UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Ballard Power Systems Inc. |
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(Translation of registrants name into English) | ||||
Canada | ||||
(Jurisdiction of incorporation or organization) | ||||
9000 Glenlyon Parkway Burnaby, BC V5J 5J8 Canada |
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(Address of principal executive office) |
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Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F: [ ] Form 20-F [x] Form 40-F | ||||
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): [ ] | ||||
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): [ ] | ||||
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934: [ ] Yes [x] No | ||||
If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): n/a |
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. |
Ballard Power Systems Inc. | ||
Date: August 14, 2012 | By: |
Tony Guglielmin |
Name: | Tony Guglielmin | |
Title: | Chief Financial Officer | |
Exhibit No. | Description | |
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99.1 | Ballard Reports Second Quarter 2012 Results | |
Ballard Power Systems Inc.
News Release
Ballard Reports Second Quarter 2012 Results
| Q2 revenue below expectations, but continued progress posted in the quarter for cash operating costs and Adjusted EBITDA |
| Revenue growth expected to accelerate in Q3 and Q4 |
For Immediate Release August 13, 2012
VANCOUVER, CANADA Ballard Power Systems (NASDAQ: BLDP) (TSX: BLD) today announced its consolidated financial results for the second quarter ended June 30, 2012. All amounts are in U.S. dollars unless otherwise noted and have been prepared in accordance with International Financial Reporting Standards (IFRS).
John Sheridan, President and CEO said, Second quarter revenues were significantly below expectations, primarily due to zero bus module shipments and the absence of fuel cell stack shipments to IdaTech. Despite the lower level of revenue, continued progress was posted in the quarter for cash operating costs and Adjusted EBITDA. He added, Looking forward, we expect strong revenue growth in the second half of this year. Further, the Company remains committed to achieving profitability in 2013, and has taken actions since the end of the quarter to strengthen the top line with the IdaTech asset purchase, and bottom line with cost optimization actions.
Second Quarter 2012 Highlights
Growth
| Decline in total revenue of $8.8 million to $10.3 million in Q2, and $10.6 million to $23.8 million year-to-date. |
| Fuel cell product revenue declined 24% in the quarter, but grew 4% year-to-date. |
| Material product revenue decreased 38% in Q2 and 35% year-to-date. |
| Wind down of contract automotive activity at the end of Q3 2011 had a negative impact of $4.6 million on Q2 revenue and $7.4 million year-to-date. |
| Fuel cell stack shipments were flat in Q2 at 815 units and increased 4% to 1,365 units year-to-date. |
| Twelve-month rolling order book of $54.4 million. |
| Recent commercial developments: |
| Acquired key fuel cell assets from IdaTech, including its methanol backup power products, a license for related intellectual property as well as distribution agreements and customer contracts. |
| Announced a trial of Dantherm Powers direct hydrogen fuel cell backup power systems in the China Mobile telecommunications network. |
| Progressed to the second phase of a program to develop a methanol-fuelled home generator that can supplement the power grid in rural South Africa. The program is a joint undertaking with Anglo American Platinum Limited, which has also committed significant funding. |
| Signed engineering services contracts with leading aerospace and military customers, to support their fuel cell development work. |
Path to Profitability
| Gross margin decline of 2-points to 15% in Q2, driven by low product shipment volumes, despite continuing reductions in product costs. Gross margin improvement of 2-points to 19% year-to-date. |
| Cash operating cost1 improvement of 28% to $7.7 million in Q2 and 19% to $17.4 million year-to-date, consistent with the Companys expectation for full year cash operating costs of approximately $30 million. |
| Adjusted EBITDA2 improvement of 12% to ($5.4) million in Q2 and 18% to ($11.1) million year-to-date. |
| Net income improvement of 23% to ($6.6) million or ($0.08) per share in Q2, and 21% to ($15.1) million or ($0.18) per share year-to-date. |
| Improvement in cash used by operating activities of 17% to $11.2 million in Q2, driven by lower working capital requirements of $1.5 million combined with reductions in cash operating losses of $0.9 million. On a year-to-date basis, cash used by operating activities improved 5% to $26.3 million. |
| Cash reserves of $24.6 million, or $15.2 million net of $9.4 million outstanding on the companys bank operating line. |
2012 Business Outlook
Revenue
While revenue results for Q2 were below expectations, the Company expects significant revenue
growth in Q3 and Q4, led by increased activity in engineering services, bus and backup power
markets. Shipments of backup power products are expected to be augmented by the recent acquisition
of assets from IdaTech. Given this expectation for stronger revenue growth in the second half of
the year, the Company has not updated its guidance provided on June 18 for revenue of
approximately $85 million.
Adjusted EBTIDA
In Q3 and Q4 the Company expects higher revenue, a change in product mix, continued reductions in
product cost along with gross margin improvement. Given these expectations, together with a lower
expected trajectory for cash operating costs, the Company has not updated its guidance provided
on June 18 for Adjusted EBITDA of approximately ($5) million.
Second Quarter 2012 Financial Highlights
(Millions of U.S. dollars) | Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2012 | 2011 | % Improvement | 2012 | 2011 | % Improvement | |||||||||||||||||||
- | ||||||||||||||||||||||||
GROWTH |
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Revenue: |
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Fuel Cell Products |
$ | 6.8 | $ | 9.0 | (24 | %) | $ | 17.0 | $ | 16.3 | 4 | % | ||||||||||||
Material Products |
$ | 3.5 | $ | 5.5 | (38 | %) | $ | 6.8 | $ | 10.7 | (35 | %) | ||||||||||||
Contract Automotive |
$ | - | $ | 4.6 | (100 | %) | $ | - | $ | 7.4 | (100 | %) | ||||||||||||
Total Revenue |
$ | 10.3 | $ | 19.1 | (46 | %) | $ | 23.8 | $ | 34.4 | (31 | %) | ||||||||||||
Fuel Cell Stack Shipments (units): |
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Material Handling |
700 | 39 | 1,695 | % | 1,051 | 103 | 920 | % | ||||||||||||||||
Backup Power |
115 | 544 | (79 | %) | 307 | 911 | (66 | %) | ||||||||||||||||
Other* |
| 237 | (100 | %) | 7 | 304 | (98 | %) | ||||||||||||||||
Total Fuel Cell Stack Shipments |
815 | 820 | (1 | %) | 1,365 | 1,318 | 4 | % | ||||||||||||||||
12 Month Rolling Order Book** |
$54.4 | $ | 36.4 | |||||||||||||||||||||
PROFITABILITY |
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Gross Margin |
15 | % | 17 | % | (2-points) | 19 | % | 17 | % | 2-points | ||||||||||||||
Cash Operating Costs1 |
$ | 7.7 | $ | 10.7 | 28 | % | $ | 17.4 | $ | 21.4 | 19 | % | ||||||||||||
Adjusted EBITDA2 |
($5.4 | ) | ($6.1 | ) | 12 | % | ($11.1 | ) | ($13.5 | ) | 18 | % | ||||||||||||
Net Income (Loss) |
($6.6 | ) | ($8.6 | ) | 23 | % | ($15.1 | ) | ($19.1 | ) | 21 | % | ||||||||||||
Earnings Per Share |
($0.08 | ) | ($0.10 | ) | ($0.18 | ) | ($0.23 | ) | ||||||||||||||||
CASH |
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Cash Used by Operating Activities: |
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Cash Operating Income (Loss) |
($6.0 | ) | ($7.0 | ) | 14 | % | ($12.5 | ) | ($16.3 | ) | 23 | % | ||||||||||||
Working Capital Changes |
($5.2 | ) | ($6.6 | ) | 22 | % | ($13.8 | ) | ($11.5 | ) | (21 | %) | ||||||||||||
Cash Used By Operating Activities |
($11.2 | ) | ($13.6 | ) | 17 | % | ($26.3 | ) | ($27.7 | ) | 5 | % | ||||||||||||
Cash Reserves |
$ | 24.6 | $ | 51.6 | ||||||||||||||||||||
Cash Reserves, Net of Operating Line |
$ | 15.2 | $ | 48.3 | ||||||||||||||||||||
Includes bus modules and stacks for use in automotive & distributed generation
** Includes order book associated with acquisition of IdaTech assets (closed August 1st,
2012)
For a more detailed discussion of Ballard Power Systems second quarter 2012 results, please see the companys financial statements and managements 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, August 14, 2012 at 8:00 a.m. PST (11:00 a.m. EST)
to review its second quarter 2012 operating results. The live call can be accessed by dialing
+1.604.638.5340. Alternatively, a live audio webcast can be accessed through a link on Ballards
homepage (www.ballard.com). Following the call, the audio webcast will be archived in the Quarterly
Results area of the Investor section of Ballards website (www.ballard.com/investors).
About Ballard Power Systems
Ballard Power Systems (NASDAQ: BLDP) (TSX: BLD) provides clean energy fuel cell products enabling
optimized power systems for a range of applications. Products deliver incomparable performance,
durability and versatility. 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 Ballards 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 Ballards 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 Ballards most recent management discussion & analysis. Other risks and
uncertainties that may cause Ballards 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 Ballards future performance, please refer to Ballards most
recent Annual Information Form. These forward-looking statements are provided to enable external
stakeholders to understand Ballards 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.
Further Information
Guy McAree +1.604.412.7919, investors@ballard.com or media@ballard.com
Endnotes:
1 Cash Operating Costs measures operating expenses excluding stock based compensation
expense, depreciation and amortization, restructuring charges and acquisition costs.
2 EBITDA measures net loss attributable to Ballard Power Systems Inc. excluding finance
(or interest) expense, income tax expense or recovery, 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.
Note that Cash Operating Costs, EBITDA and Adjusted EBITDA, 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, and Adjusted EBITDA assist investors in assessing Ballards operating performance and liquidity. These measures should be used in addition to, and not as a substitute for, net income, cash flows and other measures of financial performance and liquidity reported in accordance with GAAP. For a reconciliation of Cash Operating Costs, EBITDA and Adjusted EBITDA to the Consolidated Financial Statements, please refer to Ballards Managements Discussion & Analysis.