Loading ...WATERTOWN, Mass., March 9, 2010 (GLOBE NEWSWIRE) — A123 Systems (Nasdaq:AONE), a developer and manufacturer of advanced Nanophosphate™ lithium ion batteries and battery systems, today announced financial results for the fourth quarter and full year ended December 31, 2009.
David Vieau, CEO of A123 Systems, said, "The fourth quarter capped off a record year for A123 Systems and our momentum is strong entering 2010. In recent months we signed new or expanded relationships with Fisker Automotive and SAIC Motor in the passenger vehicle market, as well as Navistar in the heavy duty vehicle market. We also shipped battery systems to Southern California Edison Company (SCE) during the fourth quarter, and SCE and DTE energy won DOE awards for projects that were designed based on A123’s advanced lithium ion batteries."
Vieau added, "With our IPO proceeds in place and the closure of our DOE grant during the fourth quarter, we are investing aggressively in worldwide sales, R&D and manufacturing capacity. We recently announced a 120 megawatt-hour capacity expansion to our Livonia, Michigan facility. We are today announcing a further capacity increase of 200 megawatt-hours, which is expected to increase A123’s final cell manufacturing capacity to approximately 560 megawatt-hours when the new capacity moves into production. Demand is strong across our expanded portfolio of customers, and 2010 will be a year of focus on execution and establishing the foundation to support significant growth in 2011 and 2012 as customer programs are expected to move into full scale production."
Financial Highlights
Revenue: Total revenue for the fourth quarter of 2009 was $24.5 million, compared to $23.6 million for the fourth quarter of 2008. Within total revenue, product revenue was $19.9 million, compared to $21.4 million in the fourth quarter of 2008, and research and development services revenue was $4.7 million, compared to $2.3 million in the year ago period.
Total revenue for the year ended December 31, 2009, was $91.0 million, an increase of 33% compared to the year ended 2008. Product revenue for the year ended 2009 of $76.5 million increased 43% compared to the year ended 2008, and research and development services revenue of $14.5 million decreased from $15.0 million over the same time period.
Gross Profit/(Loss): Gross loss was ($48,000) in the fourth quarter of 2009, compared to ($8.5) million in the fourth quarter of 2008. For the year ended December 31, 2009, gross loss was ($2.7) million, compared to ($12.2) million for the full year 2008.
Net Income/(Loss): Net loss attributable to A123 Systems common stockholders was ($22.3) million, or ($0.22) per share, based on 102.5 million weighted average common shares outstanding in the fourth quarter of 2009. This compared to a net loss attributable to A123 Systems common stockholders of ($28.5) million in the fourth quarter of 2008, or ($3.08) per share based on 9.2 million weighted average common shares outstanding.
For the year ended December 31, 2009, net loss attributable to A123 Systems common stockholders was ($85.8) million, or ($2.55) per share based on 33.7 million weighted average common shares outstanding. This compares to a net loss attributable to A123 Systems common stockholders of ($80.5) million for the full year 2008, or ($9.04) based on 8.9 million weighted average common shares outstanding.
Adjusted EBITDA: Adjusted EBITDA, a non-GAAP financial measure, was ($17.4) million in the fourth quarter of 2009, compared to ($25.3) million in the fourth quarter of 2008. For the year ended December 31, 2009, Adjusted EBITDA was ($63.7) million, compared to ($66.9) million for the full year 2008.
A reconciliation of GAAP to non-GAAP results has been provided in the financial statement tables included at the end of this press release. An explanation of these measures is also included below under the heading "Non-GAAP Financial Measures."
Cash: A123 Systems had cash and cash equivalents of $457 million at December 31, 2009, a decrease from $494 million at the end of the prior quarter.
Other Fourth Quarter and Full Year Business Metrics
Revenue Mix: During the fourth quarter of 2009, transportation revenue was $11.3 million, electric grid revenue was $4.8 million and consumer revenue was $3.8 million, compared to a revenue mix of $7.6 million, $2.9 million and $10.9 million, respectively, in the fourth quarter of 2008.
For the full year 2009, transportation revenue grew 359% to $45.3 million, electric grid revenue grew 282% to $11.1 million and consumer revenue decreased 51% to $20.1 million, each compared to the full year 2008.
Product shipments: During the fourth quarter of 2009, A123 Systems recorded product shipments equivalent to 21.7 million watt hours, compared to 13.3 million in the year ago quarter. For the full year 2009, product shipments were equivalent to 66.5 million watt hours, compared to 44.9 million for the full year 2008.
About A123 Systems
A123 Systems, Inc. (Nasdaq:AONE) develops and manufactures advanced lithium ion batteries and battery systems for the transportation, electric grid services and consumer markets. Headquartered in Massachusetts and founded in 2001, A123 Systems’ proprietary nanoscale electrode technology is built on initial developments from the Massachusetts Institute of Technology. Among the companies selecting A123 batteries, battery systems and technology in the fields of transportation, grid energy storage and consumer products are AES Energy Storage, LLC, BAE Systems, The Black & Decker Corporation, BMW, Daimler, Delphi, Fisker Automotive, and Shanghai Automotive Industry Corporation. For additional information please visit www.a123systems.com.
| A123 Systems, Inc. | ||||
| Unaudited, Consolidated Statements of Operations | ||||
| (in thousands, except per share data) | ||||
| Three Months Ended | Twelve Months Ended | |||
| December 31, | December 31, | |||
| 2008 | 2009 | 2008 | 2009 | |
| Revenue: | ||||
| Product | $ 21,378 | $ 19,873 | $ 53,514 | $ 76,519 |
| Research and development services | 2,271 | 4,657 | 15,011 | 14,530 |
| Total revenue | 23,649 | 24,530 | 68,525 | 91,049 |
| Cost of revenue: | ||||
| Product | 29,836 | 22,022 | 70,474 | 83,778 |
| Research and development services | 2,336 | 2,556 | 10,295 | 9,963 |
| Total cost of revenue | 32,172 | 24,578 | 80,769 | 93,741 |
| Gross loss | (8,523) | (48) | (12,244) | (2,692) |
| Operating expenses: | ||||
| Research and development | 10,801 | 12,336 | 36,953 | 48,286 |
| Sales and marketing | 3,128 | 2,376 | 8,851 | 8,455 |
| General and administrative | 6,391 | 7,665 | 21,544 | 26,004 |
| Total operating expenses | 20,320 | 22,377 | 67,348 | 82,745 |
| Operating loss | (28,843) | (22,425) | (79,592) | (85,437) |
| Other income (expense): | ||||
| Interest income | 93 | 68 | 1,258 | 165 |
| Interest expense | (251) | (286) | (812) | (1,206) |
| (Loss) gain on foreign exchange | (174) | 127 | (724) | 682 |
| Unrealized loss on preferred stock warrant liability | 650 | – | (286) | (515) |
| Other income (expense), net | 318 | (91) | (564) | (874) |
| Loss from continuing operations, before tax | (28,525) | (22,516) | (80,156) | (86,311) |
| Provision (benefit) for income taxes | 31 | (42) | 275 | 278 |
| Net loss | (28,556) | (22,474) | (80,431) | (86,589) |
| Less: Net loss (income) attributable to the noncontrolling interest | 51 | 143 | (39) | 810 |
| Net loss attributable to A123 Systems, Inc. | (28,505) | (22,331) | (80,470) | (85,779) |
| Accretion to preferred stock | (11) | – | (42) | (45) |
| Net loss attributable to A123 Systems, Inc. common stockholders | $ (28,516) | $ (22,331) | $ (80,512) | $ (85,824) |
| Net loss per share attributable to common stockholders – basic and diluted: | $ (3.08) | $ (0.22) | $ (9.04) | $ (2.55) |
| Weighted average number of common shares outstanding – basic and diluted | 9,248 | 102,515 | 8,904 | 33,669 |
| A123 Systems, Inc. | ||
| Unaudited, Condensed, Consolidated Balance Sheets | ||
| (in thousands) | ||
| December 31, | December 31, | |
| 2008 | 2009 | |
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $ 70,510 | $ 457,122 |
| Restricted cash | 766 | 1,742 |
| Accounts receivable, net | 17,735 | 17,718 |
| Inventory | 35,724 | 37,438 |
| Prepaid and other current assets | 5,101 | 8,895 |
| Total current assets | 129,836 | 522,915 |
| Property, plant and equipment, net | 52,705 | 71,662 |
| Goodwill | 9,581 | 9,581 |
| Intangible assets, net | 2,389 | 1,254 |
| Deferred offering costs | 4,532 | – |
| Other assets | 9,701 | 11,698 |
| Restricted cash | 216 | 980 |
| Total assets | $ 208,960 | $ 618,090 |
| LIABILITIES, REDEEMABLE STOCK, AND STOCKHOLDERS’ (DEFICIT) EQUITY | ||
| Current liabilities: | ||
| Revolving credit lines | $ 8,000 | $ 8,000 |
| Current portion of long-term debt | 4,629 | 6,456 |
| Current portion of capital lease obligations | 393 | 411 |
| Accounts payable | 19,471 | 16,475 |
| Accrued expenses | 14,381 | 11,689 |
| Other current liabilities | 405 | 1,859 |
| Deferred revenue | 13,050 | 7,543 |
| Deferred rent | 162 | 58 |
| Total current liabilities | 60,491 | 52,491 |
| Long-term debt, net of current portion | 5,893 | 7,438 |
| Capital lease obligations, net of current portion | 291 | 193 |
| Deferred revenue, net of current portion | 26,028 | 26,142 |
| Deferred rent, net of current portion | 20 | 630 |
| Other long-term liabilities | 1,390 | 2,866 |
| Preferred stock warrant liability | 950 | – |
| Total liabilities | 95,063 | 89,760 |
| Commitments and contingencies | ||
| Redeemable convertible preferred stock | 234,954 | – |
| Redeemable common stock | 11,500 | – |
| Stockholders’ (deficit) equity | ||
| Series B-1 convertible preferred stock | 1 | – |
| Common stock | 8 | 103 |
| Additional paid-in capital | 19,649 | 767,694 |
| Accumulated deficit | (152,889) | (238,668) |
| Accumulated other comprehensive loss | (197) | (909) |
| Total A123 Systems, Inc. stockholders’ (deficit) equity | (133,428) | 528,220 |
| Noncontrolling interest | 871 | 110 |
| Total stockholders’ (deficit) equity | (132,557) | 528,330 |
| Total liabilities, redeemable stock, and stockholders’ (deficit) equity | $ 208,960 | $ 618,090 |
| A123 Systems, Inc. | ||||
| Unaudited, Earnings Before Interest, Tax, Depreciation, Amortization and Stock-Based Compensation ("Adjusted EBITDA") | ||||
| (in thousands) | ||||
| Three Months Ended | Twelve Months Ended | |||
| December 31, | December 31, | |||
| 2008 | 2009 | 2008 | 2009 | |
| Operating loss | $ (28,843) | $ (22,425) | $ (79,592) | $ (85,437) |
| EBITDA adjustments | ||||
| Stock-based compensation | 1,131 | 2,009 | 4,508 | 8,553 |
| Depreciation and amortization | 2,438 | 3,023 | 8,156 | 13,230 |
| Adjusted EBITDA | $ (25,274) | $ (17,393) | $ (66,928) | $ (63,654) |
