|By PR Newswire||
|February 20, 2013 11:36 PM EST||
VANCOUVER, Feb. 20, 2013 /PRNewswire/ - Ballard Power Systems (NASDAQ: BLDP) (TSX: BLD) today announced its consolidated financial results for the fourth quarter ended December 31, 2012. All amounts are in U.S. dollars unless otherwise noted and have been prepared in accordance with International Financial Reporting Standards (IFRS).
"Q4 results reflected a marked turnaround from weak results earlier in the year - both top line and bottom line," said John Sheridan, President and CEO. "This Q4 top line momentum and a solid yearend order book support our business outlook for 2013 revenue growth in excess of 30%. This top line growth, along with continued reductions in the cost base and a projected increase in gross margin, underpin our expectation for improvement in Adjusted EBITDA in excess of 50%."
On January 31, 2013 Ballard closed the sale of its Material Products division, a non-core asset located in Lowell, MA, in order to focus on high growth fuel cell products and to fortify the Company's cash position. Therefore, as per IFRS, Ballard's 2012 audited financial statements reflect "continuing operations" (excluding Material Products). In order to portray results comprehensively relative to the results reported throughout 2012 and to guidance for the full year, the financial results are also shown in the "2012 Financial Highlights" table below in a format which includes the Material Products division. Also, since the sale of the Material Products division was not completed until early 2013, the following section - with commentary on Q4 and full year 2012 results - addresses Ballard's performance including Material Products.
|Q4 and Full Year 2012 Results (including Material Products)|
|●||Q4 revenue improved 50% to $21.3 million over the prior quarter, and improved 1% year-on-year.|
|○||A key driver of the quarter-on-quarter revenue improvement was the addition of methanol-fueled ElectraGenTM systems to the backup power product line in August 2012. In Q4, 204 ElectraGenTM systems were shipped, 75% of which were methanol-fueled.|
In addition, engineering services contributed significantly to the
growth, with revenue of $6.6 million in Q4 and more than $10 million
for the year, a significant increase from less than $5 million in 2011.
|●||Full year revenue declined $16.8 million or 22% to $59.2 million year-on-year, consistent with the Company's revised guidance for revenue of approximately $60 million.|
This year-on-year decline in 2012 revenue reflected weak performance in
Material Products and Bus, in addition to the 2011 wind down of
contract manufacturing. Excluding 2011 contract manufacturing, revenue
In terms of product volume metrics, the 204 ElectraGenTM systems shipped for backup power in Q4 represented a 172% improvement
over Q4 2011. In addition, Q4 stack shipments for material handling of
468 represented a 41% decline from Q4 2011.
|○||Full year ElectraGenTM system shipments for backup power of 399 represented a 175% improvement relative to 2011. Full year stack shipments for material handling of 2,022 represented a 42% improvement relative to 2011.|
|Path to Profitability|
Q4 gross margin improved 10 points to 24% over Q3, and improved 4 points
relative to Q4
|○||Full year gross margin improved 2 points to 20%.|
Q4 cash operating costs increased 10% to $7.8 million over Q3, but
improved 10% relative
to Q4 2011.
|○||Full year cash operating costs improved 18% relative to 2011, to $32.2 million.|
Q4 Adjusted EBITDA improved 65% to ($1.9) million over Q3, and improved
to Q4 2011.
Full year Adjusted EBITDA improved 17% to ($18.5) million, consistent
Company's revised guidance for Adjusted EBITDA of approximately ($18) million.
|●||Q4 cash used by operating activities improved 58% to ($0.5) million over Q3.|
Full year cash used by operating activities improved 15% to ($28.1)
Cash reserves at yearend were $12.5 million net of $9.3 million
outstanding on the
Company's bank operating line.
This cash position was fortified with the sale of the Material Products
January 31, 2013, which generated proceeds of up to $12 million.
Q4 normalized net loss from continuing operations was unchanged at
compared to Q4 2011.
Full year normalized net loss from continuing operations improved 11% to
million relative to 2011.
2013 Business Outlook
The Company expects revenue growth in excess of 30%, led by backup power and engineering services, which together represent more than half of the $36.8 million 2012 yearend order book (excluding Material Products). It is expected that this growth, along with higher gross margins and a lower cost base, will contribute to improvements in bottom line performance.
The Company's guidance is for the following improvements in 2013 continuing operations:
- Revenue growth in excess of 30%; and
- Adjusted EBITDA improvement in excess of 50%.
2012 Financial Highlights
|Results of Operations||Three months ended December 31,||Twelve months ended December 31,|
|2012||2011||% Improvement||2012||2011||% Improvement|
|(expressed in millions of U.S. dollars, except per share amounts and gross margin %)|
|Total (including Material Products)|
|Fuel Cell Products||$16.5||$16.9||(2%)||$43.7||$46.5||(6%)|
|Gross margin %||24%||20%||4-points||20%||18%||2-points|
|Cash Operating Costs (1)||$7.8||$8.6||10%||$32.2||$39.3||18%|
|Adjusted EBITDA (1)||($1.9)||($3.8)||50%||($18.5)||($22.3)||17%|
|Cash Used by Operating Activities:|
|Cash Operating Income (Loss)||($2.4)||($4.7)||49%||($22.2)||($26.5)||16%|
|Working Capital Changes||$1.9||$8.8||(79%)||($5.9)||($6.7)||12%|
|Cash Used by Operating Activities||($0.5)||$4.1||(113%)||($28.1)||($33.2)||15%|
|Cash Reserves, Net of Operating Line||$12.5||$41.6|
|From continuing operations|
|Fuel Cell Products||$16.5||$16.9||(2%)||$43.7||$46.5||(6%)|
|12 Month Rolling Order Book||$36.8||$32.0|
|Gross margin %||22%||17%||5-points||17%||13%||4-points|
|Cash Operating Costs (1)||$7.3||$8.2||11%||$30.3||$37.0||18%|
|Adjusted EBITDA (1)||($3.2)||($4.9)||34%||($22.1)||($27.9)||21%|
|Net loss attributable to Ballard from continuing operations||($16.8)||($8.0)||(111%)||($42.1)||($37.2)||(13%)|
|Net loss attributable to Ballard per share, basic and diluted||($0.18)||($0.09)||(100%)||($0.48)||($0.44)||(9%)|
|Normalized Net Loss (1)||($6.2)||($6.2)||-||($31.5)||($35.4)||11%|
|Normalized Net Loss (1) per share, basic and diluted||($0.07)||($0.07)||-||($0.36)||($0.42)||14%|
For a more detailed discussion of Ballard Power Systems' 2012 results, please see the company's financial statements and management's discussion & analysis, which are available at www.ballard.com/investors, www.sedar.com and www.sec.gov/edgar.shtml.
Ballard will hold a conference call on Thursday, February 21, 2013 at 8:00 a.m. PST (11:00 a.m. EST) to review its 2012 operating results and 2013 outlook. The live call can be accessed by dialing +1.604.638.5340. Alternatively, a live audio webcast can be accessed through a link on Ballard's homepage (www.ballard.com). Following the call, the audio webcast will be archived in the Quarterly Results area of the Investor section of Ballard's website (www.ballard.com/investors).
About Ballard Power Systems
Ballard Power Systems (NASDAQ: BLDP) (TSX: BLD) provides clean energy fuel cell products enabling optimized power systems for a range of applications. Products deliver incomparable performance, durability and versatility. To learn more about Ballard, please visit www.ballard.com.
Important Cautions Regarding Forward-Looking Statements
This release contains forward-looking statements concerning projected revenue growth, product shipments, gross margin, Adjusted EBITDA, cash operating expenses and product sales. These forward-looking statements reflect Ballard's current expectations as contemplated under section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Any such statements are based on Ballard's assumptions relating to its financial forecasts and expectations regarding its product development efforts, manufacturing capacity, and market demand. For a detailed discussion of the factors and assumptions that these statements are based upon, and factors that could cause our actual results or outcomes to differ materially, please refer to Ballard's most recent management discussion & analysis. Other risks and uncertainties that may cause Ballard's actual results to be materially different include general economic and regulatory changes, detrimental reliance on third parties, successfully achieving our business plans and achieving and sustaining profitability. For a detailed discussion of these and other risk factors that could affect Ballard's future performance, please refer to Ballard's most recent Annual Information Form. These forward-looking statements are provided to enable external stakeholders to understand Ballard's expectations as at the date of this release and may not be appropriate for other purposes. Readers should not place undue reliance on these statements and Ballard assumes no obligation to update or release any revisions to them, other than as required under applicable legislation.
1 Cash Operating Costs measures operating expenses excluding stock based compensation expense, depreciation and amortization, restructuring charges, acquisition costs and financing charges. EBITDA measures net loss attributable to Ballard Power Systems Inc. excluding finance expense, income taxes, depreciation of property, plant and equipment, amortization of intangible assets, and goodwill impairment charges. Adjusted EBITDA adjusts EBITDA for stock based compensation expense, transactional gains and losses, asset impairment charges, finance and other income and acquisition costs. Normalized Net Loss measures net loss attributable to Ballard from continuing operations, excluding transactional gains and losses and asset impairment charges.
Note that Cash Operating Costs, EBITDA, Adjusted EBITDA and Normalized Net Loss, are non GAAP measures. Non GAAP measures do not have any standardized meaning prescribed by GAAP and therefore are unlikely to be comparable to similar measures presented by other companies. Ballard believes that Cash Operating Costs, EBITDA, Adjusted EBITDA and Normalized Net Loss assist investors in assessing Ballard's operating performance and liquidity. These measures should be used in addition to, and not as a substitute for, net income, cash flows and other measures of financial performance and liquidity reported in accordance with GAAP. For a reconciliation of Cash Operating Costs, EBITDA, Adjusted EBITDA and Normalized Net Loss to the Consolidated Financial Statements, please refer to Ballard's Management's Discussion & Analysis.
SOURCE Ballard Power Systems Inc.
Video experiences should be unique and exciting! But that doesn’t mean you need to patch all the pieces yourself. Users demand rich and engaging experiences and new ways to connect with you. But creating robust video applications at scale can be complicated, time-consuming and expensive. In his session at @ThingsExpo, Zohar Babin, Vice President of Platform, Ecosystem and Community at Kaltura, discussed how VPaaS enables you to move fast, creating scalable video experiences that reach your aud...
Dec. 9, 2016 10:00 PM EST Reads: 273
All clouds are not equal. To succeed in a DevOps context, organizations should plan to develop/deploy apps across a choice of on-premise and public clouds simultaneously depending on the business needs. This is where the concept of the Lean Cloud comes in - resting on the idea that you often need to relocate your app modules over their life cycles for both innovation and operational efficiency in the cloud. In his session at @DevOpsSummit at19th Cloud Expo, Valentin (Val) Bercovici, CTO of Soli...
Dec. 9, 2016 09:45 PM EST Reads: 2,002
"Once customers get a year into their IoT deployments, they start to realize that they may have been shortsighted in the ways they built out their deployment and the key thing I see a lot of people looking at is - how can I take equipment data, pull it back in an IoT solution and show it in a dashboard," stated Dave McCarthy, Director of Products at Bsquare Corporation, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 9, 2016 09:30 PM EST Reads: 1,279
What happens when the different parts of a vehicle become smarter than the vehicle itself? As we move toward the era of smart everything, hundreds of entities in a vehicle that communicate with each other, the vehicle and external systems create a need for identity orchestration so that all entities work as a conglomerate. Much like an orchestra without a conductor, without the ability to secure, control, and connect the link between a vehicle’s head unit, devices, and systems and to manage the ...
Dec. 9, 2016 08:00 PM EST Reads: 1,017
An IoT product’s log files speak volumes about what’s happening with your products in the field, pinpointing current and potential issues, and enabling you to predict failures and save millions of dollars in inventory. But until recently, no one knew how to listen. In his session at @ThingsExpo, Dan Gettens, Chief Research Officer at OnProcess, discussed recent research by Massachusetts Institute of Technology and OnProcess Technology, where MIT created a new, breakthrough analytics model for ...
Dec. 9, 2016 07:45 PM EST Reads: 714
IoT is rapidly changing the way enterprises are using data to improve business decision-making. In order to derive business value, organizations must unlock insights from the data gathered and then act on these. In their session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, and Peter Shashkin, Head of Development Department at EastBanc Technologies, discussed how one organization leveraged IoT, cloud technology and data analysis to improve customer experiences and effici...
Dec. 9, 2016 06:45 PM EST Reads: 5,144
Everyone knows that truly innovative companies learn as they go along, pushing boundaries in response to market changes and demands. What's more of a mystery is how to balance innovation on a fresh platform built from scratch with the legacy tech stack, product suite and customers that continue to serve as the business' foundation. In his General Session at 19th Cloud Expo, Michael Chambliss, Head of Engineering at ReadyTalk, discussed why and how ReadyTalk diverted from healthy revenue and mor...
Dec. 9, 2016 06:15 PM EST Reads: 1,764
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
Dec. 9, 2016 05:30 PM EST Reads: 2,370
In this strange new world where more and more power is drawn from business technology, companies are effectively straddling two paths on the road to innovation and transformation into digital enterprises. The first path is the heritage trail – with “legacy” technology forming the background. Here, extant technologies are transformed by core IT teams to provide more API-driven approaches. Legacy systems can restrict companies that are transitioning into digital enterprises. To truly become a lead...
Dec. 9, 2016 05:30 PM EST Reads: 482
"MathFreeOn.com is a line coding platform for engineers and scientists. When they want to solve an engineering problem and they have to use software - they have to pay a lot of money for licenses - but with MathFreeOn you don't have to pay a lot of money. Just go to our site and write the code and you can check the result right away," explained Simon Lee, CMO of MathFreeOn, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Cla...
Dec. 9, 2016 05:15 PM EST Reads: 412
You have great SaaS business app ideas. You want to turn your idea quickly into a functional and engaging proof of concept. You need to be able to modify it to meet customers' needs, and you need to deliver a complete and secure SaaS application. How could you achieve all the above and yet avoid unforeseen IT requirements that add unnecessary cost and complexity? You also want your app to be responsive in any device at any time. In his session at 19th Cloud Expo, Mark Allen, General Manager of...
Dec. 9, 2016 05:15 PM EST Reads: 1,889
The Internet of Things (IoT) promises to simplify and streamline our lives by automating routine tasks that distract us from our goals. This promise is based on the ubiquitous deployment of smart, connected devices that link everything from industrial control systems to automobiles to refrigerators. Unfortunately, comparatively few of the devices currently deployed have been developed with an eye toward security, and as the DDoS attacks of late October 2016 have demonstrated, this oversight can ...
Dec. 9, 2016 05:15 PM EST Reads: 1,471
In his session at 19th Cloud Expo, Claude Remillard, Principal Program Manager in Developer Division at Microsoft, contrasted how his team used config as code and immutable patterns for continuous delivery of microservices and apps to the cloud. He showed how the immutable patterns helps developers do away with most of the complexity of config as code-enabling scenarios such as rollback, zero downtime upgrades with far greater simplicity. He also demoed building immutable pipelines in the cloud ...
Dec. 9, 2016 05:00 PM EST Reads: 2,075
As data explodes in quantity, importance and from new sources, the need for managing and protecting data residing across physical, virtual, and cloud environments grow with it. Managing data includes protecting it, indexing and classifying it for true, long-term management, compliance and E-Discovery. Commvault can ensure this with a single pane of glass solution – whether in a private cloud, a Service Provider delivered public cloud or a hybrid cloud environment – across the heterogeneous enter...
Dec. 9, 2016 04:45 PM EST Reads: 1,869
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...
Dec. 9, 2016 04:45 PM EST Reads: 1,314