|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.
What are the successful IoT innovations from emerging markets? What are the unique challenges and opportunities from these markets? How did the constraints in connectivity among others lead to groundbreaking insights? In her session at @ThingsExpo, Carmen Feliciano, a Principal at AMDG, will answer all these questions and share how you can apply IoT best practices and frameworks from the emerging markets to your own business.
Jul. 24, 2016 04:15 PM EDT Reads: 1,534
Ask someone to architect an Internet of Things (IoT) solution and you are guaranteed to see a reference to the cloud. This would lead you to believe that IoT requires the cloud to exist. However, there are many IoT use cases where the cloud is not feasible or desirable. In his session at @ThingsExpo, Dave McCarthy, Director of Products at Bsquare Corporation, will discuss the strategies that exist to extend intelligence directly to IoT devices and sensors, freeing them from the constraints of ...
Jul. 24, 2016 03:45 PM EDT Reads: 1,714
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
Jul. 24, 2016 03:30 PM EDT Reads: 882
SYS-CON Events announced today the Kubernetes and Google Container Engine Workshop, being held November 3, 2016, in conjunction with @DevOpsSummit at 19th Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA. This workshop led by Sebastian Scheele introduces participants to Kubernetes and Google Container Engine (GKE). Through a combination of instructor-led presentations, demonstrations, and hands-on labs, students learn the key concepts and practices for deploying and maintainin...
Jul. 24, 2016 03:30 PM EDT Reads: 575
Extracting business value from Internet of Things (IoT) data doesn’t happen overnight. There are several requirements that must be satisfied, including IoT device enablement, data analysis, real-time detection of complex events and automated orchestration of actions. Unfortunately, too many companies fall short in achieving their business goals by implementing incomplete solutions or not focusing on tangible use cases. In his general session at @ThingsExpo, Dave McCarthy, Director of Products...
Jul. 24, 2016 03:15 PM EDT Reads: 1,664
Cloud analytics is dramatically altering business intelligence. Some businesses will capitalize on these promising new technologies and gain key insights that’ll help them gain competitive advantage. And others won’t. Whether you’re a business leader, an IT manager, or an analyst, we want to help you and the people you need to influence with a free copy of “Cloud Analytics for Dummies,” the essential guide to this explosive new space for business intelligence.
Jul. 24, 2016 03:15 PM EDT Reads: 551
Traditional IT, great for stable systems of record, is struggling to cope with newer, agile systems of engagement requirements coming straight from the business. In his session at 18th Cloud Expo, William Morrish, General Manager of Product Sales at Interoute, outlined ways of exploiting new architectures to enable both systems and building them to support your existing platforms, with an eye for the future. Technologies such as Docker and the hyper-convergence of computing, networking and sto...
Jul. 24, 2016 03:00 PM EDT Reads: 996
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, discussed the importance of WebRTC and how it enables companies to focus...
Jul. 24, 2016 02:30 PM EDT Reads: 740
With an estimated 50 billion devices connected to the Internet by 2020, several industries will begin to expand their capabilities for retaining end point data at the edge to better utilize the range of data types and sheer volume of M2M data generated by the Internet of Things. In his session at @ThingsExpo, Don DeLoach, CEO and President of Infobright, discussed the infrastructures businesses will need to implement to handle this explosion of data by providing specific use cases for filterin...
Jul. 24, 2016 02:00 PM EDT Reads: 1,183
IoT generates lots of temporal data. But how do you unlock its value? You need to discover patterns that are repeatable in vast quantities of data, understand their meaning, and implement scalable monitoring across multiple data streams in order to monetize the discoveries and insights. Motif discovery and deep learning platforms are emerging to visualize sensor data, to search for patterns and to build application that can monitor real time streams efficiently. In his session at @ThingsExpo, ...
Jul. 24, 2016 01:30 PM EDT Reads: 795
Enterprise networks are complex. Moreover, they were designed and deployed to meet a specific set of business requirements at a specific point in time. But, the adoption of cloud services, new business applications and intensifying security policies, among other factors, require IT organizations to continuously deploy configuration changes. Therefore, enterprises are looking for better ways to automate the management of their networks while still leveraging existing capabilities, optimizing perf...
Jul. 24, 2016 01:00 PM EDT Reads: 976
Early adopters of IoT viewed it mainly as a different term for machine-to-machine connectivity or M2M. This is understandable since a prerequisite for any IoT solution is the ability to collect and aggregate device data, which is most often presented in a dashboard. The problem is that viewing data in a dashboard requires a human to interpret the results and take manual action, which doesn’t scale to the needs of IoT.
Jul. 24, 2016 12:00 PM EDT Reads: 1,866
When building large, cloud-based applications that operate at a high scale, it’s important to maintain a high availability and resilience to failures. In order to do that, you must be tolerant of failures, even in light of failures in other areas of your application. “Fly two mistakes high” is an old adage in the radio control airplane hobby. It means, fly high enough so that if you make a mistake, you can continue flying with room to still make mistakes. In his session at 18th Cloud Expo, Lee...
Jul. 24, 2016 12:00 PM EDT Reads: 1,327
Internet of @ThingsExpo has announced today that Chris Matthieu has been named tech chair of Internet of @ThingsExpo 2016 Silicon Valley. The 6thInternet of @ThingsExpo will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Jul. 24, 2016 12:00 PM EDT Reads: 1,882
Continuous testing helps bridge the gap between developing quickly and maintaining high quality products. But to implement continuous testing, CTOs must take a strategic approach to building a testing infrastructure and toolset that empowers their team to move fast. Download our guide to laying the groundwork for a scalable continuous testing strategy.
Jul. 24, 2016 11:45 AM EDT Reads: 1,845