Altair Nanotechnologies Reports Fourth Quarter and Full Year 2012 Financial Results

Altair Nanotechnologies Reports Fourth Quarter and Full Year 2012 Financial 
Results 
RENO, NV -- (Marketwire) -- 03/28/13 --  Altair Nanotechnologies Inc.
("Altair") (NASDAQ: ALTI) today reported financial results for the
fourth quarter and the year ended December 31, 2012. 
For the year ended December 31, 2012, Altair reported revenues of
$1.5 million compared to $5.2 million in 2011. The gross loss was
$1.3 million compared to $571,000 a year ago. The net loss for 2012
was $18 million, or $1.55 a share, compared to a net loss of $19.9
million, or $2.55 a share, for 2011. Deferred revenues grew to $7.2
million as of December 31, 2012, compared to $1.6 million as of
December 31, 2011. 
For the 2012 fourth quarter, Altair reported revenues of $476,000
compared to $1.3 million for the same period in 2011. The gross loss
was $114,000 compared to $445,000, primarily due to the reversal of
inventory reserves. Operating expenses were $4.1 million compared to
$5.6 million, primarily due to the impairment of fixed assets in the
fourth quarter of 2011. The net loss for the fourth quarter of 2012
was $3.6 million, or $0.31 per share, compared to a net loss of $5.1
million, or $0.51 per share, for the same period in 2011. 
"In 2012, we focused our efforts on the execution of key milestones,
including our customer deliverables, product development, cost
reduction, and the expansion of our business into the Chinese
market," stated Alexander Lee, Altair's Chief Executive Officer. "We
are well positioned to leverage our operational successes in 2012 and
to ramp up and recognize revenue in 2013." 
Highlights for the year ended December 31, 2012 and subsequent events
include: 
5 ALTI-ESS systems were built, and 4 were shipped in 2012 -- the
most ever for Altair.  


 
--  In July 2012, the Company shipped a 1.2 megawatt (MW) ALTI-ESS to
    Vestas for a wind integration project in Denmark. This system was
    installed and commissioned in November 2012, and it went into
    commercial operation in February 2013.
    
    
--  In August 2012, the Company shipped an ALTI-ESS to the Hawaii Natural
    Energy Institute (HNEI). This system was installed and commissioned at
    a wind farm in December 2012.
    
    
--  In October 2012, the Company entered into a contract with TSK Solar, a
    leading energy EPC contractor and engineering firm, to supply a 2 MW
    ALTI-ESS Advantage system that will be installed at the San Fermin 26
    MW photovoltaic solar farm in Puerto Rico. The Company shipped the
    system in November 2012.
    
    
--  In November 2012, the Company shipped a 1.8 MW ALTI-ESS system to an
    east coast utility customer. This system was installed and
    commissioned in December 2012, and it went into commercial operation
    in January 2013.

  
Economic development deals. 


 
--  In April 2012, Altair's subsidiary in China, Northern Altair
    Nanotechnologies Co., Ltd. ("Northern Altair") entered into an
    economic development agreement with the cities of Wu'an and Handan in
    Hebei Province, China.
    
    
--  In August 2012, Northern Altair received a 30 percent down payment of
    $1.9 million from Wu'an for its initial order of 50 electric buses
    under our economic development agreement.
    
    
--  In October and November 2012, the Company and Northern Altair entered
    into a series of transactions, wherein, Northern Altair set aside, as
    restricted cash, $5.9 million with two banks in China. In return, the
    banks loaned the Company $5.7 million to be used as working capital.
    
    
--  In October 2012, the Company and Northern Altair entered into two
    intercompany agreements, which involve the transfer and sale of
    lithium titanate (nLTO) manufacturing equipment and nLTO materials
    from the Company to Northern Altair. Under the Agreements, Northern
    Altair will transfer $2.9 million to the Company. In March 2013,
    Northern Altair transferred $878,000 as a down payment on the nLTO
    equipment and materials.
    
    
--  In November 2012, Northern Altair entered into a $13.6 million
    agreement to acquire the commercial land use rights for 66 acres of
    land in Wu'an, China. In November 2012, Northern Altair received $11.8
    million in cash for grant incentives, which shall be used for the
    development and construction of Northern Altair's new nLTO and ESS
    assembly plants. In December 2012, Northern Altair's land use rights
    were appraised for $32 million. However, the Company has recorded the
    transaction based on the $13.6 million cost for acquiring the land use
    rights.

  
Sales and Contracts. 


 
--  In May 2012, the Company closed a supply agreement with Proterra for
    the sale of battery modules, which shall be delivered throughout the
    year in 2013.
    
    
--  In September 2012 and March 2013, the Company was granted contract
    extensions by INE, which allows INE to seek the required regulatory
    approvals.
    
    
--  In January 2013, the Hawaii Natural Energy Institute placed its third
    ALTI-ESS order with the Company.

  
Altair's cash and cash equivalents decreased by $34.1 million, from
$46.5 million at December 31, 2011 to $12.4 million at December 31,
2012. The decrease in cash was primarily due to the $20.6 million of
cash used in operating activities during 2012. The bulk of the cash
used in operations went to cover our net loss of $18 million offset
by $6.7 million in proceeds from three short-term notes payable used
towards the $5.5 million build-up of work in process inventory
related to the fulfillment of customer sales backlog, of which $2.4
million is included in deferred contract costs. Northern Altair also
received cash grant incentives of $11.8 million from the Wu'an
government and recorded it as restricted cash, which can be used
subject to meeting certain guidelines agreed upon by the Wu'an
government and the Company.  
A summary of the cash position at December 31, 2012 included cash and
cash equivalents of $12.4 million. In addition, the Company has $18.0
million in restricted cash of which $6.2 million is classified as
short-term. A $293,000 stand-by-letter of credit is included in the
$6.2 million short-term restricted cash. This $293,000
stand-by-letter of credit will be released in the first quarter of
2013. The remaining $11.8 million in restricted cash, relates to the
grant incentives which is classified as long-term. 
"We initiated several measures to reduce our overall burn rate in
2012. We have targeted additional cost reduction items that will
further reduce our operating expenses starting in the second
quarter," said Mr. Lee. "Our overall cash position, including
restricted and long-term restricted classifications, currently stands
at $30.4 million. Some of the restricted cash is ear marked for our
expansion plans in China. As we continue to grow and gain sales and
installations, we believe we will have access to the necessary
capital to fund our growth."  
Altair received $5.9 million in customer receipts during 2012. The
Company is expecting an estimated $2.0 million in cash receipts
during 2013, which relates to three large projects sitting in our
deferred revenue at December 31, 2012. Of this amount, $1.0 million
has already been invoiced and is in the accounts receivable balance
at December 31, 2012 and the other $1.0 million is expected to be
invoiced for these large projects in the first half of 2013. 
Fourth Quarter and Full Year 2012 Co
nference Call 
 Altair will hold
a conference call to discuss its fourth quarter and full year 2012
results on Thursday, March 28, 2013 at 11:00 a.m. Eastern Daylight
Time (EDT). Shareholders and members of the investment community are
invited to participate in the conference call. The dial-in number for
both U.S. and international callers is +1 678-224-7719. Please dial
in to the conference five minutes before the call is scheduled to
begin. Ask the operator for the Altair Nanotechnologies call. 
Post call, a phone-based audio replay will be available from 2:00
p.m. EDT, Thursday, March 28, 2013 until Midnight EDT, April 4, 2013.
It can be accessed by dialing +1 404-537-3406 and entering the
conference number 27496431. Additionally, the conference call and
replay will be available online, and can be accessed by visiting
Altair's web site, www.altairnano.com. 
About Altair Nanotechnologies Inc.
 Altair is a leading provider of
high-power, energy storage systems for the electric grid, industrial
equipment and transportation markets. The company's lithium titanate
technology is built on a proprietary nano-scale processing technology
that creates high-power, rapid-charging battery systems with
industry-leading performance and cycle life. Altair is headquartered
in Reno, Nevada and maintains operations in Anderson, Indiana;
Zhuhai, China; and Wu'an, China. For additional information, please
visit: www.altairnano.com. 
Forward-Looking Statements
 This report may contain forward-looking
statements as well as historical information. Forward-looking
statements, which are included in accordance with the "safe harbor"
provisions of the Private Securities Litigation Reform Act of 1995,
may involve risks, uncertainties and other factors that may cause
Altair's actual results and performance in future periods to be
materially different from any future results or performance suggested
by the forward-looking statements in this report. These risks include
the risk that our revenue will not increase for various reasons,
including our failure to close on expected orders or INE's failure to
obtain required approvals; that our land use rights may be worth
significantly less than the appraised or recorded value, particularly
in light of the risk of forfeiture and the requirement that we make a
substantial investment related to the property prior to pledging or
selling the land use rights; that the Company will run into
regulatory, finance or other obstacles as it attempts to expand its
operations into China or other countries; that the company will be
unable to close sales due to its pricing; the characteristics of its
products, competing energy storage systems or alternatives to energy
storage systems; that the Company will be unable to expand production
capacity (or contract with its suppliers to expand their capacity) in
order to meet the demand of product orders, particularly with respect
to products like electric vehicles which the Company does not itself
manufacture and will have to source from third parties; that the
Company will not experience expected costs savings as a result of its
expansion into China and that the Company will not experience an
increase in sales volume or, even if it experiences such an increase,
that the Company will experience low (or negative) gross margins and
not operate profitably in China and generally. Other risks are
identified in Altair's most recent Annual Report on Form 10-K and
Quarterly Report on Form 10-Q filed with the SEC. Such
forward-looking statements speak only as of the date of this release.
Altair expressly disclaims any obligation to update or revise any
forward-looking statements found herein to reflect any changes in
Altair expectations or results or any change in events. 


 
                                                                            
                                                                            
               ALTAIR NANOTECHNOLOGIES INC. AND SUBSIDIARIES                
                        CONSOLIDATED BALANCE SHEETS                         
      (Expressed in thousands of United States Dollars, except shares)      
                                                                            
                                                                            
                                                December 31,   December 31, 
                                                    2012           2011     
                                                                            
                                               -------------  ------------- 
                    ASSETS                                                  
Current assets                                                              
  Cash and cash equivalents                    $      12,372  $      46,519 
  Restricted cash                                      6,245                
  Accounts receivable, net                             1,498            333 
  Product inventories, net                             7,416          7,220 
  Prepaid expenses and other assets                      937          1,562 
  Deferred contract costs                              4,532            678 
  Other assets, related party                          1,754                
                                               -------------  ------------- 
    Total current assets                              34,754         56,312 
                                                                            
Restricted cash                                       11,803                
Property, plant and equipment, net held and                                 
 used                                                  4,076          6,870 
Property, plant and equipment, net held and                                 
 not used                                              1,857                
Patents, net                                             274            350 
Land use right, net                                   13,625                
                                               -------------  ------------- 
                                                                            
                 Total Assets                  $      66,389  $      63,532 
                                               =============  ============= 
                                                                            
     LIABILITIES AND STOCKHOLDERS' EQUITY                                   
                                                                            
Current Liabilities                                                         
  Trade accounts payable                       $       2,599  $       5,870 
  Accrued salaries and benefits                          632          1,132 
  Accrued warranty                                       418            354 
  Accrued liabilities                                    384            421 
  Deferred revenues                                    7,218          1,616 
  Warrant liabilities                                     90            654 
  Note payable, current                                6,680                
  Capital lease obligation                                 5             12 
                                               -------------  ------------- 
    Total current liabilities                         18,026         10,059 
                                                                            
Deferred income                                       11,803                
Capital lease obligation, less current portion             4                
                                               -------------  ------------- 
                                                                            
               Total Liabilities                      29,833         10,059 
                                               -------------  ------------- 
                                                                            
                                                                            
Stockholders' equity                                                        
  Common stock, no par value, unlimited shares                              
   authorized; 11,590,067 shares issued and 
   outstanding at December 31, 2012 and 
   December 31, 2011                                 246,667        245,617 
  Additional paid in capital                          12,410         12,279 
  Accumulated deficit                               (222,409)      (204,423)
  Accumulated other comprehensive loss                  (112)               
                                               -------------  ------------- 
    Total stockholders' equity                        36,556         53,473 
                                                                            
      Total Liabilities and Stockholders'                                   
       Equity                                  $      66,389  $      63,532 
                                               -------------  ------------- 
                                                                            
                                                                            

 
                                                                            
               ALTAIR NANOTECHNOLOGIES INC. AND SUBSIDIARIES                
                   CONSOLIDATED STATEMENTS OF OPERATIONS                    
  (Expressed in thousands of United States Dollars, except shares and per   
                               share amounts)                               
                                                                            
                                                                            
                                                                            
                                                  Year Ended December 31,   
                                                    2012           2011     
                                               -------------  ------------- 
Revenues                                                                    
  Product sales                                $       1,284  $       4,619 
  License fees                                           240            240 
  Commercial collaborations                               23             80 
  Contracts and grants                                                  287 
                                               -------------  ------------- 
    Total revenues                                     1,547          5,226 
                                               -------------  ------------- 
                                                                            
Cost of goods sold                                                          
  Product                                              2,667          5,149 
  Commercial collaborations                                              73 
  Contracts and grants                                                  296 
  Warranty and inventory reserves                        205            279 
                                               -------------  ------------- 
    Total cost of goods sold                           2,872          5,797 
                                               -------------  ------------- 
                                                                            
Gross loss                                            (1,325)          (571)
                                                                            
Operating expenses                                                          
  Research and development                             6,423          6,960 
  Sales and marketing                                  2,864          3,603 
  General and administrative                           6,908          7,669 
  Depreciation and amortization                        1,071          1,324 
  Loss on disposal of assets                                            924 
                                               -------------  ------------- 
    Total operating expenses                          17,266         20,480 
                                               -------------  ------------- 
Loss from operations                                 (18,591)       (21,051)
                                               -------------  ------------- 
                                                                            
Other (expense) income                                                      
  Interest income (expense), net                          48           (156)
  Change in market value of warrants                     564          1,274 
  Loss on foreign exchange                                (7)               
                                               -------------  ------------- 
    Total other income, net                              605          1,118 
                                               -------------  ------------- 
                                                                            
Net loss                                       $     (17,986) $     (19,933)
                                               =============  ============= 
                                                                            
Loss per common share - basic and diluted      $       (1.55) $       (2.55)
Weighted average shares - basic and diluted       11,590,067      7,814,957 
                                               -------------  ------------- 
                                                                            
                                                                            
                                                                            
               ALTAIR NANOTECHNOLOGIES INC. AND SUBSIDIARIES                
                   CONSOLIDATED STATEMENTS OF OPERATIONS                    
  (Expressed in thousands of United States Dollars, except shares and per   
                               share amounts)                               
                                                                            
                                                                            
                                                                            
                                                For the Three Months Ended  
                                                       December 31,         
                                                    2012           2011     
                                               -------------  ------------- 
Revenues                                                                    
  Product sales                                $         415  $       1,284 
  License fees                                            60             60 
  Commercial collaborations                                1                
  Contracts and grants                                                      
                                               -------------  ------------- 
    Total revenues                                       476          1,344 
                                               -------------  ------------- 
                                                                            
Cost of goods sold                                                          
  Product                                                875          1,665 
  Commercial collaborations                                                 
  Contracts and grants                                                      
  Warranty and inventory reserves                       (285)           124 
                                               -------------  ------------- 
    Total cost of goods sold                             590          1,789 
                                               -------------  ------------- 
                                                                            
Gross loss                                              (114)          (445)
                                                                            
Operating expenses                                                          
  Research and development                             1,377          2,027 
  Sales and marketing                                    520            805 
  General and administrative                           1,898          1,559 
  Depreciation and amortization                          300            311 
  Loss on disposal of assets                                            906 
                                               -------------  ------------- 
    Total operating expenses                           4,095          5,608 
                                               -------------  ------------- 
Loss from operations                                  (4,209)        (6,053)
                                               -------------  ------------- 
                                                                            
Other (expense) income                                                      
  Interest income (expense), net                         (19)            (1)
  Change in market value of warrants                     652            928 
  Loss on foreign exchange                                (5)             3 
                                               -------------  ------------- 
    Total other income, net                              628            930 
                                               -------------  ------------- 
                                                                            
Net loss                                       $      (3,581) $      (5,123)
                                               =============  ============= 
                                                                            
Loss per common share - basic and diluted      $       (0.31) $       (0.51)
Weighted average shares - basic and diluted       11,590,067     10,037,072 
                                               =============  ============= 

  
For Additional Information: 
Investors
Tony Luo
tluo@altairnano.com
775.858.3726 
 
 
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