Unique Mobility, Inc. Reports Record Revenues and Positive EBITDA for Second Quarter and First Half, Excluding Previously Announced Write-Offs
October 28, 1999 08:17
GOLDEN, Colo., Oct. 28 /PRNewswire/ -- UNIQUE MOBILITY INC. (Amex: UQM) today reported record revenues and positive EBITDA for the second quarter and first half ended September 30, 1999, exclusive of a previously announced second quarter write-off.
Operating results for the second quarter and first half include charges to earnings arising from the write-down of Unique's investment of three joint ventures, retirement compensation payable to the company's former CEO and the write-off of an uncollectible customer account, an intention that was announced by the company on October 14th. Donald A. French, Unique's Treasurer and Chief Financial Officer, noted that "Our balance sheet remains strong following these write-offs, with capital assets now actively deployed and generating revenue and a return on invested capital. Excluding the effect of the write-off, we have positive EBITDA, and will continue to focus our attention toward achieving our goal of profitable operations before fiscal year end."
For the quarter ended September 30, 1999 revenues rose to a record $5,334,163 from $3,387,794 for the comparable quarter the year before. Exclusive of the $4,684,364 or $0.28 per share charge to earnings, the company in the second quarter had an operating loss of $(511,842) or $(0.03) per share, compared with a second quarter loss the year prior of $(1,422,804) or $(0.09) per share. EBITDA for the second quarter, before the foregoing charges, amounted to $139,090 or $0.01 per share. Including the write-off, net loss and EBITDA for the quarter were $(5,196,206) or $(0.31) per share and $(4,545,274) or $(0.27) per share, respectively.
For the six months ended September 30, 1999 revenues rose to a record $11,098,574 from $6,240,575 for the first half last year. Exclusive of the charge to earnings previously mentioned, the company for the six months ended September 30, 1999 had a net loss of $(857,593) or $(0.05) per share compared to $(2,365,056) or $(0.15) for the first half of the prior year. EBITDA was $436,950 or $0.03 per share. Including the write-off, the six month net loss and EBITDA were $(5,541,957) or $(0.33) per share and $(4,247,414) or $(0.25) per share, respectively.
Unique Mobility, Inc. is a leading developer and manufacturer of power dense, high efficiency motors, gear assemblies and electronic assemblies for the automotive, aerospace, telecommunications, medical and industrial markets. The Company's headquarters and engineering and product development center are located in Golden, Colorado. Manufacturing facilities are located in Frederick, Colorado (electric motors and gear assemblies) and St. Charles, Missouri (electronic assemblies and wire harnesses).
This press release contains forward-looking statements that involve risks and uncertainties. Examples of forward-looking statements are statements of the Company's expectations regarding future financial results and its ability to further commercialize its technology and increase its manufacturing activities. These statements may differ materially from actual future events or results. Readers are referred to the Risk Factors section of the Registration Statement on Form S-3 (File No. 333-78525) filed by the Company with the SEC, which identifies important risk factors that could cause actual results to differ from those contained in the forward-looking statements, including the Company's ability to become profitable and its ability to obtain additional financing, the Company's reliance on major customers and suppliers, potential impacts from Year 2000 issues and the possibility that product liability insurance may become unavailable. These forward-looking statements represent the Company's judgment as of the date of the press release. The Company disclaims, however, any intent or obligation to update these forward-looking statements.
Quarter Ended Six Months Ended
September 30, September 30,
1999 1998 1999 1998
Revenue:
Contract services $381,984 445,994 815,423 745,328
Product sales 4,952,179 2,941,800 10,283,151 5,495,247
5,334,163 3,387,794 11,098,574 6,240,575
Operating costs and
expenses:
Costs of contract
services 294,017 437,279 737,444 698,070
Costs of product
sales 4,199,503 2,975,567 8,625,924 5,150,517
Research and
development 108,267 173,274 134,446 450,722
General and
administrative 1,481,527 948,753 2,355,529 1,856,890
Write-down of
investments 4,104,628 -- 4,104,628 --
Amortization of
goodwill 83,166 80,518 166,044 140,873
10,271,108 4,615,391 16,124,015 8,297,072
Operating loss (4,936,945) (1,227,597) (5,025,441) (2,056,497)
Other income (expense):
Interest income 21,759 27,282 38,152 80,585
Interest expense (122,787) (101,628) (239,939) (155,250)
Equity in loss of
Taiwan joint
venture (94,602) (105,869) (186,538) (200,289)
Equity in loss of
Germany joint
venture (45,000) -- (93,632) --
Minority interest
share of earnings of
consolidated
subsidiary (18,631) (17,381) (36,893) (35,994)
Other -- 2,389 2,334 2,389
(259,261) (195,207) (516,516) (308,559)
Net loss $(5,196,206) (1,422,804) (5,541,957) (2,365,056)
Net loss per common
share basic and
diluted $(.31) (.09) (.33) (.15)
Weighted average number
of shares of common
stock outstanding 16,572,161 15,925,669 16,484,458 15,834,864
SOURCE Unique Mobility, Inc.
/CONTACT: John S. Gould, Director, Investor Relations of Unique Mobility,
Inc., 303-278-2002/
/Web site: uqm.com
(UQM)
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