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Fuel Systems Solutions Reports Fourth Quarter And Year End 2012 Results

About Fuel Systems Solutions

Fuel Systems Solutions (Nasdaq:FSYS) is a leading designer, manufacturer and supplier of proven, cost-effective alternative fuel components and systems for use in transportation and industrial applications. Fuel Systems' components and systems control the pressure and flow of gaseous alternative fuels, such as propane and natural gas, used in internal combustion engines. These components and systems feature the Company's advanced fuel system technologies, which improve efficiency, enhance power output and reduce emissions by electronically sensing and regulating the proper proportion of fuel and air required by the internal combustion engine. In addition to the components and systems, the Company provides engineering and systems integration services to address unique customer requirements for performance, durability and configuration. Additional information is available at www.fuelsystemssolutions.com .

Company Contact:
Pietro Bersani, Chief Financial Officer Fuel Systems Solutions, Inc.
(646) 502-7170
 
Investor Relations Contacts:
LHA
Carolyn M. Capaccio
ccapaccio@lhai.com
Cathy Mattison
cmattison@lhai.com (415) 433-3777

– Tables Follow –

     
 
 
FUEL SYSTEMS SOLUTIONS, INC.
CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share and Per Share Data)
(Unaudited)
 
  December 31, 2012 December 31, 2011
ASSETS    
Current assets:    
Cash and cash equivalents $ 75,675  $ 96,740
Accounts receivable less allowance for doubtful accounts of $4,349 and $2,665 at December 31, 2012 and December 31, 2011, respectively  75,191   62,551
Inventories  104,056   103,382
Deferred tax assets, net  7,999   6,512
Other current assets  14,815   19,125
Related party receivables  5,205   10,975
     
Total current assets  282,941   299,285
     
Equipment and leasehold improvements, net  59,368   59,051
Goodwill  49,218   58,968
Deferred tax assets, net  5,008   363
Intangible assets, net  15,186  29,422
Other assets  861   1,187
Long-term investments  7,236   884
Related party receivables  —    842
     
Total Assets $ 419,818  $ 450,002
     
LIABILITIES AND EQUITY    
Current liabilities:    
Accounts payable $ 42,483  $ 54,816
Accrued expenses  42,156   36,230
Income taxes payable  2,804   2,517
Current portion of term loans and debt  308   6,367
Deferred tax liabilities, net  305   82
Related party payables  4,100   4,680
     
Total current liabilities  92,156   104,692
Term and other loans  713   3,698
Other liabilities  8,354   7,885
Deferred tax liabilities, net  1,548   3,905
     
Total Liabilities  102,771   120,180
     
Equity:    
Preferred stock, $0.001 par value, authorized 1,000,000 shares; none issued and outstanding at December 31, 2012 and 2011  —    — 
Common stock, $0.001 par value, authorized 200,000,000 shares; 20,061,887 issued and 20,039,020 outstanding at December 31, 2012; and 20,089,591 issued and 20,014,065 outstanding at December 31, 2011  20   20
Additional paid-in capital  319,667   318,632
Shares held in treasury, 7,999 and 16,055 shares at December 31, 2012 and 2011, respectively  (305)   (523)
(Accumulated Deficit)Retained Earnings  (275)   15,357
Accumulated other comprehensive (loss)  (2,060)   (3,664)
     
Total Equity  317,047   329,822
     
Total Liabilities and Equity $ 419,818  $ 450,002
     
 
 
FUEL SYSTEMS SOLUTIONS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Share and Per Share Data)
(Unaudited)
 
  Three Months Ended December 31, Twelve Months Ended December 31,  
  2012 2011 2012 2011
Revenue $ 98,045 $ 110,960 $  393,947 $ 418,134
Cost of revenue 76,713 86,760 302,113  321,350
         
Gross profit 21,332  24,200 91,834 96,784
Operating expenses:          
Research and development expense 6,392  7,489 28,327 28,149
Selling, general and administrative expense 13,671  15,963 54,747 56,810
Impairments 22,046  — 22,046
         
Total operating expenses 42,109  23,452 105,120 84,959
         
Operating (loss) income (20,777)  748 (13,286) 11,825
Other (expense) income, net (1,505)  141 (492) (294)
Interest income, net 129  124 329 789
         
(Loss) income from operations before income taxes and non-controlling interest (22,153)  1,013 (13,449) 12,320
Income tax benefit (expense) 1,193  396 (2,183) (7,058)
         
Net (loss) income (20,960)  1,409 (15,632) 5,262
Less: Net income (loss) attributable to non-controlling interests 2 (94)
         
Net (loss) income attributable to Fuel Systems Solutions, Inc $ (20,960) $ 1,411 $ (15,632) $ 5,168
         
Net (loss) income per share attributable to Fuel Systems Solutions, Inc:        
Basic $ (1.05) $ 0.07 $ (0.78) $ 0.26
         
Diluted $ (1.05) $ 0.07 $ (0.78) $ 0.26
         
Number of shares used in per share calculation:        
Basic 20,024,267  20,013,877 20,020,487  19,972,969
         
Diluted 20,024,267  20,037,521 20,020,487  20,004,236
 
 
FUEL SYSTEMS SOLUTIONS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
(Unaudited)
 
  2012 2011
Cash flows from operating activities:    
     
Net (loss) income $ (15,632) $ 5,262
Adjustments to reconcile net (loss) income to net cash provided by operating activities:    
Depreciation and other amortization 10,424  10,688
Amortization of intangibles arising from acquisitions  5,800  8,225
Impairment  22,046  —
Provision for doubtful accounts  2,299  641
Provision for related party loan receivable  828  —
Write down of inventory  4,246  3,148
Deferred Income Taxes (8,115)  824
Realized foreign exchange loss on subsidiary liquidation  —  417
Unrealized loss (gain) on foreign exchange transactions  859  46
Compensation expense related to equity awards  1,015  1,241
Loss on disposal of equipment and other assets  1,005  505
Reduction of contingent consideration   (839)  (1,661)
Changes in assets and liabilities, net of acquisitions    
(Increase) in accounts receivable  (12,878)  (7,499)
(Increase) in inventories  (2,500)  (22,133)
Decrease in other current assets  827  3,272
Decrease in other assets  715  333
(Decrease) increase in accounts payable  (11,271)  9,167
Increase (decrease) in income taxes payable  308  (648)
Increase (decrease) in accrued expenses  9,776  (224)
Decrease  in long-term liabilities  (762)  (307)
Receivables from/payables to related party, net  4,667  (849)
     
Net cash provided by operating activities  12,818  10,448
     
Cash flows from investing activities:    
Purchase of equipment and leasehold improvements  (13,704)  (12,130)
Purchase of investments  (18,277)  —
Redemption of investment at maturity  11,930  —
Acquisitions, net of cash acquired  (5,700)  (13,441)
Amount in restricted cash for acquisition of non-controlling interest  2,820  (2,882)
Other  258  467
     
Net cash used in investing activities  (22,673)  (27,986)
     
Cash flows from financing activities:    
(Decrease) increase in callable revolving lines of credit, net  (2,438)  1,830
Payments on term loans and other loans  (6,397)  (4,282)
Acquisition of non-controlling interest  (2,820)  (7,498)
Other  18  16
     
Net cash (used in) provided by financing activities  (11,637)  (9,934)
     
Net (decrease) increase in cash and cash equivalents  (21,492)  (27,472)
Effect of exchange rate changes on cash  427  (563)
Net (decrease) increase in cash and cash equivalents  (21,065)  (28,035)
Cash and cash equivalents at beginning of period  96,740  124,775
     
Cash and cash equivalents at end of period  75,675  96,740
     
 
 
FUEL SYSTEMS SOLUTIONS, INC.
OPERATING SEGMENT INFORMATION
(In Thousands)
(Unaudited) 
 
  Three Months Ended Twelve Months Ended 
  December 31, December 31,
  2012 2011 2012 2011
 
Revenue:        
FSS Industrial $ 29,874 $ 29,222 $ 122,674 $ 122,998
FSS Automotive 68,171 81,738 271,273 295,136
         
Total $ 98,045 $ 110,960 $ 393,947 $ 418,134
         
         
         
  Three Months Ended Twelve Months Ended 
  December 31, December 31,
  2012 2011 2012 2011
 
Operating (Loss) Income:        
FSS Industrial  $ (3,231) $ 4,064 $ 4,644 $ 14,662
FSS Automotive  (16,191) (1,946) (11,833) 2,270
Corporate Expenses (1)  (1,355) (1,370) (6,097) (5,107)
         
Total  $ (20,777) $ 748 $ (13,286) $ 11,825
         
(1) Represents corporate expense not allocated to either of the business segments. 
 
 
FUEL SYSTEMS SOLUTIONS, INC.
NON-GAAP FINANCIAL MEASURE RECONCILIATION
(In thousands) (Unaudited) 
         
         
  Three Months Ended Twelve Months Ended 
  December 31, December 31,
Segment adjusted EBITDA: 2012 2011 2012 2011
         
FSS Industrial $ 2,406 $ 4,415 $ 13,368 $ 17,316
FSS Automotive 1,998 2,314 17,124 18,231
Corporate and Other (1,288) (1,363) (6,000) (5,103)
         
Total adjusted EBITDA (Non-GAAP) $ 3,116 $ 5,366 $ 24,492 $ 30,444
         
Reconciliation:        
         
Net (loss) income attributable to noncontrolling interest  -- 2  -- (94)
Interest income, net 129 124 329 789
Benefit (Provision) for Income taxes 1,193 396 (2,183) (7,058)
Depreciation & Amortization (3,352) (4,477) (16,224) (18,913)
Impairments (22,046)  -- (22,046)  --
         
Net (loss) income attributable to Fuel Systems Solutions, Inc $ (20,960) $ 1,411 $ (15,632) $ 5,168

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Stock quotes in this article: FSYS 

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