Company Announcement : Turbodyne Reports Year End Results
easdaq.be
No surprises IMO.
Info also out on PR Newswire:
biz.yahoo.com
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Woodland Hills, Ca. - May 14, 1998 -- Turbodyne Technologies Inc.
(NASDAQ:TRBDF, EASDAQ:TRBD) today reported its financial results for the year ended December 31, 1997 under US Generally Accepted Accounting Principles (GAAP), which had previously been released in preliminary form reported under Canadian GAAP.
The company posted revenues of $39.2 million, a 181 percent increase compared to revenues of $13.9 million for 1996. The net loss for the year was $13.2 million, or 50 cents a share, compared to a net loss of $5.5 million, or 27 cents a share, for 1996.
"The revenues the company reported for 1997 were almost exclusively derived from our light metals division," said John Singleton, Turbodyne's Chief Operating Officer and CFO. "The increase in revenues is largely attributable to including in the company's 1997 financial results the results of operations of the light metals division for the company's full fiscal year, as compared to a six month period in 1996. The increase also results from about a 10 percent growth in that business."
"The increase in the company's loss for the year is due to the ramp-up of production facilities for Turbodyne's pollution control & engine performance technology, later stage research and development of the technology, and the costs associated with the various testing programs we were, or are currently, engaged in around the world," Singleton continued. "We also had significant costs associated with the expansion of our facilities in Ensenada, Mexico, which was necessary for both the pending Turbopac~ production we expect this year and
growth of the light metals division."
For the year-end audit, Turbodyne changed from Canadian GAAP to US GAAP due to its pending domicile move to the United States. This accounting change resulted in the reclassification of $6.6 million in research and development to an expense from a capitalized line item, thereby reflecting higher expenses, which resulted in an increase in the reported loss for 1997. The net loss reflects, as previously announced, one time non operating adjustments as required by the
change from Canadian to US GAAP. This audit was the first audit completed for Turbodyne by its new accounting firm KPMG Peat Marwick LLP, in Los Angeles, CA.
Turbodyne's balance sheet has strengthened from a year ago with about a $3.5 million increase in current assets, an increase in working capital to $8.5 million from $7.2 million, and the ratio of current assets to current liabilities is 2:1.
Turbodyne's executive management believes the outlook for 1998 remains
strong as the company rolls out its breakthrough technology on a global scale. After receiving official EPA certification, the company began shipping Turbopacs~ through its purchase order agreement with Detroit Diesel Corp. for the EPA's Urban Bus Retrofit/Rebuild program. The company also recently began testing Turbopacs~ on public transit buses in France, as well as receiving approval to install units in a pilot program for Ralphs Grocery Company's diesel truck fleet in
California.
"Management also expects to see significant growth from the light metals division in 1998," Singleton said. "This division is experiencing rapid growth, mainly due to the increase in the Mexican content laws for auto makers with existing facilities in Mexico. This division's backlog currently stands at $115 million."
Turbodyne Systems, the high technology division of Turbodyne, manufactures, designs, markets and develops patented pollutionreduction, fuel economy and performance enhancing technology for internal combustion engines in the automotive, transportation, construction, marine, agriculture, mining, military and power generation industries. Turbodyne's light metals division is a manufacturer of machined aluminum castings and a leading supplier to the automotive industry.
Offices and plants are located in Carpinteria, La Mirada, Encinitas and Woodland Hills, CA; Ensenada and Mexico City, Mexico; Northants, England; Frankfurt, Germany; Vancouver, Canada; and Paris, France.
TURBODYNE TECHNOLOGIES INC.
John P. Singleton
Chief Operating Officer & CFO
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