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Fuel Systems Solutions, Inc.: Second Quarter Results 2008
Fuel Systems Solutions, Inc. reported results for its second quarter ended June 30, 2008.
Matthew Beale, president, said. ``The second quarter marks another quarter of growth. Revenue increased approximately 50% year-over-year, reflecting the rapidly expanding demand for alternatives to petroleum to fuel vehicles. Additionally, we drove gross margin improvements with successful engineering, production and distribution synergies developed in the past year. US-based Fuel Systems Solutions delivers alternative fuel solutions for transportation and industrial applications that reduce emissions, displace petroleum and generate savings. We are capturing the demand for our immediate, real-world solutions with our extensive reach in Europe, Asia and Latin America, where high fuel costs have long been a concern. As oil prices continue to rise and emissions concerns increase, we perceive important medium term opportunities in the United States for our transportation products and technology. We expect the macro environment to continue to drive growth, and we are excited about the future.''
Financial Results
Revenue for the second quarter was $98.3 million, up 49.9% from revenue of $65.6 million for the second quarter 2007, driven by strong performance in the transportation business. Gross profit for the quarter reached $28.6 million and represented 29% of revenue, compared to $14.5 million, or 22% of revenue, in the second quarter 2007. In the second quarter of 2008, the company recorded a non-cash goodwill impairment charge related to the company's Australian operations of $3.9 million, or $0.25 per diluted share. Net income for the second quarter of 2008 reached $4.6 million, or $0.29 per diluted share, including the non-cash goodwill impairment charge of $3.9 million, compared to $395,000, or $0.03 per share, in the second quarter of 2007.
For the six-month period ending June 30, 2008, total revenues were $192.9 million, compared to $120.4 million for the first half of 2007. Net income for the first half of 2008, which includes the non-cash goodwill impairment charge of $3.9 million, was $10.8 million, or $0.69 per diluted share, compared to $1.4 million, or $0.09 per diluted share, for the first half of 2007.
Bill Larkin, CFO, said, ``We generated cash from operations of $19.9 million in the second quarter of 2008, compared to $12.2 million in the second quarter of 2007. The strength of our financial position provides us the foundation for executing our growth strategy organically and through acquisitions.''
Company Outlook
Based on its current assessment of near-term market trends, the company is increasing its full year 2008 consolidated revenue guidance to $350 million and increasing its gross profit margin to approximately 27% and operating margin to approximately 12%.
Conference Call
The company will host a conference call on August 8th at 10:00 a.m. Pacific Time / 1:00 p.m. Eastern Time to discuss its second quarter 2008 financial results. To listen to the call live, please dial 877-397-0291 at least 10 minutes before the start of the conference. International participants may dial 719-325-4889. No pass code is required. The call is also being webcast and can be accessed from the ``Investor Relations'' section of the company's website at http://www.fuelsystemssolutions.com/. A telephone replay will be available until midnight ET on August 22 by dialing 888-203-1112 or 719-457-0820 and entering pass code 8771384#. A replay will also be available at the web address above for 90 days.
Forward-Looking Statements
This press release contains certain forward-looking statements that involve risks and uncertainties, including, without limitation, expressed or implied statements concerning the company's sales and output expectations for its delayed original equipment manufacturing operations; and its ability to achieve 2008 revenue of approximately $350 with gross profit margin of 27 percent and operating margin of 12 percent. Such statements are only predictions, and the company's actual results may differ materially. Factors that may cause the company's results to differ include, but are not limited to, risks that original equipment automobile manufacturers do not adopt the company's fuel systems as expected, that expected sales not based on long-term contracts will materialize, that changes in emissions regulations will not significantly impact demand for the company's products, that a global economic downturn may reduce customers' demand for our products, that reduction in oil prices will not reduce the demand for our products and that currency fluctuations will not reduce our revenue or financial condition. Readers also should consider the risk factors set forth in the company's reports filed with the Securities and Exchange Commission, including, but not limited to, those contained in the ``Risk Factors'' section of the company's Annual Report on Form 10-K, for the year ended December 31, 2007. The company does not undertake to update or revise any of its forward-looking statements even if experience or future changes show that the indicated results or events will not be realized.
About Fuel Systems Solutions
Fuel Systems Solutions (NasdaqGM:FSYS - News), a U.S.-based company, through its U.S. and foreign subsidiaries, delivers alternative fuel solutions for transportation and industrial applications that reduce emissions, displace petroleum and generate savings, which is extremely relevant today. The company's industrial division is run through IMPCO Technologies and its subsidiaries and the company's transportation division is run through BRC and its subsidiaries. The company is comprised of two subsidiaries, industrial under IMPCO Technologies and transportation under BRC. IMPCO designs, manufactures, markets and supplies advanced products and systems to enable internal combustion engines to run on clean burning gaseous fuels such as natural gas, propane and biogas. IMPCO is a leader in the heavy duty, industrial, power generation and stationary engines sectors. Headquartered in Santa Ana, California, IMPCO has offices throughout Asia, Europe, Australia and North America. BRC, through its subsidiaries, produces a complete range of systems for converting vehicles to gaseous fuel to meet market requirements. BRC is a leader in the light duty and automobile alternative fuel sectors and has established alliances with several major automobile manufacturers for OEM projects. Headquartered in Cherasco, Italy, BRC has offices throughout Asia, Europe and South America. Additional information is available at http://www.fuelsystemssolutions.com.
FUEL SYSTEMS SOLUTIONS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
------------------ -------------------
2008 2007 2008 2007
-------- -------- -------- --------
Revenue $ 98,284 $65,552 $192,884 $120,385
Cost of revenue 69,704 51,065 136,820 92,120
-------- -------- -------- --------
Gross profit 28,580 14,487 56,064 28,265
Operating expenses:
Research and development
expense 2,702 2,036 5,530 4,084
Selling, general and
administrative expense 11,659 9,302 22,830 17,235
Goodwill impairment loss 3,907 -- 3,907 --
Amortization of
intangible assets 98 50 191 83
-------- -------- -------- --------
Total operating expenses 18,366 11,388 32,458 21,402
Operating income 10,214 3,099 23,606 6,863
Other expense, net (43) (415) (1,164) (661)
Interest expense, net (200) (201) (392) (492)
-------- -------- -------- --------
Income from operations
before income taxes and
equity share in income of
unconsolidated affiliates 9,971 2,483 22,050 5,710
Equity share in income
(loss) of unconsolidated
affiliates (91) 107 77 270
Income tax expense (4,878) (1,725) (10,418) (3,630)
-------- -------- -------- --------
Income before minority
interests 5,002 865 11,709 2,350
Minority interests in income
of consolidated
subsidiaries 394 470 875 937
-------- -------- -------- --------
Net income $ 4,608 $ 395 $ 10,834 $ 1,413
======== ======== ======== ========
Net income per share:
Basic $ 0.30 $ 0.03 $ 0.70 $ 0.09
======== ======== ======== ========
Diluted $ 0.29 $ 0.03 $ 0.69 $ 0.09
======== ======== ======== ========
Number of shares used in
per share calculation:
Basic 15,611 15,406 15,565 15,329
======== ======== ======== ========
Diluted 15,750 15,601 15,692 15,569
======== ======== ======== ========
FUEL SYSTEMS SOLUTIONS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
(Unaudited)
June 30, December 31,
2008 2007
----------- -----------
ASSETS
Current assets:
Cash and cash equivalents $ 43,643 $ 26,797
Accounts receivable less allowance
for doubtful accounts of $2,618
and $2,399 at June 30, 2008 and
December 31, 2007, respectively 65,499 51,876
Inventories:
Raw materials and parts 41,498 33,890
Work-in-process 1,901 2,247
Finished goods 42,655 31,197
Inventory on consignment with
unconsolidated affiliates 3,126 2,991
----------- -----------
Total inventories 89,180 70,325
Deferred tax assets 3,718 2,248
Related party receivables 49 44
Other current assets 6,549 3,820
----------- -----------
Total current assets 208,638 155,110
----------- -----------
Equipment and leasehold
improvements:
Dies, molds and patterns 4,060 5,725
Machinery and equipment 28,120 25,049
Office furnishings and equipment 9,402 8,601
Automobiles and trucks 2,474 2,047
Leasehold improvements 7,043 4,769
----------- -----------
51,099 46,191
Less accumulated depreciation
and amortization 22,953 21,151
----------- -----------
Net equipment and leasehold
improvements 28,146 25,040
Goodwill 45,840 46,486
Intangible assets, net 12,700 13,059
Investment in unconsolidated
affiliates 2,816 2,310
Non-current related party
receivable 2,399 3,450
Deferred tax assets, net 249 184
Other assets 1,820 1,731
----------- -----------
Total Assets $ 302,608 $ 247,370
=========== ===========
FUEL SYSTEMS SOLUTIONS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
(Unaudited)
June 30, Dec. 31,
2008 2007
-------- --------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $67,184 $50,314
Accrued expenses 34,032 19,666
Current revolving lines of credit -- 3,307
Current portion of term loans and other loans 5,438 4,791
Current portion of capital leases 346 428
Deferred tax liabilities 82 117
Related party payables 10,392 5,921
-------- --------
Total current liabilities 117,474 84,544
Term loans 7,692 9,449
Capital leases 301 431
Other liabilities 6,912 5,860
Minority interest 6,687 6,601
Deferred tax liabilities 5,602 5,432
-------- --------
Total liabilities 144,668 112,317
-------- --------
Stockholders' equity:
Preferred stock, $0.001 par value, authorized
1,000,000 shares; none issued and outstanding
at June 30, 2008 and December 31, 2007 -- --
Common stock, $0.001 par value, authorized
200,000,000 shares; 15,749,948 issued and
15,677,163 outstanding at June 30, 2008; and
15,512,798 issued and 15,499,115 outstanding
at December 31, 2007 16 15
Additional paid-in capital 219,013 216,483
Shares held in treasury, 72,785 shares at
June 30, 2008 and 13,683 shares
at December 31, 2007 (1,279) (432)
Accumulated deficit (91,862) (102,696)
Accumulated other comprehensive income 32,052 21,683
-------- --------
Total stockholders' equity 157,940 135,053
-------- --------
Total Liabilities and Stockholders' Equity $302,608 $247,370
======== ========
FUEL SYSTEMS SOLUTIONS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Six Months Ended
June 30,
--------------------
2008 2007
-------- --------
Net income $ 10,834 $ 1,413
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization expense 3,180 2,566
Amortization of intangibles 1,456 953
Provision for doubtful accounts 121 698
Provision for loan to unconsolidated affiliate 1,091 --
Provision for inventory reserve 1,041 249
Goodwill impairment loss 3,907 --
Equity share in income of
unconsolidated affiliates (77) (270)
Dividends from unconsolidated affiliates 230 --
Minority interest 875 937
Unrealized loss on foreign exchange 1,094 121
Loss in disposal of asset 79 3
Stock-based compensation expense 191 38
Changes in assets and liabilities:
Increase in accounts receivable (10,370) (6,708)
(Increase) decrease in inventory (15,220) 2,207
(Increase) decrease in other assets (2,422) 1,067
Increase in deferred income taxes (1,560) (730)
Increase in accounts payable 13,471 4,559
Increase in accrued expenses 12,745 4,619
Increase (decrease) in long term liabilities 685 (699)
Receivables from/payables to related party, net 3,911 2,487
-------- --------
Net cash provided by operating activities 25,262 13,510
-------- --------
Cash flows from investing activities:
Purchase of equipment and
leasehold improvements (4,950) (2,775)
Purchase of minority interest in
consolidated subsidiary (227) --
Purchase of intangible asset (193) --
Proceeds from sale of assets 3 --
-------- --------
Net cash used in investing activities (5,367) (2,775)
-------- --------
Cash flows from financing activities:
Payment of revolving line of credit (3,307) (3,892)
Payments on term loans (2,045) (307)
Proceeds from term loans -- 6,738
Proceeds from exercise of stock
options and warrants 1,466 3,665
(Purchase of)/proceeds from the sale of common
shares held in trust, net (72) 64
Payment of capital lease obligations (247) (182)
Dividend paid to minority interest in
consolidated subsidiaries (900) (822)
-------- --------
Net cash (used in) provided by
financing activities (5,105) 5,264
-------- --------
Net increase in cash 14,790 15,999
Effect of exchange rate changes on cash 2,056 1,357
-------- --------
Net increase in cash and cash equivalents 16,846 17,356
Cash and cash equivalents at beginning of period 26,797 11,546
-------- --------
Cash and cash equivalents at end of period $ 43,643 $ 28,902
======== ========
Supplemental disclosure of cash flow information:
Non-cash financing activities:
Acquisition of equipment under capital lease $ 20 $ 160
======== ========
Contact:
Fuel Systems Solutions, Inc.
Bill Larkin, CFO
(714) 656-1320
Lippert / Heilshorn & Associates
Investor Relations Contacts:
Kirsten Chapman
Cathy Mattison
[email protected]
(415) 433-3777
Source: Fuel Systems Solutions, Inc.
Matthew Beale, president, said. ``The second quarter marks another quarter of growth. Revenue increased approximately 50% year-over-year, reflecting the rapidly expanding demand for alternatives to petroleum to fuel vehicles. Additionally, we drove gross margin improvements with successful engineering, production and distribution synergies developed in the past year. US-based Fuel Systems Solutions delivers alternative fuel solutions for transportation and industrial applications that reduce emissions, displace petroleum and generate savings. We are capturing the demand for our immediate, real-world solutions with our extensive reach in Europe, Asia and Latin America, where high fuel costs have long been a concern. As oil prices continue to rise and emissions concerns increase, we perceive important medium term opportunities in the United States for our transportation products and technology. We expect the macro environment to continue to drive growth, and we are excited about the future.''
Financial Results
Revenue for the second quarter was $98.3 million, up 49.9% from revenue of $65.6 million for the second quarter 2007, driven by strong performance in the transportation business. Gross profit for the quarter reached $28.6 million and represented 29% of revenue, compared to $14.5 million, or 22% of revenue, in the second quarter 2007. In the second quarter of 2008, the company recorded a non-cash goodwill impairment charge related to the company's Australian operations of $3.9 million, or $0.25 per diluted share. Net income for the second quarter of 2008 reached $4.6 million, or $0.29 per diluted share, including the non-cash goodwill impairment charge of $3.9 million, compared to $395,000, or $0.03 per share, in the second quarter of 2007.
For the six-month period ending June 30, 2008, total revenues were $192.9 million, compared to $120.4 million for the first half of 2007. Net income for the first half of 2008, which includes the non-cash goodwill impairment charge of $3.9 million, was $10.8 million, or $0.69 per diluted share, compared to $1.4 million, or $0.09 per diluted share, for the first half of 2007.
Bill Larkin, CFO, said, ``We generated cash from operations of $19.9 million in the second quarter of 2008, compared to $12.2 million in the second quarter of 2007. The strength of our financial position provides us the foundation for executing our growth strategy organically and through acquisitions.''
Company Outlook
Based on its current assessment of near-term market trends, the company is increasing its full year 2008 consolidated revenue guidance to $350 million and increasing its gross profit margin to approximately 27% and operating margin to approximately 12%.
Conference Call
The company will host a conference call on August 8th at 10:00 a.m. Pacific Time / 1:00 p.m. Eastern Time to discuss its second quarter 2008 financial results. To listen to the call live, please dial 877-397-0291 at least 10 minutes before the start of the conference. International participants may dial 719-325-4889. No pass code is required. The call is also being webcast and can be accessed from the ``Investor Relations'' section of the company's website at http://www.fuelsystemssolutions.com/. A telephone replay will be available until midnight ET on August 22 by dialing 888-203-1112 or 719-457-0820 and entering pass code 8771384#. A replay will also be available at the web address above for 90 days.
Forward-Looking Statements
This press release contains certain forward-looking statements that involve risks and uncertainties, including, without limitation, expressed or implied statements concerning the company's sales and output expectations for its delayed original equipment manufacturing operations; and its ability to achieve 2008 revenue of approximately $350 with gross profit margin of 27 percent and operating margin of 12 percent. Such statements are only predictions, and the company's actual results may differ materially. Factors that may cause the company's results to differ include, but are not limited to, risks that original equipment automobile manufacturers do not adopt the company's fuel systems as expected, that expected sales not based on long-term contracts will materialize, that changes in emissions regulations will not significantly impact demand for the company's products, that a global economic downturn may reduce customers' demand for our products, that reduction in oil prices will not reduce the demand for our products and that currency fluctuations will not reduce our revenue or financial condition. Readers also should consider the risk factors set forth in the company's reports filed with the Securities and Exchange Commission, including, but not limited to, those contained in the ``Risk Factors'' section of the company's Annual Report on Form 10-K, for the year ended December 31, 2007. The company does not undertake to update or revise any of its forward-looking statements even if experience or future changes show that the indicated results or events will not be realized.
About Fuel Systems Solutions
Fuel Systems Solutions (NasdaqGM:FSYS - News), a U.S.-based company, through its U.S. and foreign subsidiaries, delivers alternative fuel solutions for transportation and industrial applications that reduce emissions, displace petroleum and generate savings, which is extremely relevant today. The company's industrial division is run through IMPCO Technologies and its subsidiaries and the company's transportation division is run through BRC and its subsidiaries. The company is comprised of two subsidiaries, industrial under IMPCO Technologies and transportation under BRC. IMPCO designs, manufactures, markets and supplies advanced products and systems to enable internal combustion engines to run on clean burning gaseous fuels such as natural gas, propane and biogas. IMPCO is a leader in the heavy duty, industrial, power generation and stationary engines sectors. Headquartered in Santa Ana, California, IMPCO has offices throughout Asia, Europe, Australia and North America. BRC, through its subsidiaries, produces a complete range of systems for converting vehicles to gaseous fuel to meet market requirements. BRC is a leader in the light duty and automobile alternative fuel sectors and has established alliances with several major automobile manufacturers for OEM projects. Headquartered in Cherasco, Italy, BRC has offices throughout Asia, Europe and South America. Additional information is available at http://www.fuelsystemssolutions.com.
FUEL SYSTEMS SOLUTIONS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
------------------ -------------------
2008 2007 2008 2007
-------- -------- -------- --------
Revenue $ 98,284 $65,552 $192,884 $120,385
Cost of revenue 69,704 51,065 136,820 92,120
-------- -------- -------- --------
Gross profit 28,580 14,487 56,064 28,265
Operating expenses:
Research and development
expense 2,702 2,036 5,530 4,084
Selling, general and
administrative expense 11,659 9,302 22,830 17,235
Goodwill impairment loss 3,907 -- 3,907 --
Amortization of
intangible assets 98 50 191 83
-------- -------- -------- --------
Total operating expenses 18,366 11,388 32,458 21,402
Operating income 10,214 3,099 23,606 6,863
Other expense, net (43) (415) (1,164) (661)
Interest expense, net (200) (201) (392) (492)
-------- -------- -------- --------
Income from operations
before income taxes and
equity share in income of
unconsolidated affiliates 9,971 2,483 22,050 5,710
Equity share in income
(loss) of unconsolidated
affiliates (91) 107 77 270
Income tax expense (4,878) (1,725) (10,418) (3,630)
-------- -------- -------- --------
Income before minority
interests 5,002 865 11,709 2,350
Minority interests in income
of consolidated
subsidiaries 394 470 875 937
-------- -------- -------- --------
Net income $ 4,608 $ 395 $ 10,834 $ 1,413
======== ======== ======== ========
Net income per share:
Basic $ 0.30 $ 0.03 $ 0.70 $ 0.09
======== ======== ======== ========
Diluted $ 0.29 $ 0.03 $ 0.69 $ 0.09
======== ======== ======== ========
Number of shares used in
per share calculation:
Basic 15,611 15,406 15,565 15,329
======== ======== ======== ========
Diluted 15,750 15,601 15,692 15,569
======== ======== ======== ========
FUEL SYSTEMS SOLUTIONS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
(Unaudited)
June 30, December 31,
2008 2007
----------- -----------
ASSETS
Current assets:
Cash and cash equivalents $ 43,643 $ 26,797
Accounts receivable less allowance
for doubtful accounts of $2,618
and $2,399 at June 30, 2008 and
December 31, 2007, respectively 65,499 51,876
Inventories:
Raw materials and parts 41,498 33,890
Work-in-process 1,901 2,247
Finished goods 42,655 31,197
Inventory on consignment with
unconsolidated affiliates 3,126 2,991
----------- -----------
Total inventories 89,180 70,325
Deferred tax assets 3,718 2,248
Related party receivables 49 44
Other current assets 6,549 3,820
----------- -----------
Total current assets 208,638 155,110
----------- -----------
Equipment and leasehold
improvements:
Dies, molds and patterns 4,060 5,725
Machinery and equipment 28,120 25,049
Office furnishings and equipment 9,402 8,601
Automobiles and trucks 2,474 2,047
Leasehold improvements 7,043 4,769
----------- -----------
51,099 46,191
Less accumulated depreciation
and amortization 22,953 21,151
----------- -----------
Net equipment and leasehold
improvements 28,146 25,040
Goodwill 45,840 46,486
Intangible assets, net 12,700 13,059
Investment in unconsolidated
affiliates 2,816 2,310
Non-current related party
receivable 2,399 3,450
Deferred tax assets, net 249 184
Other assets 1,820 1,731
----------- -----------
Total Assets $ 302,608 $ 247,370
=========== ===========
FUEL SYSTEMS SOLUTIONS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
(Unaudited)
June 30, Dec. 31,
2008 2007
-------- --------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $67,184 $50,314
Accrued expenses 34,032 19,666
Current revolving lines of credit -- 3,307
Current portion of term loans and other loans 5,438 4,791
Current portion of capital leases 346 428
Deferred tax liabilities 82 117
Related party payables 10,392 5,921
-------- --------
Total current liabilities 117,474 84,544
Term loans 7,692 9,449
Capital leases 301 431
Other liabilities 6,912 5,860
Minority interest 6,687 6,601
Deferred tax liabilities 5,602 5,432
-------- --------
Total liabilities 144,668 112,317
-------- --------
Stockholders' equity:
Preferred stock, $0.001 par value, authorized
1,000,000 shares; none issued and outstanding
at June 30, 2008 and December 31, 2007 -- --
Common stock, $0.001 par value, authorized
200,000,000 shares; 15,749,948 issued and
15,677,163 outstanding at June 30, 2008; and
15,512,798 issued and 15,499,115 outstanding
at December 31, 2007 16 15
Additional paid-in capital 219,013 216,483
Shares held in treasury, 72,785 shares at
June 30, 2008 and 13,683 shares
at December 31, 2007 (1,279) (432)
Accumulated deficit (91,862) (102,696)
Accumulated other comprehensive income 32,052 21,683
-------- --------
Total stockholders' equity 157,940 135,053
-------- --------
Total Liabilities and Stockholders' Equity $302,608 $247,370
======== ========
FUEL SYSTEMS SOLUTIONS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Six Months Ended
June 30,
--------------------
2008 2007
-------- --------
Net income $ 10,834 $ 1,413
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization expense 3,180 2,566
Amortization of intangibles 1,456 953
Provision for doubtful accounts 121 698
Provision for loan to unconsolidated affiliate 1,091 --
Provision for inventory reserve 1,041 249
Goodwill impairment loss 3,907 --
Equity share in income of
unconsolidated affiliates (77) (270)
Dividends from unconsolidated affiliates 230 --
Minority interest 875 937
Unrealized loss on foreign exchange 1,094 121
Loss in disposal of asset 79 3
Stock-based compensation expense 191 38
Changes in assets and liabilities:
Increase in accounts receivable (10,370) (6,708)
(Increase) decrease in inventory (15,220) 2,207
(Increase) decrease in other assets (2,422) 1,067
Increase in deferred income taxes (1,560) (730)
Increase in accounts payable 13,471 4,559
Increase in accrued expenses 12,745 4,619
Increase (decrease) in long term liabilities 685 (699)
Receivables from/payables to related party, net 3,911 2,487
-------- --------
Net cash provided by operating activities 25,262 13,510
-------- --------
Cash flows from investing activities:
Purchase of equipment and
leasehold improvements (4,950) (2,775)
Purchase of minority interest in
consolidated subsidiary (227) --
Purchase of intangible asset (193) --
Proceeds from sale of assets 3 --
-------- --------
Net cash used in investing activities (5,367) (2,775)
-------- --------
Cash flows from financing activities:
Payment of revolving line of credit (3,307) (3,892)
Payments on term loans (2,045) (307)
Proceeds from term loans -- 6,738
Proceeds from exercise of stock
options and warrants 1,466 3,665
(Purchase of)/proceeds from the sale of common
shares held in trust, net (72) 64
Payment of capital lease obligations (247) (182)
Dividend paid to minority interest in
consolidated subsidiaries (900) (822)
-------- --------
Net cash (used in) provided by
financing activities (5,105) 5,264
-------- --------
Net increase in cash 14,790 15,999
Effect of exchange rate changes on cash 2,056 1,357
-------- --------
Net increase in cash and cash equivalents 16,846 17,356
Cash and cash equivalents at beginning of period 26,797 11,546
-------- --------
Cash and cash equivalents at end of period $ 43,643 $ 28,902
======== ========
Supplemental disclosure of cash flow information:
Non-cash financing activities:
Acquisition of equipment under capital lease $ 20 $ 160
======== ========
Contact:
Fuel Systems Solutions, Inc.
Bill Larkin, CFO
(714) 656-1320
Lippert / Heilshorn & Associates
Investor Relations Contacts:
Kirsten Chapman
Cathy Mattison
[email protected]
(415) 433-3777
Source: Fuel Systems Solutions, Inc.