VANCOUVER, BC, Nov. 8, 2021 /PRNewswire/ - Ballard Power Systems
(NASDAQ: BLDP) (TSX: BLDP) today announced consolidated financial
results for the third quarter ended September 30, 2021. All amounts are in U.S.
dollars unless otherwise noted and have been prepared in accordance
with International Financial Reporting Standards (IFRS).
"We continue to see a significant shift in sentiment and sense
of urgency by political leaders, industry, consumers, and the
investment community to address our climate crisis," said
Randy MacEwen, President and CEO.
"As global political and business leaders meet in Glasgow at COP26, we see growing action by policymakers and
corporations to decarbonize energy, industry and mobility, with
hydrogen identified as a key enabler to decarbonize hard-to-abate
sectors. With 39 countries covered by government-backed hydrogen
strategies, we are also encouraged with the $9 billion of fresh commitments to support
hydrogen adoption in the United
States."
Mr. MacEwen added, "With this favorable contextual backdrop, we
continue to increase and accelerate investments in our business,
including in technology, products, customer experience, and
capabilities. Our business model is designed to electrify and
decarbonize medium- and heavy-duty motive applications, such as
bus, truck, rail and marine, as well as critical stationary power
applications. We also continue to develop key partnerships across
the hydrogen value chain to reduce customer friction points and
accelerate take-up."
Mr. MacEwen further stated, "In the third quarter, Ballard achieved revenue of $25.2 million, gross margin of 11% and ending
cash reserves of $1.2 billion. While
we have been challenged with protracted delays in China, as well as unprecedented global supply
chain constraints, we are enjoying record levels of customer
engagement across our application verticals in Europe and North
America. We are set up for an exciting year in 2022, marked
by increased investment, important customer wins, continued product
innovation and cost reductions, and the start of a long-term
revenue ramp."
Q3 2021 Financial Highlights
(all comparisons are to Q3 2020 unless otherwise
noted)
- Total revenue was $25.2 million
in the quarter, down 2% year-over-year. The slight decrease was
driven by a reduction in lower Heavy-Duty Motive and Technology
Solutions revenue in the quarter, largely offset by increased
revenue in Material Handling and Backup Power.
-
- Heavy-Duty revenues of $11.2
million decreased 13%, primarily due to lower shipments of
fuel cell products to customers in China.
- Material Handling revenues of $3.1
million increased 120%, primarily as a result of higher
shipments to Plug Power.
- Backup Power revenues of $1.9
million increased 90%, supported by an increase in sales of
backup power fuel cell stacks, products and service revenues in
Europe.
- Technology Solutions generated revenue of $9.0 million in the quarter, a decrease of 13%
due primarily to decreased amounts earned as a result of the
completion of certain customer programs.
- Gross margin was 11% in the quarter, a decrease of 8-points,
driven by a combination of a negative net warranty adjustment,
shift to lower margin revenue mix, and an increase in labor, supply
and freight expenses.
- Operating Expenses and Cash Operating Costs were $26.9 million and $22.7
million in the quarter, respectively, an increase of 115%
and 112%, respectively. Increases were driven primarily by higher
expenditure on research, technology and product development
activities in Canada and
Denmark, including for development
of next-generation fuel cell stacks and modules for target markets,
as well as increased investment in existing fuel cell products,
including activities related to product cost reduction.
- Adjusted EBITDA was ($23.1)
million, compared to ($7.7)
million in Q3 2020, a result of the decrease in gross
margin, increase in Cash Operating Costs, and higher equity
investment losses in joint venture and associates.
- Cash reserves were $1.2 billion
at September 30, an increase of 238%
from the end of Q3 2020 and a decrease of 2% from the end of Q2
2021.
Q3 2021 Commercial Highlights
- During the quarter, the company continued to build its
relationships with existing customers and new strategic partners in
key geographies. Ballard believes
its strategic partners will accelerate deployment and market
adoption of its fuel cell technology and enable broader customer
access to zero-emission solutions.
-
- Ballard announced a strategic
partnership with QUANTRON, a German-based specialist in electric
vehicle integration. The initial collaboration will integrate
Ballard's FCmoveTM
family of heavy-duty fuel cell power modules into QUANTRON's
electric drivetrain and vehicles. Fuel cell electric truck
platforms currently in development include a 7.5t delivery truck, a
44t heavy-duty truck, and a municipal waste collection truck.
Initial delivery of QUANTRON fuel cell electric trucks is expected
in the second half of 2022 in Germany.
- The company also announced collaboration with California based Hexagon Purus to develop
Class 6 & 7 Fuel Cell Electric Trucks powered by Hexagon Purus'
turnkey electric drivetrain and hydrogen storage system solutions
and Ballard's fuel cell
module.
- Ballard continued to expand
its global footprint in Q3 with a previously announced order of 15
fuel cell engines from Tata Motors ("Tata"), headquartered in
Mumbai, India, to be used in
zero-emission buses.
- Ballard announced the launch
of its 8th generation heavy duty power module, the
FCmoveTM-HD+, designed for buses and medium- and
heavy-duty trucks. The 100kW FCmoveTM-HD+ is smaller,
lighter, more efficient, and lower cost than previous generations,
and has been designed to improve ease of vehicle integration.
- Ballard received approximately
$20.5 million of new orders in Q3,
and delivered on orders valued at $25.2
million, resulting in an Order Backlog of approximately
$108.5 million at end-Q3. The
12-month Order Book was $79.4 million
at end-Q3, a decrease of $1.2 million
from the end of Q2 2021.
Order
Backlog ($M)
|
Order Backlog
at End-Q2 2021
|
Orders
Received
in Q3 2021
|
Orders
Delivered
in Q3 2021
|
Order Backlog
at End-Q3 2021
|
Total Fuel Cell
Products & Services
|
$113.3
|
$20.5
|
$25.2
|
$108.5
|
Post-Quarter Commercial Update
- On November 4, 2021, Ballard announced orders for a total of 40
FCmoveTM-HD (70kW) modules for planned deployment in
hydrogen fuel cell electric buses ("FCEB") across Europe in 2022.
- On October 17, 2021, Ballard announced with Forsee Power, a leader
in smart battery systems for sustainable electromobility, the
signing of a Memorandum of Understanding ("MOU") for a strategic
partnership to develop fully integrated fuel cell and battery
solutions, optimized for performance, cost and installation for
heavy-duty hydrogen mobility applications. As part of the strategic
relationship, Ballard committed to
participate as a lead investor (up to €40 million) in connection
with the initial public offering on Euronext in Paris, France, of Forsee Power. Pursuant to
this commitment, Ballard made a
contribution of €37.7 million (approximately $43.9 million) in October
2021, resulting in an ownership interest of 9.77% in Forsee
Power upon completion of the IPO. Ballard also appointed a board member to the
Forsee Power board of directors.
- On October 12, 2021, Ballard announced an Equipment Supply
Agreement to provide 8 of its 70-kW fuel cell modules to Talgo
S.A., a leader in the design, manufacture, and maintenance of
high-speed light rail trains, headquartered in Madrid, Spain, for trials of its Talgo
Vittal-One commuter and regional passenger train.
- Ballard's fuel cell technology
and products have now powered Fuel Cell Electric Vehicles – in
commercial Heavy- and Medium-Duty Motive applications for an
industry leading cumulative total of more than 100 million
kilometers on roads around the globe.
- Ballard's partner, Hydrogene
de France ("HDF"), an independent
power producer dedicated to renewable power generation, commenced
construction of the CEOG Renewstable® Power Plant ("CEOG") in
French Guiana. CEOG is the world's
first multi megawatt, baseload hydrogen power plant, and the
largest green hydrogen storage of intermittent renewable
electricity sources. Ballard
expects to deliver two 1.5 MW fuel cell systems in 2023.
Q3 2021 Financial Summary
(Millions of U.S.
dollars)
|
Three months
ended September 30,
|
Nine months ended
September 30,
|
|
2021
|
2020
|
% Change
|
2021
|
2020
|
% Change
|
REVENUE
|
|
|
|
|
|
|
Fuel Cell Products
& Services:1,2
|
|
|
|
|
|
|
Heavy Duty
Motive
|
$11.2
|
$12.9
|
-13%
|
$29.1
|
$35.8
|
-19%
|
Material
Handling
|
$3.1
|
$1.4
|
120%
|
$6.9
|
$4.4
|
57%
|
Backup
Power
|
$1.9
|
$1.0
|
90%
|
$5.5
|
$3.5
|
57%
|
Sub-Total
|
$16.3
|
$15.4
|
6%
|
$41.5
|
$43.6
|
-5%
|
Technology
Solutions
|
$9.0
|
$10.3
|
-13%
|
$26.3
|
$31.7
|
-17%
|
Total Fuel Cell
Products & Services Revenue
|
$25.2
|
$25.6
|
-2%
|
$67.8
|
$75.3
|
-10%
|
PROFITABILITY
Gross Margin
$
|
$2.8
|
$4.8
|
-41%
|
$9.2
|
$15.3
|
-40%
|
Gross Margin
%
|
11%
|
19%
|
-8-points
|
14%
|
20%
|
-6-points
|
Operating
Expenses
|
$26.9
|
$12.5
|
115%
|
$69.1
|
$40.9
|
69%
|
Cash Operating
Costs3
|
$22.7
|
$10.7
|
112%
|
$57.2
|
$33.6
|
70%
|
Equity gain (loss) in
JV & Associates
|
($4.1)
|
($2.8)
|
-46%
|
($11.3)
|
($8.2)
|
-38%
|
Adjusted
EBITDA3
|
($23.1)
|
($7.7)
|
-201%
|
($56.7)
|
($24.5)
|
-132%
|
Net Income
(Loss)
|
($30.8)
|
($11.2)
|
-175%
|
($70.6)
|
($35.1)
|
-101%
|
Earnings Per
Share
|
($0.10)
|
($0.05)
|
-100%
|
($0.24)
|
($0.15)
|
-63%
|
CASH
|
|
|
|
|
|
|
Cash provided by
(used in) Operating Activities:
|
|
|
|
|
|
|
Cash Operating Income
(Loss)
|
($21.4)
|
($6.7)
|
-218%
|
($44.1)
|
($19.1)
|
-130%
|
Working Capital
Changes
|
$6.4
|
($4.6)
|
240%
|
($4.5)
|
($17.2)
|
74%
|
Cash
provided by (used in)
Operating Activities
|
($15.0)
|
($11.3)
|
-33%
|
($48.5)
|
($36.3)
|
-34%
|
Cash
Reserves
|
$1,222.3
|
$361.7
|
238%
|
|
|
|
For a more detailed discussion of Ballard Power Systems' third
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 Tuesday, November 9, 2021 at
8:00 a.m. Pacific Time (11:00 a.m. Eastern Time) to review third quarter
2021 operating results. The live call can be accessed by dialing
+1.604.638.5340. Alternatively, a live audio and 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 related 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 related costs.
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SOURCE Ballard Power Systems Inc.