Quantum Technologies Reports 2013 Fourth Quarter Financial Results

Fuel Storage & Vehicle Systems Segment

All revenues from continuing operations are generated by the Fuel Storage & Vehicle Systems segment. 

Product revenue for this segment was $8.0 million in the fourth quarter of 2013, as compared to $2.6 million in the fourth quarter of 2012.  The 2013 and 2012 fourth quarter product revenue was substantially all related to shipments of CNG storage tanks and packaged systems.  Overall product gross margin as a percentage of product revenue was 31% in the fourth quarter of 2013, as compared to 23% in the comparable period in the prior year. 

As a result of the Company's growth of its CNG storage tanks and systems revenues in 2013 and expectations for continued growth, an expansion of its tank manufacturing capacity remained under way during the fourth quarter of 2013 and the Company is now undertaking to expand annualized capacity to approximately 20,000 units by September 30, 2014.

Contract services revenue for this segment was $4.7 million in the fourth quarter of 2013, representing an increase of $1.7 million over the fourth quarter of 2012. Contract revenue is derived primarily from system development, application engineering and qualification testing of products and systems under funded contracts with OEMs and other customers. During 2013, the Company received two new engineering development programs related to CNG trucks and passenger vehicles that are significant to the Company's business strategy. These programs include contractual arrangements that, subject to certain conditions, provide for the Company to become the production supplier of fuel storage systems should these programs reach production.

Costs of contract services, previously reported as part of research and development expenses, represent costs associated with customer funded engineering development programs. 

Overall contract services gross margin as a percentage of contract services revenue was 44% in the fourth quarter of 2013, as compared to 56% in the same period in the prior year.  Included in contract services for the fourth quarter of 2013 was engineering services revenue associated with the General Motors Chevrolet Impala CNG development program.  In December 2013, the Company and General Motors amended the contractual arrangements related to the Impala development program that, in part, removed certain gain contingencies and, consequently, positively impacted revenue recognition by $1.7 million for services provided to date under the program. In connection with these contractual amendments, the Company also immediately recognized $0.8 million of deferred engineering costs associated with the Impala program.  The comparability of contract services gross margin was also impacted by the recognition in the 2012 fourth quarter of $2.3 million of revenue and $0.8 million of costs associated with the termination of a hydrogen tank development program with General Motors.    

Total overall revenue associated with CNG products and engineering contract services for the fourth quarter of 2013 amounted to $12.2 million, representing a $9.3 million increase over the $2.9 million of revenue related to CNG products or services for the corresponding period in the prior year.      

The operating results of this segment include research and development expenses associated with internally funded engineering development programs.  The expenses for these programs amounted to $1.5 million in the fourth quarter of 2013, as compared to $2.6 million in the fourth quarter of 2012.  Internally funded research and development in 2013 primarily related to efforts to advance CNG storage technologies by integrating and testing lighter materials, tank mounting fixtures and developing different size storage vessels to add to the Company's existing product portfolio. The lower expense reported for the fourth quarter of 2013 was primarily due to the suspension of development activities associated with the Ford F-150 plug-in hybrid electric vehicle program in late 2012, which represented $0.8 million of internally funded costs for the prior year fourth quarter.

This segment reported operating income of $2.1 million for the fourth quarter in 2013, as compared to an operating loss of $1.3 million reported for the fourth quarter of 2012.

Corporate Segment

Corporate expenses were $1.7 million in the fourth quarter of 2013, as compared to $0.5 million for the same period in the prior year.  The lower corporate expenses reported in the fourth quarter of the prior year period is mainly attributable to a non-recurring gain recognized in October 2012 of $1.1 million from a partial reversal of a $1.7 million facility exit charge initially recognized in June 2011.  Excluding the impact of the $1.1 million non-recurring gain, overall Corporate segment expenses increased 9% in the fourth quarter of 2013 primarily as a result of increased legal and other professional fees.    

Renewable Energy Segment – held for sale

As previously announced, the Company is in the process of selling the assets of its wholly owned subsidiary, Schneider Power Inc. (Schneider Power), and is actively pursuing buyers for the remaining business operations.  Schneider Power, an operator of the 10 megawatt Zephyr Wind Farm and holder of interests in certain renewable energy projects, represents the entire operations of the Company's Renewable Energy business segment.  As a result of the Company's intent to sell the remaining assets of the business, the historical activities and balances of the Renewable Energy business segment are reported as discontinued operations held for sale in the accompanying consolidated financial information presented herein.

The Renewable Energy segment reported a net loss after taxes of $0.2 million in the fourth quarter of 2013, as compared to net income after taxes of $0.5 million in the fourth quarter of 2012. 

The net loss reported for discontinued operations held for sale includes the recognition of $0.8 million of revenue from energy sales in the fourth quarter of 2013, as compared to $0.8 million in the same period of 2012, and includes operating expenses in the fourth quarter of 2013 of $0.7 million, as compared to operating expenses of $0.4 million in the same period in 2012. Included in operating expenses in the fourth quarter of 2013 was a loss of $0.1 million associated with the closing of the sale of certain early stage development projects and a goodwill impairment charge of $0.2 million.  Interest expense on long-term project financing obligations was $0.3 million in the fourth quarter of 2013, as compared to $0.4 million in the fourth quarter of 2012.  

Non-Reporting Segment Results

Interest Expense. Interest expense of continuing operations, net of interest income, amounted to $0.6 million in the fourth quarter of 2013, as compared to $0.8 million in the fourth quarter of 2012.  Interest expense represents both cash payments based on stated contractual rates and non-cash imputed rates associated with equity-linked characteristics (e.g. warrants and debt principal conversion features), accelerated maturities and/or other contractual provisions of the debt securities.  Included in the fourth quarters of 2013 and 2012 are non-cash interest costs of $0.3 million and $0.4 million, respectively.  Non-cash interest expense in the fourth quarter of 2013 primarily related to the imputed interest costs associated with convertible notes issued in September 2013.

Fair Value Adjustments of Derivative Instruments. Derivative instruments during the fourth quarter of 2013 consisted of embedded features contained within certain warrant contracts. Fair value adjustments of derivative instruments represent non-cash unrealized gains or losses. The share price of our common stock represents the primary underlying variable that impacts the value of the derivative instruments. The net charges recognized during the fourth quarter of 2013 of $5.8 million were primarily due to the increase in our closing share price that increased the fair value of the derivative instrument liabilities during the fourth quarter of 2013 ($3.18 share price at September 30, 2013 and increasing to $7.80 at December 31, 2013).

Consolidated Net Loss

The consolidated net loss for the fourth quarter of 2013 was $6.0 million, compared to a net loss of $6.6 million in the fourth quarter of 2012.   The main component of the net loss in the current year period was related to the fair value adjustments of derivative instruments discussed above, which offset improvements realized in the operating results of continuing operations compared to the prior year period.

Balance Sheet and Liquidity

The Company had total cash and cash equivalents of $6.3 million for its continuing operations as of December 31, 2013.  On February 20, 2014, the Company completed an underwritten public offering and  received net proceeds of $15.3 million.  In addition, from January 1, 2014 through March 5, 2014, the Company received approximately $3.7 million in cash proceeds from warrant exercises.  Subsequent to December 31, 2013,  the Company paid down the outstanding balance under a revolving line of credit that it has with a financial institution, which amounted to $3.8 million as of December 31, 2013, to zero.  As of March 5, 2014, the Company had total cash and cash equivalents for its continuing operations of approximately $18 million.    

Financial Tables

The Company's consolidated financial information for the three and twelve month periods ended December 31, 2013 and 2012 is as follows:

Quantum Fuel Systems Technologies Worldwide, Inc.
Condensed Consolidated Financial Information
				Three Months Ended				Twelve Months Ended
				December 31,				December 31,
				2013		2012		2013		2012
				(Unaudited)		(Unaudited)
Statements of Operations:
Revenues:
	Net product sales			$    7,979,096		$    2,602,523		$  22,943,639		$  14,526,031
	Contract services			4,741,136		3,016,610		8,960,051		8,186,040
		Total revenues		12,720,232		5,619,133		31,903,690		22,712,071
Costs of revenues:
	Cost of product sales			5,501,684		2,010,930		16,261,662		10,757,138
	Cost of contract services			2,670,250		1,321,848		5,296,499		5,117,187
		Total costs of revenues		8,171,934		3,332,778		21,558,161		15,874,325
		Gross margin		4,548,298		2,286,355		10,345,529		6,837,746
Operating expenses:
	Research and development			1,487,433		2,626,346		5,996,414		9,441,447
	Selling, general and administrative			2,589,595		1,445,414		11,086,020		11,814,812
		Total operating expenses		4,077,028		4,071,760		17,082,434		21,256,259 Werbung Mehr Nachrichten zur Quantum Fuel Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 07:13 - PR Newswire Stellar Asset Management Ltd - Form 8.3 - Equals Group Plc 02:00 - PR Newswire FirstGroup Plc - Transaction in Own Shares Sehen Sie sich dieses Unternehmen an:    Foto: andreas160578 - Pixabay Rasanter Aufstieg, Branchenrevolution und Jahresumsatz von 50 Mio. $ weiterlesen» Anzeige wo-site-teaser-box-16764_site-teaser-box_2024-04-26_09%253A00%253A00_2024-04-27_09%253A00%253A59