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 28, 2014 | By: |
Tony Guglielmin |
Name: | Tony Guglielmin | |
Title: | Chief Financial Officer | |
Exhibit No. | Description | |
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99.1 | Ballard Reports First Quarter 2014 Results | |
Ballard Power Systems Inc.
News Release
Ballard Reports First Quarter 2014 Results
Continued improvement in financial metrics
For Immediate Release April 28, 2014
VANCOUVER, CANADA Ballard Power Systems (NASDAQ: BLDP)(TSX: BLD) today announced its consolidated financial results for the first quarter ended March 31, 2014. 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, Our Q1 results reflect continued improvement in key metrics, consistent with our business outlook and full-year guidance for 2014. Top line revenue grew 13% year-over-year and, on the bottom line, we achieved a 23% reduction in cash operating costs and a 60% improvement in Adjusted EBITDA. We also strengthened our liquidity position, ending Q1 with cash reserves of $41.6 million, due primarily to the exercise of warrants related to our 2013 equity financings.
Mr. Sheridan added, Also, after the quarter we were pleased to close a strategic transaction with United Technologies Corporation, giving Ballard a commanding industry position in fuel cell intellectual property and strengthening our ability to grow shareholder value.
Under the agreement, Ballard has acquired UTCs fuel cell IP portfolio, consisting of approximately 800 patents and patent applications as well as patent licenses, invention disclosures and know-how. Ballard and UTC have also formed a strategic alliance to focus on IP licensing and other market opportunities for Fuel Cell Products and Engineering Services.
First Quarter 2014 Highlights
Growth (all comparisons to Q1 2013 unless otherwise noted)
Q1 revenue improved on a year-over-year basis by 13%, to $14.0 million. Similar to the past several
years, Q1 revenue was down from the prior quarter and the 2014 growth ramp is expected to generate
approximately 40% of full-year revenue in the first half of the year, with a majority in the second
half.
Fuel Cell Product Sales:
(i) Telecom Backup Power
Revenue of $2.9 million, a decrease of 55%, due to a significant reduction in the volume of
shipments compared to a particularly strong Q1 last year. This is a reflection of uneven demand in
early stage markets, however, it does not impact the Companys expectation for strong growth over
the full-year.
Update:
System shipments in the quarter to channel partners NSN in Japan, Precision, Power & Air in the
Caribbean and Inala Technologies in South Africa.
Robust sales pipeline activity, underpinned by successful ElectraGenTM product trials in Pakistan,
Australia and China as well as planned product demonstrations in Myanmar and progress to the
product pilot stage with a major U.S. telecom carrier.
Announcement from Ballards customer FutureE that it will be providing more than 50 of its backup
power systems utilizing Ballard fuel cell stacks shipped in Q1 for Germanys emergency services
network.
(ii) Material Handling
Revenue of $2.0 million, an increase of 125%.
Update:
Announcement by Plug Power of an order from Walmart for GenDriveTM systems in six North American
distribution centers over the next 2-years. Ballard expects to begin shipment of fuel cell stacks
for integration into GenDriveTM systems to fulfill the Walmart order in the second half of 2014,
supporting the Companys anticipated full-year volume of stack shipments.
(iii) Development Stage Markets
Revenue of $1.7 million, a decline of 31%.
Update:
Revenue of $1.6 million was booked in relation to the China Bus module assembly licensing contract
signed in September 2013.
Announcement that 400 kilowatts of FCgenTM-1300 fuel cell stacks shipped to M-Field Energy Ltd. of
Taiwan in Q4 last year will be used to create renewable solutions in Asia, in combination with wind
turbines or photovoltaic power.
Engineering Services:
Revenue of $7.4 million, an increase of 185%.
Update:
Work on long-term contract with Volkswagen AG as well as contracts with other automotive OEMs and
customers in the bus, marine and military sectors continued on-track.
Path to Profitability (all comparisons to Q1 2013 unless otherwise noted)
Gross margin of 25%, a 1-point improvement.
Cash operating costs1 of $6.3 million, an improvement of 23%.
Adjusted EBITDA2 of ($1.8) million, an improvement of 60%.
Net income of ($3.8) million or ($0.03) per share, improvements of 52% and 61%, respectively.
Cash used by operating activities of ($6.6) million, an improvement of 5%. Cash operating loss of
($2.2) million, an improvement of 65%, was offset by an increase in working capital of ($4.4)
million resulting from the timing of revenues and related customer collections.
Cash reserves of $41.6 million, with zero balance outstanding on the Companys bank operating line.
Cash reserves were fortified in the quarter primarily due to the execution of outstanding warrants
issued as part of two 2013 equity financings.
2014 Business Outlook
The Company has confirmed its full year guidance for:
Revenue growth of approximately 30%; and
Approximately break-even Adjusted EBITDA.
Executive Appointment
Steve Karaffa was appointed to Vice President & Chief Commercial Officer in February. Mr. Karaffa has had a long and successful career at Corning Incorporated, where he most recently served as Senior Vice President, Global Carrier Network Sales & Marketing at Corning Telecommunications. Previous positions included President & CEO of Corning Gilbert and Vice President of Cable Product Line Management at Corning Cable Systems.
First Quarter 2014 Financial Highlights
(Millions of U.S. dollars) | Three months ended March 31, | |||||||||||
2014 | 2013 | % Improvement | ||||||||||
- | ||||||||||||
GROWTH |
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Fuel Cell Product & Service Revenue: |
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Telecom Backup Power |
$ | 2.9 | $ | 6.4 | -55 | % | ||||||
Material Handling |
$ | 2.0 | $ | 0.9 | 125 | % | ||||||
Engineering Services |
$ | 7.4 | $ | 2.6 | 185 | % | ||||||
Development Stage Markets |
$ | 1.7 | $ | 2.4 | -31 | % | ||||||
Total Fuel Cell Product & Service
Revenue |
$ | 14.0 | $ | 12.3 | 13 | % | ||||||
12 Month Rolling Order Book |
$ | 40.7 | $ | 44.3 | ||||||||
PROFITABILITY |
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Gross Margin |
25 | % | 24 | % | 1-pt | |||||||
Cash Operating Costs1 |
$ | 6.3 | $ | 8.2 | 23 | % | ||||||
Adjusted EBITDA1 |
($1.8 | ) | ($4.6 | ) | 60 | % | ||||||
Net Income (Loss) |
($3.8 | ) | ($7.9 | ) | 52 | % | ||||||
Earnings Per Share |
($0.03 | ) | ($0.09 | ) | 61 | % | ||||||
Normalized Net Loss1 |
($3.7 | ) | ($6.7 | ) | 45 | % | ||||||
Normalized Net Loss per share1 |
($0.03 | ) | ($0.07 | ) | 56 | % | ||||||
CASH |
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Cash Used by Operating Activities: |
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Cash Operating Income (Loss) |
($2.2 | ) | ($6.2 | ) | 65 | % | ||||||
Working Capital Changes |
($4.4 | ) | ($0.8 | ) | ||||||||
Cash Used By Operating Activities |
($6.6 | ) | ($7.0 | ) | 5 | % | ||||||
Cash Reserves |
$ | 41.6 | $ | 32.3 | ||||||||
Cash Reserves, Net of Operating Line |
$ | 41.6 | $ | 27.5 | ||||||||
For a more detailed discussion of Ballard Power Systems first quarter 2014 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, April 29, 2014 at 8:00 a.m. PDT (11:00 a.m. EDT) to
review its first quarter 2014 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). 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.