CVOL news:
(BSNS WIRE) Covol Technologies Inc. Announces First Quarter Financial Re
Covol Technologies Inc. Announces First Quarter Financial Results
Business Editors
LEHI, Utah--(BUSINESS WIRE)--Feb. 10, 2000--Covol Technologies
Inc. (Nasdaq: CVOL), Thursday announced results for the first quarter
of fiscal year 2000.
Revenues for the quarter ended Dec. 31, 1999 were $11,049,000
with a net loss of $(1,926,000) or $(0.16) per share, compared to
revenues of $1,382,000 and a net loss of $(4,558,000) or $(0.39) per
share, for the quarter ended Dec. 31, 1998.
Included in the December 1999 quarterly results is a gain of
$5,341,000 from the sale of a synthetic fuel facility and asset
write-offs and non-recurring charges of $11,021,000.
Adjusting Covol's operating loss for these two items would have
resulted in operating income of $2,301,000. Therefore, Covol's
quarterly operating results improved $6,032,000 from the December 1998
quarter operating loss of $3,731,000.
The positive change in quarterly operating performance is
primarily a result of two factors. First, quarterly license fees
increased by approximately $3 million (due in part to a licensee that
reported a significant increase in sales of synthetic fuel in the last
half of calendar 1999). Secondly, ongoing quarterly expenses were
reduced by $1,700,000.
Covol expects operating costs to continue to decline in the March
2000 quarter. The asset write-offs and non-recurring charges, along
with the relocation of the facilities that caused these adjustments,
are expected to reduce ongoing operating costs, depreciation and
amortization by approximately $4 million annually.
Binder shipments, a leading indicator of future synthetic fuel
sales, increased from approximately 693,000 to approximately 2,458,000
wet pounds from the June 1999 quarter to the December 1999 quarter.
The approximate tonnage of synthetic fuel sold during the four
quarters ended Dec. 31, 1999 were as follows:
-0-
*T
March 31 143,000
June 30 296,000
Sept. 30 471,000
Dec. 31 560,000
*T
Steven G. Stewart, Covol's chief financial officer, commented,
"We are pleased with the revenue increase and operating improvements
realized during the first fiscal quarter of 2000, which, combined with
the continued sales of synthetic fuel facilities should result in
further reductions in operating costs and interest expense in future
periods.
"As previously reported, during January 2000, Covol sold one
synthetic fuel facility and also sold an option it had to acquire a
facility. We are currently working on the sale of the last Covol-owned
facility, the sale of which is expected to be finalized in the
March 31 quarter.
"We are also pleased with the improvement in our cash and working
capital positions and expect continued progress as the final facility
is sold, the related debt retired and operations continue to improve."
Covol is a technology licensing company which engineers
industrial waste and other by-products into value-added fuels and
resources.
Statements in this news release that relate to future plans,
possible transactions, or projected valuations are forward-looking
statements within the meaning of Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended, including any statement with respect to anticipated
products to be produced using Covol's technology and Covol's strategy.
Such statements are subject to risks and uncertainties that could
cause actual results to differ materially. Although Covol believes
that its expectations are based on reasonable assumptions, there are a
number of business factors which singularly or combined may affect the
company's future operating results.
In addition to matters affecting Covol's industry or the coal
industry or the economy generally, factors which could cause actual
results to differ from expectations set forth in the above identified
forward-looking statements include but are not limited to: the ability
to successfully negotiate terms and consummate proposed transactions,
ability to sell company-owned synthetic fuel facilities on favorable
terms, including the ability to negotiate settlements of contract
terminations caused by facility relocations, ability to obtain
necessary capital or financing, ability to comply with covenants in
financing agreements, including financial performance criteria,
ability to conserve capital through cost reductions until operating
revenues exceed expenses, ability of licensees to market synthetic
fuel produced, generating royalties for Covol, ability of licensees to
achieve expected production levels at the synthetic fuel facilities,
favorable IRS tax treatment, availability of natural resources and
suitable raw materials, ability to locate appropriate sites for
facilities, ability of Covol to complete specific research and
development projects, and the commercial viability of Covol's
technologies.
-0-
*T
Covol Technologies Inc.
Condensed Consolidated Statements of Operations (Unaudited)
(thousands of dollars and shares, except per-share amounts)
Quarter Ended
Dec. 31, Dec. 31,
1998 1999
Revenues:
License fees $ 701 $ 4,036
Other 681 7,013
Total revenues 1,382 11,049
Operating costs and expenses:
Cost of briquetting operations 3,646 1,589
Asset write-offs and non-recurring charges -- 11,021
Other 1,467 1,818
Total operating expenses 5,113 14,428
Operating loss (3,731) (3,379)
Interest income (expense), net (280) (1,255)
Other income (expense), net (547) (292)
Net loss before income taxes (4,558) (4,926)
Income tax credit -- (3,000)
Net loss ($ 4,558) ($ 1,926)
Basic and diluted loss per share ($ 0.39) ($ 0.16)
Weighted average shares outstanding 11,976 13,610
Condensed Consolidated Balance Sheets (Unaudited)
(thousands of dollars)
Sept. 30, Dec. 31,
Assets: 1999 1999
Current assets:
Cash and cash equivalents $ 461 $ 7,457
Receivables 5,877 9,966
Inventories 573 394
Facilities and equipment held for sale 20,139 17,915
Deferred income taxes -- 3,000
Other 19 45
Total current assets 27,069 38,777
Property, plant and equipment, net 14,182 3,785
Note and interest receivable 7,879 8,119
Intangible assets and other 8,965 6,479
Total assets $ 58,095 $ 57,160
Liabilities:
Current liabilities:
Accounts payable $ 1,179 $ 1,034
Notes payable, current 20,626 17,746
Other 7,063 7,397
Total current liabilities 28,868 26,177
Notes and interest payable, non-current 18,097 20,238
Other non-current liabilities 208 211
Deferred revenues 7,501 7,271
Total liabilities 54,674 53,897
Minority interest 117 --
Redeemable convertible preferred stock 4,332 3,234
Stockholders' equity (deficit):
Convertible preferred stock and common
stock - par value 14 18
Capital in excess of par value 78,457 81,216
Accumulated deficit (71,713) (73,757)
Related party receivables collateralized
by stock (6,564) (6,272)
Deferred compensation from stock options (1,222) (1,176)
Total stockholders' equity (deficit) (1,028) 29
Total liabilities and stockholders' equity
(deficit) $ 58,095 $ 57,160
*T
--30--sig/ix*
CONTACT: Covol Technologies Inc., Lehi
Sharon Madden, 80l/768-4481 or 801/562-1362
E-mail: smadden@covol.com
Web site: www.covol.com
KEYWORD: UTAH
INDUSTRY KEYWORD: ENERGY ENVIRONMENT EARNINGS
Today's News On The Net - Business Wire's full file on the Internet
with Hyperlinks to your home page.
URL: businesswire.com
*** end of story ***
|
