According to the agreement, A123 will develop battery systems for Navistar’s EV and it is expected that these A123 battery systems will be manufactured in A123’s Livonia, Mich. facility, slated to open in March 2010. Rather than converting an existing, conventional fossil fuel powered truck, Navistar’s EV is a commercial electric vehicle that is purpose-built to be electric as it balances the needs of business and the environment. With zero tailpipe emissions, the Navistar EV can potentially reduce greenhouse gas emissions by as much as 10 tons annually, when compared to an equivalent diesel-powered vehicle.
The Navistar EV has a Gross Vehicle Weight (GVW) rating of 12,100 pounds and a payload capacity of two tons. The vehicle will be assembled in Wakarusa, Indiana, and is scheduled for launch in mid-2010.
"A123 is proud to partner with Navistar on an electric vehicle that will reduce operating emissions in urban areas," said Jason Forcier, Vice President, A123 Systems Automotive Solutions Group. "Our ability to achieve impressive range with a battery that is safe, durable and reliable is a natural fit for Navistar’s electric vehicle program, and we are thrilled to showcase the U.S. advancements in the electrification of commercial transportation in Navistar’s vehicles."
A123’s battery pack will enable the Navistar EV to travel a distance of approximately 100 miles on pure electricity before needing to be recharged. The battery pack will be capable of a rapid charge rate and will have a charge time dependent on the power of the charging system applied.
"Navistar is a proven leader in worldwide commercial transportation and by introducing an electric vehicle into our offering, we are proud to offer our customers an alternative that will have a positive impact on the environment and reduce our nation’s dependence on foreign oil," said Shane Terblanche, Navistar general manager, electric vehicles.
A123 Systems Announces Fourth Quarter and Full Year 2009 Financial Results
A123 Systems (Nasdaq:AONE), a developer and manufacturer of advanced Nanophosphate™ lithium ion batteries and battery systems, today announced financial results for the fourth quarter and full year ended December 31, 2009.
David Vieau, CEO of A123 Systems, said, "The fourth quarter capped off a record year for A123 Systems and our momentum is strong entering 2010. In recent months we signed new or expanded relationships with Fisker Automotive and SAIC Motor in the passenger vehicle market, as well as Navistar in the heavy duty vehicle market. We also shipped battery systems to Southern California Edison Company (SCE) during the fourth quarter, and SCE and DTE energy won DOE awards for projects that were designed based on A123’s advanced lithium ion batteries."
Vieau added, "With our IPO proceeds in place and the closure of our DOE grant during the fourth quarter, we are investing aggressively in worldwide sales, R&D and manufacturing capacity. We recently announced a 120 megawatt-hour capacity expansion to our Livonia, Michigan facility. We are today announcing a further capacity increase of 200 megawatt-hours, which is expected to increase A123’s final cell manufacturing capacity to approximately 560 megawatt-hours when the new capacity moves into production. Demand is strong across our expanded portfolio of customers, and 2010 will be a year of focus on execution and establishing the foundation to support significant growth in 2011 and 2012 as customer programs are expected to move into full scale production."
Financial Highlights
Revenue: Total revenue for the fourth quarter of 2009 was $24.5 million, compared to $23.6 million for the fourth quarter of 2008. Within total revenue, product revenue was $19.9 million, compared to $21.4 million in the fourth quarter of 2008, and research and development services revenue was $4.7 million, compared to $2.3 million in the year ago period.
Total revenue for the year ended December 31, 2009, was $91.0 million, an increase of 33% compared to the year ended 2008. Product revenue for the year ended 2009 of $76.5 million increased 43% compared to the year ended 2008, and research and development services revenue of $14.5 million decreased from $15.0 million over the same time period.
Gross Profit/(Loss): Gross loss was ($48,000) in the fourth quarter of 2009, compared to ($8.5) million in the fourth quarter of 2008. For the year ended December 31, 2009, gross loss was ($2.7) million, compared to ($12.2) million for the full year 2008.
Net Income/(Loss): Net loss attributable to A123 Systems common stockholders was ($22.3) million, or ($0.22) per share, based on 102.5 million weighted average common shares outstanding in the fourth quarter of 2009. This compared to a net loss attributable to A123 Systems common stockholders of ($28.5) million in the fourth quarter of 2008, or ($3.08) per share based on 9.2 million weighted average common shares outstanding.
For the year ended December 31, 2009, net loss attributable to A123 Systems common stockholders was ($85.8) million, or ($2.55) per share based on 33.7 million weighted average common shares outstanding. This compares to a net loss attributable to A123 Systems common stockholders of ($80.5) million for the full year 2008, or ($9.04) based on 8.9 million weighted average common shares outstanding.
Adjusted EBITDA: Adjusted EBITDA, a non-GAAP financial measure, was ($17.4) million in the fourth quarter of 2009, compared to ($25.3) million in the fourth quarter of 2008. For the year ended December 31, 2009, Adjusted EBITDA was ($63.7) million, compared to ($66.9) million for the full year 2008.
A reconciliation of GAAP to non-GAAP results has been provided in the financial statement tables included at the end of this press release. An explanation of these measures is also included below under the heading "Non-GAAP Financial Measures."
Cash: A123 Systems had cash and cash equivalents of $457 million at December 31, 2009, a decrease from $494 million at the end of the prior quarter.
Other Fourth Quarter and Full Year Business Metrics
Revenue Mix: During the fourth quarter of 2009, transportation revenue was $11.3 million, electric grid revenue was $4.8 million and consumer revenue was $3.8 million, compared to a revenue mix of $7.6 million, $2.9 million and $10.9 million, respectively, in the fourth quarter of 2008.
For the full year 2009, transportation revenue grew 359% to $45.3 million, electric grid revenue grew 282% to $11.1 million and consumer revenue decreased 51% to $20.1 million, each compared to the full year 2008.
Product shipments: During the fourth quarter of 2009, A123 Systems recorded product shipments equivalent to 21.7 million watt hours, compared to 13.3 million in the year ago quarter. For the full year 2009, product shipments were equivalent to 66.5 million watt hours, compared to 44.9 million for the full year 2008.
A123 Systems, Inc. (Nasdaq:AONE) develops and manufactures advanced lithium ion batteries and battery systems for the transportation, electric grid services and consumer markets. Headquartered in Massachusetts and founded in 2001, A123 Systems’ proprietary nanoscale electrode technology is built on initial developments from the Massachusetts Institute of Technology. Among the companies selecting A123 batteries, battery systems and technology in the fields of transportation, grid energy storage and consumer products are AES Energy Storage, LLC, BAE Systems, The Black & Decker Corporation, BMW, Daimler, Delphi, Fisker Automotive, and Shanghai Automotive Industry Corporation.
Navistar International Corporation (NYSE:NAV) is a holding company whose subsidiaries and affiliates produce International® brand commercial and military trucks, MaxxForce® brand diesel engines, IC Bus™ brand school and commercial buses, Monaco RV brands of recreational vehicles, and Workhorse® brand chassis for motor homes and step vans. It also is a private-label designer and manufacturer of diesel engines for the pickup truck, van and SUV markets. The company also provides truck and diesel engine service parts. Another affiliate offers financing services.
