EX-99.1 2 dex991.htm COMPANY NEWS RELEASE Company news release

Exhibit 99.1

 

LOGO   Advanced Thermoelectric Solutions

NEWS RELEASE for April 29, 2009 at 6:00 AM EDT

Contact:  

Allen & Caron Inc

Jill Bertotti (investors)

jill@allencaron.com

Len Hall (media)

len@allencaron.com

(949) 474-4300

       

AMERIGON REPORTS 2009 FIRST QUARTER RESULTS

NORTHVILLE, MI (April 29, 2009) . . . Amerigon Incorporated (NASDAQ: ARGN), a leader in developing and marketing products based on advanced thermoelectric (TE) technologies, today announced results for the first quarter ended March 31, 2009.

Product revenues in this year’s first quarter were $10.2 million, compared with product revenues of $17.4 million in the prior year period. Lower sales of the Company’s Climate Control Seat® (CCS®) system resulting from lower volumes on existing vehicles were partially offset by higher sales from new model introductions. The lower product revenues on existing programs were due to a significant decline in the overall automotive market.

Automotive production and sales volumes, impacted by slowing worldwide economic activity and decreasing availability of consumer credit, were significantly lower during this year’s first quarter compared with the year-earlier period. In North America, one of the Company’s most important markets, the Seasonally Adjusted Annual Rate (“SAAR”) for vehicle sales decreased 38 percent to 9.5 million from 15.2 million during the first quarter of 2008. Vehicle production levels have been reduced accordingly. Additionally, during this year’s first quarter, Amerigon experienced a decline in product revenues as its customers reduced their purchases of CCS components from the Company in order to reduce their inventory. As a result, Amerigon’s product revenue volume reflected lower selling rates than the current production levels on several vehicle programs.

President and Chief Executive Officer Daniel R. Coker said the popularity of the CCS system remains strong as demonstrated by the new vehicle line introductions and the continued strength of the take rates, despite the depressed economy and the automotive market in particular.

“We continue to increase market penetration with the addition of five vehicle lines already this year that will offer our CCS technology,” Coker said. “While the lack of credit to finance the purchase or lease of new vehicles has led to a shortage of customers, we still see very good take rates for our seat system. When people do buy a new car, they tend to look for value enhancing features like our CCS system. Our type of feature continues to be extremely popular on the high-end vehicles, but it is very encouraging that our seat system is also increasingly being requested by fuel-conscious customers purchasing mid-range vehicles. That gives us confidence that when the economy and the automobile industry stabilize, our revenues will return to their previous patterns of growth.”

Gross margin as a percentage of revenue for the first quarter of 2009 was 24 percent compared with 32 percent for the first quarter of 2008. The year-over-year decrease is primarily attributable to higher raw material costs, an unfavorable change in the mix of products sold and lower coverage of fixed costs at the lower volume levels. The Company continues to focus on reducing costs and, as part of that ongoing program, it is investing research and development (R&D) resources to offset material and other costs increases.


For the first quarter of this year, the net loss was $936,000, or $0.04 loss per share, compared with net income of $1.4 million, or $0.06 per share for the first quarter of last year. During the quarter, Amerigon recorded an income tax benefit of $467,000 compared with an income tax expense of $820,000 in the prior year period.

Results for the 2009 first quarter included year-over-year increases in R&D expenses of $156,000 due to increased research activities associated with the Company’s advanced TE program partially offset by lower costs to support a smaller number of new vehicle programs to be launched during 2009 compared with 2008. The higher research and development expenses are focused on further advancing and commercializing new more efficient TED material.

The Company’s balance sheet as of March 31, 2009 remained strong with total cash and cash equivalents of $25.2 million, total assets of $53.7 million and shareholders’ equity of $45.1 million.

During the first quarter of 2009, the Company borrowed $1.3 million from its revolving credit line which proceeds supported its cash position. This election to draw under the revolving credit line reflects the Company’s interest in ensuring the reliability of the available credit in light of the current credit market climate. Amerigon intends to repay the outstanding loans during the second quarter of 2009 from its current cash reserves.

Coker added, “In addition to increasing the penetration of our seat systems, we remain dedicated to introducing new applications for our proprietary thermoelectric technology, and BSST is making excellent progress on a number of fronts. In addition to the programs we already have under development, we announced during the quarter that we will expand our presence in the automotive market with a heated and cooled cupholder that is expected to be launched in the fall of 2010.”

Other potential applications that could benefit from innovative thermoelectric systems include a variety of other automotive applications, stationary temperature management, medical and electronics cooling, aerospace and defense, individual comfort, waste heat harvesting and primary power generation.

“For example,” Coker said, “we recently completed the testing phase of an electronics cooling application and have shipped small quantities of production units for field installation.”

Unit shipments of CCS systems for the first quarter of this year were 143,000 compared with 253,000 units for the prior year period. New vehicles equipped with CCS and launched since the end of last year’s first quarter included the Nissan Maxima, Ford F150 Pickup, Chevrolet Suburban, Chevrolet Tahoe, Chevrolet Avalanche, GMC Yukon, GMC Yukon XL, GMC Yukon Denali and the GMC Sierra Pickup. Two programs launched during 2008 had higher revenue in 2009 due to the impact of full quarter shipments: the Lincoln MKS and Infiniti FX.

Guidance

Due to the most recent news in the marketplace with respect to customer production levels, the Company expects revenues to be relatively flat for the 2009 second quarter compared with the 2009 first quarter. The current uncertainty in the global automotive market and the resulting lack of visibility make it virtually impossible for Amerigon to provide meaningful full-year financial guidance for 2009.


Conference Call

As previously announced, Amerigon is conducting a conference call today to be broadcast live over the Internet at 11:30 AM Eastern Time to review the financial results for the first quarter ended March 31, 2009. The dial-in number for the call is 1-877-941-2332. The live webcast and archived replay of the call can be accessed in the Events page of the Investor section of Amerigon’s website at www.amerigon.com.

About Amerigon

Amerigon (NASDAQ: ARGN) develops products based on its advanced, proprietary, efficient thermoelectric (TE) technologies for a wide range of global markets and heating and cooling applications. The Company’s current principal product is its proprietary Climate Control Seat® (CCS®) system, a solid-state, TE-based system that permits drivers and passengers of vehicles to individually and actively control the heating and cooling of their respective seats to ensure maximum year-round comfort. CCS, which is the only system of its type on the market today, uses no CFCs or other environmentally sensitive coolants. Amerigon maintains sales and technical support centers in Southern California, Detroit, Japan, Germany, England and Korea.

Certain matters discussed in this release are forward-looking statements that involve risks and uncertainties, and actual results may be different. Important factors that could cause the Company’s actual results to differ materially from its expectations in this release are risks that sales may not significantly increase, additional financing, if necessary, may not be available, new competitors may arise and adverse conditions in the automotive industry may negatively affect its results. The liquidity and trading price of its common stock may be negatively affected by these and other factors. Please also refer to Amerigon’s Securities and Exchange Commission filings and reports, including, but not limited to, its Form 10-Q for the period ended March 31, 2009, and its Form 10-K for the year ended December 31, 2008.

TABLES FOLLOW


AMERIGON INCORPORATED

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

 

     Three Months Ended
March 31,
 
     2009     2008  

Product revenues

   $ 10,170     $ 17,360  

Cost of sales

     7,752       11,801  
                

Gross margin

     2,418       5,559  

Operating expenses:

    

Research and development

     2,419       2,399  

Research and development reimbursements

     (673 )     (809 )
                

Net research and development expenses

     1,746       1,590  

Selling, general and administrative

     2,149       2,127  
                

Total operating expenses

     3,895       3,717  
                

Operating income

     (1,477 )     1,842  

Interest income

     22       297  

Other income

     52       52  
                

Earnings before income tax

     (1,403 )     2,191  

Income tax expense (benefit)

     (467 )     820  
                

Net income

   $ (936 )   $ 1,371  
                

Basic earnings per share

   $ (0.04 )   $ 0.06  
                

Diluted earnings per share

   $ (0.04 )   $ 0.06  
                

Weighted average number of shares – basic

     21,232       22,004  
                

Weighted average number of shares – diluted

     21,232       22,784  
                

MORE-MORE-MORE


AMERIGON INCORPORATED

CONSOLIDATED CONDENSED BALANCE SHEETS

(In thousands, except share data)

 

     March 31,
2009
    December 31,
2008
 
     (unaudited)        

ASSETS

    

Current Assets:

    

Cash & cash equivalents

   $ 25,185     $ 25,303  

Accounts receivable, less allowance of $244 and $318, respectively

     8,678       8,292  

Inventory:

    

Raw materials

     337       189  

Finished goods

     3,060       2,452  
                

Inventory

     3,397       2,641  

Deferred income tax assets

     744       986  

Prepaid expenses and other assets

     94       417  
                

Total current assets

     38,098       37,639  

Property and equipment, net

     4,100       4,274  

Patent costs, net of accumulated amortization of $345 and $298, respectively

     3,300       3,156  

Deferred income tax assets

     8,049       7,334  

Other non-current assets

     196       196  
                

Total assets

   $ 53,743     $ 52,599  
                

LIABILITIES AND SHAREHOLDERS’ EQUITY

    

Current Liabilities:

    

Revolving Credit Line

   $ 1,300     $ —    

Accounts payable

     4,358       3,872  

Accrued liabilities

     2,356       3,096  

Deferred manufacturing agreement – current portion

     200       200  
                

Total current liabilities

     8,214       7,168  

Pension Benefit Obligation

     189       142  

Deferred manufacturing agreement – long-term portion

     200       250  
                

Total liabilities

     8,603       7,560  

Shareholders’ equity:

    

Common Stock:

    

No par value; 30,000,000 shares authorized, 21,378,492 and 21,205,492 issued and outstanding at March 31, 2009 and December 31, 2008, respectively

     61,529       60,727  

Paid-in capital

     22,994       22,720  

Accumulated other comprehensive income – foreign currency

     58       97  

Accumulated deficit

     (39,441 )     (38,505 )
                

Total shareholders’ equity

     45,140       45,039  
                

Total liabilities and shareholders’ equity

   $ 53,743     $ 52,599  
                

MORE-MORE-MORE


AMERIGON INCORPORATED

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

     Three Months Ended  
     March 31,  
     2009     2008  

Operating Activities:

    

Net income

   $ (936 )   $ 1,371  

Adjustments to reconcile net income to cash provided by (used in) operating activities:

    

Depreciation and amortization

     370       307  

Deferred tax provision

     (472 )     748  

Stock option compensation

     274       217  

Defined benefit plan expense

     47       —    

Changes in operating assets and liabilities:

    

Accounts receivable

     (385 )     (1,094 )

Inventory

     (757 )     (951 )

Prepaid expenses and other assets

     323       (141 )

Accounts payable

     485       1,159  

Accrued liabilities

     (467 )     (777 )
                

Net cash provided by operating activities

     (1,518 )     839  

Investing Activities:

    

Purchases of investments

           (3,100 )

Sales and maturities of investments

           3,850  

Purchase of property and equipment

     (198 )     (874 )

Patent costs

     (191 )     (153 )
                

Net cash provided by (used in) investing activities

     (389 )     (277 )

Financing Activities:

    

Revolving Credit Line borrowings

     1,300       —    

Proceeds from the exercise of Common Stock options

     529       820  
                

Net cash provided by financing activities

     1,829       820  
                

Foreign currency effect

     (40 )     11  
                

Net increase (decrease) in cash and cash equivalents

     (118 )     1,393  

Cash and cash equivalents at beginning of period

     25,303       1,170  
                

Cash and cash equivalents at end of period

   $ 25,185     $ 2,563  
                

Supplemental disclosure of cash flow information:

    

Cash paid for taxes

   $ 298     $ 111  
                

Supplemental disclosure of non-cash transactions:

    

Issuance of Common Stock under the 2006 Equity Incentive Plan

   $ 273     $ 298  
                

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