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In for 1000 @ $9.47
$FSYS - $10.07 +0.2701 (+2.76%)
That guy is their number one fan!
hopefully he is right sooner or later...
I remember that one
Takeout Target?
Here is an article form last year discussing the notion...
Fuel Systems Solutions (FSYS): The alternative fuel supplier has caught a flurry of good news lately that has rejuvenated its stock price: (1) natural gas prices continue to plummet, creating a bigger spread between the cost of gasoline/diesel and compressed natural gas, providing a significant incentive to convert to the cheaper alternative (2) the company received an order from AT&T to convert 600 Ford trucks to natural gas operation. (3) President Obama's climate plan was favorable to natural gas, and CNG is a cleaner burning fuel, which the green community will certainly embrace (4) further consolidation occurring in the sector, as Westport Innovations (WPRT) just acquired CLNE's gas vehicle division in a $25 million stock swap.
FSYS is susceptible to a takeover. Its CEO, Mario Costamagna, could be ready to cash in and monetize his holdings, especially considering he is already in his mid sixties. Costamagna is FSYS's largest single shareholder with a 16.6% stake. Its second largest holder is Kevin Douglas, with a 13.3% interest. Douglas is a also a major shareholder in Westport Innovations, another alternative fuel supplier.
FSYS is cash rich (it has $80 million on its books, including $12 million of German bonds), and is without debt. It is selling close to book value and is expected to earn $5 million on sales of $410 million in 2013. There are clues that a buyout could be in the works, as it recently cancelled its investment presentation at this year's Canaccord Genuity Growth Conference, and refuses to buy back its own shares.
Conclusion: The fact that both these companies offer unattractive earnings multiples, and their turnaround stories are painstakingly slow to progress, supports the case for a buyout scenario. Shareholders are frustrated and impatient, and could be open for some immediate gratification. When you realize that the majority owners in both these companies are well into retirement age, it is apparent that a sense of urgency dominates this line of thinking.
http://seekingalpha.com/article/1529822-two-stocks-with-takeover-written-all-over-them
$WPRT has always been my predictive buyer here
Fuel Systems Solutions: 'Be Greedy When Others Are Fearful'
From February but very Relevant!
http://seekingalpha.com/article/2006561-fuel-systems-solutions-be-greedy-when-others-are-fearful
I read a lot of pluses in that CC, you took the only negative out of it, AT&T is still up in the air, I'm pretty sure when they add it all up, spending $2.50 for CNG versus around $4 for gas works out to be a savings...
Hints at new customers, imo this is a buyout Target, it's cheap as hell down here!
Re: 2014 Q1 CC of May 8, 2014...
To me, the most important insight gained from the CC was that AT&T has paused its purchase of CNG vehicles pending an assessment of its return on investment for the program... If AT&T does not feel that they are getting value by converting their fleet to CNG, then I suspect that others will come to the same conclusion. That would be disastrous for FSYS's US program. FSYS management has repeatedly stated that the commercial fleet will be the biggest opportunity and catalyst in the US.
The theme of the CC was FSYS's claim that this is a transition year. But a transition to what?
From what I can tell, they have several initiatives, but they are what you would expect with normal organic growth not evidence of a transition to something new. In particular,
1. They are "working hard to reduce overall costs of our products and to compete more aggressively" by reducing the workforce in Italy and striving to reduce manufacturing costs for components.
2. They are "marketing our products effectively and winning new pieces of business" by developing the Ford Transit Connect Taxi and producing a new single-stage CNG regulator for Maruti Suzuki.
3. They are "pursuing opportunities for growth through internal development and through possible strategic and opportunistic mergers and acquisitions." They are establishing a local FSYS branch in China for an Automotive Commercial presence, consulting on supplying high-pressure components for GM's 2015 Impala bi-fuel sedan, are working on a bi-fuel CNG kit for the F150 5 liter engine and the Chevrolet 1500 Silverado direct injection engine, and have several new mobile engine programs in development. They are introducing a direct injection system for the Kia Sportage, where they expect the direct injection system will be important for the European market in light of the Euro 6 program impact on on diesel engine production. They did not mentioned any plans for opportunistic mergers or acquisitions.
Man, we are gonna test that $9.75 zone shortly....any hint near there then look out below. Still watching the July 12/15 calls, not too sure about FSYS direction....
FSYS I bought the June $12's because they are soo Cheap!
CLNE I loaded Mays...
Both have a perfect setup! into earnings!
How far out are you loading? I was just checking the July $15 calls. Still have and uneasy feeling about FSYS....
Peace...
anyone buying into earnings? I think this guy has been beaten down and it's just treading water as of lately. I'm thinking average or below expectations for this Q.
Nice positive movement today!
Now that the dip is subsiding, I see FSYS doing well in the long run!!
Re: 2013 Q4 CC of Mar 14, 2014...
The fundamental message of the CC is summarized by the following statement by Pietro Bersani (FSYS CFO) during the Q&A:
Man, this is getting ugly! for a moment I thought of buying!
RDLG!! Person Mark for you!
Noticed you like Howard Stern...listen to him on Wed. 3/12.
Follow my username and read the news under the ticker board that I moderate. It is a very innovative issue, to say the least.
Gave you a Person Mark just for your username...that's killer!
A fantastic SA piece has sent this off and running from the lows reached last week.
http://seekingalpha.com/article/2006561-fuel-systems-solutions-be-greedy-when-others-are-fearful?source=email_rt_article_readmore&app=1&uprof=51
Looking poised to end the year green!
I hope that you are correct about a turn-around, Archer...
The current $13/share price should be near the low given that FSYS has about $3/share cash, no debt, and is profitable, albeit barely.
The problem with predicting a low at this time, however, is that no FSYS specific news is expected until the Q4 CC in March. Thus, I expect the price of the stock will be driven by macro factors in the near term... and it is hard to predict the timing for turn-around of industry-wide and general economy conditions.
Personally, I'm anticipating FSYS stock prices to bounce around in the $13 range until the new year, when tax selling for FY13 will come to an end. Then I expect an up-and-down move to the $15/share range come March... with the moves dependent upon brief responses to newsletter and analyst projections. The Q4 CC in the first week of March is likely to be a binary event that will drive the price up or down 10-25% according to my gut feeling.
The above is purely an emotional projection, I have no firm data to support it.
Re: buying FSYS at this time...
I agree that FSYS is looking attractive at these prices, but I am not ready to add to my holdings yet.
I am watching to see if the share price will drop further and be less than $13 in December due to tax loss selling by other holders.
$FSYS - Loading up here @ $13.15
Still is an attractive company for acquisition
Re: share price plunge following 2013Q3 CC...
There have been suggestions that the 18% drop in FSYS share price on the day of Q3 earnings release was an over-reaction (e.g. #msg-93921816)
Even though I have a substantial position in FSYS and am a believer in its long-term value, the drop in price from from $17/share to $14/share on Nov 7 was justified in my opinion. It was justified because the CC supported the view that FSYS should not be considered a growth stock.
Based upon the CC I don't think that FSYS can viewed as a growth stock because as soon as its DOEM growth starts to show sustained acceleration, one can expect the OEMs to in-source the production of CNG/LPG engines and abandon their collaboration with FSYS. This belief is based upon the following examples highlighted in the Q3 CC:
1) Honda Thailand (a long time FSYS collaborator) has decided to terminate the collaboration so as to in-source their CNG vehicles.
2) Pugeot in Europe (a long time FSYS collaborator) has decided to terminate the collaboration so as to in-source their gaseous vehicles.
3) Volkswagon of Shanghai has decided to terminate their collaboration with FSYS so as to produce their gaseous vehicles in-house... actually, this is not a surprise, I assumed that the Chinese would copy FSYS technology as soon as it was in their best interest, that seems to be their modus operandi.
4) An unnamed collaborator in Japan has withdrawn from their collaboration so as to produce their heavy duty vehicles with an in-house diesel-based technology...
5) In-sourcing has also happened with respect to Kia's Picanto model and Hyundai i10 model.
As a value stock, I believe that an FSYS shareholder should assign a current fair value of less than $15/share... That is, current revenue is about $400M/yr with 25% margin. Subtracting 7% R&D and 13% SG&A from the margin leaves 5% for the shareholder (about $20M/yr before CAPX, investments, etc.) There are 20M shares, so the profit will range up to about $1/share, which at a P/E of 15 would translate into a stock price of $15.... The value investor should discount this price because there is no dividend, and because this theoretical $1/share profit has not yet been attained .... not even close in recent quarters.
As a long-term believer in FSYS, I must acknowledge that I am still in denial... On an emotional basis, I believe that there remains substantial growth opportunities. In particular, I hope that
1) FSYS direct injection technology might include patents not easily circumvented by the OEMs.
2) The GM Cruze program or Ford F250 programs might escalate (but this will be shadowed by the possibility of OEM capture).
3) The OEM movement into CNG/LPG/Bi-fuel vehicle production might accelerate the implementation of service station availability. This in turn would accelerate adoption of after-market conversions, a forte of FSYS.
=======
Selected quotes from the 2013Q3 CC:
Fuel Systems Solutions: Extreme Punishment Unjustified
It is perplexing that Wall Street's reaction to Fuel System Solutions' (FSYS) third quarter report (one that actually met expectations, both on the top and bottom lines) was so hateful, that it mercilessly stripped 30% of market value away, in a blink of an eye.
Why was the carnage so brutal? Believe it or not, it was because the company narrowed its full year revenue guidance, to the bottom of its previously stated range of $400 to $420 million. So in effect, a potential reduction of $20 million in revenues, extracted $70 million of market value-pretty preposterous when considering those lost sales, would of generated just $5 million of gross profit. I guess the only explanation for the "sell now, ask questions later" reaction, is the market evidently assumed that the business it is slated to lose from both Volkswagen China and Honda Thailand by year's end, can not be replaced.
An ironic twist: Did the market even pay attention to the obscure fact that if it wasn't for an impairment charge of $1.7 million, the company's earnings would have essentially doubled? The charge was attributable to the purchase of the remaining 50% of its India based Rohan BRC joint venture. Evidently the company overpaid when it initially entered into the JV three years ago.
The conference call: the way it was run, didn't help matters either. The lack of enthusiasm, and robotic delivery, amplified the stock's sell-off. Further weakening the call were the participants very strong Italian accents, which were difficult to understand. The analysts compounded the problem by presenting questions that were off the mark, when it came to the priority of the stock price. Why not ask the obvious? "When are you going to begin a stock buyback"? Maybe that's why they are analysts, instead of traders. Those who can't, "analyze", while those who can, "trade" comes to mind.
Stellar balance sheet: The company holds $74 million in cash and another $13 million in long term German bonds. It has no debt and shareholder equity of $321 million (about $16 per share). If you pull at the company's entries for intangible assets and goodwill of $62 million, its adjusted book value of $13, is still quite respectable.
The quarter revisited: If you look at the third quarter numbers, they were not that bad. Sales rose 9% to $97.6 million, while earnings were 5 cents versus a .03 loss. Gross profit margin swelled 160 basis points to 22.60%. Research and Development Costs dropped from 7.50% to 7.0%,. In the negative column, the company did a poor job in controlling its Selling, General & Administrative costs, rising 5% from 13.2% to 13.8% of sales.
The case for a stock buyback: Just three years ago, FSYS raised $60 million in a secondary offering, by selling 2 million shares at $30 per share. Since then, the company's financial condition has improved substantially, through three years of additional retained earnings, yet shareholders are worst off. Why not initiate a stock buyback plan to buy back those same shares, at less than half the price? Sounds like a good use of corporate funds to me. The act would also send a very powerful message to the street, regarding the company's confidence in its operations and compelling value of its shares.
Others in the space: Westport Innovations (WPRT) and Clean Energy Solutions (CLNE) each have market caps five times greater than FSYS, yet they both produce less sales and earnings and possess inferior balance sheets. Why does the market give a pass to these alternative fuel players, but evaluates FSYS to a much higher standard? I have no idea, but I do look at both of these competitors as potential suitors.
Price to sales ratio: the rage the past few years, in order to justify momentum bubble stocks without earnings, is to judge them by their price to sales ratio. I am not sure how many stocks in the universe have a ratio as low FSYS's. For example, Amazon's (AMZN) price to sales ratio is just 2.10, but FSYS's ratio stands at a mere .66. That means in just 8 months, FSYS will produce more sales than its entire market value. If you compute the ratio based on enterprise value (market cap less cash, plus debt) it falls to just .45 to sales. I would be surprised if any listed company, has a metric lower.
Conclusion: Don't get me wrong, there are many negatives associated with this company that have contributed to its erratic track record. Changing Government incentives, the price of oil and currency exchange fluctuations, just to name a few. In addition, its management team has had a difficult time communicating its vision to the street, and has been less than stellar in learning the art of, "under promising in order to over deliver". The stock is simply unpopular, but that is a good thing, because contrarian investors realize that to make money in the market, it is imperative to buy stocks, when they are unpopular, and sell them when they become popular-how else are you supposed to buy low and sell high?
The good news is these negatives have driven a huge disconnect between the stock's intrinsic value and market value, creating a juicy opportunity for value players to exploit. This stock price is merely a inefficiency, in a efficient market, that will become efficiently priced either through a takeover, or another drastic event. Who knows, maybe activist shareholder Kevin Douglas (he owns 5%), will exert pressure on the Board to unlock shareholder value. In the interim, investors should consider its severely depressed stock price, as the ultimate buying opportunity.
http://seekingalpha.com/article/1827352-fuel-systems-solutions-extreme-punishment-unjustified?source=email_rt_article_readmore&app=1
I think there will be more to the downside.
For the nine months ended September 30, 2013 revenue increased approximately $11.4 million or 3.8%, operating income increased approximately $0.1 million and basic and diluted EPS decreased by $0.13 compared to the prior year’s period.
EPS I suspect is the reason for the 6 dollar hair cut. Definitely will going down further, the drop in PPS with the little volume to get it there suggests that this was probably a correction!
I Like FSYS, but will stay away for now!
Peace!
This is the most undervalued and oversold clean energy stock on the market. I would buy now while the over reaction is at its peak!
I'm thinking this still has room for another 50% hair cut! I can't believe I didn't pull the trigger on $16 puts @.25! Now at $2.30!
sucks!
$FSYS - Fuel Systems Solutions reports EPS in-line, revs in-line; guides FY13 revs in-line
7:03 AM ET 11/7/13 | Briefing.com
Reports Q3 (Sep) earnings of $0.05 per share, in-line with the Capital IQ Consensus Estimate consensus of $0.05; revenues rose 8.9% year/year to $97.6 mln vs the $97.57 mln consensus.
Guidance:
Co issues in-line guidance for FY13, sees FY13 revs of lower end of prior guide of $400-420 mln vs. $416.06 mln Capital IQ Consensus Estimate. The outlook for 2013 gross margin of 21% to 23% and for 2013 operating margin of 2% to 4% are reaffirmed.
This updated outlook is based upon the following expectations: Automotive operations -- slower global transportation market given increasingly aggressive competition and the difficult economies in developing countries and Europe, and the timing of certain major projects and initiatives in the fourth quarter of 2013 and into the future. The slower markets will be partially offset by contributions from DOEM programs, particularly in the US, combined with additional contributions from Asia and Latin American automotive markets. Industrial operations -- growth in the APU market; slight growth in stationery equipment and mobile industrial markets overall with a mix of stable and weaker geographies. A comparable margin performance in 2013 relative to 2012 as the Company focuses on achieving greater operational efficiencies given some margin compression expected from an increasingly competitive environment; continued selected investments in key leading edge technologies.
Bird-splitter, I liked your recent YMB summation; i.e.
$FSYS - Fuel Systems Solutions Inc's CEO Discusses Q1 2013 Earnings Results - Earnings Call Transcript
http://seekingalpha.com/article/1415861-fuel-systems-solutions-inc-s-ceo-discusses-q1-2013-earnings-results-earnings-call-transcript?source=email_rt_article_title
$FSYS - Fuel Systems Solutions Reports First Quarter 2013 Results
May 8, 2013 06:30:03 (ET)
NEW YORK, May 8, May 08, 2013 (GLOBE NEWSWIRE via COMTEX) -- First Quarter Revenue of $98.6 Million
Operating Income of $1.1 Million; Pretax Income of $0.8 Million
Fuel Systems Solutions, Inc. reported results for its first quarter ended March 31, 2013.
Mariano Costamagna, Fuel Systems' CEO, said, "First quarter revenues were largely as anticipated as we focused on efficient execution and continued innovation. In our Automotive segment, DOEM conversions, particularly in Italy and the US were solid, offset to some degree by weaker aftermarket sales as our marketplaces become increasingly competitive amid a tough global economy. We are promoting our premier brand position in the aftermarket by working closely with our dealer network to communicate our value proposition and by investing in new products that broaden our solutions offering. Our Industrial segment saw softer sales from heavy duty commercial vehicles, while APU and engine volumes were stronger. We remain focused for this year on managing costs to maximize profitability while further investing in advancing our brand presences and technological leadership and adding to our customer relationships around the world."
First Quarter 2013 Financial Results
Revenue for the first quarter of 2013 was $98.6 million compared to $97.4 million in the first quarter of 2012. Automotive revenue increased $3.0 million primarily reflecting DOEM and OEM increases in Europe, offset partially by softer aftermarket trends in global markets. Industrial revenue decreased $1.8 million primarily reflecting lower heavy duty volumes in Asia offset by higher APU and engine sales in North America. Included in the above results is the impact of foreign exchange, which negatively impacted revenues by $0.2 million in the first quarter of 2013.
Gross profit for the first quarter of 2013 was $21.6 million, or 21.9% of revenue, compared to $22.6 million, or 23.2% of revenue in the first quarter of 2012, reflecting changes in the sales mix. Operating income for the first quarter of 2013 totaled $1.1 million, or 1.2% of revenue, compared to an operating income of $1.0 million, or 1.1% of revenue, in the first quarter of 2012, reflecting the lower gross profit offset by a modest decrease in operating expenses.
EBITDA for the first quarter of 2013 was $4.4 million, or 4.4% of revenue, compared to $5.4 million, or 5.5% of revenue, in the first quarter of 2012, primarily reflecting the abovementioned revenue and cost variances. EBITDA is a non-GAAP measure. See "Non-GAAP Measures" below for a discussion of this metric.
Income before tax for the first quarter of 2013 was $0.8 million, or 0.8% compared to $0.9 million or 0.9% for the first quarter of 2012. The tax rate for the first quarter of 2013 was 189% compared to 231% in the prior year first quarter. The Company operates in an international environment with significant operations in various locations outside of the United States which have statutory tax rates that are different from the US tax rate. Accordingly the consolidated income tax rate is a composite rate reflecting the earnings in various locations and the applicable rates. The unusually high income tax rates are primarily a result of the fluctuation of earnings in various jurisdictions and losses incurred in the US and certain foreign jurisdictions for which no tax benefits have been recorded. The Company expects its effective tax rate for 2013 to be approximately 54%.
Net loss for the first quarter of 2013 was $0.7 million, or $0.04 per diluted share, compared to net loss of $1.2 million, or $0.06 per diluted share, in the first quarter of 2012.
A table presenting historical reclassified operating segment data can be found in the tables contained at the end of this release.
FSS Automotive Operations
FSS Automotive first quarter 2013 revenue was $66.7 million, compared to $63.7 million from the same quarter a year ago. The impact of foreign exchange on FSS Automotive was a positive $0.4 million; in constant currency, first quarter FSS Automotive revenue increased 4.0%, reflecting DOEM and OEM increases in Europe. FSS Automotive first quarter 2013 operating income was $0.3 million, compared to an operating loss of $1.4 million in the same period a year ago. FSS Automotive first quarter 2013 EBITDA was $3.3 million, compared to $2.1 million a year ago.
FSS Industrial Operations
Revenue from FSS Industrial was $31.9 million compared to $33.7 million the same quarter a year ago. The impact of foreign exchange on FSS Industrial was a negative $0.6 million; in constant currency, first quarter FSS Industrial revenue decreased 3.5%, primarily reflecting lower revenue from the heavy duty business in Asia. FSS Industrial first quarter 2013 operating income was $2.5 million, compared to operating income of $4.6 million in the same period a year ago. FSS Industrial first quarter 2013 EBITDA was $2.7 million, compared to $5.5 million a year ago, which reflects the above-mentioned revenue reduction in Asia and an overall change in the business mix.
Company Outlook
The Company is reaffirming its previous outlook and continues to expect full year 2013 revenue to be between $400 million and $420 million, 2013 gross margin of 21% to 23%, and 2013 operating margin of 2% to 4%. This outlook is based upon the following expectations:
-- Automotive operations - growth in OEM and DOEM programs, particularly in the US and Italy, combined with contributions from Asia and Latin American automotive markets; partially offset by a slower transportation aftermarket given increasingly aggressive competition in developing countries and Europe.
-- Industrial operations - growth in APU market, aided by the launch of new battery products; slight growth in stationery equipment and mobile industrial markets overall with a mix of stable and weaker geographies.
-- A comparable margin performance in 2013 relative to 2012 as the Company focuses on achieving greater operational efficiencies given some margin compression expected from an increasingly competitive environment; continued selected investments in key leading edge technologies.
Non-GAAP Measures
To provide investors and others with additional information regarding Fuel Systems' results, in addition to the results presented in accordance with generally accepted accounting principles, or GAAP, in this press release, Fuel Systems presents EBITDA, which is a non-GAAP measure. A reconciliation of this non-GAAP measure to the closest GAAP financial measure is presented in the financial tables below under the heading "Non-GAAP FINANCIAL MEASURE RECONCILIATION." EBITDA is determined by adding the following items to Net Income, the closest GAAP financial measure: Net Income attributable to non-controlling interest; Depreciation & Amortization; Interest income, net; and Benefit (Provision) for Income Taxes. Fuel Systems' management believes this non-GAAP financial measure offers additional insight into the Company's ongoing business in a manner that allows for meaningful period-to-period comparisons and analysis of trends in the business, as it excludes certain non-cash items. This non-GAAP financial measure also can provide useful information to investors and others in understanding and evaluating Fuel Systems' operating results and future prospects when comparing financial results across accounting periods and to those of peer companies. Fuel Systems may not define this non-GAAP financial measure in a manner similar to other companies.
Conference Call
The Company will host a conference call today, May 8 at 11:00 a.m. Eastern Time / 8:00 a.m. Pacific Time to discuss its first quarter 2013 financial results and other matters. To listen to the call live, please dial 877-356-8063 at least 10 minutes before the start of the conference. International participants may dial 706-679-2544. The conference ID will be 57139822. The call will be webcast and can be accessed from the "Investor Relations" section of the company's website at http://www.fuelsystemssolutions.com/ . A telephone replay will be available until midnight Eastern Time on May 13 by dialing 855-859-2056 or 404-537-3406 and entering pass code 57139822. A replay will also be available at the web address above for 90 days.
Forward-Looking Statements
This press release contains certain forward-looking statements that involve risks and uncertainties, including, without limitation, expressed or implied statements concerning the Company's outlook for 2013, as well as its position in the market place, the success of its products and its effective tax rate for the year. Such statements represent only our opinions and predictions. The Company's actual results may differ materially. Factors that may cause the Company's results to differ include, but are not limited to a further slowing of economic activity, our ability to reduce our cost structure and expenses as anticipated; the unpredictable nature of the developing alternative fuel US automotive market; the availability of gaseous fueling infrastructure in our markets globally; unanticipated economic uncertainties caused by political instability in certain of the local markets we do business in; the growth of non-gaseous alternative fuel products and other new technologies; currency rate fluctuations and devaluations; our ability to promptly realign costs with current market conditions; unanticipated litigations; differences in the tax policies of each country from which the Company derives income that would impact our effective tax rate; potential changes in tax policies and government incentives and their effect on the economic benefits of our products to consumers; the continued weakness in financial and credit markets and the economy; and the repeal or implementation of government regulations relating to reducing vehicle emissions. Readers also should consider the risk factors set forth in the Company's reports filed with the Securities and Exchange Commission, including, but not limited to, those contained in the "Risk Factors" section of the Company's Annual Report on Form 10-K, for the year ended December 31, 2012. The Company does not undertake to update or revise any of its forward-looking statements.
About Fuel Systems Solutions
Fuel Systems Solutions is a leading designer, manufacturer and supplier of proven, cost-effective alternative fuel components and systems for use in transportation and industrial applications. Fuel Systems' components and systems control the pressure and flow of gaseous alternative fuels, such as propane and natural gas, used in internal combustion engines. These components and systems feature the Company's advanced fuel system technologies, which improve efficiency, enhance power output and reduce emissions by electronically sensing and regulating the proper proportion of fuel and air required by the internal combustion engine. In addition to the components and systems, the Company provides engineering and systems integration services to address unique customer requirements for performance, durability and configuration. Additional information is available at www.fuelsystemssolutions.com .
FUEL SYSTEMS SOLUTIONS, INC.
CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share and Per Share Data)
(Unaudited)
March 31, December 31,
2013 2012
ASSETS
Current assets:
Cash and cash equivalents $ 68,051 $ 75,675
Accounts receivable, less allowance for doubtful accounts of $4,050 and $4,349 at March 31, 2013 and December 31, 2012, respectively 75,872 75,191
Inventories 106,401 104,056
Deferred tax assets, net 8,355 7,999
Other current assets 17,178 14,815
Related party receivables 5,822 5,205
Total current assets 281,679 282,941
Equipment and leasehold improvements, net 56,665 59,368
Goodwill, net 47,780 49,218
Deferred tax assets, net 4,749 5,008
Intangible assets, net 14,015 15,186
Other assets 1,267 861
Long-term investments 12,606 7,236
Total Assets $ 418,761 $ 419,818
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable $ 51,447 $ 42,483
Accrued expenses 40,261 42,156
Income taxes payable 4,078 2,804
Current portion of term loans and debt 303 308
Deferred tax liabilities, net 163 305
Related party payables 4,019 4,100
Total current liabilities 100,271 92,156
Term and other loans 659 713
Other liabilities 8,263 8,354
Deferred tax liabilities 1,636 1,548
Total Liabilities 110,829 102,771
Equity:
Preferred stock, $0.001 par value, authorized 1,000,000 shares; none issued and outstanding at March 31, 2013 and December 31, 2012 -- --
Common stock, $0.001 par value, authorized 200,000,000 shares; 20,061,887 issued and 20,053,888 outstanding at March 31, 2013; and 20,061,887 issued
and 20,039,020 outstanding at December 31, 2012 20 20
Additional paid-in capital 319,746 319,667
Shares held in treasury, 7,999 shares at March 31, 2013 and December 31, 2012 (294) (305)
Accumulated Deficit (1,000) (275)
Accumulated other comprehensive loss (10,540) (2,060)
Total Equity 307,932 317,047
Total Liabilities and Equity $ 418,761 $ 419,818
FUEL SYSTEMS SOLUTIONS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Share and Per Share Data)
(Unaudited)
Three Months Ended
March 31,
2013 2012
Revenue $ 98,600 $ 97,390
Cost of revenue 76,982 74,828
Gross profit 21,618 22,562
Operating expenses:
Research and development expense 6,525 6,900
Selling, general and administrative expense 13,956 14,620
Total operating expenses 20,481 21,520
Operating income 1,137 1,042
Other expense, net (335) (207)
Interest income, net 16 80
Income from operations before income taxes and non-controlling interest 818 915
Income tax expense (1,543) (2,117)
Net loss attributable to Fuel Systems Solutions, Inc. (725) (1,202)
Net loss per share attributable to Fuel Systems Solutions, Inc.:
Basic $ (0.04) $ (0.06)
Diluted $ (0.04) $ (0.06)
Number of shares used in per share calculation:
Basic 20,049,428 20,014,318
Diluted 20,049,428 20,014,318
FUEL SYSTEMS SOLUTIONS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
(Unaudited)
Three Months Ended
March 31,
2013 2012
Cash flows from operating activities:
Net loss $ (725) $ (1,202)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and other amortization 2,755 2,588
Amortization of intangibles arising from acquisitions 826 1,955
Provision for doubtful accounts -- 236
Write down of inventory 100 40
Deferred income taxes (484) (379)
Unrealized loss (gain) on foreign exchange transactions 795 (95)
Compensation expense related to equity awards 79 301
(Gain) loss on disposal of equipment and other assets (415) 294
Reduction of contingent consideration (406) --
Changes in assets and liabilities, net of acquisitions:
Increase in accounts receivable (2,873) (10,252)
Increase in inventories (5,482) (4,021)
(Increase) decrease in other current assets (2,771) 208
(Increase) decrease in other assets (640) 83
Increase (decrease) in accounts payable 10,920 (4,420)
Increase (decrease) in income taxes payable 1,433 (599)
(Decrease) increase in accrued expenses (426) 2,166
Increase (decrease) in long-term liabilities 95 (260)
Receivables from/payables to related party, net (805) 395
Net cash provided by (used in) operating activities 1,976 (12,962)
Cash flows from investing activities:
Purchase of equipment and leasehold improvements (2,330) (3,811)
Purchase of investments (12,626) (11,930)
Sale of investments 6,753 --
Acquisition, net of cash acquired -- (5,017)
Amount in restricted cash for acquisition of non-controlling interest -- 2,820
Other 75 37
Net cash used in investing activities (8,128) (17,901)
Cash flows from financing activities:
Decrease in callable revolving lines of credit, net -- (1,121)
Payments on term loans and other loans (34) (39)
Acquisition of non-controlling interest -- (2,820)
Other 11 18
Net cash used in financing activities (23) (3,962)
Net decrease in cash and cash equivalents (6,175) (34,825)
Effect of exchange rate changes on cash (1,449) 1,029
Net decrease in cash and cash equivalents (7,624) (33,796)
Cash and cash equivalents at beginning of period 75,675 96,740
Cash and cash equivalents at end of period $ 68,051 $ 62,944
FUEL SYSTEMS SOLUTIONS, INC.
OPERATING SEGMENT INFORMATION
(In Thousands)
(Unaudited)
Three Months Ended
March 31,
Revenue: 2013 2012
FSS Industrial $ 31,946 $ 33,731
FSS Automotive 66,654 63,659
Total $ 98,600 $ 97,390
Three Months Ended
March 31,
Operating Income (Loss): 2013 2012
FSS Industrial $ 2,462 $ 4,630
FSS Automotive 262 (1,368)
Corporate Expenses (1) (1,587) (2,220)
Total $ 1,137 $ 1,042
(1) Represents corporate expense not allocated to either of the business segments.
FUEL SYSTEMS SOLUTIONS, INC.
NON-GAAP FINANCIAL MEASURE RECONCILIATION
(In thousands) (Unaudited)
Three Months Ended
March 31,
Segment EBITDA: 2013 2012
FSS Industrial $2,663 $5,527
FSS Automotive 3,288 2,068
Corporate (1,568) (2,217)
Total EBITDA (Non-GAAP) $4,383 $5,378
Reconciliation:
Interest income, net 16 80
Provision for Income taxes (1,543) (2,117)
Depreciation & Amortization (3,581) (4,543)
Net Loss attributable to Fuel Systems Solutions, Inc ($725) ($1,202)
CONTACT: Company Contact:
Pietro Bersani, Chief Financial Officer
Fuel Systems Solutions, Inc.
(646) 502-7170
Investor Relations Contacts:
LHA
Carolyn M. Capaccio
ccapaccio@lhai.com
Cathy Mattison
cmattison@lhai.com (415) 433-3777
http://media.globenewswire.com/cache/10565/small/7377.jpg
http://www.globenewswire.com/newsroom/ti?nf=MTMjMTAwMzE4OTgjMTA1NjU=
Fuel Systems Solutions, Inc. Announces Timing of First Quarter 2013 Results
Apr 25, 2013 06:30:11 (ET)
NEW YORK, April 25, Apr 25, 2013 (GLOBE NEWSWIRE via COMTEX) -- Fuel Systems Solutions, Inc. intends to release its first quarter 2013 financial results before the market opens on May 8, 2013. The company plans to host a conference call and simultaneous webcast that same day at 11:00 a.m. ET/8:00 a.m. PT featuring remarks by management and followed by a question and answer session.
To listen to the call live, please dial 877-356-8063 at least 10 minutes before the start of the conference. International participants may dial 706-679-2544. The conference ID will be 57139822. The call will be webcast and can be accessed from the "Investor Relations" section of the company's website at http://www.fuelsystemssolutions.com/ . A telephone replay will be available until midnight Eastern Time on May 13 by dialing 855-859-2056 or 404-537-3406 and entering pass code 57139822. A replay will also be available at the web address above for 90 days.
About Fuel Systems Solutions
Fuel Systems Solutions is a leading designer, manufacturer and supplier of proven, cost-effective alternative fuel components and systems for use in transportation and industrial applications. Fuel Systems' components and systems control the pressure and flow of gaseous alternative fuels, such as propane and natural gas, used in internal combustion engines. These components and systems feature the Company's advanced fuel system technologies, which improve efficiency, enhance power output and reduce emissions by electronically sensing and regulating the proper proportion of fuel and air required by the internal combustion engine. In addition to the components and systems, the Company provides engineering and systems integration services to address unique customer requirements for performance, durability and configuration. Additional information is available at www.fuelsystemssolutions.com .
Investor Relations Contacts:
LHA
Carolyn M. Capaccio
ccapaccio@lhai.com
Cathy Mattison
cmattison@lhai.com
(415) 433-3777
http://media.globenewswire.com/cache/10565/small/7377.jpg
http://www.globenewswire.com/newsroom/ti?nf=MTMjMTAwMjk5NzUjMTA1NjU=
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Business Summary |
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Fuel Systems Solutions, Inc. designs, manufactures, and supplies alternative fuel components and systems for use in the transportation, industrial, and power generation industries worldwide. The company operates through two segments, FSS Automotive and FSS Industrial. Its components and systems control the pressure and flow of gaseous alternative fuels, such as propane and natural gas used in internal combustion engines. The company offers a range of components, systems, and solutions, including fuel delivery products, such as pressure regulators, fuel injectors, and flow control valves and other components designed to control the pressure, flow, and/or metering of gaseous fuels; electronic controls comprising solid-state components and proprietary software that monitor and optimize fuel pressure, and flow to meet manufacturers? engine requirements; and gaseous fueled internal combustion engines that are integrated with its fuel delivery and electronic controls. It also provides systems integration support services to integrate the gaseous fuel storage, fuel delivery, and/or electronic control components and sub-systems; auxiliary power systems for truck and diesel locomotives; and natural gas compressors and refueling systems for light and heavy duty refueling applications. The company sells its transportation products to automobile manufacturers, taxi companies, transit and shuttle bus companies, and delivery fleets; and industrial products to the manufacturers of industrial mobile and power generation equipment, stationary engines, and heavy duty trucks and buses. It offers its products through a network of distributors and dealers, as well as through a sales force network. Fuel Systems Solutions, Inc. was founded in 1958 and is based in New York, New York.
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