Page 3
Exhibit 99.1
Date: May 6, 2003
Contact: Scott M. Schecter, Chief Financial Officer; Fuel-Tech N.V.,
(203) 425-9830
FUEL-TECH N.V. REPORTS FIRST QUARTER RESULTS;
Y/Y REVENUE INCREASES 54%
COMPANY ALSO ANNOUNCES CONTRACTS ON THREE UNITS FOR $3.7 MILLION
Stamford, CT, May 6, 2003 -- Fuel-Tech N.V., (Nasdaq: FTEK), a world
leader in air pollution control technology, process optimization and advanced
engineering solutions for energy systems, today reported results for the first
quarter ended March 31, 2003.
For the quarter, net sales increased 54% to $8.0 million, compared to
$5.2 million in the first quarter of 2002. Net loss for the quarter was
$517,000, or $0.03 per diluted share, compared to net income of $312,000, or
$0.01 per diluted share, in the same quarter a year ago. Net income from the
first quarter of 2002 included the impact of a one-time payment of $250,000 from
Clean Diesel Technologies, Inc., as well as a $50,000 income tax benefit.
The Company also announced contracts for the installation of its
NOxOUT(R) technology on two 620MW(e) coal-fired boilers and a third, temporary
system, on a 150 MW coal-fired unit.
"Our results for the quarter were in line with expectations," commented
Steven C. Argabright, President and Chief Operating Officer. "The low margins
experienced this quarter were the result of turnkey installations comprising a
large percentage of total revenues, and the turnkey portion of these contracts
are sold at a much lower margin than our traditional scope. Based on our current
backlog and recent bookings, we expect our margins to approximate more
traditional levels in the second quarter."
Mr. Argabright continued, "We are very pleased by the new NOxOUT
contracts on two large coal-fired boilers, and it's notable that these orders
come from a satisfied, repeat customer. The third order was received from a
utility in the Northeast to supply a temporary, trailer mounted NOxOUT(R) system
for the summer ozone season. Once installed, this system will significantly
reduce NOx, thereby offsetting the customer's potential need to purchase
allowances, which are currently trading in the $8000/ton range.
We are also gratified by the NOxOUT ULTRA(R) contract we recently
announced, totaling $2.2 million, and expect a second release of similar size in
the very near future. The NOxOUT ULTRA technology allows our customer to avoid
the need to transport and store ammonia, a hazardous substance, by converting
urea into ammonia on-site for use in their Selective Catalytic Reduction System.
We expect other significant orders this quarter for our NOxOUT process, as
utilities look to comply with the requirements of the SIP Call regulation."
Page 4
Mr. Argabright continued, "We are also pleased by progress in our FUEL
CHEM(R) business as our patented Targeted In-Furnace Injection (TIFI) technology
continues to gain recognition as a superior method for controlling slagging and
fouling in boilers burning a variety of fuels, including Western coals. In fact,
we expect to have four or five new units implementing TIFI in the next 60 days,
three or four of which will be Western coal-fired utility boilers, and one will
be an incinerator at a large Municipal Solid Waste facility."
Mr. Argabright concluded, "We look forward to improved results in
subsequent quarters as we benefit from new air pollution control contracts and
the increased penetration of our FUEL CHEM business on coal-fired utility
boilers."
Conference Call
As a reminder, Fuel-Tech N.V will be hosting a telephone conference
call at 10:00 AM EST on Tuesday, May 6th, 2003, to discuss further its first
quarter results. This conference will simultaneously be broadcast over the
Internet at www.fueltechnv.com and can be accessed under the subheading of
"Investors" on the homepage.
About Fuel-Tech N.V.
Fuel-Tech N.V. is a leading technology company engaged in the worldwide
development, commercialization and application of state-of-the-art proprietary
technologies for air pollution control, process optimization, and advanced
engineering services. The Company's NOx reduction processes, which include the
NOxOUT(R), NOxOUT CASCADE(R), NOxOUT ULTRA(R), Rich Reagent Injection (RRI) and
NOxOUT SCR(R) technologies, have established Fuel-Tech N.V. as a leader in post
combustion NOx control systems, which are installed on over 300 units worldwide.
New technologies that have grown out of the core NOx reduction business
form the basis of the FUEL CHEM(R) and ACUITIV(TM) businesses. FUEL CHEM
technology centers around the unique application of chemicals to improve the
performance of combustion units while the Company's ACUITIV business includes
high-end visualization software that was developed as part of Fuel Tech's
sophisticated Computational Fluid Dynamics (CFD) modeling techniques utilized to
predict the behavior of industrial processes. The Company's FUEL CHEM products
are being applied to over 80 combustion units burning a variety of fuels. For
more information, visit Fuel-Tech N.V.'s web site at www.fueltechnv.com.
This press release may contain statements of a forward-looking nature
regarding future events. These statements are only predictions and actual events
may differ materially. Please refer to documents that Fuel Tech files from time
to time with the Securities and Exchange Commission for a discussion of certain
factors that could cause actual results to differ materially from those
contained in the forward-looking statements.
(Tables to Follow)
FUEL-TECH N.V.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(in thousands of U.S. dollars, except share data)
Three Months Ended
March 31
2003 2002
----------------------------------------
Net sales $ 8,036 $ 5,221
Costs and expenses:
Cost of sales 5,409 2,583
Selling, general and administrative 2,854 2,355
Research and development 311 293
---------------- ----------------
Operating loss (538) (10)
Income from equity interest in affiliates - 238
Interest expense (16) (43)
Other income, net 37 77
---------------- ----------------
(Loss) income before taxes (517) 262
Income tax benefit - 50
---------------- ----------------
Net (loss) income $ (517) $ 312
================ ================
Net (loss) income per common share:
Basic $ (.03) $ .02
================ ================
Diluted $ (.03) $ .01
================ ================
Average number of common shares outstanding:
Basic 19,552,000 19,177,000
========== ==========
Diluted 19,552,000 22,632,000
========== ==========
--more--
FUEL-TECH N.V.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands of U.S. Dollars, except share data)
March 31, December 31,
2003 2002
----------------- -------------
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 8,328 $ 10,939
Accounts receivable, net 8,496 8,849
Prepaid expenses and other current assets 1,267 1,164
--------------- -------------
Total current assets 18,091 20,952
Equipment, net of accumulated depreciation of
$5,336 and $5,118, respectively 2,223 2,123
Goodwill, net of accumulated amortization of
$924 2,119 2,119
Other 675 675
--------------- -------------
Total assets $ 23,108 $ 25,869
=============== =============
Liabilities and stockholders' equity
Current liabilities:
Accounts payable 3,649 5,065
Accrued expenses 1,260 1,940
--------------- -------------
Total current liabilities 4,909 7,005
Long-term debt 1,575 1,800
Other liabilities 257 259
--------------- -------------
Total liabilities 6,741 9,064
Stockholders' equity:
Common stock, par value $0.01 per share,
authorized 40,000,000 shares, 19,683,642
and 19,613,817 shares issued, respectively 197 196
Additional paid-in capital 90,424 90,315
Accumulated deficit (73,669) (73,150)
Accumulated other comprehensive income 16 10
Treasury stock (1,133) (1,098)
Nil coupon perpetual loan notes 532 532
--------------- -------------
Total stockholders' equity 16,367 16,805
--------------- -------------
Total liabilities and stockholders' equity $ 23,108 $ 25,869
=============== =============