TurboChef Reports 2000 Fourth Quarter and Annual Results

Apr 19, 2001, 01:00 ET from TurboChef Technologies, Inc.

    NEW YORK, April 19 /PRNewswire/ --
 TurboChef Technologies, Inc. (Nasdaq:   TRBO) today announced revenues for the
 fourth quarter ended December 31, 2000 of $2.4 million compared to
 $3.5 million reported in the same quarter of 1999.  This decrease in revenues
 was primarily due to higher development fees received from Maytag in the
 fourth quarter of 1999.  Net income for the fourth quarter of 2000 was
 $3.3 million, or $0.21 per share, on 15.7 million weighted average shares
 outstanding, versus a loss of $1.5 million, or $.10 per share, on 15 million
 weighted average shares outstanding in the fourth quarter of 1999.  The
 increase in net income was primarily a result of a non-recurring $5 million
 gain the Company recorded when it liquidated its hedged investment in Maytag
 common stock and lower operating overhead in the fourth quarter of 2000.
     For the fiscal year ended December 31, 2000, revenues were $7.8 million
 compared to $7.1 million for the same period a year ago.  The increase in
 revenue is the result of an increase in royalty revenues recorded under the
 Company's commercial license agreement with Maytag in the last half of 2000
 and sales of its C3 commercial cooking product in the United Kingdom.  The net
 loss for 2000 was $3.7 million, or $.24 per share, on 15.6 million weighted
 average shares outstanding, versus a net loss of $8.8 million, or $.59 per
 share, on 15 million weighted average shares outstanding.
     During the first quarter of 2001, the Company filed a Notice of Claim of
 Arbitration, as stated under the Commercial Cooking Appliance Project
 Agreement, to provide for dispute resolution with Maytag.  Although the
 outcome of arbitration is uncertain, the Company believes it will prevail in
 its claims.
     In March 2001, TurboChef raised $2,000,000 through the sale of its 8%
 convertible preferred stock.  The dividend on the preferred stock is payable,
 at the TurboChef's option, in either cash or shares of common stock.  The
 preferred stock is convertible into common stock at a conversion rate of $1.00
 per common share (representing the closing sale price of the common stock on
 the date of funding).  In connection with this transaction, TurboChef also
 issued to the investor warrants to purchase an additional 1,000,000 shares of
 common stock at $1.20 per share.  These warrants are exercisable in three
 equal annual installments, commencing one year from the date of issuance and
 expiring in 2011.
     The Company is presently addressing the need for additional financing to
 facilitate the rollout of its commercial cooking products and to establish
 alliances associated with its residential products.  The Company is also
 assessing the possibility of strategic investments surrounding future product
 platforms, such as gas powered TurboChef products.  The Company anticipates
 that it will have to raise additional capital during the next 12 months.
     According to Jeffrey Bogatin, the Company's Chairman, "TurboChef is making
 great strides in developing its distribution channels in Europe for the C3
 commercial cooking system.  Our Chinese manufacturing venture with the
 Shandong Xiaoya Group is progressing and we expect to receive "C3" model
 commercial cooking systems in the second quarter of 2001.  Our strategy of
 combining a high quality low cost OEM which will provide centralized
 manufacturing with non-exclusive distribution has been well received."  Mr.
 Bogatin continued, "our efforts are now focused on marketing and selling our
 commercial cooking systems to restaurants, hotels, convenience stores and
 other foodservice operators worldwide.  On the residential end of our
 business, we will continue to pursue license agreement partners that we
 believe have the capability to commercialize our next generation oven
 technology."
     "Safe Harbor" Statement under Private Securities Litigation Reform Act of
 1995: Certain statements contained in this News Release constitute "forward
 looking statements" within the meaning of the Private Securities Litigation
 Reform Act of 1995.  Such forward-looking statements involve a number of known
 and unknown risks, uncertainties and other factors which may cause the actual
 results, performance or achievements of the Company to be materially different
 from any future results, performance or achievements expressed or implied by
 such forward-looking statements.  Such factors include, but are not limited to
 the Company's limited operating history, uncertainty of market acceptance and
 demand, the ability to obtain additional financing necessary to continue
 operations, the uncertainty of consumer acceptance of new products or
 technologies that may be offered by TurboChef, relationships with and
 dependence on third-party equipment manufacturers and suppliers, impact of
 competitive products and pricing, and other risks detailed in the company's
 filings with the Securities and Exchange Commission.  The words "looking
 forward," "believe," "expect," "likely" and similar expressions identify
 forward-looking statements.  Readers are cautioned not to place undue reliance
 on these forward-looking statements, which speak only as for the date the
 statement was made.  TurboChef Technologies, Inc. undertakes no obligation to
 update any forward-looking statements contained in this news release.
 
 
      TURBOCHEF TECHNOLOGIES, INC.
      CONDENSED OPERATING RESULTS
      (Amounts in thousands, except per share data)
 
                                             Fourth Quarter    Twelve Months
                                                  Ended            Ended
                                               December 31      December 31
 
                                              2000    1999      2000     1999
 
     Total Revenues                          $2,401   $3,472   $7,846   $7,063
 
     Operating Expenses                       3,724    4,786   15,520   15,068
 
     Operating Loss                          (1,323)  (1,314)  (7,674)  (8,005)
 
     Other Income/(Expense)                   4,664     (175)   3,942     (774)
 
     Net Loss                                $3,341  $(1,489) $(3,732) $(8,779)
 
     Loss per Common Share-Basic and Diluted  $0.21   $(0.10)  $(0.24)  $(0.59)
 
     Weighted Average Shares Outstanding     15,728   15,090   15,602   14,983
 
 
      CONDENSED BALANCE SHEETS
      (Amounts in thousands)
                                                  December 31,     December 31,
                                                      2000            1999
 
     Cash and Cash Equivalents                       $1,417          $1,928
     Investment in Equity Securities                    ---          15,255
     Other Current Assets                             3,483           1,741
     Net Property and Equipment                         602             731
     Premium on Purchased Put Option                    ---           1,295
     Other Assets                                       220             119
     Total Assets                                    $5,722         $21,069
 
     Total Current Liabilities                       $4,054          $4,440
     Long-term Liabilities                              ---           6,778
     Total Stockholders' Equity                       1,668           9,851
     Total Liabilities and Stockholders'
      Equity                                         $5,722         $21,069
 
 

SOURCE TurboChef Technologies, Inc.
    NEW YORK, April 19 /PRNewswire/ --
 TurboChef Technologies, Inc. (Nasdaq:   TRBO) today announced revenues for the
 fourth quarter ended December 31, 2000 of $2.4 million compared to
 $3.5 million reported in the same quarter of 1999.  This decrease in revenues
 was primarily due to higher development fees received from Maytag in the
 fourth quarter of 1999.  Net income for the fourth quarter of 2000 was
 $3.3 million, or $0.21 per share, on 15.7 million weighted average shares
 outstanding, versus a loss of $1.5 million, or $.10 per share, on 15 million
 weighted average shares outstanding in the fourth quarter of 1999.  The
 increase in net income was primarily a result of a non-recurring $5 million
 gain the Company recorded when it liquidated its hedged investment in Maytag
 common stock and lower operating overhead in the fourth quarter of 2000.
     For the fiscal year ended December 31, 2000, revenues were $7.8 million
 compared to $7.1 million for the same period a year ago.  The increase in
 revenue is the result of an increase in royalty revenues recorded under the
 Company's commercial license agreement with Maytag in the last half of 2000
 and sales of its C3 commercial cooking product in the United Kingdom.  The net
 loss for 2000 was $3.7 million, or $.24 per share, on 15.6 million weighted
 average shares outstanding, versus a net loss of $8.8 million, or $.59 per
 share, on 15 million weighted average shares outstanding.
     During the first quarter of 2001, the Company filed a Notice of Claim of
 Arbitration, as stated under the Commercial Cooking Appliance Project
 Agreement, to provide for dispute resolution with Maytag.  Although the
 outcome of arbitration is uncertain, the Company believes it will prevail in
 its claims.
     In March 2001, TurboChef raised $2,000,000 through the sale of its 8%
 convertible preferred stock.  The dividend on the preferred stock is payable,
 at the TurboChef's option, in either cash or shares of common stock.  The
 preferred stock is convertible into common stock at a conversion rate of $1.00
 per common share (representing the closing sale price of the common stock on
 the date of funding).  In connection with this transaction, TurboChef also
 issued to the investor warrants to purchase an additional 1,000,000 shares of
 common stock at $1.20 per share.  These warrants are exercisable in three
 equal annual installments, commencing one year from the date of issuance and
 expiring in 2011.
     The Company is presently addressing the need for additional financing to
 facilitate the rollout of its commercial cooking products and to establish
 alliances associated with its residential products.  The Company is also
 assessing the possibility of strategic investments surrounding future product
 platforms, such as gas powered TurboChef products.  The Company anticipates
 that it will have to raise additional capital during the next 12 months.
     According to Jeffrey Bogatin, the Company's Chairman, "TurboChef is making
 great strides in developing its distribution channels in Europe for the C3
 commercial cooking system.  Our Chinese manufacturing venture with the
 Shandong Xiaoya Group is progressing and we expect to receive "C3" model
 commercial cooking systems in the second quarter of 2001.  Our strategy of
 combining a high quality low cost OEM which will provide centralized
 manufacturing with non-exclusive distribution has been well received."  Mr.
 Bogatin continued, "our efforts are now focused on marketing and selling our
 commercial cooking systems to restaurants, hotels, convenience stores and
 other foodservice operators worldwide.  On the residential end of our
 business, we will continue to pursue license agreement partners that we
 believe have the capability to commercialize our next generation oven
 technology."
     "Safe Harbor" Statement under Private Securities Litigation Reform Act of
 1995: Certain statements contained in this News Release constitute "forward
 looking statements" within the meaning of the Private Securities Litigation
 Reform Act of 1995.  Such forward-looking statements involve a number of known
 and unknown risks, uncertainties and other factors which may cause the actual
 results, performance or achievements of the Company to be materially different
 from any future results, performance or achievements expressed or implied by
 such forward-looking statements.  Such factors include, but are not limited to
 the Company's limited operating history, uncertainty of market acceptance and
 demand, the ability to obtain additional financing necessary to continue
 operations, the uncertainty of consumer acceptance of new products or
 technologies that may be offered by TurboChef, relationships with and
 dependence on third-party equipment manufacturers and suppliers, impact of
 competitive products and pricing, and other risks detailed in the company's
 filings with the Securities and Exchange Commission.  The words "looking
 forward," "believe," "expect," "likely" and similar expressions identify
 forward-looking statements.  Readers are cautioned not to place undue reliance
 on these forward-looking statements, which speak only as for the date the
 statement was made.  TurboChef Technologies, Inc. undertakes no obligation to
 update any forward-looking statements contained in this news release.
 
 
      TURBOCHEF TECHNOLOGIES, INC.
      CONDENSED OPERATING RESULTS
      (Amounts in thousands, except per share data)
 
                                             Fourth Quarter    Twelve Months
                                                  Ended            Ended
                                               December 31      December 31
 
                                              2000    1999      2000     1999
 
     Total Revenues                          $2,401   $3,472   $7,846   $7,063
 
     Operating Expenses                       3,724    4,786   15,520   15,068
 
     Operating Loss                          (1,323)  (1,314)  (7,674)  (8,005)
 
     Other Income/(Expense)                   4,664     (175)   3,942     (774)
 
     Net Loss                                $3,341  $(1,489) $(3,732) $(8,779)
 
     Loss per Common Share-Basic and Diluted  $0.21   $(0.10)  $(0.24)  $(0.59)
 
     Weighted Average Shares Outstanding     15,728   15,090   15,602   14,983
 
 
      CONDENSED BALANCE SHEETS
      (Amounts in thousands)
                                                  December 31,     December 31,
                                                      2000            1999
 
     Cash and Cash Equivalents                       $1,417          $1,928
     Investment in Equity Securities                    ---          15,255
     Other Current Assets                             3,483           1,741
     Net Property and Equipment                         602             731
     Premium on Purchased Put Option                    ---           1,295
     Other Assets                                       220             119
     Total Assets                                    $5,722         $21,069
 
     Total Current Liabilities                       $4,054          $4,440
     Long-term Liabilities                              ---           6,778
     Total Stockholders' Equity                       1,668           9,851
     Total Liabilities and Stockholders'
      Equity                                         $5,722         $21,069
 
 SOURCE  TurboChef Technologies, Inc.