|Axion Power Reports First Quarter Results for 2013
NEW CASTLE, Pa., May 16, 2013 /PRNewswire/ -- Axion Power International, Inc. (OTC QB: AXPW), the developer of advanced lead-carbon PbC® batteries and energy storage systems, today announced results for its first quarter ended March 31, 2013.
Net product sales increased to $2.2 million in 2013 from $1.8 million in 2012. Net product sales increased in 2013 compared to 2012 primarily due to the sale of specialty lead-acid batteries to a single customer who will sell these batteries under their brand, as well as carry the cost of inventory and provide the raw materials for production of these batteries.
Net loss for 2013 was $2.1 million or $0.02 per basic and diluted share compared to $2.3 million or $0.02 per basic and diluted share in 2012.
However, our net cash flow for 2013 was negative $1.2 million. Excluding the cash inflow of $8.6 million in net proceeds from our sale of common stock in the first quarter of 2012, our cash flow for the first quarter of 2012 was negative $2.1 million. Thus comparable negative net cash flow decreased $0.9 million or 43% in the first quarter of 2013 compared to the first quarter of 2012.
On May 8, in an event subsequent to the end of our first quarter we announced that we had completed a private placement of $9 million principal amount of senior convertible notes and warrants with institutional investors and an additional $1 million principal amount of subordinated unsecured convertible notes and warrants in an ancillary transaction with directors, officers and one of the original Axion founders. The full terms of the transaction were filed in an 8-K dated May 8, 2013 and we encourage investors to read the filing for a better understanding of all terms of the funding.
Chairman and CEO Thomas Granville commented, "Closing this funding was a focal point for us over the past six months. There were various alternatives and offers that were available to us, but we felt it was important to obtain a funding package that fit with investors that shared in our vision and had faith in our story. We feel we have found that audience and we look forward, to moving forward, together with them."
Granville continued, "It has only been six weeks since we reported on our 2012 results, but it has been six weeks of progress on several fronts. First, we have already made improvements to our new continuous roll carbon sheeting process, resulting in a modest increase in 'carbon sheet energy density'. Our robotic negative electrode production line has been a major factor in providing us with better overall quality control and has factored in our recent significant improvement in decreasing internal resistance in our PbC® battery (a more than 25% reduction in internal resistance). This was fully evident when ePower installed the improved PbC battery in their truck, subsequent to the end of the first quarter, and saw an immediate jump up in available battery amperage (a greater than 25% improvement). Going forward in 2013, we look forward to the mileage improvement results as more trucks are converted to the ePower hybrid system utilizing the PbC batteries.
"And our class 8 truck initiative doesn't end with ePower, we have partnered with an historically large, and well respected, industry OEM in order to better commercialize our two-battery solution to the stop/start technology in the large truck market. We will be providing more information on this program in the coming months."
Granville concluded, "Of course we remain committed to our other defined markets as well – hybrid locomotives, hybrid passenger vehicles for the stop/start market and PowerCube applications of all sizes, from 10-kilowatt applications all the way up to several megawatt applications. Partially because of the success we have had with our onsite PowerCube, and our Washington Naval Yard installation, we have seen a dramatic increase in RFPs, RFQs and just general requests for help from those seeking to employ energy storage. These opportunities include renewable, utility, industrial and residential customers. As a result, in order to keep pace, we will be adding to our sales and engineering resources in the coming months. Quite honestly, we have needed to move in this sales growth direction for at least the last two quarters and now that we have the capital to implement that roadmap - it's full speed ahead."
Today at 11:00 a.m. ET (8 a.m. Pacific) a conference call will be held to review results. Participants should dial into the call ten minutes before the scheduled time using the following numbers: 1-877-317-6789 (USA) or +1-412-317-6789 (international) to access the call.
There will also be a simultaneous live webcast through the Company's website, www.axionpower.com and selecting the investor tab. Participants should register on the website approximately ten minutes prior to the start of the webcast.
An audio replay of the conference call will be available for seven days and can be accessed by dialing 1-877-870-5176 (USA) or +1-858-384-5517 (international) and using passcode 10028475. For those unable to attend the live webcast, it will be archived shortly following the event for 30 days in the Investors section of the Company's website.
About Axion Power International, Inc.
Axion has developed and patented a next generation energy storage device that won the prestigious Frost & Sullivan Technology Award for North America in the field of lead-acid batteries. According to Frost & Sullivan, Axion's new PbC® batteries have "the potential to revitalize the lead-acid battery industry by breathing new life into an established technology that has not been well suited to the requirements of important new applications like hybrid electric vehicles and renewable power."
Axion Power International, Inc. is the industry leader in the field of lead-carbon energy storage technologies. Axion believes its new PbC battery technology is the only class of advanced battery that can be assembled on existing lead-acid battery production lines throughout the world utilizing Axion's proprietary activated carbon electrodes. Axion's future goal, after filling their plant's lead-carbon battery production capacity, is to become the leading supplier of carbon electrode assemblies for the global lead-acid battery industry.
For more information, visit www.axionpower.com
Certain statements in this Press Release are "forward-looking statements" within the meaning of the Private Securities Litigation Act of 1995. These forward-looking statements are based on our current expectations and beliefs and are subject to a number of risk factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Such risks and uncertainties include the risk for the Company to complete its development work, as well as the risks inherent in commercializing a new product (including technology risks, market risks, financial risks and implementation risks, and other risks and uncertainties affecting the Company), as well as other risks that have been included in filings with the Securities and Exchange Commission, all of which are available at www.sec.gov. We disclaim any intention or obligation to revise any forward-looking statements, including, without limitation, financial estimates, whether as a result of new information, future events, or otherwise.
Axion Power International, Inc.
Charles Trego, CFO
Allen & Caron, Inc.
Rudy Barrio (Investors)
Len Hall (Media)
–FINANCIAL TABLES FOLLOW–
AXION POWER INTERNATIONAL, INC.
CONSOLIDATED BALANCE SHEETS
March 31, 2013
December 31, 2012
Cash and cash equivalents
Other current assets
Total current assets
Property & equipment, net
LIABILITIES AND STOCKHOLDERS' EQUITY
Total current liabilities
Convertible preferred stock – 12,500,000 shares designated 0 shares issued and outstanding
Common stock-200,000,000 shares authorized $0.0001 par value
113,290,364 shares issued & outstanding (113,260,006 in 2012)
Additional paid in capital
Retained earnings (deficit)
Cumulative foreign currency translation adjustment
Total Stockholders' equity
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY
AXION POWER INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF INCOME and COMPREHENSIVE INCOME
Three Months Ended
Cost of Product Sales
Selling, general and administrative expenses
Loss before income taxes
Provision for income taxes
Foreign translation adjustment
Loss per share
Basic and diluted loss per share
Weighted average common shares outstanding
AXION POWER INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended
Adjustments to reconcile deficit accumulated for noncash items
Share based compensation expense
Changes in operating assets & liabilities
Other current liabilities
Deferred revenue and other
Cash (used) by operating activities
Purchase of property & equipment
Cash (used) by investing activities
Repayment of notes payable
Net proceeds from sale of common stock
Cash (used) by financing activities
Net cash in cash and cash equivalents
Effect of exchange rate on cash
Cash and cash equivalents – beginning
Cash and cash equivalents – ending
SOURCE Axion Power International, Inc.
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|May 16, 2013