2013-02-01 01:08:35 -
FOR IMMEDIATE RELEASE
ST. LOUIS, MISSOURI - January 31, 2013 - Zoltek Companies, Inc. (Nasdaq:
ZOLT) today reported financial results for the first quarter of its 2013 fiscal
year.
Zoltek's net revenues for the quarter ended December 31, 2012, totaled
$35.9 million, compared to $47.0 million in the first quarter of fiscal 2011, a
decrease of 23.7%. On a sequential quarter basis, net sales for the latest
quarter compared to $44.2 million, down 18.8%, from the fourth quarter of fiscal
2012.
Zoltek reported net income of $3.0 million ($0.09 per share) in this
year's first quarter, compared to net income of $9.7 million ($0.28 per share)
in the first quarter of fiscal 2012 and $4.3 million ($.13 per share) in the
fourth quarter
of fiscal 2012. The Company's operating income was $3.6 million
in the first quarter of fiscal 2012, compared to operating income of $8.2
million in the previous year's first quarter and operating income of $5.3
million in the fourth quarter of fiscal 2012.
"Historically our results in the fiscal first quarter, particularly in
the month of December, have been volatile and difficult to reliably predict.
This past year certain of our wind turbine customers accelerated production
during the first three calendar quarters to assure completion of capital
projects by December 31, 2012 in order to benefit from the US tax credits
scheduled to expire at that time. The pace of their business slowed down during
the last quarter as the blade production trails behind the turbine installation
by 60 to 90 days. Also, customers in Europe virtually shut down in the second
half of December, contributing to the sharp drop in our sales for the quarter as
a whole," said Zsolt Rumy, Zoltek's Chairman and Chief Executive Officer. "For
better or worse, we know that our established customers can make large year-end
adjustments to their normal purchasing patterns - either accelerating or
postponing deliveries. Many companies in other industries experienced something
similar - a sudden dampening in year-end demand in Europe at the end of 2012
calendar year. However, we already have seen a return to more normalized sales
trends in January and we expect to continue to build upon the progress we have
made over the past two years in greatly improving our operational and financial
results. While we will continue to be affected by global economic conditions, we
don't believe that our latest quarterly results reflect anything fundamentally
different or wrong with our business."
Rumy added that while Zoltek's sales in the latest quarter were
negatively impacted by the scheduled expiration of U.S. tax credits for wind
energy generation capacity installed before the end of 2012, the Federal budget
deal announced in January 2013 extended the tax credits. The new tax credits do
not require projects
to be completed by year-end, which should result in a much smoother year-to-year
transition.
Rumy noted that in the fiscal 2013 first quarter, Zoltek achieved its
sixth consecutive quarter of solid profitability, both in terms of operating and
net income. "Our financial condition is strong," Rumy said. "We are well
positioned in the wind energy sector, the largest immediate commercial carbon
fiber market, as the preeminent supplier of carbon fiber for the world's biggest
and most advanced wind turbines. We believe we are on the cusp of exciting new
developments which underscore the role of our low-cost, high-performance carbon
fibers in major advances across the energy sector - from breakthroughs in
exploration and production to more efficient use of energy. As we explained in
our fiscal 2012 annual report to shareholders, we expect the automotive
applications to be the next major market and our carbon fibers to lead the way
in enabling the world's automakers and their suppliers to take up to 50% of the
weight out of cars rolling off assembly lines. We are working with our partners
on specific proposals and expect this market to start using significant
quantities of carbon fibers in the next two to three years and to continue
growing rapidly over the next ten to twelve years."
"Due to our increased efficiency and productivity, coupled with the
lower fourth quarter revenue, we were not successful in reducing our inventory.
Looking ahead, we have the ability to more than double our carbon fiber sales
and output over the next few years without needing substantial investment in new
plant and equipment, in order to satisfy expected growth in demand for our
carbon fibers," Rumy pointed out. "We are poised to play an increasingly
important part in the creation of a new world of safe, clean and affordable
energy."
Zoltek's Annual Shareholders Meeting will be held at the Hilton St.
Louis Frontenac Hotel at 10:00am-CT on Friday, February 1, 2013. The A/V
recording and presentation will be posted after the meeting on Zoltek's website
- www.zoltek.com - under "Investor Relations." Zoltek will also host a
conference call to review its first quarter results and answer questions on
Monday, February 4, 2013 at 10:00am-CT. The conference dial-in number is (888)
523-1228. The confirmation code is 4960713. Individuals who wish to
participate should dial in 5 to 10 minutes prior to the scheduled start time.
This conference call will be webcast on Zoltek's website with a webcast replay
available several hours after the call.
For further information contact:
Zsolt Rumy, Chairman and CEO
3101 McKelvey Road
St. Louis, MO 63044
(314) 291-5110
This press release contains certain statements that constitute "forward-looking
statements" within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The
words "expect," "believe," "goal," "plan,"
"intend," "estimate," and similar
expressions and variations thereof are intended to specifically identify
forward-looking statements. Those statements include statements regarding the
intent, belief or current expectations of us, our directors and officers with
respect to, among other things: (1) our financial prospects; (2) our growth
strategy and operating strategy, including our focus on facilitating
acceleration of the introduction and development of mass market applications for
carbon fibers; and (3) our current and expected future revenue.
This press release also contains statements that are based on the current
expectations of our company. You are cautioned that any such forward-looking
statements are not guarantees of future performance and involve risks and
uncertainties, and that actual results may differ materially from those
projected in the forward-looking statements as a result of various factors. The
factors that might cause such differences include, among others, our ability to:
(1) successfully adapt to recessionary conditions in the global economy and
substantial volatility in order rates from our wind energy customers, including
our principal customer Vestas Wind Systems; (2) penetrate existing, identified
and emerging markets, including entering into new supply agreements with large
volume customers; (3) continue to improve efficiency at our manufacturing
facilities on a timely and cost-effective basis; (4) successfully add new
planned capacity for the production of carbon fiber, prepregs and precursor raw
materials and meet our obligations under long-term supply agreements; (5)
operate profitably; (6) increase or maintain our borrowing at acceptable costs;
(7) manage changes in customers' forecasted requirements for our products; (8)
continue investing in application and market development for a range of
applications; (9) manufacture low-cost carbon fibers and profitably market them
despite fluctuations in raw material and energy costs; (10) successfully operate
our Mexican facility to produce acrylic fiber precursor and carbon fibers; (11)
successfully continue operations at our Hungarian facility if natural gas supply
disruptions occur; (12) successfully prosecute patent litigation; (13)
successfully facilitate adoption of our carbon fibers by the auto industry for
use in high-volume applications; (14) establish and grow prepreg capacity; (15)
speed development of low-cost carbon fiber sheet molding compounds for the
automotive industry pursuant to our global collaborative partnership with Magna
Exteriors and Interiors; and (16) manage the risks identified under "Risk
Factors" in our filings with the SEC. Because forward-looking statements are
inherently subject to risks and uncertainties, some of which cannot be predicted
or quantified, you should not rely upon forward-looking statements as
predictions of future events. The events and circumstances reflected in the
forward-looking statements may not be achieved or occur and actual results could
differ materially from those projected in the forward-looking statements.
Q1-2013 Summary Financials:
hugin.info/147962/R/1674794/545461.pdf
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originality of the information contained therein.
Source: Zoltek Companies, Inc. via Thomson Reuters ONE
[HUG#1674794]
