Printer Friendly


Company Moves Into Larger, Orange County, Calif.-Based Headquarters With
 Extensive Laboratory and Customer Service Facilities
 SANTA ANA, Calif., Nov. 10 /PRNewswire/ -- Urethane Technologies Inc. (NASDAQ: UTEC) today announced higher third quarter and nine-month revenues for the period ended Sept. 30, 1993, of $884,000 and $2.2 million, respectively, compared with $489,000 and $1.7 million a year ago.
 In the third quarter 1993, the company showed a net loss of $844,000, or $0.12 per share, compared with a net loss of $585,000, or $0.10 per share, in the year-ago quarter. For the nine-month period, the company posted a net loss of $2.4 million, or $0.35 per share, vs. a net loss of $2.6 million, or $0.48 per share, a year ago. The prior year's nine-month period included a $500,000 non-cash litigation settlement expense.
 Chemical sales revenues in the third quarter and nine months 1993 increased 68 percent to $871,000 and 67 percent to $2.1 million, respectively, from year-earlier levels. On Sept. 30, 1993, Urethane Technologies had $7.9 million in working capital, an increase of $6.3 million from a year ago.
 Commenting on the quarter's results, Roy McClellan, president, said, "While chemical sales continued to grow, Urethane Technologies in the third quarter began to implement a more aggressive marketing strategy to increase sales of our proprietary technology and chemical compounds for both existing and new applications.
 "Don Artinger, who joined us as national sales manager last month, has already retained independent sales representatives in the Midwest and South -- all with extensive urethane experience -- to generate sales of our polyurethane technology in existing domestic markets. They are concentrating on existing demand from manufacturers with applications where our chemical compounds are highly competitive, enabling Urethane Technologies to quickly broaden the base of applications for our technology and produce additional sources of income. These existing urethane applications include integral skin foams for furniture and recreational products and elastomer materials such as mold-making compounds used to produce ceramic and polyester articles."
 Jim Orefice, Urethane Technologies chief operating officer, said, "We are developing new sales opportunities for our microcellular, flat- free bicycle tire technology in the Asian market, which we are increasingly confident offers tremendous potential for the company in 1994. We are focusing on large, well established manufacturing concerns in Asia in addition to our efforts with previously identified potential customers.
 "In Europe, we have refocused our marketing activities by releasing our previous European area sales agent and now are dealing directly with existing and potential customers. We have excellent relationships with European chemical raw material suppliers, blending houses and equipment suppliers, and, with their input, are evaluating a combination of in- house and outside marketing resources to develop that market further."
 In an update on research and development, McClellan said, "The bathroom fixture agreement with Vermax, announced in September, is in place, and the product development is processing as planned. Our athletic shoe sole development project is going well; efforts are now centered on production and molding equipment. We are also continuing to develop our technology for composite polyurethane/rubber industrial tires."
 Discussing the company's Oct. 28 move to new headquarters, McClellan explained, "We are all excited to be in the new facility. We had outgrown the Irvine facility, and our new headquarters, in a designated trade enterprise zone in Santa Ana, Calif., will accommodate the rapid growth we envision over the next couple of years. We have nearly doubled our space to 35,000 square feet and gained extensive research and customer service laboratory facilities from the previous tenant, all at virtually the same lease cost as we had paid in Irvine.
 "The Santa Ana facility is modern, will show well to new and existing customers, and constitutes a substantial increase in our operational capabilities and overall company development," McClellan concluded.
 Urethane Technologies develops and markets proprietary polyurethane systems as well as production technology which the company licenses and sells to original equipment manufacturers. Applications now in commercialization include flat-free microcellular bicycle tires, integral skin flexible foams, and cast elastomers. Applications in development include bathroom and kitchen fixtures, athletic shoe soles and shoe sole components, and composite polyurethane/rubber industrial tires.
 For information on Urethane by fax, dial 800-PRO-INFO, ext. 171.
 Consolidated Statements of Operations
 Three Months Ended Nine Months Ended
 Sept. 30, Sept. 30,
 1993 1992 1993 1992
 Revenues $883,898 $489,178 $2,172,208 $1,702,406
 Cost of sales 756,935 349,849 1,868,564 1,518,816
 Gross profit 126,963 139,329 303,644 183,590
 SG&A 886,710 702,736 2,439,802 2,144,326
 R&D 161,772 48,495 443,835 163,115
 settlement --- --- --- 500,000
 Operating expenses 1,048,482 751,231 2,883,637 2,807,441
 Operating loss (921,519) (611,902) (2,579,993) (2,623,851)
 Other income 77,207 26,416 228,869 59,121
 Net loss ($844,312) ($585,486) ($2,351,124) ($2,564,730)
 Net loss per share ($0.12) ($0.10) ($0.35) ($0.48)
 Weighted average
 number of shares
 outstanding 6,973,646 5,953,413 6,625,335 5,360,014
 Consolidated Balance Sheets
 Sept. 30, Dec. 31,
 1993 1992
 Cash and cash equivalents $6,005,014 $1,239,023
 Short-term investment 1,020,000 ---
 Accounts receivable, net 400,726 249,848
 Inventories, net 244,257 262,224
 Other current assets 830,519 226,493
 Total current assets 8,500,516 1,977,588
 Total long-term assets 866,930 871,429
 Total assets $9,367,446 $2,849,017
 Liabilities and Shareholder's Equity
 Accounts payable $225,493 $188,710
 Other current liabilities 343,140 144,355
 Total current liabilities 568,633 333,065
 Total long-term liabilities --- 20,000
 Minority interest in
 consolidated joint venture 838,926 937,003
 Total 1,407,559 1,290,068
 Stockholders' Equity:
 Common stock 69,736 59,729
 Capital in excess of
 par value 18,509,829 9,767,774
 Accumulated deficit (10,619,678) (8,268,554)
 Total shareholders' equity 7,959,887 1,558,949
 Total liabilities and
 stockholders' equity $9,367,446 $2,849,017
 -0- 11/10/93
 /CONTACT: Nick Farina (Chicago), 312-266-7800, or John H. Shaw (Los Angeles), 818-783-2400, or Sue Caulton (San Francisco) (analysts), 415-986-1591, all of Financial Relations Board/

CO: Urethane Technologies Inc. ST: California IN: CHM SU: ERN

LM-LS -- LA014 -- 2602 11/10/93 09:06 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Nov 10, 1993

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters