- Revenue of $24.8M, 25% Gross
Margin and $(7.2)M Adjusted
EBITDA
VANCOUVER, Oct. 30, 2019 /CNW/ - Ballard Power Systems
(NASDAQ: BLDP; TSX: BLDP) today announced consolidated financial
results for the third quarter ended September 30, 2019. 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, "Financial results for Q3 and year-to-date, together with a
solid order book going forward, support our expectations for the
full year. Ballard delivered Q3 revenue of $24.8 million, gross margin of 25%, Adjusted
EBITDA of $(7.2) million and ending
cash reserves of $153.4 million. We
also announced new purchase orders for FCveloCity® fuel
cell modules to be used in Heavy Duty Motive applications."
Mr. MacEwen noted, "The global megatrend toward zero-emission
mobility is accelerating and putting increased momentum behind fuel
cell-based power for motive applications, including buses,
commercial trucks, rail, marine and cars. Against this backdrop,
Ballard made measurable progress in our strategic positioning
during the past quarter. Further to the launches earlier this year
of our next-generation LCS fuel cell stack and
FCmoveTM power module – each featuring significant
improvements in performance and cost – we are seeing growing market
interest in these next generation products, following positive
product performance in initial bus tests. We are also progressing
our advanced manufacturing plan in our Vancouver operations, with new manufacturing
equipment, layout and processes that will reduce cycle time,
improve yields, increase production capacity and further reduce
product cost. And, we are progressing with our technology transfer
program to the Weichai-Ballard joint venture and the construction
of our JV manufacturing facility in China."
Mr. MacEwen concluded, "We are reiterating Ballard's
full-year 2019 outlook. In addition, we look forward to strong
growth in 2020 and beyond, as Ballard solidifies our leadership
position in the fuel cell electric vehicle market."
Q3 2019 Financial Highlights
(all comparisons are
to Q3 2018 unless otherwise noted)
- Revenue was $24.8 million, up 15%
on a year-on-year basis, reflecting increases in Technology
Solutions and Material Handling, which more than offset declines in
Portable Power/UAV and Heavy Duty Motive.
- The Power Products platform generated revenue of $8.0 million, a decrease of 28%:
-
- Heavy Duty Motive revenue was $5.0
million, a decrease of 21% due primarily to lower shipments
of fuel cell products to customers in China;
- The Portable Power/UAV business generated $0.1 million, a decrease of 95% as a result of
lower revenues generated by Protonex, primarily due to the
disposition of Power Manager assets in Q4 2018;
- Material Handling revenue was $2.8
million, an increase of 6% primarily due to slightly higher
shipments to Plug Power; and
- Telecom Backup Power revenue was $0.2
million, a decrease of 54% due primarily to a decline in
hydrogen-based backup power product and service revenue.
- The Technology Solutions platform generated revenue of
$16.8 million, an increase of 61% due
primarily to amounts earned from the Weichai Ballard Hy-Energy
Technologies Co., Ltd. ("Weichai-Ballard JV") technology transfer
program.
- Gross margin was 25%, a 5-point decrease primarily reflecting a
shift to lower overall margin product and service revenue mix,
including the loss of higher margin revenues generated by Protonex,
due in part to the disposition of Power Manager assets in Q4
2018.
- Cash operating costs2 were $9.3 million, a decrease of 12% primarily
attributable to lower product development costs combined with
decreases in sales and marketing costs.
- Adjusted EBITDA2 was $(7.2)
million, a decline of 97% or $3.5
million, primarily driven by higher equity in loss of
investment in joint venture and associates of $(3.2) million attributed to the establishment of
operations of the Weichai-Ballard JV, by an increase in operating
expenses primarily as a result of an impairment loss on trade
receivables for amounts owed to Ballard for product shipments to
Wrightbus, partially offset by the decrease in Cash Operating
Costs.
- Net loss was $(9.8) million, a
decline of $3.8 million. Net loss
also included equity in loss of investment in joint venture &
associates of $(3.2) million,
primarily attributable to the establishment of operations of the
Weichai-Ballard JV.
- Net loss per share was $(0.04)
compared to $(0.03) in Q3 2018.
- Cash used by operating activities was $9.6 million, an increase of $1.9 million reflecting cash operating losses of
$2.4 million and working capital
outflows of $7.2 million.
- Cash reserves were $153.4 million
at September 30, an increase of 561%
from the end of Q3 2018 and a decrease of 6% compared to the prior
quarter.
- The Order Backlog at end-Q3 was $199.6
million, down from $211.6
million in the prior quarter and reflecting $12.8 million in new orders and $24.8 million in shipments during the quarter. At
end-Q3 the 12-month Order Book was $123.6
million, a decrease of $3.1
million from the prior quarter.
Q3 2019 Operating Highlights
- Subsequent to the quarter, received a purchase order for 3
FCveloCity®-HD 100 kilowatt (kW) fuel cell modules from
Germany-based BEHALA to power the
world's first zero-emission push boat. The boat, to be named
Elektra, will be used primarily to transport goods between
Berlin and Hamburg as well as on inner-city transport
routes in Berlin.
- Subsequent to the quarter, received a purchase order for 9
FCveloCity®-HD 100kW fuel cell modules from Anglo American to power an Ultra-class mining
truck (with one module to be maintained as a spare) during a
demonstration project planned for the second half of 2020 in
South Africa.
- Ballard was included in the S&P/TSX Composite Index
effective September 23, 2019. Ballard
is now one of approximately 240 out of the 1,500 companies listed
on the Toronto Stock Exchange (TSX) to be included in the
S&P/TSX Composite Index.
- Ballard was named to the inaugural TSX30, which
recognizes the top 30 performing shares listed on the TSX over the
3-year period from July 1, 2016 to
June 30, 2019. During this period
BLDP share price rose 222% on the TSX, representing the
12th largest share price appreciation among listed
companies.
Q3 2019 Financial Summary
(Millions of U.S.
dollars)
|
Three months ended Sept.
30,
|
Nine months ended Sept. 30,
|
|
2019
|
2018
|
% Change
|
2019
|
2018
|
% Change
|
GROWTH
|
|
|
|
|
|
|
Fuel Cell Products
& Services Revenue:1
|
|
|
|
|
|
|
Heavy Duty
Motive
|
$5.0
|
$6.3
|
-21%
|
$14.0
|
$28.9
|
-52%
|
Portable
Power/UAV
|
$0.1
|
$1.9
|
-95%
|
$0.5
|
$6.7
|
-93%
|
Material
Handling
|
$2.8
|
$2.7
|
6%
|
$8.8
|
$4.8
|
84%
|
Backup
Power
|
$0.2
|
$0.3
|
-54%
|
$1.0
|
$1.0
|
-8%
|
Sub-Total
|
$8.0
|
$11.2
|
-28%
|
$24.2
|
$41.4
|
-42%
|
Technology
Solutions
|
$16.8
|
$10.4
|
61%
|
$40.2
|
$26.7
|
51%
|
Total Fuel Cell
Products & Services
Revenue
|
$24.8
|
$21.6
|
15%
|
$64.4
|
$68.1
|
-5%
|
PROFITABILITY
|
|
|
|
|
|
|
Gross Margin
$
|
$6.2
|
$6.4
|
-4%
|
$13.9
|
$22.5
|
-38%
|
Gross Margin
%
|
25%
|
30%
|
-5-point
|
22%
|
33%
|
-11-points
|
Operating
Expenses
|
$13.0
|
$11.8
|
10%
|
$33.8
|
$37.0
|
-9%
|
Cash Operating
Costs2
|
$9.3
|
$10.6
|
-12%
|
$27.0
|
$31.8
|
-15%
|
Equity gain (loss) in
JV & Associates
|
($3.2)
|
$0.0
|
-3,200%
|
($8.1)
|
($0.1)
|
-8,000%
|
Adjusted
EBITDA2
|
($7.2)
|
($3.6)
|
-97%
|
($20.8)
|
($8.3)
|
-151%
|
Net Loss
|
($9.8)
|
($6.0)
|
-62%
|
($28.8)
|
($15.9)
|
-82%
|
Net Loss Per
Share
|
($0.04)
|
($0.03)
|
-26%
|
($0.12)
|
($0.09)
|
-39%
|
Adjusted Net
Loss2
|
($9.8)
|
($6.0)
|
-62%
|
($26.8)
|
($15.9)
|
-69%
|
Adjusted Net Loss Per
Share2
|
($0.04)
|
($0.03)
|
-26%
|
($0.12)
|
($0.09)
|
-39%
|
CASH
|
|
|
|
|
|
|
Cash Used by
Operating Activities:
|
|
|
|
|
|
|
Cash Operating Income
(Loss)
|
($2.4)
|
($4.9)
|
51%
|
($9.2)
|
($9.4)
|
-3%
|
Working Capital
Changes
|
($7.2)
|
($2.8)
|
-157%
|
($9.2)
|
($22.5)
|
59%
|
Cash Provided (Used)
By Operating Activities
|
($9.6)
|
($7.7)
|
-24%
|
($18.3)
|
($31.9)
|
42%
|
Cash
Reserves
|
$153.4
|
$23.2
|
561%
|
|
|
|
For a more detailed discussion of Ballard Power Systems' third
quarter 2019 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, October 31, 2019 at
8:00 a.m. Pacific Time (11:00 a.m. Eastern Time) to review third quarter
2019 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 Earnings, Interviews
& Presentations area of the Investors section of Ballard's
website (www.ballard.com/investors).
About Ballard Power Systems
Ballard Power Systems'
(NASDAQ: BLDP; TSX: BLDP) vision is to deliver fuel cell power for
a sustainable planet. Ballard zero-emission PEM fuel cells are
enabling electrification of mobility, including buses, commercial
trucks, trains, marine vessels, passenger cars, forklift trucks and
UAVs. 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.
Endnotes:
|
|
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/UAV,
Material Handling and Backup Power, as well as the delivery of
T
echnology 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, the impact of unrealized gains or losses on foreign
exchange contracts, acquisition costs and financing charges. EBITDA
measures net loss excluding finance expense, income taxes,
depreciation of property, plant and equipment, and amortization of
intangible assets. Adjusted EBITDA adjusts EBITDA for stock
based
compensation expense, transactional gains and losses, asset
impairment charges, the impact of unrealized gains or losses on
foreign
exchange contracts, finance and other income, and acquisition
costs. Adjusted Net Income (Loss) measures net income (loss)
excluding transactional gains and losses, asset impairment charges,
and acquisition costs.
|
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SOURCE Ballard Power Systems Inc.