Zoltek Reports Fourth Quarter and Year-End Loss
ST. LOUIS, Dec. 27 - Zoltek Companies, Inc. (NASDAQ:ZOLT) today announced fourth quarter and full fiscal year results for the periods ended September 30, 2002.
For the fourth quarter of fiscal 2002, including discontinued operations, Zoltek reported a net loss of $1.3 million, which included a $0.6 million gain on discontinued operations, compared to a net loss of $10.5 million in the prior year fourth quarter, which included a $6.9 million loss on discontinued operations.
For the full fiscal year, Zoltek reported a net loss from continuing operations of $8.7 million on revenues of $68.4 million, compared to a net loss from continuing operations of $21.3 million on revenues of $76.5 million in fiscal 2001. Including discontinued operations, Zoltek reported a net loss of $7.8 million for fiscal 2002, compared to a net loss of $31.6 million for fiscal 2001.
Zoltek reported a net loss from continuing operations of $1.9 million on revenues of $16.6 million for the quarter ended September 30, 2002, which compared to a net loss from continuing operations of $3.6 million on revenues of $17.2 million in the fourth quarter of fiscal 2001. Results of operations from the carbon fiber business unit were negatively impacted by unused capacity costs totaling $1.3 million during the recently completed quarter, compared to $1.9 million in the prior year quarter, and carbon fiber sales and results continued to be adversely affected by depressed industry conditions. Zoltek's improved results for the fourth fiscal quarter reflected tightened operating budgets across the Company, concentration of production in certain plants and reductions in the workforce in both the United States and Hungary.
"The good news is that we had improved gross margins in the fourth quarter, and indeed during the last three quarters of the year compared to the corresponding prior year quarters," said Zsolt Rumy, Zoltek's Chairman, President and Chief Executive Officer. "Operating losses from continuing operations also were lower in each of the last three fiscal 2002 quarters compared to the prior year. We continue to work to reduce costs and generate additional cash from our existing businesses. At the same time, we continue to invest selectively in targeted high-potential development projects in keeping with Zoltek's long-term strategy of commercializing carbon fibers as an affordable, high-performance and high-volume structural material."
The Company also announced that it now expects to file its Form 10-K for the fiscal year ended September 30, 2002 on or before January 14, 2003, due to the timing of the proposed refinancing of its bank credit facilities and additional financing which the Company is seeking to complete before finalizing its audited financial statements. The Company believes that these financing transactions, if completed, should provide the financial resources to enable it to pursue identified initiatives for increased sales of carbon fiber products for growing applications beginning in the current fiscal year.
The forward-looking statements contained in this press release are inherently subject to risks and uncertainties. Zoltek's actual results could differ materially from those currently anticipated due to a number of factors, including the Company's ability to return to operating on a profitable basis, comply with its obligations under its credit agreements, complete the financing transactions, manage its excess carbon fiber production capacity and inventory levels, continue investing in application and market development, manufacture low-cost carbon fibers and profitably market them at decreasing price points and penetrate existing, identified and emerging markets.
Zoltek is an applied technology and materials company. Zoltek's Carbon Fiber Business Unit is primarily focused on the manufacturing and application of carbon fibers used as reinforcement material in composites, oxidized acrylic fibers for heat/fire barrier applications and aircraft brakes, and composite design and engineering to support the Company's materials business. Zoltek's Hungarian-based Specialty Products Business Unit manufactures and markets acrylic fibers, nylon products and industrial materials.
ZOLTEK COMPANIES, INC.
SUMMARY FINANCIAL RESULTS
(Amounts In Thousands Except Per Share Data)
(Unaudited)
Three Months Ended
September 30
2002 2001
Net sales $16,625 $17,157
Gross profit 2,744 2,354
Unused capacity costs 1,347 1,915
Application and development costs 857 997
Operating loss from continuing operations (1,839) (3,191)
Income tax expense (benefit) (238) 88
Net loss from continuing operations (1,850) (3,558)
Discontinued operations:
Loss from operations - (1,823)
Gain (loss) on disposal of
discontinued operations 575 (5,122)
Net gain (loss) on discontinued operations 575 (6,945)
Net loss (1,275) (10,503)
Basic and diluted net loss per share:
Continuing operations ($0.11) ($0.22)
Discontinued operations $0.04 ($0.43)
Total ($0.08) ($0.65)
Weighted average shares outstanding 16,295 16,284
Fiscal Year Ended
September 30
2002 2001
Net sales $68,436 $76,478
Gross profit 9,516 2,145
Unused capacity costs 6,039 6,803
Application and development costs 3,750 3,533
Operating loss from continuing operations (10,128) (20,528)
Income tax expense (benefit) (2,860) (505)
Net loss from continuing operations (8,695) (21,274)
Discontinued operations:
Loss from operations (1,030) (5,175)
Gain (loss) on disposal of
discontinued operations 1,894 (5,122)
Net income (loss) on discontinued operations 864 (10,297)
Net loss (7,831) (31,571)
Basic and diluted net loss per share:
Continuing operations ($0.53) ($1.29)
Discontinued operations $0.05 ($0.62)
Total ($0.48) ($1.91)
Weighted average shares outstanding 16,289 16,515
Source: Zoltek Companies, Inc.
CONTACT: Zsolt Rumy, CEO of Zoltek Companies, Inc., +1-314-291-5110