Plug Power Announces Second Quarter 2013 Financial Results

08 Aug 2013

Plug Power

Plug Power Inc. (Nasdaq:PLUG), a leader in providing clean, reliable energy solutions, today reported its financial results for the second quarter 2013.

In the quarter, Plug Power experienced a renewed customer interest in its business due, in part, to the May 8 announcement of a $6.5 million investment by Air Liquide. Of the $7.5 million in new orders received during the second quarter of 2013, $6.1 million occurred between the date the investment was announced, and the end of the second quarter.

An example of this is Mercedes-Benz's announcement that it would add 123 GenDrive fuel cell units to its fleet in Huntsville, AL, to support a new Mercedes logistics centre located adjacent to its manufacturing facilities. This order rate puts the Company on the pace it needs to meet its stated goal of being profitable on an earnings before interest, taxes, depreciation, amortization and stock-based compensation (EBITDAS) basis by mid-year 2014.

Plug Power business highlights in the second quarter of 2013 include customer shipments to Carters, Sysco Riverside, BMW, and P&G. These sales include significant expansions to existing sites by BMW, and the conversion of forklift trucks at P&G's Mehoopany, PA, site from lead-acid battery to GenDrive fuel cells.

The Sysco Riverside, CA, facility is one of the first Plug Power customers to use an onsite reformer to convert natural gas to hydrogen. The use of onsite reformers opens up a new market segment of smaller distribution facilities where fuel cells can now be used cost effectively. The Company estimates that the use of this technology expands its addressable market in the U.S. by $1 billion USD.

Plug Power is also on-target for the quarter for the material cost for new product shipments, and the Company is projecting that service costs will be significantly reduced by year-end 2013. Continuous improvement in operating costs is another benchmark for achieving breakeven EBITDAS in 2014.

"What is most encouraging about this quarter's sales is realizing the business coming from long-time customers who are both growing their fleets in existing installations and expanding to new facilities. This, plus our recent investment from Air Liquide, are proof points to prospects that GenDrive fuel cells are a superior alternative to lead-acid batteries," said Andy Marsh, CEO of Plug Power. "From an execution perspective, I'm pleased with the progress we're making toward meeting the targets we've set for revenue and for managing our operational costs."

Financial Results

The financial information below consists of preliminary estimates prepared by Plug Power's management and as such may be subject to final adjustment. Therefore, actual results may differ from these estimates. The final financial information will be included in our filing of the Form 10-Q on or before August 14, 2013.

Net loss for the second quarter of 2013 was $9.3 million, or $0.14 per share on a basic and diluted basis. This compares with a net loss of $6.5 million, or $0.17 per share, for the second quarter of 2012.

Total revenue for the second quarter of 2013 was $7.5 million, comprised of $7.1 million for product and service revenue and $0.4 million for research and development (R&D) contract revenue. This compares to total revenue of $7.7 million in the second quarter of 2012, which was comprised of $7.2 million for product and service revenue and $0.5 million for R&D contract revenue.

The Company shipped 246 units during the second quarter of 2013 compared to 388 units in the second quarter of 2012.

Total cost of revenue for the second quarter of 2013 was $9.5 million, comprised of $9.0 million for cost of product and service revenue and $0.5 million for cost of R&D contract revenue. This compares to total cost of revenue of $9.5 million in the second quarter of 2012, which was comprised of $8.7 million for cost of product and service revenue and $0.8 million for cost of R&D contract revenue.

R&D expenses for the second quarter of 2013 were $0.8 million compared with $1.6 million for the second quarter of 2012. Selling, general and administrative (SG&A) expenses were $3.2 million for the second quarter of 2013 compared with $3.6 million for the second quarter of 2012. Additionally, $0.6 million was expensed for amortization of intangible assets during the second quarter of 2013 and 2012.

Cash and Liquidity

Net cash used in operating activities for the second quarter of 2013 was $5.0 million. Plug Power had cash and cash equivalents of $7.4 million and net working capital of $11.1 million at June 30, 2013. This compares to $9.4 million and $6.9 million, respectively, at December 31, 2012.

The accompanying consolidated financial information and reconciliation tables provide additional information on the Company's year-to-date performance as it relates to milestones previously announced.

Conference Call

Plug Power has scheduled a conference call today at 10:00 am ET to review the Company's results for the second quarter 2013 results. Interested parties are invited to listen to the conference call by calling 877.407.8291.

The webcast can be accessed by going directly to the Plug Power Web site (www.plugpower.com) and selecting the conference call link on the home page. A playback of the call will be available online for a period following the call.

     

Source: Plug Power


Industry Directory: Plug Power

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