- Reports revenue of $10.1 million -- Improves operating expenses by $1.7 million year-over-year -- Revises full year 2016 financial guidance - OXNARD, Calif., Nov. 14, 2016 (GLOBE NEWSWIRE) -- Clean Diesel Technologies, Inc. (Nasdaq:CDTI) ("CDTi" or "the Company"), a leader in advanced emission control technology, reported its financial results for the third quarter ended September 30, 2016. Matthew Beale, CDTi's CEO, stated, "Since late last year we have completed several significant initiatives to enhance our financial foundation, support our growth and accelerate our path to profitability. We streamlined operations, reduced our fixed cost base and in August, we successfully eliminated $8.9 million in debt. With the recently announced $10.3 million equity raise, we have established a strong financial foundation on which to execute on our advanced materials and high-value catalyst business strategy. "We are pursuing opportunities in fast growing markets in China, India and North America that we believe we can serve profitably with our advanced materials business model. By focusing on technology development and strategic relationships, we have entered initial partnerships that are core to our P2C revenue ramp and positioning CDTi as a leading technology provider to the industry. "Looking ahead, we will experience a shift in revenue mix as partner volumes ramp during the next 12 to 24 months. In particular, as Technology and Advanced Materials revenue grows, which consists mainly of high-margin P2C business, it will be accretive to gross profit margins. Together with our lower operating expense run rate, we believe we will achieve operating profit breakeven during the first half of 2017." Financial Highlights: Third Quarter 2016 compared to Third Quarter 2015
- Total revenue was $10.1 million, compared to $9.8 million.
- Coated catalyst revenue was $7.1 million, compared to $5.9 million.
- Emissions control systems revenue was $2.8 million, compared to $3.6 million.
- Technology and advanced materials revenue was $0.2 million for both periods.
- Gross margin was 27%, compared to 25%. The increase reflects fluctuations in product mix.
- Total operating expenses in the third quarter of 2016 were $3.7 million, compared to $5.3 million in the third quarter of 2015. The decrease in operating expenses reflects the benefits of restructuring efforts completed during the first half of the year. Operating expenses for the quarter include severance and other charges totaling $0.6 million.
- Third quarter 2016 results include a non-cash charge of $12.6 million related to the extinguishment of $8.9 million in debt during the quarter.
- Net loss was $14.4 million, or $2.45 per share, reflecting the aforementioned non-cash charge. This compares to a net loss of $2.2 million, or $0.64 per share in the third quarter of 2015.
- Cash at September 30, 2016 was $2.7 million, compared to $3.0 million at December 31, 2015. Subsequent to the end of the third quarter, on November 3 rd CDTi entered into a definitive agreement to raise approximately $10.3 million in gross proceeds through a private placement of common stock, closing on $1.9 million in gross proceeds at the initial closing on November 4 th.
- Total revenue for the first nine months of 2016 was $28.3 million, compared to $30.0 million for the same prior year period.
- Gross margin was 25% for the first nine months of 2016, compared to 27% for the same prior year period.
- Total operating expenses for the first nine months of 2016 were $14.4 million, which includes $1.9 million in severance and other charges relating to CDTi's corporate restructuring, compared to $15.7 million in the same prior year period.
- Net loss for the first nine months of 2016 was $15.8 million, or $3.55 per share, reflecting the aforementioned $12.6 million non-cash charge. This compares to net loss of $7.7 million, or $2.48 per share, in the same prior year period.
|CLEAN DIESEL TECHNOLOGIES, INC. Condensed Consolidated Balance Sheets (in thousands, except share and per share amounts) (unaudited)|
|September 30,||December 31,|
|Accounts receivable, net||5,539||4,255|
|Prepaid expenses and other current assets||2,508||1,568|
|Total current assets||19,611||16,699|
|Property and equipment, net||1,264||1,538|
|Intangible assets, net||1,609||1,901|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Line of credit||$||3,313||$||3,513|
|Accrued expenses and other current liabilities||6,443||7,854|
|Current portion of notes payable||2,750||-|
|Income taxes payable||647||534|
|Total current liabilities||21,705||16,913|
|Notes payable, net of current portion||-||7,559|
|Deferred tax liability||203||193|
|Preferred stock, par value $0.01 per share: authorized 100,000; no shares issued and outstanding||-||-|
|Common stock, par value $0.01 per share: authorized 99,900,000 and 24,000,000 shares at September 30, 2016 and December 30, 2015; respectively; issued and outstanding 9,487,432 and 3,559,530 shares at September 30, 2016 and December 31, 2015, respectively||95||36|
|Additional paid-in capital||226,822||205,377|
|Accumulated other comprehensive loss||(5,847||)||(5,387||)|
|Total stockholders' equity||5,647||437|
|Total liabilities and stockholders' equity||$||27,555||$||25,102|
|CLEAN DIESEL TECHNOLOGIES, INC. Condensed Consolidated Statements of Comprehensive Loss (in thousands, except per share amounts) (unaudited)|
|Three Months Ended||Nine Months Ended|
|September 30,||September 30,|
|Cost of revenues||7,425||7,300||21,153||21,994|
|Research and development||762||2,303||3,955||6,276|
|Selling, general and administrative||2,322||3,028||8,549||9,461|
|Severance and other charges||571||3||1,945||4|
|Total operating expenses||3,655||5,334||14,449||15,741|
|Loss from continuing operations||(948||)||(2,875||)||(7,318||)||(7,697||)|
|Other income (expense):|
|Gain on bifurcated derivative liability||-||-||2,754||-|
|Loss on extinguishment of convertible debt||(12,572||)||-||(12,572||)||-|
|Gain (loss) on warrant liability||(705||)||541||883||269|
|Other income, net||196||474||824||640|
|Total other income (expense)||(13,570||)||706||(9,748||)||23|
|Loss from continuing operations before income taxes||(14,518||)||(2,169||)||(17,066||)||(7,674||)|
|Income tax benefit from continuing operations||(113||)||(28||)||(1,232||)||(88||)|
|Net loss from continuing operations||(14,405||)||(2,141||)||(15,834||)||(7,586||)|
|Net loss from discontinued operations||-||(67||)||-||(67||)|
|Foreign currency translation adjustments||(190||)||(1,155||)||(460||)||(2,026||)|
|Basic and diluted net loss per common share:|
|Weighted average shares outstanding - basic and diluted||5,876||3,358||4,462||3,055|