Exhibit 99.1
Date: July 29, 2003
Contact: Scott M. Schecter, Chief Financial Officer; Fuel-Tech N.V.,
(203) 425-9830
FUEL-TECH N.V. REPORTS SECOND QUARTER AND SIX MONTHS RESULTS;
Y/Y REVENUE INCREASES 24% AND 36%, RESPECTIVELY
Stamford, CT, July 29, 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 second
quarter and six months ended June 30, 2003.
For the quarter, net sales increased 24% to $10.0 million, compared to
$8.0 million in the second quarter of 2002. Net income for the quarter was
$600,000, or $0.03 per diluted share, compared to net income of $1,029,000, or
$0.05 per diluted share, in the same quarter a year ago. For the six month
period ended June 30, 2003, net sales increased 36% to $18.0 million, compared
to $13.2 million in the first half of 2002. Net income for the first six months
of 2003 was $83,000, or $0.00 per diluted share, compared to net income of
$1,341,000, or $0.06 per diluted share, in the same period a year ago.
"Our results for the quarter were in line with our expectations,"
commented Steven C. Argabright, President and Chief Operating Officer. "The
reduction in overall margins for the first half of the year was the result of
air pollution control 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. As most of our turnkey projects are
near completion, margins from our air pollution control business should return
to more traditional levels. We continue to see strong interest in the air
pollution control project business as the May 31, 2004 deadline for compliance
with the SIP Call nears."
Mr. Argabright continued, "We are pleased by the progress we've seen 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. We recently announced the results of our successful demonstration at
Western Farmers Electric Cooperative's Hugo station on a 475 MW coal-fueled
utility boiler which, when coupled with our strategic agreement with Peabody
Energy, adds tremendous credibility to our technology. We expect significant
additional business to be gained during the next six to eight months based on
the proven ROI benefit that our FUEL CHEM technology provides. This will give us
the critical mass that we need to significantly increase our market
penetration." Mr. Argabright concluded, "We look forward to improved results in
the subsequent quarter as we benefit from new air pollution control contracts
and the increased penetration of our FUEL CHEM business on coal-fueled utility
boilers."
Conference Call
As a reminder, Fuel-Tech N.V will be hosting a conference call at 10:00
AM EST on Tuesday, July 29th, 2003, to further discuss second quarter results.
The call will be simultaneously 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 N.V. 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 Six Months Ended
June 30 June 30
2003 2002 2003 2002
------------------------ -------------------------
Net sales $ 9,968 $ 8,021 $ 18,004 $ 13,242
Costs and expenses:
Cost of sales 6,411 4,130 11,820 6,713
Selling, general and administrative 2,750 2,653 5,604 5,008
Research and development 295 354 606 647
-------- ------- ------- -------
Operating income (loss) 512 884 (26) 874
(Loss) income from equity interest in affiliates - (15) - 223
Interest expense (9) (34) (25) (77)
Other income, net 97 194 134 271
--------- -------- --------- -------
Income before taxes 600 1,029 83 1,291
Income taxes - - - 50
---------- -------- -------- -------
Net income $ 600 $ 1,029 $ 83 $ 1,341
========== ======== ========== =======
Net income per common share:
Basic $ .03 $ .05 $ - $ .07
========== ======== ======= =========
Diluted $ .03 $ .05 $ - $ .06
========== ======== ======= =========
Average number of common shares outstanding:
Basic 19,582,000 19,310,000 19,571,000 19,247,000
========== ========== ========== ==========
Diluted 22,147,000 22,733,000 22,089,000 22,675,000
========== ========== ========== ==========
FUEL-TECH N.V.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands of U.S. dollars, except share data)
June 30, December 31,
2003 2002
--------------- ---------------
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 6,160 $ 10,939
Accounts receivable, net 8,994 8,849
Prepaid expenses and other current assets 1,407 1,164
------------- ---------------
Total current assets 16,561 20,952
Equipment, net of accumulated depreciation of
$5,593 and $5,118, respectively 2,305 2,123
Goodwill, net of accumulated amortization of $924 2,119 2,119
Other 674 675
--------------- ---------------
Total assets $ 21,659 $ 25,869
=============== ===============
Liabilities and stockholders' equity
Current liabilities:
Accounts payable 3,065 5,065
Accrued expenses 1,322 1,940
--------------- ---------------
Total current liabilities 4,387 7,005
Long-term debt - 1,800
Other liabilities 270 259
--------------- ---------------
Total liabilities 4,657 9,064
Stockholders' equity:
Common stock, par value $0.01 per share,
authorized 40,000,000 shares, 19,706,892
and 19,613,817 shares issued, respectively 197 196
Additional paid-in capital 90,466 90,315
Accumulated deficit (73,068) (73,150)
Accumulated other comprehensive income 8 10
Treasury stock (1,133) (1,098)
Nil coupon perpetual loan notes 532 532
--------------- ---------------
Total stockholders' equity 17,002 16,805
--------------- ---------------
Total liabilities and stockholders' equity $ 21,659 $ 25,869
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