CVOL news:
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Covol Technologies Inc. Announces First Quarter Financial Results
LEHI, Utah--(BUSINESS WIRE)--Feb. 10, 2000--Covol Technologies Inc. (Nasdaq: CVOL - news), 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:
March 31 143,000
June 30 296,000
Sept. 30 471,000
Dec. 31 560,000
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.
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