Ballard Reports 2012 Results and 2013 Outlook

22 Feb 2013

VANCOUVER, CANADA– Ballard Power Systems (NASDAQ: BLDP) (TSX: BLD) today announced its consolidated financial results for the fourth quarter ended December 31, 2012. All amounts are in U.S. dollars unless otherwise noted and have been prepared in accordance with International Financial Reporting Standards (IFRS).

“Q4 results reflected a marked turnaround from weak results earlier in the year – both top line and bottom line,” said John Sheridan, President and CEO. “This Q4 top line momentum and a solid yearend order book support our business outlook for 2013 revenue growth in excess of 30%. This top line growth, along with continued reductions in the cost base and a projected increase in gross margin, underpin our expectation for improvement in Adjusted EBITDA in excess of 50%.”

 

Background

On January 31, 2013 Ballard closed the sale of its Material Products division, a non-core asset located in Lowell, MA, in order to focus on high growth fuel cell products and to fortify the Company’s cash position. Therefore, as per IFRS, Ballard’s 2012 audited financial statements reflect “continuing operations” (excluding Material Products). In order to portray results comprehensively relative to the results reported throughout 2012 and to guidance for the full year, the financial results are also shown in the “2012 Financial Highlights” table below in a format which includes the Material Products division. Also, since the sale of the Material Products division was not completed until early 2013, the following section – with commentary on Q4 and full year 2012 results – addresses Ballard’s performance including Material Products.

 

Q4 and Full Year 2012 Results (including Material Products)

Growth

  • Q4 revenue improved 50% to $21.3 million over the prior quarter, and improved 1% year-on-year.
    • A key driver of the quarter-on-quarter revenue improvement was the addition of methanol-fuelled ElectraGen™ systems to the backup power product line in August 2012. In Q4, 204 ElectraGen™ systems were shipped, 75% of which were methanol-fuelled.
    • In addition, engineering services contributed significantly to the growth, with revenue of $6.6 million in Q4 and more than $10 million for the year, a significant increase from less than $5 million in 2011.
  • Full year revenue declined $16.8 million or 22% to $59.2 million year-on-year, consistent with the Company’s revised guidance for revenue of approximately $60 million.
    • This year-on-year decline in 2012 revenue reflected weak performance in Material Products and Bus, in addition to the 2011 wind down of contract manufacturing. Excluding 2011 contract manufacturing, revenue improved 2%.
  • In terms of product volume metrics, the 204 ElectraGen™ systems shipped for backup power in Q4 represented a 172% improvement over Q4 2011. In addition, Q4 stack shipments for material handling of 468 represented a 41% decline from Q4 2011.
    • Full year ElectraGen™ system shipments for backup power of 399 represented a 175% improvement relative to 2011. Full year stack shipments for material handling of 2,022 represented a 42% improvement relative to 2011.

 

Path to Profitability

  • Q4 gross margin improved 10 points to 24% over Q3, and improved 4 points relative to Q4 2011.
    • Full year gross margin improved 2 points to 20%.
  • Q4 cash operating costs increased 10% to $7.8 million over Q3, but improved 10% relative to Q4 2011.
    • Full year cash operating costs improved 18% relative to 2011, to $32.2 million.
  • Q4 Adjusted EBITDA improved 65% to ($1.9) million over Q3, and improved 50% relative to Q4 2011.
    • Full year Adjusted EBITDA improved 17% to ($18.5) million, consistent with the Company’s revised guidance for Adjusted EBITDA of approximately ($18) million.
  • Q4 cash used by operating activities improved 58% to ($0.5) million over Q3.
    • Full year cash used by operating activities improved 15% to ($28.1) million relative to 2011.
  • Cash reserves at yearend were $12.5 million net of $9.3 million outstanding on the Company’s bank operating line.
    • This cash position was fortified with the sale of the Material Products division on January 31, 2013, which generated proceeds of up to $12 million.
  • Q4 normalized net loss from continuing operations was unchanged at ($6.2) million compared to Q4 2011.
    • Full year normalized net loss from continuing operations improved 11% to ($31.5) million relative to 2011.

 

2013 Business Outlook

The Company expects revenue growth in excess of 30%, led by backup power and engineering services, which together represent more than half of the $36.8 million 2012 yearend order book (excluding Material Products). It is expected that this growth, along with higher gross margins and a lower cost base, will contribute to improvements in bottom line performance.

 

2013 Guidance

The Company’s guidance is for the following improvements in 2013 continuing operations:

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

 

For a more detailed discussion of Ballard Power Systems’ 2012 results, please see the company’s financial statements and management’s discussion & analysis, which are available here.

 

Conference Call

Ballard will hold a conference call on Thursday, February 21, 2013 at 8:00 a.m. PST (11:00 a.m. EST) to review its 2012 operating results and 2013 outlook. The live call can be accessed by dialling +1.604.638.5340. Alternatively, a live audio webcast can be accessed through a link on Ballard’s homepage (www.ballard.com). Following the call, the audio webcast will be archived in the Quarterly Results area of the Investor section of Ballard’s website.

   

Source: Ballard Power Systems


Industry Directory: Ballard Power Systems

ShareThis

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

Applications

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

Glossary

View our glossary of terms.

Contact Us

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

© Johnson Matthey Plc 2018