CDTi Announces Third Quarter 2017 Financial Results
15 November 2017 - 8:05AM
Clean Diesel Technologies, Inc. (Nasdaq:CDTI) (“CDTi” or “the
Company”), a leader in advanced emission control technology,
reported its financial results for the third quarter ended Sept.
30, 2017.
Matthew Beale, CDTi’s CEO, stated, “The third quarter marked
several critical milestones in CDTi’s development as a provider of
enabling technology to the automotive catalyst industry. We
completed our business realignment with the sale of our downstream
distribution activities in the North American aftermarket, secured
our first Chinese OEM vehicle platform for our advanced materials
and signed a joint development agreement with a major global OEM
focused on material systems for catalyst applications.”
“Importantly, the global regulatory environment, automotive
industry trends and commodity price dynamics further strengthen our
unique value proposition. With our streamlined operations,
lower cost base and clean balance sheet, CDTi is ideally positioned
to capitalize on its growing commercial pipeline.”
Financial Highlights: Third Quarter 2017 compared to
Third Quarter 2016
- Total revenue was $6.9 million, compared to $10.1 million.-
Coated catalyst revenue was $3.5 million, compared to $7.1
million.- Emissions control systems revenue was $2.9 million,
compared to $2.8 million.- Technology and advanced materials
revenue was $0.5 million, compared to $0.2 million.
- Gross margin was 22%, compared to 27%. The decrease primarily
reflects the impact of overhead on lower sales.
- Total operating expenses in the third quarter of 2017 were $3.3
million, compared to $3.7 million in the third quarter of 2016
including severance costs and a significant investment in outside
testing as we partner with OEMs in China on our powder-to-coat
implementations. As we realize the full benefit of headcount
reductions executed in the third and fourth quarter resulting from
the sale of Durafit™ and the exit of our high-volume coating
activities, along with other cost cutting measures, our operating
expenses will decrease to $2 million per quarter in 2018.
- Net loss was $360,000, or $0.02 per share, compared to a net
loss of $12.6 million, or $2.14 per share in the third quarter of
2016.
- Cash at September 30, 2017 was $3.3 million, compared to $7.8
million at December 31, 2016.
Financial Highlights: Nine months ended September 30,
2017 compared to 2016
- Total revenue for the first nine months of 2017 was $23.5
million, compared to $28.3 million for the same prior year
period.
- Gross margin was 21%, compared to 25% in the same prior year
period.
- Total operating expenses for the first nine months of 2017 were
$9.3 million compared to $14.4 million in the same prior year
period.
- Net loss for the first nine months of 2017 was $3.8 million, or
$0.24 per share, compared to net loss of $15.6 million, or $3.49
per share, in the same prior year period.
Financial OutlookBased on CDTi’s current
business configuration as well as its third quarter results, the
company now expects full-year revenue to be approximately $28
million and gross margin to be approximately 22%.
Conference Call and Webcast InformationCDTi
will host a conference call and live webcast beginning at 2:00 p.m.
Pacific Time today, November 14th to discuss its financial results
and its business outlook. This conference call will contain
forward-looking information. To participate in the conference call,
please dial +1 (877) 303-9240 and international participants should
dial +1 (760) 666-3571. The conference code is 9998218. The
conference call will be webcast live on the CDTi website at
www.cdti.com under the "Investor Relations" section. To listen to
the live webcast, participants should visit the site at least 15
minutes prior to the conference to download any required streaming
media software. An archived recording of the conference call will
be available on the CDTi website for 30 days. You may also access a
telephone replay for two business days following the conclusion of
the call by dialing +1 (855) 859-2056 or +1 (404) 537-3406 if
dialing in internationally. The passcode is 9998218.
About CDTiCDTi develops advanced materials
technology for the emissions control market. CDTi’s proprietary
technologies provide high-value sustainable solutions to reduce
hazardous emissions, increase energy efficiency and lower the
carbon intensity of on- and off-road combustion engine systems.
With a continuing focus on innovation-driven commercialization and
global expansion, CDTi’s breakthrough Powder-to-Coat (P2C™)
technology exploits the Company’s high-performance, advanced
low-platinum group metal (PGM) emission reduction catalysts. Key
technology platforms include Mixed Phase Catalyst (MPC®), Base
Metal Activated Rhodium Support (BMARS™), Synergized PGM (SPGM™),
Zero PGM (ZPGM™) and Spinel™. For more information, please visit
www.cdti.com.
Forward-Looking StatementsCertain information
contained in this press release constitutes forward-looking
statements, including any statements that are not statements of
historical fact. You can identify these forward-looking statements
by the use of the words “believes”, “expects”, “anticipates”,
“plans”, “may”, “will”, “would”, “intends”, “estimates”, and other
similar expressions, whether in the negative or affirmative.
Forward-looking statements are based on a series of expectations,
assumptions, estimates and projections, which involve substantial
uncertainty and risk. In this document, the Company includes
forward-looking statements regarding the acceleration of the
Company’s business transformation into an advanced materials
company, global trends in the automotive and heavy duty diesel
markets, the Company’s future financial performance, and the
performance of the Company’s technology, are all subject to risks
and uncertainties that could cause our actual results and financial
position to differ materially. In general, actual results may
differ materially from those indicated by such forward-looking
statements as a result of risks and uncertainties, including, but
not limited, to (i) that the Company may not be able to (a)
successfully implement, or implement at all, its strategic
priorities; (b) streamline its operations or align its organization
and infrastructure with the anticipated business; (c) meet
expectations or projections; (d) decrease costs; (e) increase
sales; (f) obtain adequate funding; (g) retain or secure customers;
(h) increase its customer base; (i) protect its intellectual
property; (j) successfully evolve into an advanced materials
supplier or, even if successful, increase profitability; (k)
successfully market new products; (l) obtain product
verifications or approvals; (m) attract or retain key personnel;
(n) validate, optimize and scale our powder-to-coat capability; or
(o) realize benefits from investments; (ii) funding for and
enforcement and tightening of emissions controls, standards and
regulations; (iii) prices of PGM and rare earth metals; (iv)
royalty and other restrictions on sales in certain Asian countries;
(v) supply disruptions or failures; (vi) regulatory, marketing and
competitive factors; (vii) environmental harm or damages; and
(viii) other risks and uncertainties discussed or referenced in the
Company’s filings with the Securities and Exchange Commission,
including its most recent Annual Report on Form 10-K and any
subsequent periodic reports on Form 10-Q and Form 8-K. In addition,
any forward-looking statements represent the Company’s estimates
only as of the date of such statements and should not be relied
upon as representing the Company’s estimates as of any subsequent
date. The Company specifically disclaims any obligation to update
forward-looking statements. All forward-looking statements in this
press release are qualified in their entirety by this cautionary
statement.
Contact Information: Becky
Herrick or Cathy MattisonLHA (IR Agency)+1 415 433
3777bherrick@lhai.com / cmattison@lhai.com
[Tables to follow] |
|
|
|
CLEAN DIESEL TECHNOLOGIES, INC. |
Condensed Consolidated Balance Sheet |
(in thousands, except per share amounts) |
(unaudited) |
|
|
|
|
|
September 30, |
|
December 31, |
|
2017 |
|
2016 |
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash |
$ |
3,341 |
|
|
$ |
7,839 |
|
Accounts
receivable, net |
|
3,669 |
|
|
|
5,398 |
|
Inventories |
|
3,534 |
|
|
|
7,125 |
|
Prepaid
expenses and other current assets |
|
961 |
|
|
|
968 |
|
Total
current assets |
|
11,505 |
|
|
|
21,330 |
|
Property and equipment,
net |
|
935 |
|
|
|
1,158 |
|
Intangible assets,
net |
|
1,158 |
|
|
|
1,483 |
|
Deferred tax
assets |
|
670 |
|
|
|
554 |
|
Other assets |
|
326 |
|
|
|
305 |
|
Total
assets |
$ |
14,594 |
|
|
$ |
24,830 |
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
Current
liabilities: |
|
|
|
Line of
credit |
$ |
— |
|
|
$ |
1,458 |
|
Shareholder notes payable |
|
— |
|
|
|
1,803 |
|
Accounts
payable |
|
4,243 |
|
|
|
5,979 |
|
Accrued
expenses and other current liabilities |
|
3,972 |
|
|
|
6,345 |
|
Income
taxes payable |
|
765 |
|
|
|
642 |
|
Total
current liabilities |
|
8,980 |
|
|
|
16,227 |
|
Commitments and
contingencies |
|
|
|
Stockholders’
equity: |
|
|
|
Preferred stock, par
value $0.01 per share: authorized 100,000; no shares issued and
outstanding |
|
— |
|
|
|
— |
|
Common stock, par value
$0.01 per share: authorized 50,000,000; issued and
outstanding |
|
|
|
|
|
|
|
15,802,936 and
15,703,301 shares at September 30, 2017 and December 31, 2016,
respectively |
|
158 |
|
|
|
157 |
|
Additional paid-in
capital |
|
238,340 |
|
|
|
237,838 |
|
Accumulated other
comprehensive loss |
|
(5,979 |
) |
|
|
(6,329 |
) |
Accumulated
deficit |
|
(226,905 |
) |
|
|
(223,063 |
) |
Total stockholders’
equity |
|
5,614 |
|
|
|
8,603 |
|
Total liabilities and
stockholders’ equity |
$ |
14,594 |
|
|
$ |
24,830 |
|
|
|
|
|
|
CLEAN DIESEL TECHNOLOGIES, INC. |
Condensed Consolidated Statement of Operations |
(in thousands, except percentage and per share
amounts) |
(unaudited) |
|
|
Three Months Ended September
30, |
|
|
Nine Months Ended September
30, |
|
|
2017 |
|
% of Revenues |
|
|
2016 |
|
% of Revenues |
|
|
2017 |
|
% of Revenues |
|
|
2016 |
|
% of Revenues |
|
|
|
|
As Restated |
|
|
|
|
|
As Restated |
|
Coated catalysts |
$ |
3,456 |
|
50 |
% |
|
$ |
7,110 |
|
70 |
% |
|
$ |
12,747 |
|
55 |
% |
|
$ |
17,626 |
|
62 |
% |
Emission control
systems |
|
2,948 |
|
43 |
% |
|
|
2,778 |
|
27 |
% |
|
|
9,500 |
|
40 |
% |
|
|
9,565 |
|
34 |
% |
Technology and advanced
materials |
|
453 |
|
7 |
% |
|
|
244 |
|
3 |
% |
|
|
1,223 |
|
5 |
% |
|
|
1,093 |
|
4 |
% |
Revenues |
$ |
6,857 |
|
100 |
% |
|
$ |
10,132 |
|
100 |
% |
|
$ |
23,470 |
|
100 |
% |
|
$ |
28,284 |
|
100 |
% |
Cost of revenues |
|
5,370 |
|
|
|
|
7,425 |
|
|
|
|
18,605 |
|
|
|
|
21,153 |
|
|
Gross profit |
|
1,487 |
|
|
|
|
2,707 |
|
|
|
|
4,865 |
|
|
|
|
7,131 |
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
|
Research
and development |
|
1,155 |
|
|
|
|
762 |
|
|
|
|
3,211 |
|
|
|
|
3,955 |
|
|
Selling,
general and administrative |
|
1,877 |
|
|
|
|
2,322 |
|
|
|
|
6,519 |
|
|
|
|
8,549 |
|
|
Severance
and other charges |
|
235 |
|
|
|
|
571 |
|
|
|
|
(384 |
) |
|
|
|
1,945 |
|
|
Total
operating expenses |
|
3,267 |
|
|
|
|
3,655 |
|
|
|
|
9,346 |
|
|
|
|
14,449 |
|
|
Loss from
operations |
|
(1,780 |
) |
|
|
|
(948 |
) |
|
|
|
(4,481 |
) |
|
|
|
(7,318 |
) |
|
Other income
(expense): |
|
|
|
|
|
|
|
|
|
|
|
Interest
expense |
|
(93 |
) |
|
|
|
(458 |
) |
|
|
|
(260 |
) |
|
|
|
(1,541 |
) |
|
Gain on
bifurcated derivative liability |
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
2,754 |
|
|
Loss on
extinguishment of debt |
|
— |
|
|
|
|
(10,780 |
) |
|
|
|
(194 |
) |
|
|
|
(12,410 |
) |
|
Gain
(loss) on change in fair value of liability-classified
warrants |
|
738 |
|
|
|
|
(705 |
) |
|
|
|
404 |
|
|
|
|
883 |
|
|
Gain on
sale of DuraFit |
|
805 |
|
|
|
|
— |
|
|
|
|
805 |
|
|
|
|
— |
|
|
Other
(expense) income, net |
|
(149 |
) |
|
|
|
196 |
|
|
|
|
(67 |
) |
|
|
|
824 |
|
|
Total
other income (expense) |
|
1,301 |
|
|
|
|
(11,747 |
) |
|
|
|
688 |
|
|
|
|
(9,490 |
) |
|
Loss from
operations before income taxes |
|
(479 |
) |
|
|
|
(12,695 |
) |
|
|
|
(3,793 |
) |
|
|
|
(16,808 |
) |
|
Income
tax (benefit) expense |
|
(119 |
) |
|
|
|
(113 |
) |
|
|
|
49 |
|
|
|
|
(1,232 |
) |
|
Net
loss |
$ |
(360 |
) |
|
|
$ |
(12,582 |
) |
|
|
$ |
(3,842 |
) |
|
|
$ |
(15,576 |
) |
|
Basic and diluted net
loss per common share: |
|
|
|
|
|
|
|
|
|
|
|
Net loss |
$ |
(0.02 |
) |
|
|
$ |
(2.14 |
) |
|
|
$ |
(0.24 |
) |
|
|
$ |
(3.49 |
) |
|
Weighted average shares
outstanding – basic and diluted |
|
15,760 |
|
|
|
|
5,876 |
|
|
|
|
15,724 |
|
|
|
|
4,462 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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