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: April 30, 2013 | By: |
Tony Guglielmin |
Name: | Tony Guglielmin | |
Title: | Chief Financial Officer | |
Exhibit No. | Description | |
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99.1 | Ballard Reports First Quarter 2013 Results | |
Ballard Power Systems Inc
News Release
Ballard Reports First Quarter 2013 Results
For Immediate Release April 29, 2013
VANCOUVER, CANADA Ballard Power Systems (NASDAQ: BLDP)(TSX: BLD) today announced its consolidated financial results for the first quarter ended March 31, 2013. 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, Q1 results reflect a positive start to the year for Ballard, with a markedly stronger balance sheet and improvements in all key financial performance metrics. With revenue growth of 22%, in tandem with a 3-point increase in gross margin and 10% reduction in cash operating costs, Adjusted EBITDA improved 27%. Further, these improving trends are expected to strengthen starting in Q2, with the beginning of the full run rate impact of the multi-year VW engineering services contract. As such, Ballard has confirmed full year guidance for revenue growth in excess of 30% and improvement in Adjusted EBTIDA in excess of 50%.
Background
With the January 31, 2013 sale of the non-core Material Products division, comparisons made below to 2012 are on a continuing operations basis, excluding the Material Products division, consistent with IFRS accounting principles.
First Quarter 2013 Highlights
Growth (all comparisons to Q1 2012 unless otherwise noted)
Total revenue of $12.3 million, an increase of 22%.
Gross margin of 24%, an improvement of 3-points.
12-month rolling order book of $44.3 million.
Commercial Stage Markets
Telecom Backup Power
Revenue of $6.4 million, an increase of 444%. The revenue increase was driven by higher system
shipments of 287, up from 28.
Recent progress:
Shipped the 500th methanol-fuelled system, following addition of this product to the ElectraGenTM
portfolio in August 2012.
Achieved a record production level of methanol-fuelled systems at the Companys plant in Tijuana,
Mexico.
Investment of $2 million made by Azure of Beijing, China in Dantherm Power, Ballards backup power
system subsidiary, for a 10% ownership position.
Material Handling
Revenue of $0.9 million, a decrease of 27%.
Recent progress:
Plug Power GenDriveTM system shipments made in the quarter to customers including Lowes and Sysco.
Plug Power announced an order for 65 GenDriveTM systems from new customer Ace Hardware.
Engineering Services
Revenue of $2.6 million, a decrease of 22%.
Recent progress:
Continued contract work with AFCC and Mercedes-Benz Fuel Cells.
Signed a long-term contract with Volkswagen AG, with an expected value in the range of C$60-100
million.
Q1 results reflected only a nominal amount of start-up activity related to the Volkswagen AG
contract, signed on March 6. The full run rate impact of the VW Program is expected beginning
with Q2 results.
Development Stage Markets (Bus & Distributed Generation)
Revenue of $2.4 million, a decrease of 44%.
Recent progress:
Shipped three fuel cell bus modules, two to Van Hool in Europe and one to CTTransit in Hartford,
CT.
Announced agreement for 8 additional fuel cell bus modules to Van Hool in 2013 for commissioning of
fuel cell buses to be used in European public transit service. This will bring the total number of
Van Hool European fuel cell buses to 22.
Announced C$2 million in funding from Sustainable Development Technology Canada (SDTC) for a
one-year extension to a fuel cell bus module development project aimed at furthering
commercialization.
Announced the sale of 175 kilowatt distributed generation systems to Blue Lake Rancheria in
Humboldt County, CA and to Azure in China.
Path to Profitability (all comparisons to Q1 2012 unless otherwise noted)
Gross margin of 24%, on track with expectations and an improvement of 3-points.
Cash operating costs1 of $8.2 million, an improvement of 10%. Cash operating costs were negatively
impacted by one-time legal and other transactional expenses and timing issues related to government
funded programs.
Adjusted EBITDA2 of ($4.6) million, an improvement of 27%, which was negatively impacted by the
cost items noted above.
Net income of ($7.9) million or ($0.09) per share, improvements of 8% and 16%, respectively.
Cash used by operating activities of $7.0 million, an improvement of 54%, primarily due to lower
working capital requirements.
Cash reserves of $32.3 million or $27.5 million net of $4.8 million outstanding on the Companys
bank operating line. Cash reserves were fortified through several transactions:
Sale of the non-core Material Products division in Lowell, MA for up to $12 million;
Equity financing, with gross proceeds of $8 million; and
Strategic investment of $4 million by Anglo American Platinum.
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%.
First Quarter 2013 Financial Highlights
(Millions of U.S. dollars) | Three months ended March 31, | |||||||||||
2013 | 2012 | % Improvement | ||||||||||
- | ||||||||||||
GROWTH |
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Fuel Cell Product & Service Revenue: |
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Telecom Backup Power |
$ | 6.4 | $ | 1.2 | 444 | % | ||||||
Material Handling |
$ | 0.9 | $ | 1.2 | -27 | % | ||||||
Engineering Services |
$ | 2.6 | $ | 3.4 | -22 | % | ||||||
Other (Bus & Distributed Generation) |
$ | 2.4 | $ | 4.3 | -44 | % | ||||||
Total Fuel Cell Product & Service
Revenue |
$ | 12.3 | $ | 10.1 | 22 | % | ||||||
12 Month Rolling Order Book |
$ | 44.3 | $ | 27.6 | ||||||||
PROFITABILITY |
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Gross Margin |
24 | % | 21 | % | 3-pts | |||||||
Cash Operating Costs1 |
$ | 8.2 | $ | 9.2 | 10 | % | ||||||
Adjusted EBITDA1 |
($4.6 | ) | ($6.4 | ) | 27 | % | ||||||
Net Income (Loss) |
($7.9 | ) | ($8.7 | ) | 8 | % | ||||||
Earnings Per Share |
($0.09 | ) | ($0.10 | ) | 16 | % | ||||||
Normalized Net Loss1 |
($6.7 | ) | ($8.7 | ) | 22 | % | ||||||
Normalized Net Loss per share1 |
($0.07 | ) | ($0.10 | ) | 30 | % | ||||||
CASH |
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Cash Used by Operating Activities: |
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Cash Operating Income (Loss) |
($6.2 | ) | ($6.4 | ) | 3 | % | ||||||
Working Capital Changes |
($0.8 | ) | ($8.6 | ) | 91 | % | ||||||
Cash Used By Operating Activities |
($7.0 | ) | ($15.1 | ) | 54 | % | ||||||
Cash Reserves |
$ | 32.3 | $ | 36.5 | ||||||||
Cash Reserves, Net of Operating Line |
$ | 27.5 | $ | 27.1 | ||||||||
For a more detailed discussion of Ballard Power Systems first quarter 2013 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 Wednesday, April 30, 2013 at 8:00 a.m. PDT (11:00 a.m. EDT)
to review its first quarter 2013 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
Ballards homepage (www.ballard.com) or through the following link
http://services.choruscall.ca/links/ballard130430.html. 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
Endnote:
1 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 Power Systems Inc. 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.
Note that Cash Operating Costs, EBITDA, Adjusted EBITDA and Normalized Net 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 Normalized Net Loss 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, Adjusted EBITDA and Normalized Net Loss to the Consolidated Financial Statements, please refer to Ballards Managements Discussion & Analysis.