Amerigon Reports 2009 First Quarter Results
Product revenues in this year’s first quarter were
Automotive production and sales volumes, impacted by slowing worldwide economic activity and decreasing availability of consumer credit, were significantly lower during this year’s first quarter compared with the year-earlier period. In
President and Chief Executive Officer
“We continue to increase market penetration with the addition of five vehicle lines already this year that will offer our CCS technology,” Coker said. “While the lack of credit to finance the purchase or lease of new vehicles has led to a shortage of customers, we still see very good take rates for our seat system. When people do buy a new car, they tend to look for value enhancing features like our CCS system. Our type of feature continues to be extremely popular on the high-end vehicles, but it is very encouraging that our seat system is also increasingly being requested by fuel-conscious customers purchasing mid-range vehicles. That gives us confidence that when the economy and the automobile industry stabilize, our revenues will return to their previous patterns of growth.”
Gross margin as a percentage of revenue for the first quarter of 2009 was 24 percent compared with 32 percent for the first quarter of 2008. The year-over-year decrease is primarily attributable to higher raw material costs, an unfavorable change in the mix of products sold and lower coverage of fixed costs at the lower volume levels. The Company continues to focus on reducing costs and, as part of that ongoing program, it is investing research and development (R&D) resources to offset material and other costs increases.
For the first quarter of this year, the net loss was
Results for the 2009 first quarter included year-over-year increases in R&D expenses of
The Company’s balance sheet as of
During the first quarter of 2009, the Company borrowed
Coker added, “In addition to increasing the penetration of our seat systems, we remain dedicated to introducing new applications for our proprietary thermoelectric technology, and BSST is making excellent progress on a number of fronts. In addition to the programs we already have under development, we announced during the quarter that we will expand our presence in the automotive market with a heated and cooled cupholder that is expected to be launched in the fall of 2010.”
Other potential applications that could benefit from innovative thermoelectric systems include a variety of other automotive applications, stationary temperature management, medical and electronics cooling, aerospace and defense, individual comfort, waste heat harvesting and primary power generation.
“For example,” Coker said, “we recently completed the testing phase of an electronics cooling application and have shipped small quantities of production units for field installation.”
Unit shipments of CCS systems for the first quarter of this year were 143,000 compared with 253,000 units for the prior year period. New vehicles equipped with CCS and launched since the end of last year’s first quarter included the Nissan Maxima, Ford F150 Pickup, Chevrolet Suburban, Chevrolet Tahoe, Chevrolet Avalanche, GMC Yukon, GMC Yukon XL, GMC Yukon Denali and the GMC Sierra Pickup. Two programs launched during 2008 had higher revenue in 2009 due to the impact of full quarter shipments: the Lincoln MKS and Infiniti FX.
Guidance
Due to the most recent news in the marketplace with respect to customer production levels, the Company expects revenues to be relatively flat for the 2009 second quarter compared with the 2009 first quarter. The current uncertainty in the global automotive market and the resulting lack of visibility make it virtually impossible for Amerigon to provide meaningful full-year financial guidance for 2009.
Conference Call
As previously announced, Amerigon is conducting a conference call today to be broadcast live over the Internet at
About Amerigon
Amerigon (Nasdaq: ARGN) develops products based on its advanced, proprietary, efficient thermoelectric (TE) technologies for a wide range of global markets and heating and cooling applications. The Company’s current principal product is its proprietary Climate Control Seat(R) (CCS(R)) system, a solid-state, TE-based system that permits drivers and passengers of vehicles to individually and actively control the heating and cooling of their respective seats to ensure maximum year-round comfort. CCS, which is the only system of its type on the market today, uses no CFCs or other environmentally sensitive coolants. Amerigon maintains sales and technical support centers in
Certain matters discussed in this release are forward-looking statements that involve risks and uncertainties, and actual results may be different. Important factors that could cause the Company’s actual results to differ materially from its expectations in this release are risks that sales may not significantly increase, additional financing, if necessary, may not be available, new competitors may arise and adverse conditions in the automotive industry may negatively affect its results. The liquidity and trading price of its common stock may be negatively affected by these and other factors. Please also refer to Amerigon’s Securities and Exchange Commission filings and reports, including, but not limited to, its Form 10-Q for the period ended
Contact: Allen & Caron Inc
Jill Bertotti (investors)
jill@allencaron.com
Len Hall (media)
len@allencaron.com
(949) 474-4300
TABLES FOLLOW
AMERIGON INCORPORATED
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended
March 31,
2009 2008
Product revenues $10,170 $17,360
Cost of sales 7,752 11,801
Gross margin 2,418 5,559
Operating expenses:
Research and development 2,419 2,399
Research and development reimbursements (673) (809)
Net research and development expenses 1,746 1,590
Selling, general and administrative 2,149 2,127
Total operating expenses 3,895 3,717
Operating income (1,477) 1,842
Interest income 22 297
Other income 52 52
Earnings before income tax (1,403) 2,191
Income tax expense (benefit) (467) 820
Net income $(936) $1,371
Basic earnings per share $(0.04) $0.06
Diluted earnings per share $(0.04) $0.06
Weighted average number of shares - basic 21,232 22,004
Weighted average number of shares - diluted 21,232 22,784
AMERIGON INCORPORATED
CONSOLIDATED CONDENSED BALANCE SHEETS
(In thousands, except share data)
March 31, December 31,
ASSETS 2009 2008
(unaudited)
Current Assets:
Cash & cash equivalents $25,185 $25,303
Accounts receivable, less
allowance of $244 and $318,
respectively 8,678 8,292
Inventory:
Raw materials 337 189
Finished goods 3,060 2,452
Inventory 3,397 2,641
Deferred income tax assets 744 986
Prepaid expenses and other assets 94 417
Total current assets 38,098 37,639
Property and equipment, net 4,100 4,274
Patent costs, net of accumulated
amortization of $345 and $298,
respectively 3,300 3,156
Deferred income tax assets 8,049 7,334
Other non-current assets 196 196
Total assets $53,743 $52,599
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Revolving Credit Line $1,300 $-
Accounts payable 4,358 3,872
Accrued liabilities 2,356 3,096
Deferred manufacturing
agreement - current portion 200 200
Total current liabilities 8,214 7,168
Pension Benefit Obligation 189 142
Deferred manufacturing agreement -
long-term portion 200 250
Total liabilities 8,603 7,560
Shareholders' equity:
Common Stock:
No par value; 30,000,000 shares
authorized, 21,378,492 and
21,205,492 issued and outstanding
at March 31, 2009 and December 31,
2008, respectively 61,529 60,727
Paid-in capital 22,994 22,720
Accumulated other comprehensive
income - foreign currency 58 97
Accumulated deficit (39,441) (38,505)
Total shareholders' equity 45,140 45,039
Total liabilities and
shareholders' equity $53,743 $52,599
AMERIGON INCORPORATED
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Three Months Ended
March 31,
2009 2008
Operating Activities:
Net income $(936) $1,371
Adjustments to reconcile net
income to cash provided by
operating activities:
Depreciation and amortization 370 307
Deferred tax provision (472) 748
Stock option compensation 274 217
Defined benefit plan expense 47 -
Changes in operating assets and
liabilities:
Accounts receivable (385) (1,094)
Inventory (757) (951)
Prepaid expenses and other assets 323 (141)
Accounts payable 485 1,159
Accrued liabilities (467) (777)
Net cash provided by operating
activities (1,518) 839
Investing Activities:
Purchases of investments - (3,100)
Sales and maturities of investments - 3,850
Purchase of property and equipment (198) (874)
Patent costs (191) (153)
Net cash provided by (used in)
investing activities (389) (277)
Financing Activities:
Revolving Credit Line borrowings 1,300 -
Proceeds from the exercise
of Common Stock options 529 820
Net cash provided by financing
activities 1,829 820
Foreign currency effect (40) 11
Net increase (decrease) in cash
and cash equivalents (118) 1,393
Cash and cash equivalents at
beginning of period 25,303 1,170
Cash and cash equivalents at end
of period $25,185 $2,563
Supplemental disclosure of cash flow
information:
Cash paid for taxes $298 $111
Supplemental disclosure of non-cash
transactions:
Issuance of Common Stock under the
2006 Equity Incentive Plan $273 $298
SOURCE Amerigon Incorporated