Azure Dynamics Reports 1st Quarter 2011 Revenues
By Azure Dynamics Corporation, PRNEMonday, June 13, 2011
OAK PARK, Michigan, June 14, 2011 -
- Gross margin improves 193% year over year to 11% of sales
- Record quarterly order intake of $27.2 million, representing
838 vehicle orders - Cash position remains strong with $17.7 million at quarter
end - Reaffirms 2011 revenue guidance of $52 - $68 million
Azure Dynamics Corporation (TSX: AZD)(OTC: AZDDF), a world
leader in the development and production of hybrid electric and
electric components and powertrain systems for commercial vehicles,
today announced its financial results for the period ending March
31, 2011. The results are issued for the first time under the
International Financial Reporting Standards (IFRS) which replaced
Canadian Generally Accepted Accounting Principles (GAAP) effective
January 1, 2011 for all publicly accountable enterprises in
Canada.
Revenue for the first quarter of 2011 totaled $1.4 million
compared to $2.8 million in the first quarter of 2010. Net
loss for the first quarter of 2011 totaled $9.1 million, or $(0.01)
per share compared to a loss of $4.8 million or $(0.01) per share
in the first quarter of 2010. Gross margin for the first quarter of
2011 improved 193% to $157,000, or 11% of sales, from ($169,000) in
the comparable period a year ago. Before contributions, the
Company’s engineering, research and development (”R&D”)
expenses in the first quarter totaled $6.4 million (including $3.0
million in product development costs), compared to $5.3 million for
the same period in 2010 (including $2.7 million in product
development costs).
New orders received during the first quarter of 2011 were $27.2
million, representing 838 vehicles, compared with fourth quarter
2010 orders of $3.5 million, an improvement of $25.4 million, or
826%. This compares to first quarter 2010 of $6.2 million in
orders representing 246 units.
“Although year over year revenue for the quarter was down, it
was in-line with our expectations as the first quarter is typically
the slowest due to the seasonality of our order flow,” said Scott
Harrison, CEO of Azure Dynamics. “In terms of order flow, the
quarter itself was robust as we booked orders for 838 trucks from
returning and new customers. Additionally, we made
significant advancements in our European operations, including
naming Lotus Lightweight Structures (”LLS”) as our Transit Connect
Electric manufacturing partner and Post Norway as our first
customer. Our sales and marketing representation was also
expanded in North America with 76 new Ford Commercial Truck
Dealerships enrolling in Transit Connect Electric sales and service
programs in key markets.”
Energy continues as the dominant theme in the new millennium and
Azure is making valuable contributions. With President Obama
mandating that all new federal fleet unit orders be alternative
energy beginning in 2015, and renewing his commitment to having one
million electric vehicles (”EV”) on America’s roads by that same
year, Azure is quite literally living its mission to be ‘Part of
the Solution’ for customers, partners, shareholders and society at
large.
The highlight of the quarter was a 600 unit
Balance[TM] Hybrid Electric order
by Purolator, with 200 units to be delivered annually beginning in
2011. DHL placed a significant 80 unit order which included
50 Balance[TM] Hybrid Electric
trucks and 30 Transit Connect Electric vans destined for an
all-alternative energy facility in New York City. The order
shows that major fleets often require different vehicle
technologies and sizes to meet different delivery needs.
Azure is prepared to meet most of these needs.
As of March 31, 2011, the Company’s net cash and cash
equivalents totaled $17.7 million, and working capital totaled
$22.1 million, compared to cash and cash equivalents of $11.7
million, and working capital of $11.4 million, as of December 31,
2010.
On February 10, 2011, Azure successfully closed its bought deal
offering of 60,984,848 common shares of the Company at a price of
CDN$0.33 per Share. The total offering of Shares resulted in Azure
receiving aggregate gross proceeds of approximately CDN$20.1
million.
2011 FINANCIAL OUTLOOK
Based on the Company’s current backlog and future order
expectations, the Company is reaffirming its previous 2011
financial outlook. 2011 revenues are expected to be in a
range of $52 million to $68 million. The Company expects 2011
results to be significantly stronger beginning in the second
quarter due to the launch of the Transit Connect Electric, which
will continue into the second half of the year. Unit volume
for 2011 is expected to be in the range of 1,300 to 1,500 units,
consisting of approximately 700 to 800
Balance[TM] Hybrid Electric
drive-trains and LEEP systems and 600 to 700 Force Drive™ Electric
drive-trains for the Transit Connect Electric.
The Company’s fiscal 2011 first quarter financial statements and
MD&A are available at
Company’s website at
Conference Call
Scott Harrison, Azure Dynamics Chief Executive Office, and Ryan
Carr, Chief Financial Officer will host an earnings call today,
June 14th, at 5:00 PM EST. Interested listeners
can access the call toll free at (877) 407-4134 and should call in
at least 15 minutes before start time. Participants from
outside North America can participate in the call by dialing
(201)-689-8430. It is recommended that you access the call
at least fifteen minutes before the scheduled start time. An
accompanying presentation will be posted to the company’s website,
immediately prior to the call.
For those unable to participate in the live conference, a call
replay will be posted on Azure’s site on June 15th.
Annual General Meeting information
All interested parties are invited to attend Azure Dynamics’
Annual General Meeting on June 15, 2011 at 4:30 p.m. (local time)
at the Company’s Corporate Headquarters, 14925 W. 11 Mile Road, Oak
Park, Michigan, 48237. In addition to the formal business
described in the Management Information Circular, there will be a
management presentation on business activities and the Company’s
2010 financial results.
About Azure Dynamics
Azure Dynamics Corporation (TSX: AZD)(OTC: AZDDF) is a world
leader in the development and production of hybrid electric and
electric components and powertrain systems for commercial
vehicles. Azure is strategically targeting the commercial
delivery vehicle and shuttle bus markets and is currently working
internationally with a variety of partners and customers. The
Company is committed to providing customers and partners with
innovative, cost-efficient, and environmentally-friendly energy
management solutions. For more information please visit
The TSX Exchange does not accept
responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
Advisory
Certain information included in this
press release constitutes forward-looking statements and
information and future-oriented financial information under
applicable securities legislation and is provided for the purpose
of expressing management’s current expectations and plans for the
future. Readers are cautioned that reliance on such
information may not be appropriate for other purposes, such as
making investment decisions.
More particularly, this press release
contains statements concerning Azure’s anticipated: business
development strategy, customer orders, product deliveries, sales,
revenue and revenue growth. The forward-looking statements are
based on a number of key expectations and assumptions made by
Azure, including expectations and assumptions concerning
achievement of current timetables for development programs and
sales, target market acceptance of Azure’s products, current and
new product performance, availability and cost of labor and
expertise, and evolving markets for power for transportation
vehicles. Although Azure believes that the expectations and
assumptions used to develop the forward-looking statements are
reasonable, undue reliance should not be placed on the
forward-looking statements because Azure can give no assurance that
they will prove to be correct.
Since forward-looking statements address future events and
conditions, by their very nature they involve numerous risks and
uncertainties that contribute to the possibility that the
projections and forecasts in the forward-looking statements will
not occur and that actual performance or results could differ
materially from those anticipated in the forward-looking
statements. These risks and uncertainties include, but are not
limited to, the risks associated with Azure’s stage of development,
history of losses and lack of historical product revenues,
uncertainty as to product development and sales milestones being
met, product defect and performance risks, competition for capital
and market share, uncertainty as to target markets, dependence upon
third parties, changes in environmental laws or policies,
uncertainty as to patent and proprietary rights, availability and
retention of management and key personnel, exchange rate and
currency fluctuations, uncertainties relating to potential delays
or changes in plans with respect to product development or capital
expenditures, the ability of Azure to access sufficient capital on
acceptable terms, and environmental and safety risks. This is not
an exhaustive list and additional information on these risks and
other factors that could affect Azure’s operations and financial
results are included in reports on file with the Canadian
securities regulatory authorities and can be accessed through the
SEDAR website at www.sedar.com.
The forward-looking statements
contained in this press release are made as of the date hereof and
Azure undertakes no obligation to update publicly or revise any
forward-looking statements or information, whether as a result of
new information, future events or otherwise, unless so required by
applicable securities laws. Additionally, Azure undertakes no
obligation to comment on the expectations of, or statements made
by, third parties about Azure.
Azure Dynamics Corporation
Unaudited Interim Consolidated Balance Sheets
(Stated in thousands of Canadian dollars, except per share
amounts and number of shares)
March 31 December 31 January 1
As at 2011 2010 2010
$ $ $
ASSETS
Current assets
Cash and cash equivalents 17,685 11,737 33,482
Accounts receivable 7,128 10,107 2,700
Inventory (Note 3) 9,916 5,590 5,415
Prepaid expenses 1,040 949 1,170
Total current assets 35,769 28,383 42,767
Non-current assets
Restricted cash 582 597 831
Investment in ND Solectria, LLC
(Note 9) 304 319 336
Property and equipment
(Note 9) 3,198 2,781 2,309
Other assets 97 114 -
Intangible assets (Note 9) 5,290 5,590 6,755
Goodwill (Note 9) 2,932 2,932 2,932
Total non-current assets 12,403 12,333 13,163
Total assets 48,172 40,716 55,930
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable and
accrued liabilities 12,533 15,783 9,988
Customer deposits &
deferred revenue 106 96 731
Current portion of
government financial
obligations (Note 4, 9) 992 993 306
Current portion of obligations
under capital leases 88 82 99
Total current liabilities 13,719 16,954 11,124
Non-current liabilities
Obligations under capital leases
Customer deposits & deferred
revenue 62 96 117
Government financial
obligations 485 507 603
(Note 4, 9) 4,843 4,582 3,767
Total non-current liabilities 5,390 5,185 4,487
Shareholders' equity
Share capital (Note 5)
Contributed surplus 227,089 208,570 202,250
Cumulative translation 9,365 8,271 7,150
adjustment (Note 9) (63) 32 -
Deficit (207,328) (198,296) (169,081)
Total equity 29,063 18,577 40,319
Total equity and liabilities 48,172 40,716 55,930
Azure Dynamics Corporation
Unaudited Interim Consolidated Statements of Comprehensive Loss
(Stated in thousands of Canadian dollars, except per share amounts
and number of shares)
For the three months ended March 31
2011 2010
$ $
Revenues 1,422 2,847
Cost of sales 1,265 3,016
Gross profit 157 (169)
Expenses
Engineering, research, development
and related costs, net 5,389 1,670
Selling and marketing 803 514
General and administrative 2,798 2,248
Total expenses 8,990 4,432
Loss from operations (8,833) (4,601)
Interest and other income, net 85 65
Interest expense (266) (220)
Other expense - (11)
Foreign currency loss (84) (143)
(265) (309)
Net loss before the following (9,098) (4,910)
Share of profit from investment
in ND Solectria, LLC (Note 9) 66 71
Net loss for the period (9,032) (4,839)
Other comprehensive (loss) income
Foreign currency translation
differences of foreign operations (95) 36
Total comprehensive
income (loss) for the period (9,127) (4,803)
Loss per share - basic and diluted (0.01) (0.01)
Weighted average number
of shares - basic and diluted 660,402,356 605,128,008
For further information:
Juris Pagrabs, Vice President, Investor Relations, (248) 298-2403
ext 7570
Email:
Pat Liebler, Liebler Group, +1-(313)-832-4376
Email:
(AZD. AZDDF)
.
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