CLEAN DIESEL TECHNOLOGIES, INC.
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300 ATLANTIC STREET, SUITE 702, STAMFORD, CT 06901-2522 TEL: (203) 327-7050
FAX: (203) 323-0461
NEWS RELEASE FOR APRIL 3, 2007 AT 2:30 AM EST AND 7:30 AM GMT
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CLEAN DIESEL TECHNOLOGIES, INC.
REPORTS FOURTH QUARTER AND YEAR END 2006 RESULTS
Stamford, CT...Clean Diesel Technologies, Inc. ("Clean Diesel Technologies" or
the "Company") (OTC-BB: CDTI, AIM: CDT/CDTS & XETRA: CDI), a developer of
technological solutions to reduce harmful engine emissions, today announced its
results for the fourth quarter and year ended December 31, 2006.
Clean Diesel Technologies reported total revenue increased 38.3% ($311,000) in
2006 to $1,123,000 compared to $812,000 in 2005. The 2006 increase in revenue
was due to additive revenue, license and royalty revenue and consulting projects
completed in 2006. Revenue for the fourth quarter of 2006 increased 26.9% to
$236,000 compared to $186,000 in the fourth quarter of 2005. The increase in
revenue in the fourth quarter of 2006 was primarily attributable to additive and
hardware revenue. Net loss for the year ended December 31, 2006 was $5,384,000,
or $0.21 loss per share, compared to the 2005 net loss of $5,426,000, or $0.30
loss per share. Net loss for the fourth quarter of 2006 was $1,496,000, or
$0.06 loss per share, as compared to the fourth quarter of 2005 net loss of
$1,460,000, or $0.07 loss per share.
The Company's total operating costs and expenses for the year ended December 31,
2006 were $6,681,000 compared to $6,043,000 in 2005, an increase of $638,000, or
10.6%, and included $304,000 of non-cash charges for the fair value of stock
options granted (in accordance with SFAS No. 123R which the Company adopted in
January 2006). Excluding the stock option charge, the total operating costs and
expenses increased 5.5% in relation to the prior year. Also included in 2006
operating costs and expenses are severance charges of $357,475 (due to the
departure of the Company's former president and chief operating officer who had
been released from employment in January 2006) and the full year effect of the
Company's executive vice president, North American operations and chief
technology officer who was hired in August 2005.
Commenting on the results, Dr. Bernhard Steiner, President and CEO, said: "2006
was a significant year for Clean Diesel Technologies' development with a strong
focus on moving the sales and marketing activities forward, a key component of
which was expanding our distribution partners in North and South America, Europe
and Asia. The net loss from operations reflects this increased investment in
sales and marketing. Clean Diesel Technologies finished the year with $5.3
million in cash and the expectation of collecting another $4.3 million (net of
expenses) from subscriptions. I am pleased that we successfully completed a
private placement in December 2006. For that, we are grateful to our supportive
stockholders."
Dr. Steiner continued, "The combination of increasingly stringent legislation
and expanding financial incentives in the global emissions market, underpinned
by strengthening demand for environmental best practice and dramatic cuts in
greenhouse gas emissions, is expected to drive the market in 2007 and throughout
the rest of the decade. The escalating need for clean air and energy efficiency
provides significant opportunities for Clean Diesel Technologies' existing range
of products and solutions also for its future innovations."
"Our expanded distribution network, additional patents, technology developments
and investment in sales and marketing should all provide the Company with
enhanced revenue opportunities in 2007 and beyond. We are now well positioned
for the next stage of growth and look forward to 2007 with confidence."
Clean Diesel Technologies, Inc. is a clean energy and environmental technology
company supplying proprietary pollution control systems technologies to reduce
harmful emissions from internal combustion engines while improving fuel economy,
resulting in "cleaner air" and reduced "greenhouse gas" emissions. The Company
has four main technology areas: Platinum Plus(R) fuel-borne catalysts for
emission control and fuel economy improvement in diesel engines; ARIS(R)
selective catalytic reduction (SCR) technology for control of nitrogen oxide
(NOx) emissions from diesel engines; catalyzed wire mesh diesel particulate
filters to reduce particulate matter and other regulated engine emissions; and
biofuels technology, which includes the low emission Biodiesel Plus(TM) formula.
For additional information, you may review our Annual Report on Form 10-K as
filed with the Securities and Exchange Commission.
About Clean Diesel Technologies, Inc.
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Clean Diesel Technologies, Inc. and its UK Branch office, Clean Diesel
International LLC, is a developer of technological solutions to reduce harmful
engine emissions. Clean Diesel Technologies has patented products that reduce
emissions from combustion engines while simultaneously improving fuel economy
and power. Products include Platinum Plus(R) fuel-borne catalysts (FBC), the
Platinum Plus Purifier System, catalyzed wire mesh diesel particulate filter
technologies and the ARIS(R) injection systems for selective catalytic reduction
of NOx. Platinum Plus and ARIS are registered trademarks of Clean Diesel
Technologies, Inc. For more information, visit CDT at www.cdti.com or contact
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the Company directly.
Certain statements in this news release constitute "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of 1995.
Such forward-looking statements involve known or unknown risks, including those
detailed in the Company's filings with the US Securities and Exchange
Commission, uncertainties and other factors which may cause the actual results,
performance or achievements of the Company, or industry results, to be
materially different from any future results, performance or achievements
expressed or implied by such forward-looking statements. Readers are cautioned
not to place undue reliance on these forward-looking statements, which speak
only as of the date hereof.
-- Tables Follow --
CLEAN DIESEL TECHNOLOGIES, INC.
STATEMENT OF OPERATIONS
(in thousands, except per share data)
THREE MONTHS ENDED YEARS ENDED
DECEMBER 31, DECEMBER 31,
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2006 2005 2006 2005
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REVENUE:
Additive revenue $ 134 $ 128 $ 591 $ 411
Hardware revenue 78 35 269 349
License and royalty revenue 24 23 74 47
Consulting and other - - 189 5
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Total revenue 236 186 1,123 812
COSTS AND EXPENSES:
Cost of revenue 180 99 658 471
General and administrative 1,405 1,328 5,278 4,963
Research and development 63 69 510 439
Patent amortization and other expense 89 45 235 170
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LOSS FROM OPERATIONS (1,501) (1,355) (5,558) (5,231)
Foreign currency exchange gain (loss) 3 (115) 104 (221)
Interest income 2 10 58 26
Other - - 12 -
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NET INCOME (LOSS) $ (1,496) $ (1,460) $ (5,384) $ (5,426)
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Basic and diluted loss per common share $ (0.06) $ (0.07) $ (0.21) $ (0.30)
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Basic and diluted weighted-average
number of common shares outstanding 26,276 22,027 26,059 18,389
CLEAN DIESEL TECHNOLOGIES, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
DECEMBER 31,
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2006 2005
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ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 5,314 $ 4,513
Accounts receivable, net of allowance of
$34 and $11, respectively 100 125
Inventories, net 365 285
Other current assets 96 94
Subscription receivable, net 2,412 488
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Total current assets 8,287 5,505
Patents, net 603 567
Fixed assets, net of accumulated depreciation of
$350 and $259, respectively 91 175
Other assets 37 27
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Total assets $ 9,018 $ 6,274
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 30 $ 170
Accrued expenses 740 317
Deferred revenue - 9
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Total current liabilities 1,070 496
Commitments
STOCKHOLDERS' EQUITY:
Preferred stock, par value $0.05 per share,
authorized 100,000; no shares issued and outstanding - -
Common stock, par value $0.05 per share:
authorized 45,000,000 and 30,000,000 shares,
respectively; issued and outstanding 29,822,468 and
25,369,358 shares, respectively 1,491 1,269
subscribed and to be issued 3,339,994 and 705,113
shares, respectively 167 35
Additional paid-in capital, net of subscriptions receivable of
$1,901 at December 31, 2006 51,263 44,067
Accumulated other comprehensive income 4 -
Accumulated deficit (44,977) (39,593)
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Total stockholders' equity 7,948 5,778
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Total liabilities and stockholders' equity $ 9,018 $ 6,274
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CLEAN DIESEL TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOW
(in thousands)
FOR THE YEARS ENDED DECEMBER 31,
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2006 2005 2004
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Operating activities
Net loss $ (5,384) $ (5,426) $ (4,143)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation and amortization 138 163 132
Provision for inventory 27 43 -
Provision for doubtful accounts, net 23 12 -
Compensation expense for stock options 304 - 88
Loss on disposition/abandonment of fixed assets/patents 23 33 19
Changes in operating assets and liabilities:
Accounts receivable 2 7 (40)
Inventories (107) 59 (76)
Other current assets and other assets (12) (23) (7)
Deferred compensation and pension benefits - - (306)
Accounts payable and accrued expense 678 167 21
Deferred revenue (9) 9 -
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Net cash used for operating activities (4,317) (4,956) (4,312)
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Investing activities
Patent costs (94) (235) (186)
Purchase of fixed assets (20) (85) (164)
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Net cash used for investing activities (114) (320) (350)
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Financing activities
Proceeds from issuance of common stock, net 5,214 5,522 2,408
Proceeds from exercise of stock options 14 2 1
Proceeds from broker fee credit - - 3
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Net cash provided by financing activities 5,228 5,524 2,412
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Effect of exchange rate changes on cash 4 - -
Net increase (decrease) in cash and cash equivalents $ 801 $ 248 $ (2,250)
Cash and cash equivalents at beginning of the year 4,513 4,265 6,515
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Cash and cash equivalents at end of the year $ 5,314 $ 4,513 $ 4,265
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Supplemental non-cash activities:
Common stock subscribed, net $ 4,313 $ 488 $ -
Payment of accrued directors' fees in common stock 94 70 57
Stock issued as payment for deferred compensation - - 135
FOR FURTHER INFORMATION:
CLEAN DIESEL TECHNOLOGIES, INC http://www.cdti.com
Dr. Bernhard Steiner, CEO & President -------------------
Email: bsteiner@cdti.com 300 Atlantic Street, Suite 702
----------------- Stamford, CT 06901-3522
Ann Ruple, CFO & Vice President Administration Tel: +1 (203) 327-7050
Email: aruple@cdti.com
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J. M. FINN & CO. LTD www.jmfinn.com
Matthew Robinson --------------
matthew.robinson@jmfinn.com Tel: +44 (0) 207 628 9688
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Heather Salmond / Justin Heat ----------------------
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