Delaware | 001-33059 | 20-5657551 | ||
(State or other jurisdiction | (Commission | (IRS Employer | ||
of incorporation) | File Number) | Identification No.) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Exhibit No. | Description | |
99.1
|
Press Release of Fuel Tech, Inc. dated November 7, 2011. |
Fuel Tech, Inc. (Registrant) Date: November 7, 2011 |
||||
By: | /s/ David S. Collins | |||
David S. Collins | ||||
Senior Vice President, Treasurer and Chief Financial Officer |
||||
CONTACT:
|
David S. Collins | |
Chief Financial Officer | ||
(630) 845-4500 |
Tracy H. Krumme | ||
Vice President, Investor Relations | ||
(203) 425-9830 |
FUEL TECH, INC. REPORTS THIRD QUARTER 2011 RESULTS | Page 2 |
FUEL TECH, INC. REPORTS THIRD QUARTER 2011 RESULTS | Page 3 |
FUEL TECH, INC. REPORTS THIRD QUARTER 2011 RESULTS | Page 4 |
FUEL TECH, INC. REPORTS THIRD QUARTER 2011 RESULTS | Page 5 |
FUEL TECH, INC. REPORTS THIRD QUARTER 2011 RESULTS | Page 6 |
September 30, | December 31, | |||||||
2011 | 2010 | |||||||
(Unaudited) | ||||||||
Assets |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 28,998 | $ | 30,524 | ||||
Marketable securities |
53 | | ||||||
Accounts receivable, net of allowance for doubtful
accounts of $114 and $82, respectively |
27,920 | 21,175 | ||||||
Inventories |
857 | 807 | ||||||
Prepaid expenses and other current assets |
1,549 | 1,861 | ||||||
Prepaid income taxes |
740 | | ||||||
Deferred income taxes |
255 | 89 | ||||||
Total current assets |
60,372 | 54,456 | ||||||
Property and equipment, net of accumulated
depreciation of $18,086 and $15,767, respectively |
13,590 | 14,384 | ||||||
Goodwill |
21,051 | 21,051 | ||||||
Other intangible assets, net of accumulated
amortization of $3,886 and $3,203, respectively |
5,647 | 6,050 | ||||||
Deferred income taxes |
4,108 | 5,000 | ||||||
Other assets |
2,362 | 2,262 | ||||||
Total assets |
$ | 107,130 | $ | 103,203 | ||||
Liabilities and Shareholders Equity |
||||||||
Current liabilities: |
||||||||
Short-term debt |
$ | 2,343 | $ | 2,269 | ||||
Accounts payable |
8,416 | 7,516 | ||||||
Accrued liabilities: |
||||||||
Employee compensation |
2,741 | 2,863 | ||||||
Income taxes payable |
| 1,857 | ||||||
Other accrued liabilities |
4,899 | 3,306 | ||||||
Total current liabilities |
18,399 | 17,811 | ||||||
Other liabilities |
1,346 | 1,482 | ||||||
Total liabilities |
19,745 | 19,293 | ||||||
Shareholders equity: |
||||||||
Common stock, $.01 par value, 40,000,000 shares
authorized, 23,767,961 and 24,213,467 shares issued
and outstanding, respectively |
238 | 242 | ||||||
Additional paid-in capital |
131,715 | 129,424 | ||||||
Accumulated deficit |
(45,014 | ) | (46,075 | ) | ||||
Accumulated other comprehensive income |
370 | 243 | ||||||
Nil coupon perpetual loan notes |
76 | 76 | ||||||
Total shareholders equity |
87,385 | 83,910 | ||||||
Total liabilities and shareholders equity |
$ | 107,130 | $ | 103,203 | ||||
FUEL TECH, INC. REPORTS THIRD QUARTER 2011 RESULTS | Page 7 |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Revenues |
$ | 24,023 | $ | 20,279 | $ | 65,666 | $ | 56,798 | ||||||||
Costs and expenses: |
||||||||||||||||
Cost of sales |
13,050 | 11,496 | 35,069 | 32,063 | ||||||||||||
Selling, general and administrative |
7,701 | 7,808 | 23,618 | 23,306 | ||||||||||||
Gain on revaluation of ACT
liability |
| (768 | ) | (758 | ) | (768 | ) | |||||||||
Research and development |
358 | 264 | 1,075 | 575 | ||||||||||||
21,109 | 18,800 | 59,004 | 55,176 | |||||||||||||
Operating income |
2,914 | 1,479 | 6,662 | 1,622 | ||||||||||||
Interest expense |
(47 | ) | (33 | ) | (125 | ) | (110 | ) | ||||||||
Interest income |
14 | 4 | 19 | 6 | ||||||||||||
Other (expense) income |
(57 | ) | 89 | (252 | ) | (169 | ) | |||||||||
Income before income taxes |
2,824 | 1,539 | 6,304 | 1,349 | ||||||||||||
Income tax expense |
(169 | ) | (722 | ) | (1,880 | ) | (627 | ) | ||||||||
Net income |
$ | 2,655 | $ | 817 | $ | 4,424 | $ | 722 | ||||||||
Net income per common share: |
||||||||||||||||
Basic |
$ | 0.11 | $ | 0.03 | $ | 0.18 | $ | 0.03 | ||||||||
Diluted |
$ | 0.11 | $ | 0.03 | $ | 0.18 | $ | 0.03 | ||||||||
Weighted-average number of
common shares outstanding: |
||||||||||||||||
Basic |
24,322,000 | 24,213,000 | 24,269,000 | 24,213,000 | ||||||||||||
Diluted |
24,850,000 | 24,381,000 | 24,881,000 | 24,401,000 | ||||||||||||
FUEL TECH, INC. REPORTS THIRD QUARTER 2011 RESULTS | Page 8 |
Nine Months Ended | ||||||||
September 30, | ||||||||
2011 | 2010 | |||||||
Operating Activities |
||||||||
Net income |
$ | 4,424 | $ | 722 | ||||
Adjustments to reconcile net income to net cash
provided by operating activities: |
||||||||
Depreciation |
2,251 | 2,440 | ||||||
Amortization |
677 | 665 | ||||||
(Gain) loss on equipment disposals |
(2 | ) | 28 | |||||
Gain on revaluation of ACT liability |
(758 | ) | (768 | ) | ||||
Deferred income taxes |
410 | (1,299 | ) | |||||
Stock based compensation |
2,197 | 3,769 | ||||||
Bad debt expense |
32 | 2 | ||||||
Changes in operating assets and liabilities: |
||||||||
Accounts receivable |
(6,502 | ) | (4,437 | ) | ||||
Inventories |
(44 | ) | (451 | ) | ||||
Prepaid expenses, other current assets and other
noncurrent assets |
199 | (376 | ) | |||||
Accounts payable |
846 | 65 | ||||||
Accrued liabilities and other noncurrent liabilities |
(666 | ) | 4,368 | |||||
Net cash provided by operating activities |
3,064 | 4,728 | ||||||
Investing Activities |
||||||||
Decrease in restricted cash |
| 200 | ||||||
Proceeds from the sale of equipment |
2 | | ||||||
Purchases of property, equipment and patents |
(1,700 | ) | (1,305 | ) | ||||
Net cash (used in) investing activities |
(1,698 | ) | (1,105 | ) | ||||
Financing Activities |
||||||||
Proceeds from exercise of stock options |
336 | 10 | ||||||
Payments on short-term debt |
| (686 | ) | |||||
Payments to repurchase common stock |
(3,367 | ) | | |||||
Excess income tax benefits from exercise of stock options |
74 | | ||||||
Redemption of nil coupon loan note |
| (5 | ) | |||||
Net cash (used in) financing activities |
(2,957 | ) | (681 | ) | ||||
Effect of exchange rate fluctuations on cash |
65 | (12 | ) | |||||
Net (decrease) increase in cash and cash equivalents |
(1,526 | ) | 2,930 | |||||
Cash and cash equivalents at beginning of period |
30,524 | 20,965 | ||||||
Cash and cash equivalents at end of period |
$ | 28,998 | $ | 23,895 | ||||
FUEL TECH, INC. REPORTS THIRD QUARTER 2011 RESULTS | Page 9 |
Three months ended | Air Pollution | FUEL CHEM | ||||||||||||||
September 30, 2011 | Control Segment | Segment | Other | Total | ||||||||||||
Revenues from external customers |
$ | 12,223 | $ | 11,800 | $ | | $ | 24,023 | ||||||||
Cost of sales |
7,539 | 5,511 | | 13,050 | ||||||||||||
Gross margin |
4,684 | 6,289 | | 10,973 | ||||||||||||
Selling, general and administrative |
| | 7,701 | 7,701 | ||||||||||||
Research and development |
| | 358 | 358 | ||||||||||||
Operating income (loss) |
$ | 4,684 | $ | 6,289 | $ | (8,059 | ) | $ | 2,914 | |||||||
Three months ended | Air Pollution | FUEL CHEM | ||||||||||||||
September 30, 2010 | Control Segment | Segment | Other | Total | ||||||||||||
Revenues from external customers |
$ | 10,252 | $ | 10,027 | $ | | $ | 20,279 | ||||||||
Cost of sales |
6,735 | 4,761 | | 11,496 | ||||||||||||
Gross margin |
3,517 | 5,266 | | 8,783 | ||||||||||||
Selling, general and administrative |
| | 7,808 | 7,808 | ||||||||||||
(Gain) from revaluation of
contingent performance obligation |
| | (768 | ) | (768 | ) | ||||||||||
Research and development |
| | 264 | 264 | ||||||||||||
Operating income (loss) |
$ | 3,517 | $ | 5,266 | $ | (7,304 | ) | $ | 1,479 | |||||||
Nine months ended | Air Pollution | FUEL CHEM | ||||||||||||||
September 30, 2011 | Control Segment | Segment | Other | Total | ||||||||||||
Revenues from external customers |
$ | 32,959 | $ | 32,707 | $ | | $ | 65,666 | ||||||||
Cost of sales |
18,338 | 16,731 | | 35,069 | ||||||||||||
Gross margin |
14,621 | 15,976 | | 30,597 | ||||||||||||
Selling, general and administrative |
| | 23,618 | 23,618 | ||||||||||||
(Gain) from revaluation of
contingent performance
obligation |
| | (758 | ) | (758 | ) | ||||||||||
Research and development |
| | 1,075 | 1,075 | ||||||||||||
Operating income (loss) |
$ | 14,621 | $ | 15,976 | $ | (23,935 | ) | $ | 6,662 | |||||||
Nine months ended | Air Pollution | FUEL CHEM | ||||||||||||||
September 30, 2010 | Control Segment | Segment | Other | Total | ||||||||||||
Revenues from external customers |
$ | 27,757 | $ | 29,041 | $ | | $ | 56,798 | ||||||||
Cost of sales |
18,039 | 14,024 | | 32,063 | ||||||||||||
Gross margin |
9,718 | 15,017 | | 24,735 | ||||||||||||
Selling, general and administrative |
| | 23,306 | 23,306 | ||||||||||||
(Gain) from revaluation of
contingent performance
obligation |
| | (768 | ) | (768 | ) | ||||||||||
Research and development |
| | 575 | 575 | ||||||||||||
Operating income (loss) |
$ | 9,718 | $ | 15,017 | $ | (23,113 | ) | $ | 1,622 | |||||||
Note: | Fuel Tech is an integrated company that segregates its financial results into two reportable segments, both providing advanced technology and engineering solutions for the optimization of combustion systems in utility and industrial applications. The Other classification includes those profit and loss items not allocated by Fuel Tech to each reportable segment. |
FUEL TECH, INC. REPORTS THIRD QUARTER 2011 RESULTS | Page 10 |
Three months ended September 30 | Nine months ended September 30 | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Revenues: |
||||||||||||||||
United States |
$ | 19,121 | $ | 17,015 | $ | 54,268 | $ | 46,517 | ||||||||
Foreign |
4,902 | 3,264 | 11,398 | 10,281 | ||||||||||||
$ | 24,023 | $ | 20,279 | $ | 65,666 | $ | 56,798 | |||||||||
September 30, | December 31, | |||||||
2011 | 2010 | |||||||
Assets: |
||||||||
United States |
$ | 95,460 | $ | 92,485 | ||||
Foreign |
11,670 | 10,718 | ||||||
$ | 107,130 | $ | 103,203 | |||||
FUEL TECH, INC. REPORTS THIRD QUARTER 2011 RESULTS | Page 11 |
Nine Months Ended September 30 | ||||||||
2011 | 2010 | |||||||
Net income |
$ | 4,424 | $ | 722 | ||||
Interest expense |
125 | 110 | ||||||
Income tax expense |
1,880 | 627 | ||||||
Depreciation expense |
2,251 | 2,440 | ||||||
Amortization expense |
677 | 665 | ||||||
EBITDA |
9,357 | 4,564 | ||||||
Stock compensation expense |
2,197 | 3,769 | ||||||
ADJUSTED EBITDA |
$ | 11,554 | $ | 8,333 | ||||
MY"L\5@`$`WCC#/7H@1@\X!*W.8PT%J`!;QR1FRB8P05`P(((N,`K]/C>0E^@
M!3"<8`-M`,(+\$`%+0A@/QC_P` X0!+]Q,BNQ`%.P`$?C`&"`
M`,[E`#40`#+<`E$0_P4T0`-R0`4,!`8T>@`,0`#&!`40D`0:$`,P($00D`X'
MRQ2,]P2`P01NL`%Y8`$KL`)=X+X;0$45/,% C`2 .;`$G$`!LH,->3.<)D`*@NELL#BX(`-VP&[LF@.0"8`4?T-*_C,7H
MN[[I>^DF@`5#\.%,L`$`9A+,987`5,4`%+P!+Y5R)4@6MU!0277D5AL`*U
MO<@_/L:M+L9=,` *9$[(
MF;#`SX@1Y`;$J8$`2Q<3%G!@V2#G@``%)RSD]+A,D\%+!U>!_,"!`ILP&[2!
M[3(D"I,B(ER,BQ"AP`(6(=0]&(#B08<>3)C8T>,""E P
M"BPWHH)1,1`1*C3CJX(@C!V-R[!.4D$0D\/(6VIPA7W*SJ