- Q4 revenue of $28.6m, full
year revenue of $103.9m
- Year-end cash reserves of $763.4m
- Important progress achieved in execution of corporate growth
strategy
VANCOUVER, BC, March 10, 2021 /PRNewswire/ - Ballard Power
Systems (NASDAQ: BLDP) (TSX: BLDP) today announced
consolidated financial results for the fourth quarter and full year
ended December 31, 2020. All amounts
are in U.S. dollars unless otherwise noted and have been prepared
in accordance with International Financial Reporting Standards
(IFRS).
Randy MacEwen, President and CEO
said, "Our Q4 and full year 2020 results were consistent with
management's internal projections based on expected impacts from
COVID-19. In Q4 and throughout 2020, COVID-19 created uncertainty
and adversely impacted operations for certain customers along with
order intake, although we saw higher than expected activity levels
in our sales pipeline. Revenue was $28.6
million in Q4, and full year revenue was $103.9 million. Gross margin for the full year
was 20%, Adjusted EBITDA was ($38.9)
million and year-end cash reserves were $763.4 million."
Mr. MacEwen added, "Continued progress in the execution of our
growth strategy in 2020 was reflected in a number of notable
achievements: the Weichai-Ballard joint venture operation in
China was commissioned; we
announced a key strategic partnership with MAHLE to develop
advanced fuel cell engines for the European commercial truck
market; we made continued progress with bus OEM customers; we
launched a new high power density stack; we completed our Marine
Center of Excellence in Denmark
and launched our new FCwaveTM 200 kilowatt engine for
marine applications; we invested to expand our Vancouver MEA
production capacity by 6-times; we announced our plan to reduce
fuel cell stack costs by 70% by 2024; we detailed our estimate of
the multi-billion dollar market opportunity for Ballard by 2030; Ballard products powered vehicles for
cumulative on-road mileage in excess of 70 million kilometers; and
we further fortified our balance sheet."
Mr. MacEwen concluded, "Notwithstanding a challenging year due
to COVID-19, the hydrogen and fuel cell industry enjoyed
unprecedented progress with strong policy support, sizeable
corporate investments and broadened investor interest. With about
50 countries announcing CO2 pricing initiatives, 75
countries with net zero targets, and over 30 countries with
hydrogen strategies, we believe Ballard is well positioned to realize
significant growth in the coming decade. As a result, we are
increasing and accelerating our investment to drive high growth,
high market adoption and high market share for the benefit of
long-term shareholder value. In 2021, we will increase our
investment in competencies, technology innovation, product
development and customer experience related to our key markets of
bus, truck, rail and marine. We will continue to invest in our
strategic partnerships with Weichai in China and MAHLE in Europe. We will also consider investments in
further production capacity expansion and localization in key
geographies, as well as strategic acquisitions and
partnerships."
Q4 2020 Financial Highlights
(all comparisons are
to Q4 2019 unless otherwise noted)
- Total revenue was $28.6 million,
a 32% year-over-year decrease.
-
- Power Products revenue was $15.0
million, a decrease of 41% primarily reflecting lower
shipments of Heavy-Duty Motive fuel cell products to customers in
China together with a shift in
product mix.
- Technology Solutions revenue was $13.6
million, an 17% decrease due primarily to decreased revenue
from the program with Audi.
- Gross margin was 20%, down 1-point to $5.6 million, due primarily to lower total
revenue as well as a shift to lower overall product margin and
service revenue mix.
- Cash operating costs2 were $16.4 million, an increase of 25%, due to higher
research and product development costs and higher general and
administrative costs.
- Adjusted EBITDA2 declined 105% to ($14.5) million, due primarily to the decrease in
gross margin, increase in cash operating costs, and higher equity
in loss of investment in joint venture and associates.
- Net loss3 from continuing operations was
($14.4) million or ($0.05) per share, declines of 47% and 28%,
respectively, driven primarily by the increase in Adjusted EBITDA
loss.
- Cash used in operating activities was ($6.7) million, a decline of 262%, reflecting
cash operating loss of ($6.7)
million, and nominal net working capital changes.
![Ballard Power Systems Q4 2020 Financial Highlights (CNW Group/Ballard Power Systems Inc.) Ballard Power Systems Q4 2020 Financial Highlights (CNW Group/Ballard Power Systems Inc.)](https://mma.prnewswire.com/media/1454057/Ballard_Power_Systems_Inc__Ballard_Reports_Q4_and_Full_Year_2020.jpg)
Full Year 2020 Financial Highlights
(all
comparisons are to full year 2019 unless otherwise noted)
- Total revenue was $103.9 million,
a 2% year-over-year decrease.
-
- Power Products revenue was $58.6
million, an increase of 19% due primarily to higher
shipments of Heavy-Duty Motive fuel cell products to customers,
particularly in China, as well as
higher shipments of backup power products to customers in
Europe.
- Technology Solutions revenue was $45.3
million, a decrease of 20% due primarily to decreased
amounts earned from the program with Audi, the Siemens development
program, and the Weichai-Ballard JV technology transfer
program.
- Gross margin was 20%, down 1-point to $21.0 million, primarily due to the decrease in
total revenue and a shift to lower overall product margin and
service revenue mix.
- Cash operating costs2 were $50.0 million, an increase of 29% due primarily
to higher research and product development costs, higher general
and administrative costs, and higher sales and marketing
costs.
- Adjusted EBITDA2 declined to ($38.9) million, due primarily to lower gross
margin and higher cash operating costs.
- Net loss3 from continuing operations increased to
($49.5) million or ($0.20) per share, declines of 40% and 31%,
respectively. The increase in net loss was driven primarily by the
increase in Adjusted EBITDA loss and higher stock-based
compensation expense.
- Cash used by operating activities was ($42.9) million, a decline of 202% reflecting
cash operating loss of ($25.8)
million and net working capital changes of ($17.1) million.
![Ballard Power Systems Full Year 2020 Financial Highlights (CNW Group/Ballard Power Systems Inc.) Ballard Power Systems Full Year 2020 Financial Highlights (CNW Group/Ballard Power Systems Inc.)](https://mma.prnewswire.com/media/1454058/Ballard_Power_Systems_Inc__Ballard_Reports_Q4_and_Full_Year_2020.jpg)
- Cash reserves were $763.4 million
at December 31, $615.6 million higher than at the end of 2019.
Additional net proceeds of approximately $528 million were raised in Q1 2021 under an
equity transaction.
- The Order Backlog at end-2020 was $117.8
million, down from $128.1
million at end-Q3, reflecting $28.6
million in shipments and $18.3
million in new orders in Q4. The 12-month Order Book was
$83.5 million at end-2020, up from
$79.6 million at end-Q3.
2021 Outlook
Ballard intends to maintain
focus throughout 2021 on Heavy-and Medium-Duty Motive applications
– including bus, commercial truck, train and marine markets – to
increase penetration in the key markets of China, Europe
and California. The Company also
sees opportunities in additional geographic markets and therefore
anticipates projects that will begin expanding reach beyond these
initial key markets.
In 2021 Ballard will invest in additional technology and product
innovation and development across bus, truck, rail and marine
markets, including next-generation MEAs, plates, stacks, and
modules. The Company expects this to include collaboration with
MAHLE on the design of fuel cell engines for commercial trucks in
Europe. Ballard will also continue to invest in
customer experience in these markets.
Ballard will continue to work
to expand MEA production capacity 6-times at its Vancouver headquarter facility. The Company
will also review options for further localization of production
capacity in China and Europe.
Furthermore, corporate development work will be an important
priority this year, including potential acquisitions to help scale
the business and simplify the customer experience.
During 2021 the Company has a commitment to make contributions
totaling approximately $11.4 million
towards its pro rata ownership share of the Weichai-Ballard joint
venture in China. This is in
addition to $57.7 million contributed
cumulatively through 2020, as part of Ballard's total capital commitment of
approximately $79.5 million.
In Europe, Ballard expects to deliver a significant
number of modules to support deployments of Fuel Cell Electric
Buses (FCEBs) in various countries. The Company anticipates
increased market activity for FCEBs during the year, which can be
expected to result in additional module purchase orders for
delivery in future years. In addition, the shipment of backup power
systems is expected to be flat as compared to 2020. Ballard also plans to continue execution of
its automotive program with Audi.
Within North America,
Ballard expects continued market
activity for FCEBs and fuel cell-powered trucks, which can be
expected to result in additional module purchase orders in 2021 for
delivery in future years. In addition, the Company expects the
volume of fuel cell stack shipments for material handling
applications to be flat as compared to 2020.
Consistent with the Company's practice in this early stage of
hydrogen fuel cell market development and adoption, and in view of
the ongoing uncertainties resulting from COVID-19, Ballard is not providing specific financial
performance guidance for the coming year.
Q4 & Full Year 2020 Financial Summary
(Millions of U.S.
dollars)
|
Three months
ended December 31,
|
Twelve months
ended December 31,
|
|
2020
|
2019
|
% Change
|
2020
|
2019
|
% Change
|
REVENUE
|
|
|
|
|
|
|
Fuel Cell Products
& Services:1,2
|
|
|
|
|
|
|
Heavy Duty
Motive
|
$11.9
|
$21.4
|
-44%
|
$47.7
|
$35.4
|
35%
|
Material
Handling
|
$0.9
|
$1.9
|
-51%
|
$5.3
|
$10.8
|
-51%
|
Backup
Power
|
$2.1
|
$2.0
|
5%
|
$5.6
|
$3.0
|
88%
|
Sub-Total
|
$15.0
|
$25.4
|
-41%
|
$58.6
|
$49.1
|
19%
|
Technology
Solutions
|
$13.6
|
$16.4
|
-17%
|
$45.3
|
$56.6
|
-20%
|
Total Fuel Cell
Products & Services Revenue
|
$28.6
|
$41.8
|
-32%
|
$103.9
|
$105.7
|
-2%
|
PROFITABILITY
Gross Margin
$
|
$5.6
|
$8.6
|
-34%
|
$21.0
|
$22.3
|
-6%
|
Gross Margin
%
|
20%
|
21%
|
-1-points
|
20%
|
21%
|
-1-point
|
Operating
Expenses
|
$19.6
|
$15.6
|
26%
|
$60.7
|
$47.8
|
27%
|
Cash Operating
Costs3
|
$16.4
|
$13.1
|
25%
|
$50.0
|
$38.8
|
29%
|
Equity gain (loss) in
JV & Associates
|
($4.3)
|
($3.0)
|
-43%
|
($12.6)
|
($11.1)
|
-14%
|
Adjusted
EBITDA3
|
($14.5)
|
($7.0)
|
-105%
|
($38.9)
|
($26.6)
|
-46%
|
Net Income (Loss)
from continuing operations
|
($14.4)
|
($9.8)
|
-47%
|
($49.5)
|
($35.3)
|
-40%
|
Earnings Per Share
from continuing operations
|
($0.05)
|
($0.04)
|
-28%
|
($0.20)
|
($0.15)
|
-31%
|
CASH
|
|
|
|
|
|
|
Cash provided by
(used in) Operating
Activities:
|
|
|
|
|
|
|
Cash Operating Income
(Loss)
|
($6.7)
|
($3.9)
|
-72%
|
($25.8)
|
($14.1)
|
-83%
|
Working Capital
Changes
|
$0
|
$8.0
|
-100%
|
($17.1)
|
($0.1)
|
-17,000%
|
Cash provided by (used
in) Operating
Activities
|
($6.7)
|
$4.1
|
-262%
|
($42.9)
|
($14.2)
|
-202%
|
Cash
Reserves
|
$763.4
|
$147.8
|
417%
|
|
|
|
For a more detailed discussion of Ballard Power Systems Q4 and
full year 2020 results, please see the Company's financial
statements and management's 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
Thursday, March 11, 2021 at
8:00 a.m. PT (11:00 a.m. ET) to review Q4 and full year 2020
operating results and Outlook for 2021. 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
Ballard's homepage
(www.ballard.com). Following the call, the audio webcast will be
archived in the 'Earnings, Interviews and Presentations' area of
the 'Investors' section of Ballard's website
(www.ballard.com/investors).
About Ballard Power Systems
Ballard Power Systems'
(NASDAQ: BLDP; TSX: BLDP) vision is to deliver fuel cell power for
a sustainable planet. Ballard
zero-emission PEM fuel cells are enabling electrification of
mobility, including buses, commercial trucks, trains, marine
vessels, passenger cars and forklift trucks. 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 product sales and
market adoption of fuel cell electric vehicles. These
forward-looking statements reflect Ballard's 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 Ballard's 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
Ballard's most recent management
discussion & analysis. Other risks and uncertainties that may
cause Ballard's 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 Ballard's future performance, please refer to
Ballard's most recent Annual
Information Form. These forward-looking statements are provided to
enable external stakeholders to understand Ballard's 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.
Endnotes:
|
|
1 We
report our results in the single operating segment of Fuel Cell
Products and Services. Our Fuel Cell Products and Services segment
consists of the sale and service of PEM fuel cell products for our
power product markets of Heavy Duty Motive (consisting of bus,
truck, rail and marine applications), Material Handling and Backup
Power, as well as the delivery of Technology Solutions, including
engineering services, technology transfer and the license and sale
of our extensive intellectual property portfolio and fundamental
knowledge for a variety of fuel cell applications.
|
|
2 The
UAV market has been classified as a discontinued operation in our
third quarter of 2020 consolidated condensed financial statements.
As such, the assets of the UAV market have been classified as
assets held for sale as of September 30, 2020. Furthermore, the
historic operating results of the UAV market for both 2020 and 2019
have been removed from continuing operating results and are instead
presented separately in the statement of comprehensive income as
income from discontinued operations.
|
|
3 Note that Cash Operating Costs,
EBITDA, Adjusted EBITDA and Adjusted Net Income (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 Adjusted Net Income (Loss) assist investors in assessing
Ballard's operating performance. These measures should be used in
addition to, and not as a substitute for, net income (loss), 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 Adjusted Net Income
(Loss) to the Consolidated Financial Statements, please refer to
Ballard's Management's Discussion & Analysis.
|
|
Cash Operating Costs
measures operating expenses excluding stock-based compensation
expense, depreciation and amortization, impairment losses or
recoveries on trade receivables, restructuring charges, acquisition
costs, the impact of unrealized gains or losses on foreign exchange
contracts, and financing charges. EBITDA measures net loss from
continuing operations excluding finance expense, income taxes,
depreciation of property, plant and equipment, and amortization of
intangible assets. Adjusted EBITDA adjusts EBITDA for stock-based
compensation expense, transactional gains and losses, asset
impairment charges, finance and other income, the impact of
unrealized gains or losses on foreign exchange contracts, and
acquisition costs. Adjusted Net Income (Loss) measures net income
(loss) from continuing operations excluding transactional gains and
losses, asset impairment charges, and acquisition
costs.
|
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