LYNNFIELD, MA--(Marketwire - Feb 13, 2013) - American Power Group Corporation (
Lyle Jensen, American Power Group Corporation's President and Chief Executive Officer, stated, "We are making solid progress introducing our stationary dual fuel technology solutions to leading companies within the Oil & Gas industry as well as continuing our work toward achieving further engine family approvals from the EPA for vehicular applications. On the stationary front, we have seen increased interest for the use of our dual fuel conversion technology in both drilling and hydraulic fracturing applications, as demonstrated by the $1.5 million order we received from Cudd Energy Services, which we announced after the close of the first quarter. This order marks our first full hydraulic fracturing rig conversion and our third major customer installation in the Marcellus Shale region and we believe this market holds a great deal of opportunity for the adoption of our technology.
"We continue to work on securing EPA approvals for additional Outside Useful Life (OUL) and Inside Useful Life (IUL) vehicular conversions and are on course to complete an additional 100 EPA OUL and IUL engine family approvals before the end of June."
Mr. Jensen concluded, "Our proprietary dual fuel technology is an innovative solution that enables our customers to save on fuel costs and lower emissions. APG remains a recognized leader in vehicular dual fuel conversions and we are also making excellent progress presenting our technology as a viable and valuable alternative for oil and gas equipment companies as they seek an energy efficient, more environmentally friendly solution for fracturing rigs. This is an exciting time for our company as we look to extend our reach in the markets in which we operate and build on the momentum we've created over the last several quarters."
Conference Call
Please join us today at 10:00 AM Eastern when we will discuss the results for the three months ended December 31, 2012. To participate, please call 1-888-438-5524 and ask for the American Power Group call using pass code 9854323. A replay of the conference call can be accessed until 11:50 PM on March 15, 2013 by calling 1-888-203-1112 and entering pass code 9854323.
Three Months Ended December 31, 2012 Compared To The Three Months Ended December 31, 2011
Net sales for the three months ended December 31, 2012 increased $479,000 or 121 percent to $875,000 as compared to net sales of $396,000 for the three months ended December 31, 2011. Gross profit for the three months ended December 31, 2012 was $301,000 or 34 percent of net sales as compared to a negative gross profit of $9,000 for the three months ended December 31, 2011. Selling, general and administrative expenses for the three months ended December 31, 2012 increased $160,000 to $883,000 as compared to $723,000 for the three months ended December 31, 2011 due to increased sales and marketing costs and an increased number of employees. Research and development costs for the three months ended December 31, 2012 were $0 as compared to $37,000 the same period last year as we completed our internal research and development projects relating to the technical feasibility of our new electronic control unit operating software during the fiscal year ended September 30, 2011.
During the three months ended December 31, 2012, interest and financing expense decreased $315,000 due to the elimination of certain financing costs and reduced borrowings resulting from the conversion of all convertible debentures during the first half of fiscal 2012.
Our net loss for the three months ended December 31, 2012 was $640,000 or $(0.01) per basic share as compared to a net loss of $1,144,000 or $(0.03) per basic share for the three months ended December 31, 2011. The calculation of net loss attributable to Common shareholders ($0.02) for the three months ended December 31, 2012 reflects the inclusion of a $213,000 Convertible Preferred Stock quarterly dividend paid.
| Condensed Consolidated Statements of Operations | ||||||||||
| Three Months Ended December 31, |
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| 2012 | 2011 | |||||||||
| Net sales | $ | 875,000 | $ | 396,000 | ||||||
| Cost of sales | 574,000 | 405,000 | ||||||||
| Gross profit (loss) | 301,000 | (9,000 | ) | |||||||
| Selling, general and administrative | 883,000 | 723,000 | ||||||||
| Research and development | -- | 37,000 | ||||||||
| 883,000 | 760,000 | |||||||||
| Operating loss from continuing operations | (582,000 | ) | (769,000 | ) | ||||||
| Other income (expense): | ||||||||||
| Interest and financing expense | (29,000 | ) | (344,000 | ) | ||||||
| Other, net | (29,000 | ) | (31,000 | ) | ||||||
| Other expense, net | (58,000 | ) | (375,000 | ) | ||||||
| Net loss | (640,000 | ) | (1,144,000 | ) | ||||||
| 10% Convertible Preferred dividends | (213,000 | ) | -- | |||||||
| Net loss available to Common shareholders | $ | (853,000 | ) | $ | (1,144,000 | ) | ||||
| Net loss from continuing operations per share - basic and diluted | $ | (0.01 | ) | $ | (0.03 | ) | ||||
| Net loss per Common share - 10% Convertible Preferred dividend | (0.01 | ) | -- | |||||||
| Net loss attributable to Common shareholders - basic and diluted | $ | (0.02 | ) | $ | (0.03 | ) | ||||
| Weighted average shares outstanding - basic and diluted | 45,610,000 | 36,595,000 | ||||||||
| Condensed Consolidated Balance Sheet Data | ||||||
| December 31, 2012 |
September 30, 2012 |
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| Assets | ||||||
| Current assets | $ | 5,134,000 | $ | 6,054,000 | ||
| Property, plant and equipment, net | 705,000 | 339,000 | ||||
| Other assets | 2,988,000 | 2,697,000 | ||||
| $ | 8,827,000 | $ | 9,090,000 | |||
| Liabilities and Stockholders' Equity | ||||||
| Current liabilities | $ | 3,386,000 | $ | 1,528,000 | ||
| Notes payable, net of current portion | 524,000 | 2,079,000 | ||||
| Obligations due under lease settlement, net of current portion | 506,000 | 506,000 | ||||
| Stockholders' equity | 4,411,000 | 4,977,000 | ||||
| $ | 8,827,000 | $ | 9,090,000 | |||
About American Power Group Corporation
American Power Group's alternative energy subsidiary, American Power Group, Inc., provides a cost-effective patented Turbocharged Natural Gas™ conversion technology for vehicular, stationary and off-road mobile diesel engines. American Power Group's dual fuel technology is a unique non-invasive energy enhancement system that converts existing diesel engines into more efficient and environmentally friendly engines that have the flexibility to run on: (1) diesel fuel and liquefied natural gas; (2) diesel fuel and compressed natural gas; (3) diesel fuel and pipeline or well-head gas; and (4) diesel fuel and bio-methane, with the flexibility to return to 100% diesel fuel operation at any time. The proprietary technology seamlessly displaces up to 80% of the normal diesel fuel consumption with the average displacement ranging from 40% to 65%. The energized fuel balance is maintained with a proprietary read-only electronic controller system ensuring the engines operate at original equipment manufacturers' specified temperatures and pressures. Installation on a wide variety of engine models and end-market applications require no engine modifications unlike the more expensive invasive fuel-injected systems in the market. See additional information at: www.americanpowergroupinc.com.
Caution Regarding Forward-Looking Statements and Opinions
With the exception of the historical information contained in this release, the matters described herein contain forward-looking statements and opinions, including, but not limited to, statements relating to new markets, development and introduction of new products, and financial and operating projections. These forward-looking statements and opinions are neither promises nor guarantees, but involve risk and uncertainties that may individually or mutually impact the matters herein, and cause actual results, events and performance to differ materially from such forward-looking statements and opinions. These risk factors include, but are not limited to, results of future operations, difficulties or delays in developing or introducing new products and keeping them on the market, the results of future research, lack of product demand and market acceptance for current and future products, adverse events, product changes, the effect of economic conditions, the impact of competitive products and pricing, governmental regulations with respect to emissions, including whether EPA approval will be obtained for future products and additional applications, the results of litigation, factors affecting the Company's future income and resulting ability to utilize its NOLs, and/or other factors, which are detailed from time to time in the Company's SEC reports, including the report on Form 10-K for the year ended September 30, 2012 and the Company's quarterly reports on Form 10-Q. Readers are cautioned not to place undue reliance on these forward-looking statements and opinions, which speak only as of the date hereof. The Company undertakes no obligation to release publicly the result of any revisions to these forward-looking statements and opinions that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Contact Information:
Media Information Contact:
Kim Doran
Quixote Group
336-413-1872
Investor Relations Contacts:
Chuck Coppa
CFO
American Power Group Corporation
781-224-2411
John Nesbett or Jennifer Belodeau
Institutional Marketing Services (IMS)
203-972-9200