Alternative Fuel Systems Inc. Announces First Quarter Results
CALGARY, Nov. 22 /CNW/ - Alternative Fuel Systems Inc. (CDNX: ATF) ("AFS"
or "the Company") is pleased to announce its financial and operating results
for the first quarter ended September 30, 2000. The Company reported revenue
of $901,000 in the quarter representing a three-fold increase from the same
three-month period in the prior year. Earnings before interest, taxes,
depreciation and amortization (EBITDA) amounted to a loss of $95,000 for the
September 30, 2000 quarter which represented a significant improvement from an
EBITDA loss of $615,000 recorded in the prior year first quarter. Selected
financial data for the current and prior year quarters are shown below.
Three months ended Sept. 30 2000 1999
---------------------------------------------------------------
Revenue $900,000 $347,000
Gross margin 624,000 99,000
R&D (x) 237,000 229,000
EBITDA (95,000) (615,000)
Net loss (220,000) (781,000)
Loss per share (0.01) (0.03)
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(x) Before deduction of research assistance and allocation of overhead
Revenue for the first quarter ended September 30, 2000 was comprised of
sales of fuel management systems, components and services to customers in
Australia, Iran, Sweden, Canada, Mexico, Chile, the U.K. and Japan.
Subsequent to quarter end, AFS delivered 250 Sparrow systems to IDEM, a
Daimler Chrysler licensee in Iran, which resulted in revenue of $825,000. The
delivery of an additional 250 Sparrow systems to IDEM is scheduled before the
end of December 31, 2000. AFS continues to achieve its objective of expanding
its sales and marketing efforts around the world.
In October, AFS completed a special warrant financing which resulted in
gross proceeds of $10.5 million. Combined with the successful financing
completed in March of this year, the Company has raised in excess of $16.2
million over the past eight months. As a result of this significant
accomplishment, AFS is now properly capitalized to accelerate its near-term
business plan which includes the building of expanded engine testing
facilities and manufacturing capability. Additionally, the Company is
increasing its research and development efforts and expanding its sales and
marketing programs.
During the first quarter, AFS formalized a Scientific Advisory Committee
whose purpose is to advise the Company on advanced research and automotive
industry issues. The committee is made up of the following: Walter Brooks
(Committee Chairman and Director, AFS), a 40-year veteran of GM of Canada; Dr.
Ghazi A. Karim, Professor of Mechanical Engineering, University of Calgary;
Dr. M. David Checkel, Professor of Mechanical Engineering, University of
Alberta; Dr. Yurii Sh. Matros, a recognized authority in catalytic chemical
reactors; Dr. Bade Shrestha (Chief Scientist, AFS); Ms. Nel Storey a 36-year
executive of GM of Canada specializing in marketing and business development;
Paul E. Newman, P.Eng. (Vice President, Engineering, AFS); and James I.
Newsom, P.Eng. (Director, Sales, AFS).
AFS also presents selected financial date for its fiscal year ended June
30, 2000 along with the prior two fiscal years. Certain figures have been
reclassified to conform with the current year's presentation.
Years ended June 30 2000 1999 1998
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Revenue $1,391,000 $3,529,000 $1,020,000
Gross margin 658,000 1,664,000 972,000
R&D (x) 1,021,000 816,000 512,000
EBITDA (2,855,000) (1,598,000) (615,000)
Net loss (3,587,000) (2,065,000) (821,000)
Loss per share (0.12) (0.08) (0.03)
----------------------------------------------------------------------
(x) Before deduction of research assistance and allocation of overhead.
Revenue for the year ended June 30, 2000 amounted to $1.4 million
resulting in aggregate revenue over the past three years of $6.0 million.
Revenues in fiscal 2000 reflect management focusing its efforts on
capitalizing the Company and restructuring the management team. AFS is now in
a position to continue to develop its sales and marketing channels and
significantly increase its research and product development activities.
Alternative Fuel Systems Inc. is an environmental technology company
providing innovative solutions to the global engine exhaust emissions problem.
AFS has developed and commercialized electronic engine management technologies
that enable diesel and gasoline engines to operate using natural gas, and is
at the forefront of research into exhaust aftertreatment technology. AFS is
headquartered in Calgary, Canada and trades on the CDNX as ATF.
The Canadian Venture Exchange Inc. has neither approved nor disapproved
of the contents of this news release.
-0- 11/22/2000
For further information: Chris Martin, Vice President, Finance, Phone: (403) 262-1833, Fax: (403) 237-7441, Email: investor@afsglobal.com, Visit our website at: www.afsglobal.com To request a free copy of this organization's annual report, please go to www.newswire.ca and click on reports@cnw.
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