Attached files
| file | filename |
|---|---|
| 8-K - EnSync, Inc. | v211139_8-k.htm |
ZBB
ENERGY REPORTS QUARTERLY FINANCIAL RESULTS FOR DECEMBER 31, 2010
CONTINUED
PROGRESS ON BUSINESS PLAN OBJECTIVES
SIGNIFICANT
DECREASE IN EXPENSES AND DECREASE IN NET LOSS
Milwaukee,
WI — February 14, 2011 — ZBB Energy Corporation (NYSE Amex: ZBB), a leading
developer of intelligent, renewable energy power platforms, today reported its
results of operations for the quarter ended December 31, 2010.
Said Eric
Apfelbach, CEO and President, “We continue to make steady progress on the
implementation of our key business plan objectives: (1) identifying market
opportunities for our advanced electrical power management platforms. (2)
successfully winning and executing customer orders, (3) executing our aggressive
product development plan to deliver the best price-performance products in the
sector and (4) ensuring we have sufficient capital resources to execute our
plan.”
Continued
Mr. Apfelbach, “We are reporting a significant decrease in expenses and have
continued to book new orders that will be shipped upon completion of the V3
stack and module development, and PECC inverter certification to UL standard
1741 for certain orders. The expected commercial launch of our
redesigned V3 modules is September 2011.”
“We also
completed many other activities during the quarter including a successful equity
financing of $1.4 million from new investors and certain members of our Board of
Directors. This significant equity financing was priced at market,
with no warrants or investment banking fees.”
Highlights
for the quarter include:
|
|
·
|
Shipped
our next-generation ZESS POWR™ battery module (V2) that will provide
greater performance and reliability than our already commercially proven
product range, to University of Wisconsin
Milwaukee.
|
|
|
·
|
Successfully
completed all technical and project activities for the Advanced
Electricity Storage Technologies (“AEST”) program, and received the final
payment from AEST of $184,939.
|
|
|
·
|
Drew
down the second tranche under our $10 million Socius Securities Purchase
Agreement.
|
|
|
·
|
Completed
an equity financing of $1.435 million priced at market with no warrants or
investment banking fees.
|
|
|
·
|
Prepared
and submitted our proposed compliance plan to the NYSE Amex on January 3,
2011. Our plan was accepted by the NYSE Amex on February 4,
2011.
|
|
|
·
|
Prepared
and submitted our application for certification of our 48c tax credit
program on January 7, 2011.
|
|
|
·
|
Started
construction of manufacturing renovations for the new V3 production
facility.
|
|
|
·
|
Received
a purchase order and executed a letter of intent with Sunflower Wind, LLC
for the purchase of multiple units of ZBB's ZESS POWR™ PECC (Power &
Energy Control Center) integrated with ZBB's ZESS 50 Zinc
Bromide advanced energy storage.
|
|
|
·
|
Executed
an initial contract to design and deliver a hardened and transportable
prototype version of ZBB's ZESS POWR™ PECC (Power &
Energy Control Center). The prototype calls for a "ruggedized
and transportable" version of the PECC, offering the ability to integrate
multiple renewable energy sources for providing power in a variety of
military applications that currently rely on power derived solely from
diesel generators.
|
|
|
·
|
Reported
a strong and growing backlog.
|
|
|
·
|
Appointed
Will Hogoboom, CPA, as the Company’s Chief Financial
Officer.
|
Continued
Mr. Apfelbach, “We completed many activities during the quarter that will be
highly beneficial to the Company in the months and years to come. We
are also extremely pleased with the Tier Electronics acquisition completed in
January 2011 which significantly expands our product portfolio, customer base
and served market and is expected to add significantly to revenue growth and be
accretive to operating cash flows.”
Net loss
was $1.8 million or $0.09 per share in the three months ended December 31, 2010,
compared with $3.4 million or $0.27 per share in the quarter ended December 31,
2009. Net loss in the latest quarter was lower due to decreases in warranty
expense, severance pay, and impairment and other equipment
charges. Net loss was $3.9 million or $0.22 per share in the six
months ended December 31, 2010, compared with $4.8 million or $0.40 per share in
the six months ended December 31, 2009.
Our
revenues for the three months ended December 31, 2010 and 2009 were $234,681 and
$555,455. Revenues in the current quarter included product revenue
from the Company’s shipment to the University of Wisconsin-Milwaukee and also
included the final payment from the Commonwealth of Australia for the Advanced
Electricity Storage Technologies (“AEST”) program. Our revenues for
the six months ended December 31, 2010 and 2009 were $234,681 and
$1,367,368. The decrease in product revenues for the quarter of
$221,318 and for the six months of $888,044 is due to the delay in certain
orders that require PECC inverter certification to UL standard 1741. The
decrease in engineering and development revenues for this quarter and six months
is due to the Company completing all final accounting and the final research
report and successfully completing the entire AEST project with the Commonwealth
of Australia.
Total
costs and expenses for the three months ended December 31, 2010 and 2009 were
$2,029,079 and $3,906,336, respectively. This decrease of $1,877,257 in the
three months ended December 31, 2010 was primarily due to the
following:
|
|
·
|
decreased
costs of product sales of $174,127 because product shipments decreased in
the quarter ended December 31, 2010 due to the need for PECC inverter
certification to UL standard 1741 for certain orders and a decrease in
cost of engineering and development revenues of $872,322 due to the
completion of activities required under the AEST contract and other
engineering and development contracts during the year ended June 30, 2010;
and
|
|
|
·
|
increases
in advanced engineering and development expenses of $445,818 primarily due
to an increase in engineering and development expense of $646,656 for an
increase in engineering and development activities in our Australian
subsidiary after the completion of the AEST project and a decrease in
rework expense of $203,838 related to battery stack manufacturing issues;
and
|
|
|
·
|
decrease
in employee severance pay expense of $390,000 and decrease in fund raising
expense of $120,000; and
|
|
|
·
|
decrease
in impairment and other equipment charges of
$780,231.
|
Total
costs and expenses for the six months ended December 31, 2010 and 2009 were
$4,033,163 and $6,169,184, respectively. This decrease of $2,136,021 in the six
months ended December 31, 2010 was primarily due to the following:
|
|
·
|
decreased
costs of product sales of $820,229 because products that shipped in the
six months ended December 31, 2010 were not fully commissioned and
accepted by the customer and a decrease in cost of engineering and
development revenues of $1,166,777 due to the completion of activities
required under the AEST contract and other engineering and development
contracts during the year ended June 30, 2010;
and
|
|
|
·
|
increases
in advanced engineering and development expenses of approximately $960,000
primarily due to an increase in the Company’s engineering and development
activities for its next generation battery module and the PECC systems,
less decreases in rework expense of approximately $200,000;
and
|
|
|
·
|
decrease
in employee severance pay expense of $390,000 and decrease in fund raising
expense of $120,000
|
|
|
·
|
legal
and accounting fees increase of approximately $130,000 related to certain
accounting matters; and
|
|
|
·
|
decrease
in impairment and other equipment charges of
$780,231.
|
Our net
loss for the three months ended December 31, 2010 decreased by $1,522,876 to
$1,838,274 from the $3,361,150 net loss for the three months ended December 31,
2009, and our net loss for the six months ended December 31, 2010 decreased by
$964,806 to $3,872,575 from the $4,837,381 net loss for the six months ended
December 31, 2009. These decreases in losses were primarily the
result of decreases in expenses as described above.
Investor
Conference Call — 10:00 a.m. Central time, Monday, February 14,
2011
A
conference call to discuss the financial and operating results and the Company's
outlook will be held on Monday, February 14, 2011, at 10:00 a.m. US Central
(11:00 a.m. Eastern). The conference call will be hosted by Eric Apfelbach,
President and CEO. A brief presentation by Mr. Apfelbach will be followed by a
question and answer period.
To
participate in the conference call, callers from within the United States and
Canada, dial the toll free number (888) 567-1602. For international callers,
dial the toll number (201) 604-5049. The conference call reference is
“ZBB”.
For
support during a call press *0 on your phone and a conferencing coordinator will
assist you. The presentation will be posted on the Company's web site at
www.zbbenergy.com following the conference call.
- 2
-
About
ZBB Energy Corporation
ZBB
Energy Corporation (AMEX:ZBB - News) provides advanced electrical power
management platforms targeted at the growing global need for distributed
renewable energy, energy efficiency, power quality, and grid modernization. ZBB
and its power electronics subsidiary, Tier Electronics, LLC have developed a
portfolio of intelligent power management platforms that directly integrate
multiple renewable and conventional onsite generation sources with rechargeable
zinc bromide flow batteries and other storage technology. The Company also
offers advanced systems to directly connect wind and solar equipment to the grid
and systems that can form various levels of micro-grids. Tier Electronics
participates in the energy efficiency markets through its hybrid vehicle control
systems, and power quality markets with its line of regulation solutions.
Together, these platforms solve a wide range of electrical system challenges in
global markets for utility, governmental, commercial, industrial and residential
end customers. A developer and manufacturer of its modular, scalable and
environmentally friendly power systems ("ZESS POWR™"), ZBB Energy was founded in
1998 and is headquartered in Wisconsin, USA with offices also located in Perth,
Western Australia.
Safe
Harbor Statement
Certain
statements made in this press release contain forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities and Exchange Act of 1934, as amended, that are
intended to be covered by the “safe harbor” created by those
sections. Forward-looking statements, which are based on certain
assumptions and describe our future plans, strategies and expectations, can
generally be identified by the use of forward-looking terms such as “believe,”
“expect,” “may,” “will,” “should,” “could,” “seek,” “intend,” “plan,”
“estimate,” “anticipate” or other comparable terms. Forward-looking
statements in this press release may address the following subjects among
others: statements regarding the sufficiency of our capital resources, expected
operating losses, expected revenues, expected expenses and our expectations
concerning our business strategy. Forward-looking statements involve
inherent risks and uncertainties which could cause actual results to differ
materially from those in the forward-looking statements, as a result of various
factors including those risks and uncertainties described in the Risk Factors
and in Management’s Discussion and Analysis of Financial Condition and Results
of Operations sections of our most recently filed Annual Report on Form 10-K and
our subsequently filed Quarterly Reports on Form 10-Q. We urge you to
consider those risks and uncertainties in evaluating our forward-looking
statements. We caution readers not to place undue reliance upon any
such forward-looking statements, which speak only as of the date
made. Except as otherwise required by the federal securities laws, we
disclaim any obligation or undertaking to publicly release any updates or
revisions to any forward-looking statement contained herein (or elsewhere) to
reflect any change in our expectations with regard thereto or any change in
events, conditions or circumstances on which any such statement is
based.
Contact
Information:
Helen
Brown
Investor
Relations
ZBB
Energy Corporation
T:
262.253.9800
Email:
hbrown@zbbenergy.com
- 3
-
|
ZBB
ENERGY CORPORATION
|
|
Condensed
Consolidated Balance Sheets
|
|
December
31, 2010
(Unaudited)
|
June
30,
2010
|
|||||||
|
Assets
|
||||||||
|
Current
assets:
|
||||||||
|
Cash
and cash equivalents
|
$ | 611,489 | $ | 1,235,635 | ||||
|
Accounts
receivable
|
674 | 7,553 | ||||||
|
Inventories
|
772,390 | 702,536 | ||||||
|
Prepaid
and other current assets
|
329,561 | 149,098 | ||||||
|
Total
current assets
|
1,714,114 | 2,094,822 | ||||||
|
Long-term
assets:
|
||||||||
|
Property,
plant and equipment, net
|
3,727,706 | 3,568,823 | ||||||
|
Goodwill
|
803,079 | 803,079 | ||||||
|
Total
assets
|
$ | 6,244,899 | $ | 6,466,724 | ||||
|
Liabilities
and Shareholders' Equity
|
||||||||
|
Current
liabilities:
|
||||||||
|
Bank
loans and notes payable
|
$ | 355,154 | $ | 395,849 | ||||
|
Accounts
payable
|
1,012,542 | 869,179 | ||||||
|
Accrued
expenses
|
484,810 | 539,100 | ||||||
|
Commitment
fee payable
|
- | - | ||||||
|
Deferred
revenues
|
540,303 | 325,792 | ||||||
|
Accrued
compensation and benefits
|
228,120 | 765,106 | ||||||
|
Total
current liabilities
|
2,620,929 | 2,895,026 | ||||||
|
Long-term
liabilities:
|
||||||||
|
Bank
loans and notes payable
|
3,241,615 | 2,120,421 | ||||||
|
Total
liabilities
|
5,862,544 | 5,015,447 | ||||||
|
Shareholders'
equity
|
||||||||
|
Series
A preferred stock ($0.01 par value, $10,000 face value)
|
||||||||
|
10,000,000
authorized 101.4678 and 0 shares issued
|
1,025,732 | - | ||||||
|
Common
stock ($0.01 par value); 150,000,000 authorized
|
||||||||
|
21,393,236
and 14,915,389 shares issued
|
213,932 | 149,155 | ||||||
|
Additional
paid-in capital
|
52,531,869 | 49,770,987 | ||||||
|
Notes
receivable - common stock
|
(1,024,070 | ) | - | |||||
|
Treasury
stock - 13,833 shares
|
(11,136 | ) | (11,136 | ) | ||||
|
Accumulated
other comprehensive (loss)
|
(1,586,720 | ) | (1,563,052 | ) | ||||
|
Accumulated
(deficit)
|
(50,767,252 | ) | (46,894,677 | ) | ||||
|
Total
shareholders' equity
|
382,355 | 1,451,277 | ||||||
|
Total
liabilities and shareholders' equity
|
$ | 6,244,899 | $ | 6,466,724 | ||||
- 4
-
|
ZBB
ENERGY CORPORATION
|
|
Condensed
Consolidated Statements of Operations
(Unaudited)
|
|
Three
months ended December 31,
|
Six
months ended December 31,
|
|||||||||||||||
|
2010
|
2009
|
2010
|
2009
|
|||||||||||||
|
Revenues
|
||||||||||||||||
|
Product
sales and revenues
|
$ | 49,742 | $ | 271,060 | $ | 49,742 | $ | 937,786 | ||||||||
|
Engineering
and development revenues
|
184,939 | 284,395 | 184,939 | 429,582 | ||||||||||||
|
Total
Revenues
|
234,681 | 555,455 | 234,681 | 1,367,368 | ||||||||||||
|
Costs
and Expenses
|
||||||||||||||||
|
Cost
of product sales
|
79,058 | 253,185 | 79,058 | 899,287 | ||||||||||||
|
Cost
of engineering and development revenues
|
- | 872,322 | - | 1,166,777 | ||||||||||||
|
Advanced
engineering and development
|
586,582 | 140,764 | 1,425,855 | 465,471 | ||||||||||||
|
Selling,
general, and administrative
|
1,278,261 | 1,734,403 | 2,356,989 | 2,607,770 | ||||||||||||
|
Depreciation
|
85,178 | 125,431 | 171,261 | 249,648 | ||||||||||||
|
Impairment
and other equipment charges
|
- | 780,231 | - | 780,231 | ||||||||||||
|
Total
Costs and Expenses
|
2,029,079 | 3,906,336 | 4,033,163 | 6,169,184 | ||||||||||||
|
Loss
from Operations
|
(1,794,398 | ) | (3,350,881 | ) | (3,798,482 | ) | (4,801,816 | ) | ||||||||
|
Other
Income (Expense)
|
||||||||||||||||
|
Interest
income
|
2,420 | 20,593 | 4,210 | 47,089 | ||||||||||||
|
Interest
expense
|
(46,869 | ) | (30,862 | ) | (78,876 | ) | (62,894 | ) | ||||||||
|
Other
income (expense)
|
573 | - | 573 | (19,760 | ) | |||||||||||
|
Total
Other Income (Expense)
|
(43,876 | ) | (10,269 | ) | (74,093 | ) | (35,565 | ) | ||||||||
|
Loss
before provision for Income Taxes
|
(1,838,274 | ) | (3,361,150 | ) | (3,872,575 | ) | (4,837,381 | ) | ||||||||
|
Provision
for Income Taxes
|
- | - | - | - | ||||||||||||
|
Net
Loss
|
$ | (1,838,274 | ) | $ | (3,361,150 | ) | $ | (3,872,575 | ) | $ | (4,837,381 | ) | ||||
|
Net
Loss per share-
|
||||||||||||||||
|
Basic
and diluted
|
$ | (0.09 | ) | $ | (0.27 | ) | $ | (0.22 | ) | $ | (0.40 | ) | ||||
|
Weighted
average shares-basic and diluted:
|
||||||||||||||||
|
Basic
|
20,196,322 | 12,409,964 | 17,803,353 | 11,962,047 | ||||||||||||
|
Diluted
|
20,196,322 | 12,409,964 | 17,803,353 | 11,962,047 | ||||||||||||
- 5
-
|
ZBB
ENERGY CORPORATION
|
|
Condensed
Consolidated Statements of Cash Flows
(Unaudited)
|
|
Six
months ended December 31,
|
||||||||
|
2010
|
2009
|
|||||||
|
Cash
flows from operating activities
|
||||||||
|
Net
loss
|
$ | (3,872,575 | ) | $ | (4,837,381 | ) | ||
|
Adjustments
to reconcile net loss to net cash used in operating
activities:
|
||||||||
|
Depreciation
|
171,261 | 249,648 | ||||||
|
Change
in inventory allowance
|
29,699 | |||||||
|
Impairment
and other equipment charges
|
780,231 | |||||||
|
Stock-based
compensation
|
310,788 | 174,353 | ||||||
|
(Increase)
decrease in operating assets:
|
||||||||
|
Accounts
receivable
|
6,879 | 459,555 | ||||||
|
Inventories
|
(69,854 | ) | 609,383 | |||||
|
Prepaids
and other current assets
|
(180,463 | ) | 23,541 | |||||
|
Other
receivables-interest
|
- | 19,746 | ||||||
|
Increase
(decrease) in operating liabilities:
|
||||||||
|
Accounts
payable
|
143,363 | (65,604 | ) | |||||
|
Accrued
compensation and benefits
|
(221,156 | ) | 370,376 | |||||
|
Accrued
expenses
|
(79,034 | ) | 336,645 | |||||
|
Deferred
revenues
|
214,511 | (749,022 | ) | |||||
|
Net
cash used in operating activities
|
(3,576,277 | ) | (2,598,830 | ) | ||||
|
Cash
flows from investing activities
|
||||||||
|
Expenditures
for property and equipment
|
(318,310 | ) | (131,091 | ) | ||||
|
Bank
certificate of deposit
|
- | 1,000,000 | ||||||
|
Net
cash (used in) provided by investing activities
|
(318,310 | ) | 868,909 | |||||
|
Cash
flows from financing activities
|
||||||||
|
Proceeds
from bank loans and notes payable
|
1,300,000 | 156,000 | ||||||
|
Repayments
of bank loans and notes payable
|
(219,501 | ) | (229,516 | ) | ||||
|
Proceeds
from issuance of debenture notes payable
|
517,168 | - | ||||||
|
Proceeds
from issuance of Series A preferred stock
|
490,000 | - | ||||||
|
Proceeds
from issuance of common stock net of issuance costs
|
1,174,187 | 1,900,276 | ||||||
|
Net
cash provided by financing activities
|
3,261,854 | 1,826,760 | ||||||
|
Effect
of exchange rate changes on cash and cash equivalents
|
8,587 | 10,691 | ||||||
|
Net
(decrease) increase in cash and cash equivalents
|
(624,146 | ) | 107,530 | |||||
|
Cash
and cash equivalents - beginning of period
|
1,235,635 | 2,970,009 | ||||||
|
Cash
and cash equivalents - end of period
|
$ | 611,489 | $ | 3,077,539 | ||||
- 6
-