CDTi Advanced Materials, Inc. Reports Second Quarter 2018 Financial Results
14 Agosto 2018 - 3:05PM
CDTi Advanced Materials, Inc. (Nasdaq:CDTI) (“CDTi” or “the
Company”), a leader in advanced catalyst materials technology,
reported its financial results for the second quarter ended June
30, 2018.
Matthew Beale, CDTi’s CEO, stated, “In the
second quarter of 2018, we achieved a key milestone as our
materials technology was selected by a global OEM for inclusion in
next generation exhaust systems. We also made further progress with
catalyst coaters in India and China, which we believe will lead to
direct relationships with OEMs as they become confident of the
adoption of our novel technology in the market.
“Subsequent to the second quarter, we raised net
proceeds of $2.2 million from a rights offering we closed on July
25th. The completion of the rights offering is another step toward
CDTi’s goal of sustainable long-term profitability and growth in
its advanced materials business.”
In line with CDTi’s strategy to provide its
catalyst technology to other catalyst manufacturers in the form of
functional powders or material systems, the company is no longer
selling coated catalysts and has exited its Coated Catalyst
business. CDTi’s exit of the Coated Catalyst business qualifies as
discontinued operations and therefore has been presented as such
for all reporting periods.
Financial Highlights: Second Quarter
2018 compared to Second Quarter 2017
- Total revenue was $2.4 million, compared to $3.6 million.
- Emissions control systems revenue was $1.9 million, compared to
$3.0 million.
- Technology and advanced materials revenue was $0.5 million,
compared to $0.6 million.
- Gross margin was 32%, compared to 36%.
- Total operating expenses in the second quarter of 2018 were
$1.9 million, compared to $2.2 million in the first quarter of 2017
as CDTi continues to align costs with its advanced materials
strategy.
- Net loss from continuing operations was $1.5 million, or $0.09
per share, compared to a net loss from continuing operations of
$1.0 million, or $0.05 per share in the second quarter of
2017.
- Cash at June 30, 2018, was $1.8 million, compared to $2.8
million at December 31, 2017.
- On July 25, 2018, CDTi received net proceeds of $2.2 million
from the company’s rights offering.
Financial
Highlights: Six months ended June 30, 2018
compared to 2017
- Total revenue for the first six months of 2017 was $4.6
million, compared to $7.4 million for the same prior year
period.
- Gross margin was 39%, compared to 24% in the same prior year
period.
- Total operating expenses for the first six months of 2018 were
$4.1 million compared to $5.9 million in the same prior year
period.
- Net loss from continuing operations for the first six months of
2018 was $2.3 million, or $0.15 per share compared to net loss of
from continuing operations of $5.0 million, or $0.32 per share, in
the same prior year period.
Company Outlook The company
currently expects 2018 revenue of approximately $12 million. With
the implementation of local partnerships in China and India the
company believes that a growing pipeline of customers will begin to
generate material revenue beginning in 2018 and accelerating into
2019.
In addition to materials applications generating
revenue in 2018, the company expects it will have established at
least one partnership for deployment of its Spinel™ technology in
fuel cell and advanced battery applications during the
year.
Conference Call and Webcast
InformationCDTi will host a conference call and live
webcast beginning at 2:00 p.m. Pacific Time today, August 14th, to
discuss its financial results and its business outlook. This
conference call will contain forward-looking information. To
participate in the conference call, please dial +1 (877) 303-9240
and international participants should dial +1 (760) 666-3571. The
conference code is 6755135. The conference call will be webcast
live on the CDTi website at www.cdti.com under the "Investor
Relations" section. To listen to the live webcast, participants
should visit the site at least 15 minutes prior to the conference
to download any required streaming media software. An archived
recording of the conference call will be available on the CDTi
website for 30 days. You may also access a telephone replay for two
business days following the conclusion of the call by dialing +1
(855) 859-2056 or +1 (404) 537-3406 if dialing in internationally.
The passcode is 6755135.
About CDTi Advanced Materials
CDTi Advanced Materials, Inc. (NASDAQ:CDTI) develops advanced
materials technology for the emissions control and other catalysis
markets. CDTi’s proprietary technologies provide high-value
sustainable solutions to reduce hazardous emissions from on- and
off-road combustion engine systems at significantly lower cost.
With a continuing focus on innovation-driven commercialization and
global expansion, CDTi’s breakthrough Powder-to-Coat (P2C™)
approach delivers those technologies to customers in a ready to use
powder form. Key technology platforms include Base Metal Activated
Rhodium Support (BMARS™), Synergized PGM (SPGM™), Zero PGM (ZPGM™)
and Spinel™. For more information, please visit www.cdti.com.
Forward-Looking
StatementsCertain information contained in this press
release constitutes forward-looking statements, including any
statements that are not statements of historical fact. You can
identify these forward-looking statements by the use of the words
“believes”, “expects”, “anticipates”, “plans”, “may”, “will”,
“would”, “intends”, “estimates”, and other similar expressions,
whether in the negative or affirmative. Forward-looking statements
are based on a series of expectations, assumptions, estimates and
projections, which involve substantial uncertainty and risk. In
this document, the Company includes forward-looking statements
regarding the acceleration of the Company’s business transformation
into an advanced materials company, global trends in the automotive
and heavy duty diesel markets, the Company’s future financial
performance, and the performance of the Company’s technology, are
all subject to risks and uncertainties that could cause our actual
results and financial position to differ materially. In
general, actual results may differ materially from those indicated
by such forward-looking statements as a result of risks and
uncertainties, including, but not limited, to (i) that the Company
may not be able to (a) successfully implement, or implement at all,
its strategic priorities; (b) streamline its operations or align
its organization and infrastructure with the anticipated business;
(c) meet expectations or projections; (d) decrease costs; (e)
increase sales; (f) obtain adequate funding; (g) retain or secure
customers; (h) increase its customer base; (i) protect its
intellectual property; (j) successfully evolve into an advanced
materials supplier or, even if successful, increase profitability;
(k) successfully market new products; (l) obtain product
verifications or approvals; (m) attract or retain key personnel;
(n) validate, optimize and scale our powder-to-coat capability; or
(o) realize benefits from investments; (ii) funding for and
enforcement and tightening of emissions controls, standards and
regulations; (iii) prices of PGM and rare earth metals; (iv)
royalty and other restrictions on sales in certain Asian countries;
(v) supply disruptions or failures; (vi) regulatory, marketing and
competitive factors; (vii) environmental harm or damages; and
(viii) other risks and uncertainties discussed or referenced in the
Company’s filings with the Securities and Exchange Commission,
including its most recent Annual Report on Form 10-K and any
subsequent periodic reports on Form 10-Q and Form 8-K. In addition,
any forward-looking statements represent the Company’s estimates
only as of the date of such statements and should not be relied
upon as representing the Company’s estimates as of any subsequent
date. The Company specifically disclaims any obligation to update
forward-looking statements. All forward-looking statements in this
press release are qualified in their entirety by this cautionary
statement.
Contact Information: Moriah
Shilton or Kirsten ChapmanLHA Investor Relations +1 415 433
3777cdti@lhai.com
[Tables to follow]
CDTi ADVANCED MATERIALS, INC. |
Condensed Consolidated Statement of Operations |
(in thousands, except percentage and per share
amounts) |
(unaudited) |
|
Three Months Ended June
30, |
|
|
|
Six Months Ended June
30, |
|
2018 |
% of Revenues |
|
2017 |
% of Revenues |
|
|
2018 |
% of Revenues |
|
2017 |
% of Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
Emission control
systems |
$ |
1,937 |
80
% |
|
$ |
2,990 |
84
% |
|
|
$ |
3,718 |
80
% |
|
$ |
6,636 |
90
% |
Technology and advanced
materials |
496 |
20 % |
|
566 |
16 % |
|
|
912 |
20 % |
|
769 |
10 % |
Revenues |
$ |
2,433 |
100
% |
|
$ |
3,556 |
100
% |
|
|
$ |
4,630 |
100
% |
|
$ |
7,405 |
100
% |
Gross profit |
767 |
32
% |
|
1,265 |
36
% |
|
|
1,805 |
39
% |
|
1,752 |
24
% |
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Research
and development |
621 |
|
|
917 |
|
|
|
1,321 |
|
|
1,911 |
|
Selling,
general and administrative |
1,300 |
|
|
1,899 |
|
|
|
2,734 |
|
|
4,607 |
|
Severance
and other charges |
— |
|
|
(619) |
|
|
|
— |
|
|
(619) |
|
Total
operating expenses |
1,921 |
|
|
2,197 |
|
|
|
4,055 |
|
|
5,899 |
|
Loss from
continuing operations |
(1,154) |
|
|
(932) |
|
|
|
(2,250) |
|
|
(4,147) |
|
Other income
(expense): |
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense, net |
— |
|
|
(67) |
|
|
|
— |
|
|
(190) |
|
Loss on
extinguishment of debt |
— |
|
|
— |
|
|
|
— |
|
|
(194) |
|
Gain
(loss) on change in fair value of liability-classified
warrants |
170 |
|
|
4 |
|
|
|
534 |
|
|
(334) |
|
Gain on
sale of DuraFit |
— |
|
|
— |
|
|
|
— |
|
|
— |
|
Other
expense, net |
217 |
|
|
184 |
|
|
|
122 |
|
|
83 |
|
Total
other income (expense) |
387 |
|
|
121 |
|
|
|
656 |
|
|
(635) |
|
Loss from
continuing operations before income taxes |
(767) |
|
|
(811) |
|
|
|
(1,594) |
|
|
(4,782) |
|
Income
tax expense (benefit) from continuing operations |
704 |
|
|
169 |
|
|
|
741 |
|
|
168 |
|
Net loss
from continuing operations |
(1,471) |
|
|
(980) |
|
|
|
(2,335) |
|
|
(4,950) |
|
Net
(loss) income from discontinued operations |
(481) |
|
|
595 |
|
|
|
89 |
|
|
1,469 |
|
Net
loss |
$ |
(1,952) |
|
|
$ |
(385) |
|
|
|
$ |
(2,246) |
|
|
$ |
(3,481) |
|
Basic and diluted net
(loss) income per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
Net loss from
continuing operations |
$ |
(0.09) |
|
|
$ |
(0.05) |
|
|
|
$ |
(0.15) |
|
|
$ |
(0.32) |
|
Net (loss) income from
discontinued operations |
$ |
(0.03) |
|
|
$ |
0.04 |
|
|
|
$ |
0.01 |
|
|
$ |
0.09 |
|
Net loss |
$ |
(0.12) |
|
|
$ |
(0.01) |
|
|
|
$ |
(0.14) |
|
|
$ |
(0.22) |
|
Weighted average shares
outstanding – basic |
15,876 |
|
|
15,708 |
|
|
|
15,840 |
|
|
15,706 |
|
Weighted average shares
outstanding – diluted |
15,876 |
|
|
16,408 |
|
|
|
15,840 |
|
|
15,936 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CDTi ADVANCED MATERIALS, INC. |
Condensed Consolidated Balance Sheet |
(in thousands, except share and per share amounts) |
(unaudited) |
|
|
|
|
|
June 30, 2018 |
|
December 31, 2017 |
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash |
$ |
1,779 |
|
$ |
2,807 |
Accounts
receivable, net |
2,011 |
|
1,877 |
Inventories |
1,126 |
|
1,355 |
Prepaid
expenses and other current assets |
245 |
|
656 |
Current
assets of discontinued operations |
599 |
|
1,524 |
Total
current assets |
5,760 |
|
8,219 |
Property and equipment,
net |
365 |
|
414 |
Intangible assets,
net |
970 |
|
1,051 |
Deferred tax
assets |
— |
|
644 |
Other assets |
94 |
|
62 |
Assets of discontinued
operations |
105 |
|
424 |
Total
assets |
$ |
7,294 |
|
$ |
10,814 |
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
Current
liabilities: |
|
|
|
Accounts
payable |
$ |
1,520 |
|
$ |
1,684 |
Accrued
expenses and other current liabilities |
886 |
|
1,539 |
Income
taxes payable |
807 |
|
789 |
Liabilities of discontinued operations |
1,328 |
|
2,421 |
Total
current liabilities |
4,541 |
|
6,433 |
Other liabilities |
— |
|
— |
Liabilities of
discontinued operations |
462 |
|
— |
Total liabilities |
5,003 |
|
6,433 |
Commitments and
contingencies |
|
|
|
Stockholders’
equity: |
|
|
|
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 50,000,000; issued and outstanding
15,908,736 and 15,803,736 shares at June 30, 2018 and
December 31, 2017, respectively |
158 |
|
158 |
Additional paid-in
capital |
238,729 |
|
238,455 |
Accumulated other
comprehensive loss |
(6,004) |
|
(5,886) |
Accumulated
deficit |
(230,592) |
|
(228,346) |
Total stockholders’
equity |
2,291 |
|
4,381 |
Total liabilities and
stockholders’ equity |
$ |
7,294 |
|
$ |
10,814 |
|
|
|
|
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