Exhibit 99.1
Date: May 6, 2004
Contact: Tracy H. Krumme, Director, Investor Relations, Fuel-Tech N.V.,
(203) 425-9830
Vincent J. Arnone, Chief Financial Officer; Fuel-Tech N.V.,
(630) 845-4500
FOR IMMEDIATE RELEASE
FUEL-TECH N.V. REPORTS FIRST QUARTER RESULTS;
FUEL CHEM(R) REVENUES UP 116% OVER LAST YEAR
- --COMPANY ALSO ANNOUNCES ANOTHER FUEL CHEM(R) DEMONSTRATION AT A MAJOR UTILITY--
STAMFORD, Conn.- May 6, 2004 -- Fuel-Tech N.V., (Nasdaq: FTEK), a world
leader in advanced engineering solutions for the optimization of combustion
systems for utility and industrial customers, today reported results for the
first quarter ended March 31, 2004.
For the quarter, net sales were $6.2 million, compared to $8.0 million
in the first quarter of last year. The net loss for the quarter was $506,000 or
($0.03) per diluted share, compared to a net loss of $517,000 or ($0.03) per
diluted share in the same quarter a year ago.
The Company also announced that it received approval for a FUEL CHEM(R)
Targeted In-Furnace Injection (TIFI) demonstration, scheduled to commence this
summer, on a 325-megawatt Powder River Basin coal-fired boiler at a major
utility.
"Our results for the quarter were in line with expectations," commented
Steven C. Argabright, President and Chief Operating Officer. "The decrease in
revenues was the result of an expected slowdown in our air pollution control
business, which was partially offset by increased FUEL CHEM revenues. Our FUEL
CHEM business had a record quarter with revenues up 116% over last year. This
was attributable to our increased penetration of the western coal-fired utility
market, as well as an increase in our more traditional oil-fired business, and
to a lesser degree, the addition of Martin Marietta's retail fuel treatment
chemical business, which was acquired on September 30th, 2003. It's important to
note that these strong results were achieved despite the fact that the Western
Farmers' unit was shut down for a maintenance outage during the majority of the
month of March."
Mr. Argabright continued, "We are pleased to announce another TIFI
demonstration on a coal-fired boiler at a key utility that we have identified as
being important in achieving critical mass. Based on the recent progress we have
made, we are optimistic that we will receive additional orders from both new and
existing customers in the near future. We continue to be excited about the
growth opportunities in this business, and are on target to achieve our expected
2004 revenue growth of approximately 75%."
Mr. Argabright continued, "As expected, our air pollution control
revenues were down this quarter due to reasons we have discussed in the past
which include: uncertainty regarding New Source Review rulings, financial issues
and constraints at utility companies, and lower 2004 NOx allowance prices which
provide utilities with a short term alternative for meeting SIP Call
requirements. We expect this business to show significant improvement in the
second half of this year and be strong in 2005 and 2006."
Mr. Argabright concluded, "Going forward, our sales focus in the air
pollution control business remains the creation of alliances with major
utilities and we believe that we are very close to executing an agreement with a
major utility in the near future, followed shortly thereafter by the release of
some engineering and equipment orders."
Conference Call
As a reminder, Fuel-Tech N.V will be hosting a telephone conference
call at 10:00 AM EST on Thursday, May 6th, 2004, to discuss 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 providing proprietary
advanced engineering solutions for the optimization of combustion systems for
utility and industrial customers. 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 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.
--more--
(Tables to Follow)
FUEL-TECH N.V.
CONSOLIDATED BALANCE SHEETS
(in thousands of U.S. dollars, except share data)
March 31, December 31,
2004 2003
--------------- ---------------
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 6,115 $ 7,812
Accounts receivable, net 5,380 6,095
Prepaid expenses and other current assets 1,306 1,107
------------- ---------------
Total current assets 12,801 15,014
Equipment, net of accumulated depreciation of
$6,282 and $6,165, respectively 2,666 2,127
Goodwill, net of accumulated amortization of
$924 2,119 2,119
Other intangible assets, net of accumulated amortization
$48 and $24, respectively 1,250 1,274
Other 808 1,064
--------------- ---------------
Total assets $ 19,644 $ 21,598
=============== ===============
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $ 1,750 $ 2,244
Accrued expenses 812 1,744
--------------- ---------------
Total current liabilities 2,562 3,988
Other liabilities 295 299
--------------- ---------------
Total liabilities 2,857 4,287
Stockholders' equity:
Common stock, par value $0.01 per share,
authorized 40,000,000 shares, 19,623,553
and 19,621,503 shares issued, respectively 196 196
Additional paid-in capital 89,702 89,698
Accumulated deficit (72,536) (72,030)
Accumulated other comprehensive income 26 48
Treasury stock (1,133) (1,133)
Nil coupon perpetual loan notes 532 532
--------------- ---------------
Total stockholders' equity 16,787 17,311
Total liabilities and stockholders' equity $ 19,644 $ 21,598
=============== ===============
See notes to condensed consolidated financial statements.
FUEL-TECH N.V.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands of U.S. dollars, except share data)
Three Months Ended
March 31
2004 2003
--------- ---------
Net sales $ 6,152 $ 8,036
Costs and expenses:
Cost of sales 3,216 5,409
Selling, general and administrative 3,152 2,854
Research and development 303 311
---------- ----------
Operating loss (519) (538)
Interest expense - (16)
Other income, net 13 37
---------- ----------
Loss before taxes (506) (517)
Income tax benefit - -
---------- ----------
Net loss $ (506) $ (517)
========== ==========
Net loss per common share:
Basic $ (.03) $ (.03)
========== ==========
Diluted $ (.03) $ (.03)
========== ==========
Average number of common shares outstanding:
Basic 19,504,000 19,552,000
========== ==========
Diluted 19,504,000 19,552,000
========== ==========
See notes to condensed consolidated financial statements.