VANCOUVER, BC, Aug. 5, 2021 /CNW/ - Ballard Power Systems
(NASDAQ: BLDP) (TSX: BLDP) today announced consolidated financial
results for the second quarter ended June
30, 2021. All amounts are in U.S. dollars unless otherwise
noted and have been prepared in accordance with International
Financial Reporting Standards (IFRS).
"The second quarter and first half of this year have highlighted
our ability to navigate a challenging global environment, while
continuing to invest in our business to capitalize on the exciting
momentum occurring across the hydrogen sector," said Randy MacEwen, President and CEO. In Q2,
Ballard achieved revenue of
$25.0 million, gross margin of 15%
and ending cash reserves of $1.24
billion.
Mr. MacEwen added, "Global policy announcements supporting
decarbonization continue to move at record pace. The Fit for 55
initiative in Europe, and Hydrogen
Earth Shot program in the U.S., both represent clear commitments to
accelerate the expansion of a clean hydrogen economy. These
policies, and with further clarity regarding the China hydrogen and fuel cell policy still to
come, will support future order growth from our customers and
scaling of our business across key market segments."
Mr. MacEwen continued, "During Q2 we continued to make progress
in the execution of our strategy, with significant order growth
over Q1. Throughout 2021, we have seen important follow-on customer
orders from Solaris, New Flyer and Tata in the German, California and India bus markets, respectively, as well as
meaningful progress with CP Rail and Siemens in the North America and Europe rail markets, respectively."
"We are pleased to announce the substantial completion of our
investment in advanced manufacturing in our Burnaby MEA
manufacturing capabilities, including increased MEA production
capacity by approximately six times. We believe our increased
investment in people, technology, products, proprietary advanced
manufacturing capabilities and customer experience position
Ballard to support the expected
growth of customer deployments. These investments also enable us to
maintain technological leadership while reducing product costs as
global momentum in hydrogen markets takes hold." concluded Mr.
MacEwen.
Q2 2021 Financial Highlights
(all comparisons are
to Q2 2020 unless otherwise noted)
- Total revenue was $25.0 million
in the quarter, down 3% year-over-year.
-
- Power Products generated revenue of $15.8 million in the quarter, approximately flat
year over year:
- Heavy Duty Motive revenue was $11.0
million, a decrease of 12% or $1.5
million, due primarily to lower shipments of fuel cell
products to customers in China;
- Material Handling revenue was $2.0
million, a decrease of 12% or $0.3
million, primarily the result of lower shipments to Plug
Power; and
- Backup Power revenue was $2.8
million, an increase of 125% or $1.6
million, due primarily to an increase in sales of
hydrogen-based backup power fuel cell stacks to Europe and Asia, combined with a minor increase in
hydrogen-based backup power systems and service revenues in
Europe.
- Technology Solutions generated revenue of $9.1 million in the quarter, a decrease of 7% or
$0.6 million, due primarily to
decreased amounts earned on certain programs.
- Gross margin was 15% in Q2, a decrease of 6-points, driven
primarily by the decrease in total revenues, combined with a shift
to lower overall product margin and service revenue mix.
- Cash operating costs2 were $20.1 million in the quarter, an 80% increase
primarily attributable to increased investments in technology and
product development related to work on next-generation fuel cell
stacks and modules for bus, truck, rail and marine applications as
well as higher general and administrative expenses.
- Adjusted EBITDA2 was ($19.7)
million, compared to ($8.0)
million in Q2 2020, primarily as a result of the decrease in
gross margin and increase in cash operating costs.
- Net loss was ($21.9) million in
the quarter, a decline of 104%.
- Net loss per share2 was ($0.07), a decline of 68%.
- Cash used by operating activities was ($17.8) million, an increase of 20%, reflecting
cash operating loss of ($12.4)
million and use in working capital of ($5.4) million.
- Cash reserves were $1.24 billion
at June 30, an increase of 630% from
the end of Q2 2020 and a decrease of 2% from the end of Q1
2021.
- During Q2 Ballard received
approximately $26.1 million in new
orders - an increase of approximately 120% over the prior quarter -
and delivered orders valued at $25.0
million, thereby increasing the Order Backlog to
approximately $113.3 million at
end-Q2. The 12-month Order Book was $80.6
million at end-Q2, an increase of $7.5 million from the end of Q1 2021.
![Ballard Power Systems Q2 2021 results (CNW Group/Ballard Power Systems Inc.) Ballard Power Systems Q2 2021 results (CNW Group/Ballard Power Systems Inc.)](https://mma.prnewswire.com/media/1589671/Ballard_Power_Systems_Inc__Ballard_Reports_Q2_2021_Results.jpg)
Order
Backlog ($M)
|
Order Backlog
at End-Q1 2021
|
Orders
Received
in Q2 2021
|
Orders
Delivered
in Q2 2021
|
Orders Backlog
at End-Q2 2021
|
Total Fuel Cell
Products & Services
|
$112.1
|
$26.1
|
$25.0
|
$113.3
|
Q2 2021 Operating Highlights
- Bus
-
- Received follow-on purchase order from Solaris Bus & Coach
S.A. for 13 fuel cell modules to power 13 of its Urbino 12
hydrogen model buses, to be deployed with In-der-City-Bus GmbH
in Frankfurt, Germany.
- Received follow-on purchase order from New Flyer for 20 fuel
cell modules to power 20 of its Xcelsior® model
buses, to be deployed with Alameda-Contra Costa Transit District
(AC Transit) in Oakland,
California.
- Received an order from Tata Motors for 15 fuel cell modules to
power 15 of its Fuel Cell Electric Buses to be deployed with the
Research & Development Centre of Indian Oil Corporation Limited
(IOCL) in Faridabad, the largest city in the National Capital
Region of Delhi.
- Rail
-
- Received a purchase order for two 200-kilowatt (kW) fuel cell
modules from Siemens Mobility GmbH to power a 2-car Mireo Plus H
passenger train through a trial operation in Bavaria, Germany.
- Other
-
- Subsequent to the quarter, announced receipt of a purchase
order for a 200kW FCwaveTM fuel cell module from
Fusion-Fuel, to be integrated into its H2Evora Project in the Évora
region of Portugal. The H2Evora
Project will use Fusion-Fuel's new HEVO electrolyzer design to
produce green hydrogen that will power the
FCwaveTM module for generation of zero-emission
electricity.
- Announced a follow-on multi-year supply agreement with W.L.
Gore & Associates for GORE-SELECT® Membrane material used by
Ballard in the production of
market-leading and proprietary membrane electrode assemblies (MEAs)
for the Company's fuel cells.
Q2 2021 Financial Summary
(Millions of U.S.
dollars)
|
Three months
ended June 30,
|
Six months ended
June 30,
|
|
2021
|
2020
|
% Change
|
2021
|
2020
|
% Change
|
REVENUE
|
|
|
|
|
|
|
Fuel Cell Products
& Services:1,2
|
|
|
|
|
|
|
Heavy Duty
Motive
|
$11.0
|
$12.5
|
-12%
|
$17.9
|
$22.8
|
-22%
|
Material
Handling
|
$2.0
|
$2.2
|
-12%
|
$3.7
|
$2.9
|
26%
|
Backup Power
|
$2.8
|
$1.3
|
125%
|
$3.6
|
$2.5
|
43%
|
Sub-Total
|
$15.8
|
$16.0
|
-1%
|
$25.2
|
$28.3
|
-11%
|
Technology
Solutions
|
$9.1
|
$9.8
|
-7%
|
$17.4
|
$21.4
|
-19%
|
Total Fuel Cell
Products & Services Revenue
|
$25.0
|
$25.8
|
-3%
|
$42.6
|
$49.7
|
-14%
|
PROFITABILITY
Gross Margin
$
|
$3.8
|
$5.5
|
-31%
|
$6.4
|
$10.5
|
-39%
|
Gross Margin
%
|
15%
|
21%
|
-6-points
|
15%
|
21%
|
-6-points
|
Operating
Expenses
|
$24.4
|
$13.5
|
81%
|
$42.4
|
$28.6
|
48%
|
Cash Operating
Costs3
|
$20.1
|
$11.2
|
80%
|
$34.4
|
$22.9
|
50%
|
Equity gain (loss) in
JV & Associates
|
($4.2)
|
($2.9)
|
-45%
|
($7.2)
|
($5.4)
|
-33%
|
Adjusted
EBITDA3
|
($19.7)
|
($8.0)
|
-144%
|
($33.6)
|
($16.8)
|
-100%
|
Net Income
(Loss)
|
($21.9)
|
($10.7)
|
-104%
|
($39.7)
|
($23.8)
|
-67%
|
Earnings Per
Share
|
($0.07)
|
($0.04)
|
-68%
|
($0.14)
|
($0.10)
|
-36%
|
CASH
|
|
|
|
|
|
|
Cash provided by
(used in) Operating Activities:
|
|
|
|
|
|
|
Cash Operating Income
(Loss)
|
($12.4)
|
($5.3)
|
-133%
|
($22.6)
|
($12.3)
|
-84%
|
Working Capital
Changes
|
($5.4)
|
($9.5)
|
-43%
|
($10.9)
|
($12.6)
|
-13%
|
Cash provided by (used
in)
|
($17.8)
|
($14.8)
|
-20%
|
($33.5)
|
($24.9)
|
-35%
|
Operating
Activities
|
Cash
Reserves
|
$1,243.0
|
$170.3
|
630%
|
|
|
|
For a more detailed discussion of Ballard Power Systems' second
quarter 2021 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
Friday, August 6, 2021 at
8:00 a.m. Pacific Time (11:00 a.m. Eastern Time) to review second quarter
2021 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 Ballard's homepage (www.ballard.com).
Following the call, the audio webcast and presentation materials
will be archived in the 'Earnings, Interviews & 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 the markets for our products and the effects of
governmental regulations on such markets, expected impacts of
investments in manufacturing capabilities and expected customer
deployments. 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, 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
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, and Adjusted EBITDA 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.
|
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