- 54% Revenue Growth, 32% Gross Margin and positive Adjusted
EBITDA of $0.9M, with $60.1M ending Cash Reserves
VANCOUVER, Nov. 1, 2017 /CNW/ - Ballard Power Systems
(NASDAQ: BLDP; TSX: BLDP) today announced consolidated financial
results for the third quarter ended September 30, 2017. All amounts are in U.S.
dollars unless otherwise noted and have been prepared in accordance
with International Financial Reporting Standards (IFRS).
Randy MacEwen, President and CEO
said, "In Q3, revenue improved 54% year-on-year to $31.9 million, gross margin was strong at 32%,
and Adjusted EBITDA was positive $0.9
million. On a year-to-date basis in 2017, revenue has
increased 48% to $81.0 million, gross
margin has increased to 36%, and Adjusted EBITDA is positive
$1.2 million. Moreover, for the
trailing 12-month period Adjusted EBITDA was positive $3.0 million. Looking ahead, with an order
backlog of $236.8 million, including
an $82.4 million order book of
expected deliveries over the subsequent 12-months, we are well
positioned to deliver strong full-year 2017 results and to maintain
our positive trajectory into 2018."
Mr. MacEwen continued, "Looking forward, a key business driver
will continue to be the compelling value proposition offered by
zero-emission fuel cell electric vehicles, or FCEVs, in numerous
Heavy Duty Motive use cases. This is particularly true where
vehicles must deal with long range or long hours of operation. In
these situations FCEVs can deliver key financial and operational
benefits while also addressing the limitations of a battery-only
design, through extended range, rapid refueling and full route
flexibility.
"As a result, we are seeing early adoption of fuel cell products
for an expanding array of Heavy Duty FCEV applications, from mass
transit buses to commercial trucks and trains. At the same time,
fuel cell product adoption is also broadening globally,
encompassing China, Europe, the U.S. and Japan. This growing product traction, combined
with embedded optionality inherent in our Technology Solutions
business – including opportunities in the automotive and drone
markets – uniquely position Ballard to leverage the worldwide trend
toward zero-emission transportation for the benefit of
shareholders."
Q3 2017 Financial Highlights
(all comparisons are to Q3 2016 unless otherwise
noted)
- Revenue increased 54% to $31.9
million, reflecting growth in both Power Products and
Technology Solutions.
- The Power Products platform generated revenue of $21.3 million, an increase of 45%:
-
- Heavy Duty Motive revenue was $17.8
million, an increase of 138% primarily from product
shipments to fulfill orders in support of planned deployments of
fuel cell electric vehicles in China;
- Portable Power revenue was $0.9
million in Q3, a decline of 72% primarily due to lower
product shipments. The Q3 achievement of Milestone C in the U.S.
Army Program of Record is expected to positively impact future
product orders;
- Material Handling revenue was $2.0
million, a decline of 39% primarily due to lower stack
shipments and a lower average selling price resulting from a shift
in product mix; and
- Telecom Backup Power revenue was $0.6
million, a decline reflecting lower stack sales.
- The Technology Solutions platform generated revenue of
$10.6 million, an increase of 78%
primarily reflecting increased work on the stack joint venture, bus
and tram programs in China.
- Gross margin was 32%, an improvement of 1-point primarily due
to a favorable shift in product mix toward higher margin Technology
Solutions and Heavy Duty Motive.
- Cash operating costs2 were $9.4 million, an increase of 11% due primarily to
increased investment in research and product development related to
next-generation products.
- Adjusted EBITDA2 was $0.9
million in Q3, an improvement of $2.4
million or 158% primarily driven by higher revenue and
higher gross margin.
- Net loss was ($1.0) million, an
improvement of $3.2 million or
75%.
- Net loss per share was ($0.01),
an improvement from ($0.03).
- Cash used by operating activities was ($7.7) million, an increase from ($0.5) million in Q3 2016, reflecting cash
operating income of $0.6 million and
a working capital change of ($8.3)
million. The total change in working capital was driven by
lower deferred revenue, as the Company fulfilled deliverables on
certain contracts for which pre-payments had been received, as well
as higher accounts receivable resulting from timing of revenue and
related customer collections.
- Cash reserves were $60.1 million
at September 30.
Q3 2017 Highlights
- Achieved an order backlog of $236.8
million as of September 30,
representing the aggregate value of orders for which customers have
made contractual commitments. Also achieved a 12-month order book
of $82.4 million as of September 30, representing the aggregate value of
that portion of the order backlog expected to be delivered in the
subsequent 12-month period.
- Announced the opening of the FCvelocity®-9SSL fuel
cell stack joint venture operation in the City of Yunfu, in
China's Guangdong Province, called Guangdong Synergy
Ballard Hydrogen Power Co., Ltd. ("JVCo"). Fuel cell stacks
manufactured by JVCo are expected to be used primarily in fuel cell
engines assembled in China to
provide propulsion power for zero-emission fuel cell electric buses
and commercial vehicles.
- Accepted a Letter of Intent to provide
FCveloCity®-HD 100-kilowatt fuel cell engines to power 8
ExquiCity tram-buses being built by Van Hool NV for delivery in
Pau, France starting in the second
half of 2019.
- A fuel cell electric bus operating in Transport for
London's fuel cell bus fleet,
powered by a Ballard FCveloCity®-HD6 engine, achieved a
new durability record of more than 25,000 hours of revenue service
with no significant maintenance to the fuel cell stack.
- Received a purchase order from Nisshinbo Holdings, a key
Japanese partner, to engage in a Technology Solutions program that
will assess the potential development of fuel cell stacks using a
Non Precious Metal Catalyst for commercial material handling
applications.
- Ballard subsidiary Protonex Technology Corporation announced
that the U.S. Army Program Executive Office Soldier received
signature approval for its Mobile Soldier Power Program of Record
to full rate production status, commonly known as "Milestone C".
The Program of Record includes a number of new devices, including
Protonex' Squad Power Manager Kit and Vest Power Manager
family.
Q3 2017 Financial Summary
|
|
|
(Millions of U.S.
dollars)
|
Three months ended
Sept. 30,
|
Nine months ended
Sept. 30,
|
|
2017
|
2016
|
% Change
|
2017
|
2016
|
% Change
|
GROWTH
|
|
|
|
|
|
|
Fuel Cell Products
& Services Revenue:1
|
|
|
|
|
|
|
|
Heavy Duty
Motive
|
$17.8
|
$7.5
|
138%
|
$37.1
|
$15.5
|
140%
|
|
Portable
Power
|
$0.9
|
$3.0
|
-72%
|
$3.0
|
$8.5
|
-65%
|
|
Material
Handling
|
$2.0
|
$3.3
|
-39%
|
$6.2
|
$9.9
|
-37%
|
|
Backup
Power
|
$0.6
|
$0.8
|
-30%
|
$1.2
|
$2.8
|
-56%
|
|
Sub-Total
|
$21.3
|
$14.6
|
45%
|
$47.5
|
$36.7
|
30%
|
|
Technology
Solutions
|
$10.6
|
$6.0
|
78%
|
$33.5
|
$17.9
|
87%
|
Total Fuel Cell
Products & Services Revenue
|
$31.9
|
$20.6
|
54%
|
$81.0
|
$54.6
|
48%
|
PROFITABILITY
|
|
|
|
|
|
|
Gross Margin
$
|
$10.2
|
$6.4
|
58%
|
$29.0
|
$14.8
|
95%
|
Gross Margin
%
|
32%
|
31%
|
1-point
|
36%
|
27%
|
9-points
|
Operating
Expenses
|
$11.1
|
$10.2
|
9%
|
$33.3
|
$33.3
|
0%
|
Cash Operating
Costs2
|
$9.4
|
$8.4
|
11%
|
$27.8
|
$26.2
|
6%
|
Adjusted
EBITDA2
|
$0.9
|
($1.5)
|
158%
|
$1.2
|
($11.6)
|
111%
|
Net Income
(Loss)3
|
($1.0)
|
($4.2)
|
75%
|
($5.2)
|
($20.0)
|
74%
|
Earnings Per
Share
|
($0.01)
|
($0.03)
|
67%
|
($0.03)
|
($0.13)
|
77%
|
Adjusted Net
Loss2
|
($1.0)
|
($4.2)
|
76%
|
($4.3)
|
($18.4)
|
77%
|
Adjusted Net Loss Per
Share2
|
($0.01)
|
($0.03)
|
67%
|
($0.02)
|
($0.12)
|
83%
|
CASH
|
|
|
|
|
|
|
Cash Used by
Operating Activities:
|
|
|
|
|
|
|
|
Cash Operating Income
(Loss)
|
$0.6
|
($2.4)
|
123%
|
$0.8
|
($13.5)
|
106%
|
|
Working Capital
Changes
|
($8.3)
|
$1.9
|
-530%
|
($9.8)
|
$1.7
|
-695%
|
|
Cash Used By
Operating Activities
|
($7.7)
|
($0.5)
|
-1,507%
|
($9.0)
|
($11.9)
|
24%
|
Cash
Reserves
|
$60.1
|
$68.1
|
-12%
|
|
|
|
For a more detailed discussion of Ballard Power Systems' third
quarter 2017 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.
Conference Call
Ballard will hold a conference call on
Thursday, November 2, 2017 at
8:00 a.m. Pacific Time (11:00 a.m. Eastern Time) to review its third
quarter 2017 operating results. The live call can be accessed by
dialing +1.604.638.5340. Alternatively, a live audio and slide
webcast can be accessed through a link on Ballard's homepage
(www.ballard.com). Following the call, the audio webcast and
presentation materials will be archived in the 'Investor
Presentations and Events' area of the 'Investors' section of
Ballard's website (www.ballard.com/investors).
About Ballard Power Systems
Ballard Power Systems
(NASDAQ: BLDP; TSX: BLDP) provides clean energy products that
reduce customer costs and risks, and helps customers solve
difficult technical and business challenges in their fuel cell
programs. 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, product sales,
order backlog and order book of expected deliveries over the
subsequent 12-months. 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 We
report our results in the single operating segment of Fuel Cell
Products and Services. Our Fuel Cell Products and Services segment
consists of the sale and service of PEM fuel cell products for our
power product markets of Heavy Duty Motive (consisting of bus,
truck, rail and marine applications), Portable Power, Material
Handling and Backup Power, as well as the delivery of Technology
Solutions, including engineering services, technology transfer and
the license and sale of our extensive intellectual property
portfolio and fundamental knowledge for a variety of fuel cell
applications.
|
|
2 Note
that Cash Operating Costs, EBITDA, Adjusted EBITDA and Adjusted Net
Income (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 Adjusted Net Income (Loss) assist investors in
assessing Ballard's operating performance. These measures should be
used in addition to, and not as a substitute for, net income
(loss), 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 Adjusted Net
Income (Loss) to the Consolidated Financial Statements, please
refer to Ballard's Management's Discussion &
Analysis.
|
|
Cash Operating Costs
measures operating expenses excluding stock based compensation
expense, depreciation and amortization, impairment losses or
recoveries on trade receivables, 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. Adjusted Net Income (Loss)
measures net income (loss) attributable to Ballard from continuing
operations, excluding transactional gains and losses, asset
impairment charges, and acquisition costs.
|
SOURCE Ballard Power Systems Inc.