Plug Power Inc. (NASDAQ: PLUG), a leading provider of turnkey
hydrogen solutions building the global green hydrogen economy,
today provided a business update as it works to complete its
previously announced financial restatement and file its Form 10-K
for the year ended December 31, 2020.
Plug Power continues to execute on its business objectives and
remains well-positioned to leverage its industry leadership to
capture a meaningful share of the $10T+ hydrogen economy. For the
first quarter of 2021, the Company expects to report over $70
million in gross billings, a more than 60% increase from the first
quarter of 2020, and expects to report over $67 million of net
revenue, also a more than 60% increase from the first quarter of
2020. In addition, the Company maintains a strong balance sheet
with over $5 billion of cash to fund future growth initiatives. The
Company expects its second quarter gross billings to exceed $105
million, an approximate 50% increase from the second quarter of
2020, and expects to report over $102 million of net revenue, also
an approximate 50% increase from the second quarter of 2020. The
Company is reiterating its previously disclosed annual gross
billings targets of $475 million in 2021, $750 million in 2022 and
$1.7 billion in 2024.
Andy Marsh, Plug Power’s President and Chief Executive Officer,
said, “The fundamentals of our business remain robust with record
first quarter gross billings. As evidenced by the continued
advancement of our strategic pipeline, we remain firmly committed
to executing on our mission to build out the hydrogen economy in
North America and beyond. We continue to deliver state-of-the-art
fuel cell and green hydrogen solutions to our customers,
and remain confident in the growth trajectory of the business. We
are working to complete our previously announced financial
restatement as expeditiously as possible.”
The Company’s business momentum is further reinforced by recent
strategic partnerships, including:
- An agreement with BAE Systems, a premier supplier and
integrator of low and zero emission electric propulsion systems and
application integration, to collaborate on supplying zero emission
powertrains to heavy-duty transit bus original equipment
manufacturers in North America. Plug Power will integrate its
ProGen fuel cell engines into BAE Systems’ smart electric drive
systems, providing hydrogen and refueling infrastructure to
end-customers’ use points.
- Finalizing Power Purchase Agreements with multiple strategic
partners including Brookfield Renewables, APEX, NYPA and others,
reflecting continued execution on building the first green hydrogen
generation network in the U.S.
- An agreement to develop two 15 ton per day liquefaction plants
with Chart Industries, which will utilize Chart’s helium
refrigeration technology, cold box design and rotating equipment.
This positions the Company to have two hydrogen facilities
operating by the end of 2022 as previously announced, and a
technology platform to leverage for future hydrogen generation
sites. These green hydrogen plants will be located in the
Mid-Atlantic and Southeast U.S.
- Formalizing the formation of the Company’s joint venture with
Renault expected by the end of the second quarter for on-road light
commercial vehicles in Europe.
- Additionally, the Company expects to finalize joint ventures
with SK for the Asian market and Acciona for hydrogen production in
the Iberian Peninsula by the end of the third quarter.
Financial Restatement and Filing of Form
12b-25
As previously announced on March 16, 2021, the Company has
determined to restate its previously issued financial statements
for fiscal years 2018 and 2019 and its quarterly filings for 2019
and 2020, which will be disclosed in the Company’s Form 10-K for
the year ended December 31, 2020, primarily relating to errors in
accounting for various non-cash items, including:
- The reported book value of right of use assets and related
finance obligations;
- Loss accruals for certain service contracts;
- The impairment of certain long-lived assets; and,
- The classification of certain costs, resulting in a decrease
in research and development expense and a corresponding
increase in cost of revenue.
As previously disclosed, the restatement is not expected to
impact the Company’s cash position, business operations or
economics of commercial arrangements, and the restatement does not
change the fundamentals of the Company’s business or growth
trends.
Plug Power is working expeditiously with its independent
auditor, KPMG LLP, to complete the restatement and file its Form
10-K. Plug Power and KPMG currently expect that the Company will
file its Form 10-K within the next five days.
Given the time and focus dedicated to the restatement process
and the completion and filing of the Company’s 2020 Form 10-K, the
Company requires additional time to complete its customary
quarterly review and reporting process and the filing of its Form
10-Q for the first quarter ended March 31, 2021. As a result, the
Company has filed a Form 12b-25 with the U.S. Securities and
Exchange Commission to extend the Form 10-Q filing due date from
May 10, 2021 to May 17, 2021. The Company is committed to filing
its Form 10-Q as expeditiously as possible following the completion
of its restatement and filing of its Form 10-K.
About Plug Power
Plug Power is building the hydrogen economy as the leading
provider of comprehensive hydrogen fuel cell turnkey solutions. The
Company’s innovative technology powers electric motors with
hydrogen fuel cells amid an ongoing paradigm shift in the power,
energy, and transportation industries to address climate change and
energy security, while meeting sustainability goals. Plug Power
created the first commercially viable market for hydrogen fuel cell
technology. As a result, the Company has deployed over 40,000 fuel
cell systems for e-mobility, more than anyone else in the world,
and has become the largest buyer of liquid hydrogen, having built
and operated a hydrogen highway across North America. Plug Power
delivers a significant value proposition to end-customers,
including meaningful environmental benefits, efficiency gains, fast
fueling, and lower operational costs. Plug Power’s
vertically-integrated GenKey solution ties together all critical
elements to power, fuel, and provide service to customers such as
Amazon, BMW, The Southern Company, Carrefour, and Walmart. The
Company is now leveraging its know-how, modular product
architecture and foundational customers to rapidly expand into
other key markets including zero-emission on-road vehicles,
robotics, and data centers. Learn more at www.plugpower.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the federal securities laws. These statements
include, but are not limited to, statements regarding the Company’s
expectations regarding gross billings and revenue for the first and
second quarters of 2021, and gross billings for the years 2021,
2022 and 2024, the Company’s strategic partnerships with BAE
Systems, Brookfield Renewables, Apex, NYPA, Chart Industries,
Renault, SK and Acciona, including expectations regarding the
timing, completion and success of such partnerships, the nature and
extent of the accounting changes and errors and the expected impact
of the accounting changes and the restatement on the Company’s
prior and future financial statements, financial position and
results of operations, and the Company’s expected ability and
timing of its filing of its 2020 Form 10-K and Q1 2021 Form 10-Q
with the Securities and Exchange Commission. These forward-looking
statements are made as of the date hereof and are based on current
expectations, estimates, forecasts and projections as well as the
beliefs and assumptions of management. Forward-looking statements
are subject to a number of risks and uncertainties, many of which
involve factors or circumstances that are beyond the Company’s
control. The Company’s actual results could differ materially from
those stated or implied in forward-looking statements due to a
number of factors, including, but not limited to, the risk that
additional information may arise prior to the filing of the
restated financial statements; the final determination of the Audit
Committee regarding matters relating to its internal review; the
timing and ultimate conclusions of KPMG regarding the audit of the
Company’s financial statements, the risk that the completion and
filing of the Company’s Annual Report on Form 10-K and/or its
Quarterly Report on Form 10-Q will take longer than expected, the
risk of potential litigation or regulatory action arising from the
Company’s failure to timely file its Annual Report on Form 10-K
and/or its Quarterly Report on Form 10-Q; and the risks related to
the restatement, including the potential impact on the Company’s
reputation and its commercial relationships. These and other
potential risks and uncertainties that could cause actual results
to differ from the results predicted are more fully detailed in the
Company’s filings and reports with the SEC, including the Annual
Report on Form 10-K for the year ended December 31, 2019, as
amended and supplemented by the Quarterly Reports on Form 10-Q for
the quarters ended March 31, 2020, June 30, 2020 and September 30,
2020, as well as other filings and reports that are filed by the
Company from time to time with the SEC. Each forward-looking
statement in this press release speaks only as of the date of the
particular statement. The Company disclaims any obligation to
update forward-looking statements except as may be required by
law.
Gross billings is based on the invoice value of equipment
deployed and services rendered. Invoice value of equipment is
measured on a relative basis using cash value within contracts with
customers and it is attributed to the period in which the equipment
is deployed. To that amount, the Company adds the invoice value for
services rendered in the period. These services include fuel
provided, extended warranty contracts serviced, power provided
under Power Purchase agreements, etc. The Company’s objective in
presenting gross billings is to present to investors an operating
metric that conveys commercial growth over time. Management also
uses this operating metric as a measurement of commercial growth,
as well as establishing performance targets, annual budgets and
makes operating decisions based in part on gross billings. The
significant estimates and assumptions underlying the metric include
the allocation of revenue, excluding the provision for warrants,
based on relative standalone selling prices used in our GAAP
revenue numbers.
Media Contact Andrea Rose / Clayton ErwinJoele
Frank, Wilkinson Brimmer Katcher212-895-8666 /
212-895-8696arose@joelefrank.com / cerwin@joelefrank.com
SOURCE: PLUG
Plug Power (NASDAQ:PLUG)
Historical Stock Chart
From Mar 2024 to Apr 2024
Plug Power (NASDAQ:PLUG)
Historical Stock Chart
From Apr 2023 to Apr 2024