Axion Power Reports Third Quarter Results for 2011
NEW CASTLE, Pa., Nov. 15, 2011 /PRNewswire/ -- Axion Power International, Inc. (OTC Bulletin Board: AXPW), the developer of advanced leadcarbon PbC® batteries and energy storage systems, today announced results for its third quarter ended September 30, 2011.
Net sales for the third quarter of 2011 were $ 2.1 million, compared to $0.6 million during the third quarter of 2010. The 250% increase in third quarter net sales for 2011 compared to 2010 is in keeping with the 230% increase in 2011 year-to-date sales compared to the corresponding period in 2010.
The Company reported a net loss of $ 2.0 million, or $0.02 per share, for the third quarter of 2011, as compared to a net loss of $0.7 million, or $0.01 per share, for the third quarter of 2010.
The net loss for the third quarter of 2010 included a reduction in legal expenses of $0.8 million resulting from the settlement of the Mercatus matter (as disclosed in the Company's Annual Report on Form 10K and Form 10K/A for the year ended December 31, 2010) that did not recur in the third quarter of this year.
At September 30, 2011, cash, net of debt, was $3.4 million. Total assets were $16.8 million and total stockholders' equity was $13.3 million.
Chairman and CEO Thomas Granville commented, "In the third quarter we continued to execute our long- term plan to position Axion for commercial success. This plan included needed 2011 capital expenditures to make improvements to several areas connected to the full PbC battery manufacturing process. The third quarter saw final completion of a number of these key projects including the modernization of the second production line; the rebuild of five casting machines and the important 35% expansion of the battery formation room."
Granville added, "We believe, more than ever, that Axion Power's PbC technology will be the low-cost leader in advanced batteries for transportation and electric utilities both on- and off-grid. It bears repeating, that our components are inexpensive, recyclable and not sourced from politically unstable areas around the world. Our total life cycle cost is a fraction of what is required to produce other advanced battery chemistries."
Two other important highlights include:
- Norfolk Southern ("NS") has accepted delivery of large strings of PbC batteries to further their platform testing. These batteries are now installed in the NS platform facility and are under test. We are performing duplicate testing in New Castle, as well as comparison testing with other battery technology. As part of our agreement with NS, Penn State University is also performing string testing on our PbC batteries. To date the data from all battery system testing confirms PbC batteries are performing as anticipated. The success of this testing is allowing us to expand the locomotive application to include other locomotive end users and locomotive integrators.
- Our onsite PowerCube™ ("Cube") is in the final days of testing as we move toward tying into the grid. We are qualifying for dispatchable power applications and will be proving out the Cube's ability to provide power quality, back-up power, power smoothing, and load leveling. This .5MW Cube can easily be scaled up or down from this building block size.
- We continue to evaluate the market for smaller Cubes for residential and community storage and larger Cubes for utilities, oil rigs and other larger applications such as solar and wind. We anticipate establishing additional formal marketing agreements for some of these applications in the fourth quarter of 2011.
As we stated at the end of the second quarter, and want to repeat, "although we have made very significant progress with our PbC technology, the adoption process, and the general path to commercial viability, has been longer than we originally anticipated. In addition, we will need working capital to fund our anticipated continued growth of sales in traditional batteries and PbC products. Consequently, we initiated prudent and proactive steps in the second quarter that we have continued since that time, namely - to explore funding strategies that will ensure that we have the flexibility to access capital resources when they are needed to meet our business goals. We believe that currently available funds at September 30, 2011, along with internally generated funds, will provide sufficient financial resources for ongoing operations, working capital and capital expenditures through the second quarter of 2012. Subsequent financings will be required to fund the Company's ongoing operations, working capital, and capital expenditures beyond June 30, 2012."
Non–GAAP Measures
This release contains the non-GAAP measure EBITDA (earnings before interest, taxes, depreciation, amortization, share based compensations and derivative revaluations). Refer to the accompanying schedules for a discussion of this non-GAAP measure and reconciliation to the reported GAAP measure.
Conference Call / Webcast
Today at 11:00 am ET (8 a.m. Pacific) a conference call will be held to review the AXPW results. Interested parties should call 877-317-6789 (domestic) or 412-317-6789 (international), to access the call. You may also access this call via the Internet by visiting the company's website at www.axionpower.com and clicking on the Investors link. Access to the webcast will be available for 90 days.
For those who are unavailable to listen to the live broadcast, a replay will be available for 7 days and can be accessed by dialing 877-344-7529 (domestic) and 412-317-0088 (international) and using conference number 10005398.
About Axion Power International, Inc.
Axion has developed and patented a next generation energy storage device that won the prestigious Frost & Sullivan Technology Award for North America in the field of lead-acid batteries. According to Frost & Sullivan, Axion's new PbC batteries have "the potential to revitalize the lead-acid battery industry by breathing new life into an established technology that is not well suited to the requirements of important new applications like hybrid electric vehicles and renewable power."
Axion Power International, Inc. is the industry leader in the field of lead-acid-carbon energy storage technologies. Axion believes this new battery technology is the only class of advanced battery that can be assembled on existing lead-acid battery production lines throughout the world utilizing Axion's proprietary carbon electrodes. Axion's future goal, after filling their plant's lead-carbon battery production capacity, is to become the leading supplier of carbon electrode assemblies for the global lead-acid battery industry.
For more information, visit www.axionpower.com
Forward-looking Statements
Certain statements in this Press Release are "forward-looking statements" within the meaning of the Private Securities Litigation Act of 1995. These forward-looking statements are based on our current expectations and beliefs and are subject to a number of risk factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Such risks and uncertainties include the risk for the Company to complete its development work, as well as the risks inherent in commercializing a new product (including technology risks, market risks, financial risks and implementation risks, and other risks and uncertainties affecting the Company), as well as other risks that have been included in filings with the Securities and Exchange Commission, all of which are available at www.sec.gov. We disclaim any intention or obligation to revise any forward-looking statements, including, without limitation, financial estimates, whether as a result of new information, future events, or otherwise.
Contacts
Axion Power International, Inc.
Charles Trego, CFO
[email protected]
(724) 654-9300
Allen & Caron Inc
Rudy Barrio (Investors)
[email protected]
(212) 691-8087
Len Hall (Media)
[email protected]
(949) 474-4300
–FINANCIAL TABLES FOLLOW– |
|||||
AXION POWER INTERNATIONAL, INC. |
|||||
CONSOLIDATED BALANCE SHEETS |
|||||
(A Development Stage Company) |
|||||
September 30, 2011 |
December 31, 2010 |
||||
ASSETS |
(Unaudited) |
||||
Current Assets |
|||||
Cash and cash equivalents |
$ 3,974,960 |
$ 13,330,009 |
|||
Accounts receivable |
469,084 |
221,922 |
|||
Other receivables |
471,552 |
144,973 |
|||
Prepaid expenses |
185,963 |
82,060 |
|||
Inventory, net |
3,088,613 |
1,428,560 |
|||
Total current assets |
8,190,172 |
15,207,524 |
|||
Property & equipment, net |
8,561,490 |
6,738,575 |
|||
Other receivables |
56,000 |
65,000 |
|||
TOTAL ASSETS |
$ 16,807,662 |
$ 22,011,099 |
|||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|||||
Current Liabilities |
|||||
Accounts payable |
$ 987,190 |
$ 930,021 |
|||
Other current liabilities |
234,244 |
225,804 |
|||
Notes payable |
104,776 |
101,684 |
|||
Total current liabilities |
1,326,210 |
1,257,509 |
|||
Deferred revenue |
1,625,742 |
1,385,185 |
|||
Derivative liabilities |
135,295 |
254,461 |
|||
Notes payable |
466,036 |
547,612 |
|||
Total liabilities |
3,553,283 |
3,444,767 |
|||
Stockholders' Equity |
|||||
Convertible preferred stock-12,500,000 shares authorized |
- |
- |
|||
Common stock- 200,000,000 shares authorized $0.0001 par value |
|||||
85,516,139 shares issued & outstanding (85,453,302 in 2010) |
8,552 |
8,545 |
|||
Additional paid in capital |
86,850,918 |
86,499,416 |
|||
Deficit accumulated during development stage |
(73,353,447) |
(67,690,004) |
|||
Cumulative foreign currency translation adjustment |
(251,644) |
(251,625) |
|||
Total stockholders' equity |
13,254,379 |
18,566,332 |
|||
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY |
$ 16,807,662 |
$ 22,011,099 |
|||
AXION POWER INTERNATIONAL, INC. |
|||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||||||
(A Development Stage Company) |
|||||||||||||||
UNAUDITED |
|||||||||||||||
Three Months Ended |
Nine Months Ended |
Inception |
|||||||||||||
September 30, |
September 30, |
9/18/2003 to |
|||||||||||||
2011 |
2010 |
2011 |
2010 |
9/30/2011 |
|||||||||||
Product |
$ 2,097,413 |
$ 256,898 |
$ 4,832,226 |
$ 1,084,360 |
$ 9,492,690 |
||||||||||
Service |
- |
337,056 |
411,645 |
494,433 |
1,231,726 |
||||||||||
Net sales |
2,097,413 |
593,954 |
5,243,871 |
1,578,793 |
10,724,416 |
||||||||||
Costs and expenses |
|||||||||||||||
Product costs |
1,844,088 |
142,203 |
4,205,057 |
677,481 |
8,002,714 |
||||||||||
Research & development |
1,329,783 |
1,175,945 |
3,599,545 |
3,762,054 |
27,410,401 |
||||||||||
Selling, general & administrative |
1,020,352 |
63,518 |
3,215,518 |
2,284,550 |
28,516,933 |
||||||||||
Interest expense - related party |
- |
- |
- |
- |
2,337,986 |
||||||||||
Impairment of assets |
- |
- |
- |
- |
1,753,278 |
||||||||||
Derivative revaluations |
(128,187) |
(67,414) |
(119,166) |
(1,132,257) |
(1,507,184) |
||||||||||
Mega C Trust share augmentation |
- |
- |
- |
- |
400,000 |
||||||||||
Interest & other income |
4,673 |
2,706 |
6,360 |
11,184 |
(533,934) |
||||||||||
Loss before income taxes |
(1,973,296) |
(723,004) |
(5,663,443) |
(4,024,219) |
(55,655,778) |
||||||||||
Income taxes |
- |
- |
- |
- |
4,300 |
||||||||||
Accumulated deficit |
(1,973,296) |
(723,004) |
(5,663,443) |
(4,024,219) |
(55,660,078) |
||||||||||
Less preferred stock dividends and beneficial conversion feature |
- |
- |
- |
- |
(17,693,369) |
||||||||||
Net loss applicable to common shareholders |
$ (1,973,296) |
$ (723,004) |
$ (5,663,443) |
$(4,024,219) |
$(73,353,447) |
||||||||||
Basic and diluted net loss per share |
$ (0.02) |
$ (0.01) |
$ (0.07) |
$ (0.05) |
$ (2.28) |
||||||||||
Weighted average common shares outstanding |
85,511,255 |
85,050,137 |
85,475,579 |
83,180,368 |
32,189,474 |
||||||||||
AXION POWER INTERNATIONAL, INC. |
||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||
(A Development Stage Company) |
||||||
UNAUDITED |
||||||
Nine Months Ended |
Inception |
|||||
September 30, |
9/18/2003 to |
|||||
2011 |
2010 |
9/30/2011 |
||||
Cash Flows from Operating Activities |
||||||
Accumulated deficit |
$ (5,663,443) |
$ (4,024,219) |
$ (55,660,078) |
|||
Adjustments to reconcile deficit accumulated for noncash items |
||||||
Depreciation |
710,850 |
448,690 |
2,368,311 |
|||
Interest expense |
- |
- |
1,970,251 |
|||
Impairment of assets |
- |
- |
1,753,278 |
|||
Derivative revaluations |
(119,166) |
(1,132,257) |
(1,507,184) |
|||
Mega C Trust share augmentation |
- |
- |
400,000 |
|||
Share based compensation expense |
351,509 |
293,507 |
6,133,976 |
|||
Changes in operating assets & liabilities |
||||||
Accounts receivable |
(247,162) |
(232,724) |
(475,953) |
|||
Other receivables |
(326,579) |
(158,272) |
(449,592) |
|||
Prepaid expenses |
(103,903) |
(3,885) |
(183,375) |
|||
Inventory, net |
(1,660,053) |
(617,966) |
(3,088,612) |
|||
Accounts payable |
57,169 |
(126,570) |
2,641,834 |
|||
Other current liabilities |
8,440 |
121,799 |
255,376 |
|||
Liability to issue equity instruments |
- |
- |
178,419 |
|||
Deferred revenue and other |
240,557 |
457,928 |
1,713,260 |
|||
Net cash used by operating activities |
(6,751,781) |
(4,973,969) |
(43,950,089) |
|||
Cash Flows from Investing Activities |
||||||
Other receivables |
9,000 |
(33,399) |
(1,273,016) |
|||
Purchases of property & equipment |
(2,533,765) |
(2,158,982) |
(11,288,305) |
|||
Investment in intangible assets |
- |
- |
(167,888) |
|||
Net cash used by investing activities |
(2,524,765) |
(2,192,381) |
(12,729,209) |
|||
Cash Flows from Financing Activities |
||||||
Net proceeds from related party debt |
- |
- |
5,445,458 |
|||
Net proceeds from notes payable |
(78,484) |
(76,166) |
570,813 |
|||
Net proceeds from sale of common stock |
- |
(55,894) |
45,171,365 |
|||
Net proceeds from exercise of warrants |
- |
302,266 |
2,014,766 |
|||
Net proceeds from sale of preferred stock |
- |
- |
7,472,181 |
|||
Net cash (used) provided by financing activities |
(78,484) |
170,206 |
60,674,583 |
|||
Net change in cash and cash equivalents |
(9,355,030) |
(6,996,144) |
3,995,285 |
|||
Effect of exchange rate on cash |
(19) |
387 |
(20,325) |
|||
Cash and cash equivalents - beginning |
13,330,009 |
23,279,466 |
- |
|||
Cash and cash equivalents - ending |
$ 3,974,960 |
$ 16,283,709 |
$ 3,974,960 |
|||
Reconciliation of net loss to EBITDA |
||||||
2011 |
2010 |
Change |
||||
GAAP loss before income taxes |
$ (5,663,443) |
$ (4,024,219) |
$(1,639,224) |
|||
Plus: Interest expense |
6,360 |
11,184 |
(4,824) |
|||
Depreciation |
710,850 |
448,690 |
262,160 |
|||
Share based compensation |
351,509 |
293,507 |
58,002 |
|||
Derivative revaluations |
(119,166) |
(1,132,257) |
1,013,091 |
|||
EBITDA (1) |
$ (4,713,890) |
$ (4,403,095) |
$ (310,795) |
|||
(1) |
EBITDA, a non-GAAP financial measure, is defined as earnings before interest, taxes, depreciation, amortization, share based compensation, and derivative revaluations. EBITDA is used by management to internally measure our operating and management performance and by investors as a supplemental financial measure to evaluate the performance of our business that, when viewed with our GAAP results and the accompanying reconciliation, we believe provides additional information that is useful to gain an understanding of the factors and trends affecting our business. |
|
SOURCE Axion Power International, Inc.
Share this article