- $1.3bn cash reserves supports
increased and accelerated investment
- Strong market interest reflected in high level of commercial
activity
VANCOUVER, BC, May 3, 2021 /CNW/ - Ballard Power Systems
(NASDAQ: BLDP) (TSX: BLDP) today announced consolidated financial
results for the first quarter ended March
31, 2021. All amounts are in U.S. dollars unless otherwise
noted and have been prepared in accordance with International
Financial Reporting Standards (IFRS).
"Supported by a strengthening policy backdrop and increased
customer engagement, we have clearer line of sight on long-term
growth in our core medium- and heavy-duty motive applications of
bus, truck, rail and marine," said Randy
MacEwen, President and CEO. "As a result, 2021 will be
marked by increased and accelerated investment ahead of market
tipping points. Bolstered by a fortified balance sheet, we will
deepen our investments in talent, technology, products, advanced
manufacturing, localization and customer experience."
Mr. MacEwen continued, "In Q1, we delivered revenue of
$17.6 million, gross margin of 15%
and ending cash reserves of $1.27
billion. Although the China
market remained muted while awaiting further policy pronouncements,
activity levels were high across the entire Ballard organization. Indeed, on the
commercial front, we witnessed unprecedented customer and industry
engagement across our markets."
Mr. MacEwen added, "We are pleased with the growing underlying
interest for fuel cell buses in Europe, including follow-on orders from
Wrightbus and Solaris. In the truck market, we progressed our
co-development work with the Weichai-Ballard joint venture in
China and with MAHLE on a fuel
cell engine for the European market. Furthermore, yesterday we
announced a strategic collaboration with Linamar, focused on
powertrains and components for the class 1 and 2 vehicle market in
North America and Europe. We have also announced a collaboration
with Chart Industries for the joint development of integrated
liquid hydrogen storage and fuel cell solutions for heavy-duty
vehicles. We launched several rail programs during the quarter,
including a fuel cell locomotive program with CP in Canada, a switching locomotive program in
California, and a passenger train
program in Scotland. We also
initiated design work for a large-scale propulsion system for a
marine customer in Australia and
announced our membership in the Hydra Consortium for development of
fuel cell systems to power heavy-duty mining equipment."
Mr. MacEwen further noted, "On the technology and product
development front, we continued to make measured progress on our
key development programs, including ongoing work with our
Weichai-Ballard JV in China. We
are also tracking ahead of plan on our '3x3' fuel cell stack cost
reduction program, enhanced by breakthrough designs and performance
from our MEAs and bipolar plates, continued progress with our
supply chain, and implementation of advanced manufacturing
initiatives."
Mr. MacEwen concluded, "All indicators are that we will be set
up for strong long-term growth as a result of the accelerated
investment we are making this year. We also continue to assess
strategic acquisition opportunities that will reduce customer
friction points and simplify the customer
experience."
Q1 2021 Financial Highlights
(all comparisons are
to Q1 2020 unless otherwise noted)
- Total revenue was $17.6 million
in the quarter, a year-over-year decrease of 26% or $6.3 million, the result of lower Power Products
and Technology Solutions revenue.
- The Power Products platform generated revenue of $9.4 million in the quarter, a decrease of 25% or
$2.8 million:
-
- Heavy Duty Motive revenue was $6.9
million, a decrease of 33% or $3.4
million, due largely to lower product shipments to
China;
- Material Handling revenue was $1.7
million, an increase of 148% or $1.0
million, primarily the result of higher fuel cell stack
shipments to Plug Power;
- Backup Power revenue was $0.8
million, a decrease of 39% or $0.5
million due primarily to lower shipments of fuel cell stacks
for backup power in Asia.
- The Technology Solutions platform generated revenue of
$8.2 million in the quarter, a
decrease of 29% or $3.4 million, due
mainly to lower amounts earned from the Audi
program.
- Gross margin was 15% in Q1, a decline of 6-points due primarily
to lower revenue and a shift toward a lower overall margin product
and service revenue mix.
- Cash operating costs2 increased by 22% to
$14.3 million in the quarter,
resulting from increased expenditure on research and product
development.
- Adjusted EBITDA2 was ($14.0)
million, compared to ($8.8)
million in Q1 2020, primarily as a result of the decrease in
gross margin, increase in cash operating costs and higher equity
loss in the Weichai-Ballard JV.
- Net loss and adjusted net loss were ($17.8) million in the quarter, increases of
36%.
- Net loss per share2 and adjusted net loss per
share2 were ($0.06),
increases of 12%.
- Cash used by operating activities was ($15.7) million, an increase of 56%, reflecting
cash operating loss of ($10.3)
million and use in working capital of ($5.4) million.
- Cash reserves were $1,270.9
million at March 31, an
increase of 600% from the end of Q1 2020 and an increase of 66%
from the end of the prior quarter, driven by net $527.3 million of cash raised in the quarter from
a bought deal offering. Ballard
also made a further capital contribution of $3.0 million to the Weichai-Ballard JV in the
quarter.
- During Q1 Ballard received
$11.8 million in new orders and
delivered orders valued at $17.6
million, reducing the Order Backlog by $5.8 million from the prior quarter, ending Q1 at
$112.0 million. The 12-month Order
Book was $73.1 million at end-Q1, a
decrease of $10.4 million from the
prior quarter.
Q1 2021 Operating Highlights
- Announced that the Company's PEM fuel cell technology and
products have powered Fuel Cell Electric Vehicles, or FCEVs, in
commercial Heavy- and Medium-Duty Motive applications for an
industry-leading cumulative total of more than 75 million
kilometers on roads around the globe.
- Bus
-
- Announced receipt of follow-on purchase orders from Wrightbus
for a total of 50 fuel cell modules to power Fuel Cell Electric
Buses – FCEBs – planned for deployment in a number of U.K.
cities.
- Received follow-on purchase orders from Solaris Bus & Coach
S.A. for 10 fuel cell modules to power buses in The Netherlands.
- Announced that Ballard is
powering the first-ever FCEB – designed and built by Global Bus
Ventures – in New Zealand.
- Recognized Van Hool NV, a long-time bus OEM partner in
Belgium, for its selection as a
qualified provider of FCEBs for deployment in France.
- Truck
-
- Subsequent to the quarter, announced a strategic alliance with
Linamar Corporation for the co-development and sale of fuel cell
powertrains and components for class 1 and 2 vehicles, weighing up
to 5-tons.
- Rail
-
- Announced that Canadian Pacific (CP) will employ 1.2 megawatts
of Ballard fuel cell modules for
North America's first
hydrogen-powered line-haul freight locomotive.
- Received a purchase order from Arcola Energy for fuel cell
modules to power a passenger train planned for demonstration during
COP26, to be hosted by Glasgow City in November 2021.
- Subsequent to the quarter, announced that Ballard will provide fuel cell modules to
Sierra Northern Railway to power a zero-emission switching
locomotive in Northern
California.
- Marine
-
- Announced a non-binding Memorandum of Understanding with Global
Energy Ventures in Australia, for
the development of a new fuel cell-powered ship – called C-H2 Ship
– designed to transport compressed green hydrogen.
- Other
-
- Signed a non-binding MOU with Chart Industries for the joint
development of integrated system solutions that include a fuel cell
engine with onboard liquid hydrogen storage and vaporization for
heavy-duty vehicles.
- Subsequent to the quarter, announced Ballard's membership in the Hydra Consortium –
together with Mining3 and ENGIE – focused on enabling heavy-duty
mining mobile equipment to run on renewable hydrogen, displacing
diesel and decarbonizing the mining sector.
- Subsequent to the quarter, issued Ballard's "Environmental, Social and
Governance (ESG) Report 2020", highlighting the Company's
performance in a number of key areas and demonstrating an ongoing
commitment to transparency and environmental leadership in the fuel
cell industry.
Q1 2021 Financial Summary
(Millions of U.S.
dollars)
|
Three months ended March
31,
|
|
2021
|
2020
|
% Change
|
REVENUE
|
|
|
|
Fuel Cell Products
& Services Revenue:1,2
|
|
|
|
Heavy Duty
Motive
|
6.9
|
10.3
|
-33%
|
Material
Handling
|
1.7
|
0.7
|
148%
|
Backup
Power
|
0.8
|
1.2
|
-39%
|
Sub-Total
|
$9.4
|
$12.2
|
-25%
|
Technology
Solutions
|
8.2
|
11.6
|
-29%
|
Total Fuel Cell
Products & Services
Revenue
|
$17.6
|
$23.8
|
-26%
|
PROFITABILITY
|
|
|
|
Gross Margin
$
|
$2.6
|
$5.0
|
-48%
|
Gross Margin
%
|
15%
|
21%
|
-6-points
|
Operating
Expenses
|
$18.0
|
$15.2
|
19%
|
Cash Operating
Costs3
|
$14.3
|
$11.7
|
22%
|
Equity gain (loss) in
JV & Associates
|
($3.0)
|
($2.5)
|
-20%
|
Adjusted
EBITDA3
|
($14.0)
|
($8.8)
|
-59%
|
Net Income
(Loss)
|
($17.8)
|
($13.1)
|
-36%
|
Earnings Per
Share
|
($0.06)
|
($0.06)
|
-12%
|
CASH
|
|
|
|
Cash Used by
Operating Activities:
|
|
|
|
Cash Operating Income
(Loss)
|
($10.3)
|
($7.0)
|
-46%
|
Working Capital
Changes
|
($5.4)
|
($3.1)
|
-74%
|
Cash Used By Operating
Activities
|
($15.7)
|
($10.1)
|
-56%
|
Cash
Reserves
|
$1,270.9
|
$181.6
|
600%
|
For a more detailed discussion of Ballard Power Systems' first
quarter 2021 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
Tuesday, May 4, 2021 at 8:00 a.m. Pacific Time (11:00 a.m. Eastern Time) to review first quarter
2021 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 and forklift trucks. 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 and
market adoption of fuel cell electric vehicles. 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), 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 The
UAV market has been classified as a discontinued operation in our
third quarter of 2020 consolidated condensed financial statements.
As such, the assets of the UAV market have been classified as
assets held for sale as of September 30, 2020. Furthermore, the
historic operating results of the UAV market for both 2020 and 2019
have been removed from continuing operating results and are instead
presented separately in the statement of comprehensive income as
income from discontinued operations.
|
|
3 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, the impact of unrealized gains or losses on foreign exchange
contracts, and financing charges. EBITDA measures net loss from
continuing operations 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, finance and other income, the impact of
unrealized gains or losses on foreign exchange contracts, and
acquisition costs. Adjusted Net Income (Loss) measures net income
(loss) from continuing operations excluding transactional gains and
losses, asset impairment charges, and acquisition
costs.
|
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SOURCE Ballard Power Systems Inc.