Ballard Reports Second Quarter 2013 Results

01 Aug 2013

Top line growth of 114% and bottom line improvement in Adjusted EBITDA of 49%


VANCOUVER, CANADA– Ballard Power Systems (NASDAQ: BLDP)(TSX: BLD) today announced consolidated financial results for the second quarter ended June 30, 2013. All amounts are in U.S. dollars unless otherwise noted and have been prepared in accordance with International Financial Reporting Standards (IFRS).

Summary of Second Quarter 2013 Results

Revenue in Q2 was up 114%, driven primarily by positive performance of the Telecom Backup Power and Engineering Services markets. Adjusted EBITDA improved 49%, driven by the top line growth in tandem with a major improvement in gross margin.

Beyond this solid performance in these key commercial stage markets in the quarter, the Company also demonstrated advancement of its strategy to position for broader value creation, with particular focus on opportunities in China and South Africa. Specifically, on May 28 Ballard announced an MOU for an Engineering Services program to support Azure Hydrogen’s planned China fuel cell bus initiative. In addition, the Company’s development work on a new low cost, continuous power system has progressed and a public commitment of support was announced by the South African Government, as noted in Ballard’s June 18 press release.

John Sheridan, President and CEO said, “The positive trend reflected in our Q2 results is evidence of progress with our strategy to re-align resources in order to accelerate the Company’s two key growth drivers, Telecom Backup Power and Engineering Services, while positioning for broader value creation in development stage markets.”

Second Quarter 2013 Highlights1


Growth (all comparisons to Q2 2012 unless otherwise noted)

  • Revenue of $14.6 million, an increase of 114%.
  • Gross margin of 22%, an improvement of 18-points.

Commercial Stage Markets

Telecom Backup Power

Revenue of $4.3 million, an increase of 363%.

Recent progress:

  • Launched enhanced air-cooled FCgen™-1020ACS fuel cell stack, with increased durability and lifetime.
  • Launched next-generation methanol-fuelled ElectraGen™-ME system, with improvements in reliability, durability and ease of maintenance and servicing.
  • Shipped 177 ElectraGen™ systems in Q2, bringing total system shipments close to 2,500, including more than 1,600 to Asia, South Africa and the CALA region.
  • Public endorsement by the Government of South Africa for Ballard’s development work on the low cost continuous power system; in addition to use as a Home Generator, the system will also be leveraged for the benefit of ElectraGen™ Telecom Backup Power products.
  • Sponsored a webinar – with an audience of more than 50 experts from telecom service providers, telecom equipment OEMs and government agencies – focused on a case study of the 100% reliability exhibited by ElectraGen™ systems in the Bahamas Telecommunications Company (BTC) network during Hurricane Sandy.


Engineering Services

Revenue of $5.7 million, an increase of 87%.

Recent progress:

  • Continued contract work with AFCC and Mercedes-Benz Fuel Cells.
  • Ramped up work effort related to the 4-year Volkswagen contract signed on March 6.
  • Continuing work on smaller projects for the telecom and strategic technical components areas, suggests further growth opportunities in non-automotive markets.


Material Handling

Revenue of $1.5 million, a decrease of 27%.

Recent progress:

  • Plug Power, Ballard’s system integration and distribution partner, announced a strategic investment from Air Liquide, the world leader in gases for industry, health and the environment.
  • Plug Power introduced its GenDrive™ 1900 system, expanding the addressable market by enabling the Company to now address all class-one forklift trucks.


Development Stage Markets

Revenue of $3.1 million, an increase of 296%.

Recent progress:

  • Announced a non-binding MOU with Azure Hydrogen for licensing and services related to development of a bus program, which will be supported by funding from Chinese sources. Contract discussions are now underway.
  • Shipped 5 fuel cell bus modules: 4 to Van Hool in Europe; and 1 to SunLine Transit Agency in CA.
  • Toyota successfully turned up the 1MW ClearGen™ distributed generation system installed at its office campus in Torrance, CA and the system delivered 98.5% availability during the first six weeks of operation.


Path to Profitability (all comparisons to Q2 2012 unless otherwise noted)

  • Cash operating costs2 of $7.1 million, an improvement of 2%.
  • Adjusted EBITDA2 of ($3.3) million, an improvement of 49%.
  • Net income of ($5.2) million or ($0.05) per share, improvements of 30% and 40%, respectively.
  • Cash used by operating activities of $4.7 million, an improvement of 58%.
  • Cash reserves of $25.8 million or $23.1 million net of $2.7 million outstanding on the Company’s bank operating line.


2013 Business Outlook

The Company has confirmed its full year guidance for:

  • Revenue growth in excess of 30%; and
  • Adjusted EBITDA improvement in excess of 50%.


To read the full release click here.


1. With the January 31, 2013 sale of the Company’s non-core Material Products division, comparisons made to 2012 are on a continuing operations basis, excluding the Material Products division, consistent with IFRS accounting principles.

2. Cash Operating Costs measures operating expenses excluding stock based compensation expense, depreciation and amortization, restructuring charges, acquisition costs and financing charges. EBITDA measures net loss attributable to Ballard from continuing operations, 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. Normalized Net Loss measures net loss attributable to Ballard from continuing operations, excluding transactional gains and losses and asset impairment charges.


Source: Ballard Power Systems

Industry Directory: Ballard Power Systems


Receive emails

New emailSign up using the 'Register' button at the top of the page.

Industry Review

The Fuel Cell Industry Review 2013: Available now for free download.

2013 IR Cover


Our Using Fuel Cells In series of info sheets highlights applications where fuel cells offer benefits today.


View our glossary of terms.

Contact Us

If you would like to contact us, please click here.

© Johnson Matthey Plc 2019