cost carbon fibers and profitably market them; (9) penetrate existing,
identified and emerging markets; (10) successfully retrofit our recently
acquired Mexican facility to manufacture acrylic fiber precursor and add
carbon fiber production lines, and (11) manage the risks identified under
"Risk Factors" in our filings with the SEC.
[ZOLTEK logo]
Zoltek Reports First Quarter Results
Page 2
February 11, 2008
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ZOLTEK COMPANIES, INC.
SUMMARY FINANCIAL RESULTS
(Amounts In Thousands Except Per Share Data)
(Unaudited)
Three Months Ended
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December 31 December 31 September 30
2007 2006 2007
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Net sales.................................................................... $ 40,072 $ 30,285 $ 43,579
Cost of sales................................................................ 29,313 22,434 30,584
Gross profit................................................................. 10,759 7,851 12,995
Application and development costs............................................ 1,896 1,592 1,833
Selling, general and administrative expenses................................. 4,072 3,242 3,221
OPERATING INCOME FROM CONTINUING OPERATIONS PRIOR TO LITIGATION CHARGE*...... 4,791 3,017 7,941
Interest income.............................................................. 1,192 386 931
Interest expense related to non-convertible debt*............................ (101) (71) (334)
Other, net................................................................... (142) (274) 154
Income tax expense........................................................... 1,005 203 (1,182)
INCOME FROM CONTINUING OPERATIONS BEFORE CONVERTIBLE DEBT
EXPENSE AND LITIGATION CHARGE*............................................. 4,735 2,855 7,510
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Expense related to convertible debt issuances*............................... (2,131) (8,450) (3,451)
Litigation charge............................................................ - - (5,400)
Income (loss) from continuing operations..................................... 2,604 (5,595) (1,341)
Loss from discontinued operations, net of taxes.............................. - (68) (503)
NET INCOME (LOSS)............................................................ 2,604 (5,663) (1,844)
Net income (loss) per share:
Basic and diluted income (loss) per share:
Continuing operations before convertible debt and
litigation charge*............................................... $ 0.14 $ 0.11 $ 0.24
Convertible debt charge*........................................... (0.06) (0.33) (0.11)
Litigation charge.................................................. 0.00 0.00 (0.17)
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Continuing operations.................................................. 0.08 (0.22) (0.04)
Discontinued operations............................................ 0.00 (0.00) (0.02)
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Total........................................................ $ 0.08 $ (0.22) $ (0.06)
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Weighted average common shares outstanding - basic........................... 33,756 25,945 31,542
Weighted average common shares outstanding - diluted......................... 33,956 25,961 31,542
<FN>
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* To provide transparency about measures of the Company's financial
performance which management considers relevant, we supplement the reporting
of Zoltek's consolidated financial information under GAAP with "operating
income from continuing operations prior to litigation charge," "interest
expense related to non-convertible debt," "income from continuing operations
before convertible debt expense and litigation charge," and "expense related
to convertible debt issuances" which are a non-GAAP financial measures.
Operating income (loss) in accordance with GAAP was $4,791, $2,541 and $3,017
for the first fiscal quarter of 2008, fourth quarter of fiscal 2007 and first
quarter of fiscal 2007, respectively. These non-GAAP financial measures should
be considered in addition to, and not as a substitute or superior to, the
other measures of financial performance prepared in accordance with GAAP.
Using only the non-GAAP financial measures to analyze our performance would
have material limitations because their calculation is based on the subjective
determination of management regarding the nature and classification of events
and circumstances that investors may find significant. Management compensates
for these limitations by presenting both the GAAP and non-GAAP measures of its
results. Zoltek believes the presentation of these measures is useful to
investors because (1) they are indicative of the company's underlying business
performance, (2) the litigation charge in fiscal 2007 related to a dispute
with an investment banking firm in connection with certain financing
transactions; and (3) expense related to convertible debt issuances (which
amount includes amortization of debt discount and interest expense) arises out
of convertible debt obligations that we expect will be converted into Zoltek
common stock if the market price of our common stock continues to exceed the
conversion price.
[ZOLTEK logo]
Zoltek Reports First Quarter Results
Page 3
February 11, 2008
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CONSOLIDATED BALANCE SHEET
(Amounts in thousands, except share and per share data)
(Unaudited)
December 31 September 30
2007 2007
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ASSETS
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Current assets:
Cash and cash equivalents................................................................. $ 63,649 $ 121,761
Restricted cash........................................................................... 23,500 13,815
Accounts receivable, less allowance for doubtful accounts of $971 and
$1,105, respectively.................................................................... 31,997 37,495
Inventories............................................................................... 30,168 27,941
Other current assets...................................................................... 16,425 10,858
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Total current assets.................................................................. 165,739 211,870
Property and equipment, net.................................................................... 240,566 188,801
Other assets................................................................................... 2,488 2,928
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Total assets.......................................................................... $ 408,793 $ 403,599
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LIABILITIES AND SHAREHOLDERS' EQUITY
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Current liabilities:
Current maturities of long-term debt...................................................... $ 12,982 $ 13,813
Trade accounts payable.................................................................... 15,193 17,253
Legal liabilities....................................................................... 24,384 24,543
Accrued expenses and other liabilities.................................................... 7,793 8,305
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Total current liabilities............................................................. 60,352 63,914
Hungarian grant, long-term .................................................................... 8,828 7,969
Other long-term liabilities.................................................................... 4,173 4,098
Long-term debt, less current maturities........................................................ 5,939 6,851
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Total liabilities..................................................................... 79,292 82,832
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Commitments and contingencies
Shareholders' equity:
Preferred stock, $.01 par value, 1,000,000 shares authorized,
no shares issued and outstanding........................................................ - -
Common stock, $.01 par value, 50,000,000 shares authorized,
33,653,735 and 25,652,982 shares issued and outstanding
in 2007 and 2006, respectively.......................................................... 339 337
Additional paid-in capital................................................................ 480,260 476,205
Accumulated other comprehensive income.................................................... 10,322 8,249
Accumulated deficit ...................................................................... (161,420) (164,024)
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Total shareholders' equity............................................................ 329,501 320,767
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Total liabilities and shareholders' equity............................................ $ 408,793 $ 403,599
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[ZOLTEK logo]
Zoltek Reports First Quarter Results
Page 4
February 11, 2008
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OPERATING SEGMENTS SUMMARY
(Amounts in thousands, except share and per share data)
(Unaudited)
THREE MONTHS ENDED DECEMBER 31, 2007
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CARBON TECHNICAL CORPORATE/
FIBERS FIBERS OTHER TOTAL
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Net sales.............................................. $ 34,120 $ 5,033 $ 919 $ 40,072
Cost of sales.......................................... 24,958 3,713 642 29,313
Operating income (loss)................................ 7,816 83 (3,108) 4,791
Capital expenditures/Mexico acquisition................ 12,062 316 102 12,480
Purchase of Mexico facility............................ 35,000 - - 35,000
THREE MONTHS ENDED SEPTEMBER 30, 2007
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CARBON TECHNICAL CORPORATE/
FIBERS FIBERS OTHER TOTAL
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Net sales.............................................. $ 35,323 $ 7,340 $ 916 $ 43,579
Cost of sales.......................................... 24,420 5,613 551 30,584
Operating income (loss)................................ 8,910 1,409 (7,778) 2,541
Capital expenditures................................... 8,766 - 1,858 10,624
THREE MONTHS ENDED DECEMBER 31, 2006
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CARBON TECHNICAL CORPORATE/
FIBERS FIBERS OTHER TOTAL
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Net sales.............................................. $ 21,121 $ 8,519 $ 645 $ 30,285
Cost of sales.......................................... 16,476 5,671 287 22,434
Operating income (loss)................................ 2,655 2,510 (2,148) 3,017
Capital expenditures................................... 9,260 1,761 1,317 12,338