IdleAire on financial life support after another year of operating losses

IdleAire installations have become commonplace at truck stops throughout the U.S. (The Trucker file photo)

The Trucker Staff

4/23/2008

KNOXVILLE, Tenn. — IdleAire Technologies Corp., an early innovator in the quest for in-cab comfort alternatives to engine idling, is at risk of becoming an early, high-profile victim of the still unsettled marketplace and ever-evolving regulations.

According to  recent filings with the Securities and Exchange Commission, IdleAire losses came to $93.4 million in 2007, compared to losses of $60.2 million in 2006. And while basic and premium services revenue nearly tripled, growing to $31.8 million from $10.9 million the year before — along with a comparable surge in operating expenses — the bottom line net number reflects the cost of rapid expansion, and growing debt service.

The company, in its Form 10-K filing, notes an outstanding debt of $272.8 million on accumulated losses of $246.4 million. The company also reports its initial public offering — the attempt to raise capital through the sale of common stock — has been hampered “due to market conditions.”

The federal form also notes that IdleAire’s independent auditor issued a “going concern” opinion, “expressing substantial doubt” as to the company’s ability to sustain operations under the present circumstances.

“If we are unable to secure near-term funding for our immediate working capital needs, we will be forced to cease operations and liquidate our assets through a bankruptcy proceeding,” the filing states.

IdleAire spokesman John Doty said in an e-mail that the company could not offer additional comment during the SEC imposed “quiet period,” part of the IPO process.