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: October 30, 2013 | By: |
Tony Guglielmin |
Name: | Tony Guglielmin | |
Title: | Chief Financial Officer | |
Exhibit No. | Description | |
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99.1 | Ballard Reports Third Quarter 2013 Results | |
Ballard Power Systems Inc.
News Release
Ballard Reports Third Quarter 2013 Results
Top line growth of 65% and bottom line improvements of 16-points in gross margin and 86% in
Adjusted EBITDA
For Immediate Release October 29, 2013
VANCOUVER, CANADA Ballard Power Systems (NASDAQ: BLDP)(TSX: BLD) today announced consolidated financial results for the third quarter ended September 30, 2013. All amounts are in U.S. dollars unless otherwise noted and have been prepared in accordance with International Financial Reporting Standards (IFRS). In accordance with IFRS all numbers, including Ballards 2012 audited financial statements, reflect continuing operations, excluding Material Products.
Summary of Third Quarter 2013 Results
In Q3 revenue was up 65% compared to the same quarter last year, to $17.0 million, gross margin was up 16-points, to 28% and Adjusted EBITDA improved 86%, to ($0.9) million.
These results continue the strong positive trend in Ballards financial metrics. On a year to date basis through Q3, revenue improved 61% compared to the same period last year, to $43.9 million, gross margin was up 11-points, to 25% and Adjusted EBITDA improved 55%, to ($8.5) million. These third quarter results were driven by the three core elements of the Companys business model: product sales; engineering services; and licensing.
Ballard also made the decision in the quarter to strengthen the Companys balance sheet and on October 9 announced the closing of an underwritten equity offering with gross proceeds of approximately $14.5 million. This has augmented Ballards cash buffer in its growth plan to achieve positive cash flow.
John Sheridan, President and CEO said, The continuing strength in Ballards operating results is evidence of the positive impacts of our strategy, in tandem with strong execution performance and progress in market development for clean energy fuel cell products and services. With the positive trend in fuel cell products and services over the past two years, revenue and gross margin have each more than doubled and Adjusted EBITDA has improved by more than fifty percent.
Third Quarter 2013 Highlights2
Growth (all comparisons to Q3 2012 unless otherwise noted)
Revenue of $17.0 million, an increase of 65%.
Gross margin of 28%, an improvement of 16-points, due to the revenue growth and shift in product
mix toward engineering services and licensing.
Commercial Stage Markets:
Telecom Backup Power
Revenue of $3.9 million, an increase of 6%.
ElectraGenTM system shipments were 155 in the quarter, primarily for deployment in telecom networks
in China, Philippines and Jamaica; the shipments to Jamaica were 12 ElectraGenTM-ME methanol
systems for Digicel, ordered during Q3 following a successful trial in Digicels Jamaica telecom
network.
While shipment volumes in the quarter were down marginally by 4%, on a year to date basis shipments
have increased 217%.
Signed an ESA with Azure Hydrogen for 220 ElectraGenTM systems, comprised of 120 direct hydrogen
and 100 methanol-fuelled systems, for deployment in Chinese telecom networks; of these systems, 110
were delivered in Q3 with the remainder to be delivered in Q4.
Signed a distribution agreement with AECi in Southeast Asia and received an order from that
distributor for 20 ElectraGenTM-ME methanol systems to be shipped in Q4 for Globe Telecom, a major
Philippines network provider.
Material Handling
Revenue of $2.1 million, an increase of 51%; driven by an increase of 47% in shipments of fuel
stacks to Plug Power for use in this market.
Engineering Services
Revenue of $6.5 million, an increase of 77%.
Continued contract work with AFCC and Mercedes-Benz Fuel Cells.
Work on the 4-year Volkswagen contract ramped up to the full quarterly run-rate expected through
the remainder of the contract term.
Development Stage Markets:
Revenue of $4.5 million, an increase of 188%.
Shipped 4 fuel cell bus modules in the quarter: 2 to Van Hool in Europe; and 2 to Azure Hydrogen in
China.
Signed a multi-year bus module assembly license agreement to support Azure Hydrogens China fuel
cell bus program. The agreement has an expected value of approximately $11 million over the first
12-months, of which $2 million of license revenue was booked in Q3.
Ballard and consortium partners BAE Systems and ElDorado National were awarded $6.7 million in
funding by the U.S. Federal Transit Administration (FTA) for deployment of buses in two U.S.
cities, with delivery planned in 2014.
Path to Profitability (all comparisons to Q3 2012 unless otherwise noted)
Cash operating costs3 of $6.6 million, an improvement of 1%.
Adjusted EBITDA3 of ($0.9) million, an improvement of 86%.
Net income of ($4.6) million or ($0.05) per share, improvements of 50% and 55%, respectively.
Cash used by operating activities of ($4.8) million. Cash operating loss of ($2.3) million, an
improvement of 68%, was offset by an increase in working capital of ($2.5) million.
Cash reserves of $20.4 million, or $17.7 million net of $2.7 million outstanding on the Companys
bank operating line.
Following the quarter an underwritten offering was completed with gross proceeds of approximately
$14.5 million.
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%.
Third Quarter 2013 Financial Highlights
(Millions of U.S. dollars) | Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2013 | 2012 | % Improvement | 2013 | 2012 | % Improvement | |||||||||||||||||||
- | ||||||||||||||||||||||||
GROWTH |
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Fuel Cell Product & Service Revenue: |
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Telecom Backup Power |
$ | 3.9 | $ | 3.7 | 6 | % | $ | 14.6 | $ | 6.0 | 144 | % | ||||||||||||
Material Handling |
$ | 2.1 | $ | 1.4 | 51 | % | $ | 4.5 | $ | 4.7 | -4 | % | ||||||||||||
Engineering Services |
$ | 6.5 | $ | 3.7 | 77 | % | $ | 14.9 | $ | 9.9 | 50 | % | ||||||||||||
Development Stage Markets |
$ | 4.5 | $ | 1.6 | 188 | % | $ | 10.0 | $ | 6.6 | 51 | % | ||||||||||||
Total Fuel Cell Product & Service
Revenue |
$ | 17.0 | $ | 10.3 | 65 | % | $ | 43.9 | $ | 27.2 | 61 | % | ||||||||||||
12 Month Rolling Order Book |
$ | 43.3 | $ | 39.2 | ||||||||||||||||||||
PROFITABILITY |
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Gross Margin |
28 | % | 12 | % | 16-points | 25 | % | 14 | % | 11-points | ||||||||||||||
Cash Operating Costs3 |
$ | 6.6 | $ | 6.6 | 1 | % | $ | 21.8 | $ | 23.0 | 5 | % | ||||||||||||
Adjusted EBITDA3 |
($0.9 | ) | ($6.0 | ) | 86 | % | ($8.5 | ) | ($18.9 | ) | 55 | % | ||||||||||||
Net Income (Loss) |
($4.6 | ) | ($9.2 | ) | 50 | % | ($17.7 | ) | ($25.3 | ) | 30 | % | ||||||||||||
Earnings Per Share |
($0.05 | ) | ($0.10 | ) | 55 | % | ($0.18 | ) | ($0.29 | ) | 38 | % | ||||||||||||
Normalized Net Loss3 |
($4.6 | ) | ($9.2 | ) | 50 | % | ($16.2 | ) | ($25.3 | ) | 36 | % | ||||||||||||
Normalized Net Loss Per Share3 |
($0.05 | ) | ($0.10 | ) | 55 | % | ($0.17 | ) | ($0.29 | ) | 43 | % | ||||||||||||
CASH |
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Cash Used by Operating Activities: |
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Cash Operating Income (Loss) |
($2.3 | ) | ($7.3 | ) | 68 | % | ($11.8 | ) | ($19.8 | ) | 40 | % | ||||||||||||
Working Capital Changes |
($2.5 | ) | $ | 6.0 | -141 | % | ($4.8 | ) | ($7.8 | ) | 39 | % | ||||||||||||
Cash Used By Operating Activities |
($4.8 | ) | ($1.3 | ) | -277 | % | ($16.5 | ) | ($27.6 | ) | 40 | % | ||||||||||||
Cash Reserves |
$ | 20.4 | $ | 23.1 | -11 | % | ||||||||||||||||||
Cash Reserves, Net of Operating Line |
$ | 17.7 | $ | 13.7 | 29 | % | ||||||||||||||||||
For a more detailed discussion of Ballard Power Systems third 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, October 30, 2013 at 8:00 a.m. PDT (11:00 a.m.
EDT) to review its second quarter 2013 operating results. The live call can be accessed by dialing
+1.604.638.5340. Alternatively, a live audio and PowerPoint slide 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 2011 revenue adjusted for Contract Manufacturing due to the completion of automotive
manufacturing supply agreements with Daimler AG and a Daimler AG subsidiary in October 2011.
Historical amounts to Daimler AG were reported in our former Contract Automotive segment and in our
existing Fuel Cell Products and Services segment.
2 With the January 31, 2013 sale of the Companys 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.
3 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.
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.