FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934
October 14, 1999
Date of Report (Date of earliest event reported)
Unique Mobility, Inc.
(Exact name of registrant as specified in its charter)
1-10869
(Commission file number)
Colorado 84-0579156
(State or other jurisdiction (IRS Employer
of incorporation) Identification No.)
425 Corporate Circle, Golden, Colorado 80401
(Address of principal executive offices)
(303) 278-2002
(Registrant's telephone number, including area code)
ITEM 5. OTHER EVENTS
On October 14, 1999, Unique Mobility, Inc. ("Unique") released the press release
attached hereto as Exhibit 99.1.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
c. Exhibits
Exhibit No. Description
99.1 Press Release
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Unique Mobility, Inc., Registrant
October 15, 1999
/s/ Donald A. French
Donald A. French, Treasurer
(Principal Financial and Accounting
Officer)
THE WALL STREET GROUP, INC. Company Contact: John S. Gould
32 East 57th Street Director, Investor Relations
New York, New York 10022 Unique Mobility, Inc.
212-888-4848 303-278-2002
For Immediate Release: 00-06
UNIQUE MOBILITY SHIFTS EMPHASIS TO NEAR-TERM OPPORTUNITIES;
COMPANY ANNOUNCES SECOND QUARTER WRITE-DOWN OF THREE JOINT VENTURES;
NEW CEO SETS GOAL OF PROFITABILITY FOR FOURTH FISCAL QUARTER
GOLDEN, COLORADO, October 14, 1999 .... UNIQUE MOBILITY, INC. (AMEX:UQM), a
leading developer and manufacturer of high efficiency motor/generator systems,
announced today that, following a reassessment of its investments, it will take
a charge against earnings for its second quarter ended September 30, 1999 of
approximately $4.5 million or $.27 per share arising from the write-down of its
investments in three joint ventures; Unique Mobility Europa GmbH, Taiwan UQM
Electric Co., Ltd. and EV Global Motors Company and a charge associated with the
retirement of the Company's former CEO.
In commenting on the write-down, William G. Rankin, Unique's recently appointed
President and Chief Executive Officer, said "Our investments in these joint
ventures were directed toward participating in a potentially large emerging
market for `electric' automobiles, scooters and bicycles, however, these markets
are developing slower than expected and the timing of revenue levels sufficient
to provide a return on our invested capital has become more uncertain. This
action was taken at this time as a result of the divergence of these joint
venture activities from those of our core businesses. Although `electric'
vehicles will likely meet with acceptance in selected `niche' markets, industry
focus has shifted to `hybrid electric' vehicles which have the potential to
achieve broad market acceptance. We believe that the market for `electric'
vehicles could be a significant source of revenue for the Company in the distant
future, and we expect to continue to support the efforts of our partners to gain
significant market share when and if these markets emerge. We are committed to
the rapid commercialization of our proprietary technology in existing and
near-term markets and to achieving revenue growth and profitability over a
relatively short cycle. We are seeing signs of accelerating demand in all of our
core businesses and believe that increased product development contracts, motor
and gear production and electronic assembly production will contribute to
meeting our goal of profitability for the fourth fiscal quarter."
Mr. Rankin added "Today's announcement should by no means be seen as a move away
from exploiting Unique's technology in advanced vehicle applications. To the
contrary, we are actively involved in a wide range of exciting product
developments including a `hybrid electric' drive system for one of the `big
three' automakers, a $750,000 Department of Energy sponsored development of a
state-of-the-art, power dense, advanced automotive propulsion system, generators
and wheel motor systems for `hybrid electric' military vehicles including the
Hummer, generators and wheel motor systems for various
<PAGE>
`hybrid electric' bus developers and manufacturers, compressor motors for fuel
cell application and other vehicle auxiliaries including air conditioning
compressor drives, DC to DC power converters and high frequency battery
chargers. Our focus is to move these developed products into production as soon
as practicable. In addition, we are leveraging these developments into existing
markets; wind turbines, stationary power generators and industrial vehicles,
just to name a few. With our new, modern manufacturing operations in place, we
are well positioned to begin volume production of these products as they move
into the commercial marketplace."
Donald A. French, Unique's Treasurer and Chief Financial Officer said "After the
write-down of these investments, our balance sheet will appropriately reflect
capital assets that are all actively deployed in generating revenue and a return
on invested capital. Operations for the second quarter before the asset
write-down and a charge associated with the retirement of the Company's former
CEO in August, are expected to result in EBITDA of $0.01 per share and a net
loss of $0.03 per share. Our balance sheet remains strong following these
write-offs with cash and available borrowing capacity on short-term lines of
credit of approximately $2.7 million and shareholders' equity of approximately
$13 million. We will continue to focus our operations on accelerated
commercialization of our technology portfolio, continued growth of our
manufacturing activities and achieving our goal of profitable operations for the
fourth quarter. We believe that focusing the Company's operations on these
objectives will yield the best results for our shareholders."
Unique Mobility, Inc. is a leading developer and manufacturer of power dense,
high efficiency motors, gear assemblies and electronic assemblies for the
automotive, aerospace, telecommunications, medical and industrial markets. The
Company's headquarters and engineering and product development center are
located in Golden, Colorado. Manufacturing facilities are located in Frederick,
Colorado (electric motors and gear assemblies) and St. Charles Missouri
(electronic assemblies and wire harnesses).
This press release contains forward-looking statements that involve risks and
uncertainties. Examples of forward-looking statements are statements of the
Company's expectations regarding future financial results and its ability to
further commercialize its technology and increase its manufacturing activities.
These statements may differ materially from actual future events or results.
Readers are referred to the Risk Factors section of the Registration Statement
on Form S-3 (File No. 333-78525) filed by the Company with the SEC, which
identifies important risk factors that could cause actual results to differ from
those contained in the forward-looking statements, including the Company's
ability to become profitable and its ability to obtain additional financing, the
Company's reliance on major customers and suppliers, potential impacts from Year
2000 issues and the possibility that product liability insurance may become
unavailable. These forward-looking statements represent the Company's judgment
as of the date of the press release. The Company disclaims, however, any intent
or obligation to update these forward-looking statements.
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