Commercial Product Sales in Fiscal 2013 More Than Tripled From Prior Year
MILWAUKEE, WI–(Marketwired – September 27, 2013) –
ZBB Energy Corporation (NYSE MKT: ZBB), a leading developer of intelligent, renewable energy power platforms and hybrid vehicle control systems, today announced its financial results for its fourth quarter and fiscal year ended June 30, 2013.
On September 27, 2013 the Company closed a preferred stock and warrant financing transaction for gross proceeds of $3.0 million. The net proceeds from the transactions will be used to meet the Company’s working capital needs and for general corporate purposes while the Company works toward finalizing strategic relationships with large, multi-national partners.
Financial results for the fiscal year ended June 30, 2013 as compared to the year ended June 30, 2012 were:
Product sales increased 224% to $7,305,516 from $2,252,412.
Product sales gross profit increased to $1,030,239 compared to $184,704 in the prior year.
Total revenues, including engineering and development revenue, increased 61% to $7,723,699 from $4,805,568.
Net loss decreased to $11,878,915 compared to $13,710,226. The decrease in net loss is due primarily to the increase in commercial gross profit, reduction in engineering and development costs and lower interest expense.
Loss per share declined to ($0.15) from ($0.37).
Financial results for the three months ended June 30, 2013 as compared to the three months ended June 30, 2012 included:
Product sales increased 9.1% to $933,180 from $855,459.
Product sales gross profit of $177,263 compared to a loss of $115,268 in the prior year quarter.
Total revenues, including engineering and development revenue, decreased 4.5% to $1,033,180 from $1,081,499.
Net loss decreased to $3,088,356 compared to $5,831,581. The decrease in net loss is due primarily to the reduction in advanced engineering and development costs and lower interest expense.
Loss per share declined to ($0.03) from ($0.13).
Financial Position
The company’s backlog is $5.0 million, unchanged compared to May 13, 2013. The Company ended fiscal 2013 with total assets of $13.1 million, including $1.1 million in cash and $446,925 in accounts receivable. Anticipated collections in the first quarter of fiscal year 2014 associated with current backlog and current accounts receivable are anticipated to be approximately $2.5 million. The current rate of cash consumed by operating expenses is approximately $800,000 per month and inventory purchases to support the current backlog are approximately $200,000 per month.
The Company is aggressively pursuing additional sales orders and other sources of funding, including expansion of contract engineering and development programs through strategic partners. The Company has sufficient capital to fund operations through the second quarter of fiscal year 2014.
Fourth Quarter Highlights
During the fourth quarter of fiscal year 2013, the Company’s major accomplishments included:
Secured bank financing of $1,140,000 guaranteed by The Export-Import Bank of the United States to finance export of ZBB Energy’s power control and storage systems.
Received Australian research tax refund credit of $192,000.
Participated as a panel expert on energy storage at the AGRION Energy Storage Economics 2.0 for New York City and Beyond event in New York, NY.
Shipped the 40 unit Beachcomber unit for commissioning this fall on the island of Tetiaroa in French Polynesia. See their video here.
Shipped the previously announced order from BPC Engineering (Moscow, Russia) for a complete ZBB EnerSystem, consisting of a ZBB EnerStore® flow battery and ZBB EnerSection® power and control center.
Received two follow-on orders from Lotte Chemical in South Korea, for a ZBB EnerSystem consisting of five ZBB EnerStore flow batteries, totaling 250 kWh, and a ZBB EnerSection power and control center that connects the flow batteries and PV solar arrays to the AC grid via a 125 kW grid-tie inverter. In addition, Lotte has placed an order for three (3) EnerStore modules in unassembled kit form that will be used to conduct assembly training.
Closed a prototype development order for a large utility. The prototype development includes two units that provide power conditioning and voltage control on distribution feeders. Follow-on orders are expected after successful utility testing of the prototypes.
Closed a military related order for 15 custom developed converters. Follow-on orders are somewhat dependent on military funding.
Successfully commissioned a “first-in-world” multi-generation source ZBB EnerSystem that provides uninterrupted power to DC voltage lighting loads, rack power to servers and other miscellaneous loads at VISA’s flagship data center.
Commissioned a “first-ever” ZBB EnerSection with lead acid batteries in a utility-owned demonstration facility with onsite polar PV and wind turbine generation.
Announced two distinct technology initiatives to enhance the performance of the cell stacks utilized in the current ZBB EnerStore 50kWh project, and to develop a low cost 500 kWh flow battery system that leverages these performance gains.
Subsequent to the end of the fiscal year, the company’s joint venture partner Meineng Energy completed the third-party compliance validation of the ZBB EnerStore battery as meeting the requirements of Standard GBZ2.1-2007 of the National Institute for Occupational Safety and Health (NIOSH) for use in the People’s Republic of China.
“While we continue to see positive developments that will drive the long-term storage market, our order flow and revenue recognition have been uneven over the past year and we expect this unevenness to continue for the near future,” said Eric C. Apfelbach, President and CEO. “Our funnel includes some large orders that could provide a substantial uptick to our FY 2014 results. However, closing these orders depends in part on DOD sequester relief, policy changes in utility regulations and increased adoption of our ZBB EnerSystem into smart building applications and remote island applications. We believe the best strategy to accelerate our growth near-term is through strategic partnerships that offer ZBB improved balance sheet strength, supply chain cost reductions and leveraging global sales channels. Success in these strategic partnerships, I believe, will accelerate the initiatives needed for ZBB to achieve cash flow breakeven and profitability.”
