Plug Power Inc. (NASDAQ:PLUG), a leader in providing clean,
reliable energy solutions, announced today 2016 financial results
and reiterated its full-year 2017 outlook.
Fourth Quarter and Full Year 2016
Highlights:
- Fourth quarter GAAP revenue of $32.6 million; full-year GAAP
revenue of $85.9 million
- Fourth quarter GAAP gross margin of $3.0 million; full-year
GAAP gross margin of $3.9 million
- Achieved a Company record of 1,204 GenDrive units deployed
during the fourth quarter; 4,010 deployed for the full year
- $66.2 million value of power purchase agreement (PPA) systems
deployed; $16.6 million in the fourth quarter
- Ended the year with $46 million of unrestricted cash
- Fourth quarter GAAP net loss of $0.11 per share on a diluted
basis; this includes a $0.03 per diluted share impact for costs
incurred to improve the Company’s capital structure and debt
terms
At the end of 2016, Plug Power has more than
14,000 fuel cells powering industrial electric vehicles at
blue-chip customers around the world including Walmart, Home Depot,
Carrefour and Nike, and is the leading supplier of hydrogen fueling
stations with its GenFuel product line.
“Our fourth quarter operating results underscore
significant progress during the year, highlighted by new and repeat
customer wins, record deployments, and continued progress driving
margin expansion across our GenKey suite of products,” stated said
Andy Marsh, CEO of Plug Power. “We have clearly cemented ourselves
as the leader in hydrogen fuel cell technology within the material
handling space, enabling us to accelerate market share
growth.”
Plug Power Reiterates 2017 Full Year
Guidance:
- $130 million in GAAP revenue
- 5,600 GenDrive shipments, including 1,800 under PPA
- 25 GenFuel sites, including 9 under PPA
- 8% to 12% of GAAP Gross Margin
- $325 million in bookings
- $25 to $35 million of net cash used in operating and investing
activities
Marsh continued, “We have set aggressive, yet
obtainable, goals for the Company in 2017, reflecting our
commitment to capitalize on the growing demand for vehicle
electrification, which we believe will ultimately translate into
meaningful shareholder value. While we remain focused on value
creation within the material handling segment, we are
simultaneously pursuing opportunities to expand our addressable
markets to accelerate near-term growth, continuing on the plan we
laid out five years ago. A clear example is our progress in
China, where our target is to deliver the first 100 ProGen engines
by year’s end. These deployments in China in 2017 represent
potential upside for the business this year, but more importantly
positions the company for new growth opportunities in 2018 and
beyond.”
Financial Results:
GAAP revenue for the fourth quarter of 2016 was
$32.6 million as compared to $38.4 million of revenue in the fourth
quarter of 2015. Fourth quarter 2016 revenue represents
expansion and growth from new and existing direct customers as well
as continued growth in PPA customer deployments.
Fourth quarter 2016 operational activity
included system deployments at three sites where the Company
utilizes a PPA, with the value of those systems totaling $16.6
million. In 2016, the Company utilized alternative financing
arrangements for its PPA deployments to improve liquidity and
long-term customer economics. The alternative financing
required different accounting treatment as compared to the
arrangements used in 2015, which resulted in upfront revenue
recognition of GenDrive shipments and hydrogen infrastructure
deployed.
Key metrics include:
- 4,010 total GenDrive units deployed for the twelve months ended
December 31, 2016, versus 3,634 units in 2015
- 18 GenKey sites installed for the twelve months ended December
31, 2016, consistent with 2015
- Over 11,500 GenDrive units under service or PPA contract at
December 31, 2016, versus just over 8,600 under service contract at
December 31, 2015
- 40 sites under fuel delivery contract at December 31, 2016,
versus 22 sites under contract at December 31, 2015
Positive GAAP gross margin in the fourth quarter
of 2016 was $3.0 million, or 9.2% of sales, as compared to negative
GAAP gross margin in the fourth quarter 2015 of $(9.4 million), or
(24.5%) of sales. The fourth quarter of 2015 included a $10.1
million charge associated with loss contracts which, as previously
discussed stemmed primarily from legacy stack issues which were by
in large addressed in 2016 with improved designs and membrane
upgrades.
To provide additional visibility regarding Plug
Power’s progress on margin profile and cost downs, the value of PPA
systems deployed in the fourth quarter was $16.6 million, with
associated equipment costs to deploy of $10.7 million. This
quarter reflects the ongoing progress Plug is making across its
product offering to significantly improve its margin profile.
Net loss attributable to common shareholders for
the fourth quarter of 2016 was $19.2 million, or $0.11 loss per
share on a diluted basis. These amounts include $5.0 million
in charges, or $0.03 per diluted share, associated from measures
taken to improve the Company’s capital structure and debt
terms. This compares to a net loss attributable to common
shareholders in the fourth quarter of 2015 of $25.2 million, or
$0.14 loss per share on a diluted basis.
Cash and Liquidity:
Net cash flow from operating activities for the
fourth quarter of 2016 was breakeven, compared to a usage of $10.0
million in the fourth quarter of 2015. As of December 31,
2016, Plug Power had total cash of $100.6 million, including cash
and cash equivalents of $46.0 million and restricted cash of $54.6
million.
In the fourth quarter, the Company undertook a
number of capital initiatives to improve its capital structure and
debt terms; specifically, the measures enabled the Company to
eliminate certain minimum cash covenants and unlock liquidity
associated with its long-term assets by leveraging restricted cash
with the Green Bank loan facility. These steps improved the
Company’s cash position, enhanced its flexibility, and positioned
the Company for broader capital solutions to support the 50% plus
revenue growth anticipated in 2017.
Conference Call Details:
Details of the company's 2017 preliminary
performance as well as 2017 growth objectives will be shared on a
conference call to be held today at 11:00 am ET.
Time: 11:00 am
ETToll-free: 877-465-1289Direct
webcast:
https://event.webcasts.com/starthere.jsp?ei=1137920
The webcast can also be accessed directly at
https://event.webcasts.com/starthere.jsp?ei=1135898 or from the
Plug Power homepage (www.plugpower.com). A playback of the call
will be available online for a period of time following the
call.
About Plug Power Inc.
The architects of modern hydrogen and fuel cell
technology, Plug Power has revolutionized the industry with its
simple GenKey solution, elements of which are designed to increase
productivity, lower operating costs and reduce carbon footprints in
a reliable, cost-effective way. Plug Power’s GenKey solution
couples together all the necessary elements to power, fuel and
service a customer. Plug Power is the partner that customers trust
to take their businesses into the future. For more information
about Plug Power, visit www.plugpower.com.
Safe Harbor
Statement
This communication contains "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995 that involve significant risks and uncertainties
about Plug Power Inc. ("PLUG"), including but not limited to
statements about PLUG's expectations for 2017, including GAAP
revenue, number of GenDrive shipments, number of GenFuel sites,
number of ProGen modules, GAAP gross margin, bookings and net cash
used You are cautioned that such statements should not be read as a
guarantee of future performance or results, and will not
necessarily be accurate indications of the times at, or by which,
such performance or results will have been achieved. Such
statements are subject to risks and uncertainties that could cause
actual performance or results to differ materially from those
expressed in these statements. In particular, the risks and
uncertainties include, among other things, the risk that we
continue to incur losses and might never achieve or maintain
profitability; the risk that we will need to raise additional
capital to fund our operations and such capital may not be
available to us; the risk that our lack of extensive experience in
manufacturing and marketing products may impact our ability to
manufacture and market products on a profitable and large-scale
commercial basis; the risk that unit orders will not ship, be
installed and/or converted to revenue, in whole or in part; the
risk that pending orders may not convert to purchase orders, in
whole or in part; the risk that a loss of one or more of our major
customers could result in a material adverse effect on our
financial condition; the risk that a sale of a significant number
of shares of stock could depress the market price of our common
stock; the risk that negative publicity related to our business or
stock could result in a negative impact on our stock value and
profitability; the risk of potential losses related to any product
liability claims or contract disputes; the risk of loss related to
an inability to maintain an effective system of internal controls
or key personnel; the risks related to use of flammable fuels in
our products; the cost and timing of developing, marketing and
selling our products and our ability to raise the necessary capital
to fund such costs; the ability to achieve the forecasted gross
margin on the sale of our products; the risk that our actual net
cash used for operating expenses may exceed the projected net cash
for operating expenses; the cost and availability of fuel and
fueling infrastructures for our products; market acceptance of our
products, including GenDrive, GenSure and GenKey systems; the
volatility of our stock price; our ability to establish and
maintain relationships with third parties with respect to product
development, manufacturing, distribution and servicing and the
supply of key product components; the cost and availability of
components and parts for our products; our ability to develop
commercially viable products; our ability to reduce product and
manufacturing costs; our ability to successfully expand our product
lines; our ability to successfully expand internationally; our
ability to improve system reliability for our GenDrive, ReliOn and
GenKey systems; competitive factors, such as price competition and
competition from other traditional and alternative energy
companies; our ability to protect our intellectual property; the
cost of complying with current and future federal, state and
international governmental regulations; risks associated with
potential future acquisitions; and other risks and uncertainties
referenced in our public filings with the Securities and Exchange
Commission. For additional disclosure regarding these and other
risks faced by PLUG, see disclosures contained in PLUG's public
filings with the Securities and Exchange Commission (the "SEC")
including, the "Risk Factors" section of PLUG's Annual Report on
Form 10-K for the year ended December 31, 2015. You should consider
these factors in evaluating the forward-looking statements included
in this presentation and not place undue reliance on such
statements. The forward-looking statements are made as of the date
hereof, and PLUG undertakes no obligation to update such statements
as a result of new information.
Plug Power Inc. |
|
Selected Financial Data |
|
(Dollars in 000's except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
For the three months ended December 31, |
|
For the twelve months ended December 31, |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
Revenue: |
|
|
|
|
|
|
|
|
Sales of fuel cell systems and related
infrastructure |
$ |
19,993 |
|
|
$ |
29,472 |
|
|
$ |
39,985 |
|
|
$ |
78,002 |
|
|
Services performed on fuel cell systems and related
infrastructure |
|
5,060 |
|
|
|
4,929 |
|
|
|
20,456 |
|
|
|
14,012 |
|
|
Power Purchase Agreements |
|
4,061 |
|
|
|
2,118 |
|
|
|
13,687 |
|
|
|
5,718 |
|
|
Fuel delivered to customers |
|
3,359 |
|
|
|
1,744 |
|
|
|
10,916 |
|
|
|
5,075 |
|
|
Other |
|
105 |
|
|
|
168 |
|
|
|
884 |
|
|
|
481 |
|
|
Total
revenue |
$ |
32,578 |
|
|
$ |
38,431 |
|
|
$ |
85,928 |
|
|
$ |
103,288 |
|
|
Gross profit
(loss): |
|
|
|
|
|
|
|
|
Sales of fuel cell systems and related
infrastructure |
$ |
6,632 |
|
|
$ |
3,871 |
|
|
$ |
10,442 |
|
|
$ |
10,299 |
|
|
Services performed on fuel cell systems and related
infrastructure |
|
(1,399 |
) |
|
|
(2,360 |
) |
|
|
(2,193 |
) |
|
|
(8,925 |
) |
|
Provision for loss contracts related to service |
|
- |
|
|
|
(10,050 |
) |
|
|
1,071 |
|
|
|
(10,050 |
) |
|
Power Purchase Agreements |
|
(1,110 |
) |
|
|
(34 |
) |
|
|
(2,445 |
) |
|
|
465 |
|
|
Fuel delivered to customers |
|
(1,207 |
) |
|
|
(844 |
) |
|
|
(2,948 |
) |
|
|
(1,620 |
) |
|
Other |
|
95 |
|
|
|
- |
|
|
|
19 |
|
|
|
(59 |
) |
|
Total gross
profit (loss) |
$ |
3,011 |
|
|
$ |
(9,417 |
) |
|
$ |
3,946 |
|
|
$ |
(9,890 |
) |
|
|
|
|
|
|
|
|
|
|
Research and
development expense |
$ |
6,145 |
|
|
$ |
4,491 |
|
|
$ |
21,177 |
|
|
$ |
14,948 |
|
|
Selling, general
and administrative expense |
|
8,803 |
|
|
|
10,212 |
|
|
|
34,288 |
|
|
|
34,164 |
|
|
Total operating
expenses |
$ |
14,948 |
|
|
$ |
14,703 |
|
|
$ |
55,465 |
|
|
$ |
49,112 |
|
|
|
|
|
|
|
|
|
|
|
Net loss
attributable to common shareholders |
$ |
(19,237 |
) |
|
$ |
(25,227 |
) |
|
$ |
(57,591 |
) |
|
$ |
(55,795 |
) |
|
Diluted net loss
per share |
|
(0.11 |
) |
|
|
(0.14 |
) |
|
|
(0.32 |
) |
|
|
(0.32 |
) |
|
|
|
|
|
|
|
|
|
|
Cash provided by
(used in) operating activities |
$ |
33 |
|
|
$ |
(9,978 |
) |
|
$ |
(29,636 |
) |
|
$ |
(47,274 |
) |
|
|
|
|
|
|
|
|
|
|
|
At December 31, 2016 |
|
At December 31, 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash |
$ |
100,636 |
|
|
$ |
111,796 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Plug Power Inc. |
|
Other Key Measures |
|
(Dollars in 000's) |
|
|
|
|
|
|
|
|
|
|
|
For the three months ended December 31, |
|
For the twelve months ended December 31, |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
EBITDAS |
$ |
(7,507 |
) |
|
$ |
(21,467 |
) |
|
$ |
(36,989 |
) |
|
$ |
(48,198 |
) |
|
|
|
|
|
|
|
|
|
|
Value of PPA
assets deployed (1) |
$ |
16,582 |
|
|
$ |
- |
|
|
$ |
66,226 |
|
|
$ |
- |
|
|
Excess of value
of PPA assets deployed over cost (1) |
|
5,923 |
|
|
|
- |
|
|
|
21,053 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
(1) Value
of PPA assets deployed excludes those assets which were associated
with revenue recognized under US GAAP. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Plug Power Inc. |
|
Reconciliation of Non-GAAP Financial
Measure |
|
(Dollars in 000's) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Reported Operating Loss to EBITDAS |
For the three months ended December 31, |
|
For the twelve months ended December 31, |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
Operating loss,
as reported |
$ |
(11,937 |
) |
|
$ |
(24,120 |
) |
|
$ |
(51,519 |
) |
|
$ |
(59,002 |
) |
|
Stock-based compensation |
|
2,545 |
|
|
|
1,982 |
|
|
|
9,290 |
|
|
|
7,817 |
|
|
Depreciation and amortization |
|
1,885 |
|
|
|
671 |
|
|
|
5,240 |
|
|
|
2,987 |
|
|
EBITDAS |
$ |
(7,507 |
) |
|
$ |
(21,467 |
) |
|
$ |
(36,989 |
) |
|
$ |
(48,198 |
) |
|
|
|
|
|
|
|
|
|
|
To
supplement the Company’s unaudited financial data presented on a
generally accepted accounting principles (GAAP) basis, management
has used EBITDAS, a non-GAAP measure. This non-GAAP measure
is among the indicators management uses as a basis for evaluating
the Company’s financial performance as well as for forecasting
future periods. Management establishes performance targets,
annual budgets and makes operating decisions based in part upon
these metrics. Accordingly, disclosure of this non-GAAP measure
provides investors with the same information that management uses
to understand the Company’s economic performance year over year. In
addition, investors have historically requested and the Company has
historically reported this non-GAAP financial measure as a means of
providing consistent and comparable information with past reports
of financial results. The presentation of this additional
information is not meant to be considered in isolation or as a
substitute for net income or other measures prepared in accordance
with GAAP. EBITDAS is defined as net income before interest
expense, provision for income taxes, depreciation and amortization
expense and stock compensation expense. EBITDAS is not a
measure of our liquidity or financial performance under GAAP and
should not be considered as an alternative to net income or any
other performance measure derived in accordance with GAAP, or as an
alternative to cash flows from operating activities as a measure of
our liquidity. While management believes that the non-GAAP
financial measures provide useful supplemental information to
investors, there are limitations associated with the use of these
measures. The measures are not prepared in accordance with
GAAP and may not be directly comparable to similarly titled
measures of other companies due to potential differences in the
exact method of calculation. Further, EBITDAS exclude certain
expenses, such as depreciation and amortization expense, which
represent significant and unavoidable operating costs of our
business. Management compensates for these limitations by
relying primarily on our GAAP results and by using EBITDAS only
supplementally and by reviewing the reconciliations of the non-GAAP
financial measures to their most comparable GAAP financial
measures. Non-GAAP financial measures are not in accordance with,
or an alternative for, generally accepted accounting principles in
the United States. The Company’s non-GAAP financial measures
are not meant to be considered in isolation or as a substitute for
comparable GAAP financial measures, and should be read only in
conjunction with the Company’s consolidated financial statements
prepared in accordance with GAAP. |
|
Plug Power Investor Contact
John Cococcia
investors@plugpower.com
Plug Power Media Contact
Teal Vivacqua
media@plugpower.com
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