Clean Diesel Technologies Reports Fourth Quarter And Fiscal Year 2010 Financial Results (CDTI)

Clean Diesel Technologies CDTI reports fourth quarter and fiscal year 2010 financial results. Clean Diesel Technologies, a cleantech emissions reduction company, announced today its financial results for the fourth quarter and year ended December 31, 2010. On October 15, 2010, Clean Diesel completed its business combination with Catalytic Solutions, Inc. ("CSI") following which CSI became a wholly-owned subsidiary of Clean Diesel. Clean Diesel refers to this transaction as the "Merger." In light of the Merger, Clean Diesel is now a vertically integrated global manufacturer and distributor of emissions control systems and products. The Merger was accounted for as a reverse acquisition and, as a result, Clean Diesel's (the legal acquirer) consolidated financial statements are now those of CSI (the accounting acquirer), with the assets and liabilities, and revenues and expenses, of Clean Diesel being included with those of CSI effective from the date of the closing of the Merger. The current and historical information released today reflects the accounting treatment of the Merger. Earnings per share information is based upon a weighted average of (1) outstanding shares of CSI for 2009 and for the period up to October 15, 2010, recast for the conversion of CSI common shares to Clean Diesel shares to take into account the Merger; and (2) the total Clean Diesel shares outstanding after October 15, 2010, including shares issued in connection with the Merger. Weighted average shares for the years ended 2010 and 2009 were 1,238,198 and 550,189, respectively. Weighted average shares for the fourth quarter of 2010 and 2009 were 3,279,792 and 550,189, respectively. Total shares outstanding as of December 31, 2010 was 3,959,208. Financial Summary and Recent Business Developments * Total revenue for the fourth quarter of 2010 was $11.8 million compared to $18.0 million for the same quarter in 2009. Net loss for the fourth quarter of 2010 was $5.7 million, or $1.73 per share, compared to net income of $3.3 million, or $6.00 per share on a fully diluted basis, in the comparable period in 2009. * Total revenue for 2010 was $48.1 million compared to $50.5 million for the year 2009. Net loss for 2010 was $8.4 million, or $6.77 per share, compared to a loss of $8.0 million, or $14.50 per share for 2009. Gross margin increased to 25.0% for the year ended December 31, 2010 from 23.7% for the year ended December 31, 2009. Operating expenses of $15.9 million in the year ended December 31, 2010 were down $4.0 million from the year ended December 31, 2009. * Finalized a new financing agreement in February 2011 as part of the continuing effort to improve working capital. * Following ISO9001 certification at its newly formed UK subsidiary, named by Transport for London (TfL) as an accredited supplier of approved diesel emission reduction systems for vehicles to comply with the London Low Emission Zone (LEZ). Clean Diesel estimates that approximately 150,000 vehicles will be affected by the new regulations, with approximately 20,000 of these vehicles requiring diesel emission retrofit solutions by January 2012.