Ballard Reports Third Quarter 2009 Results
"While Ballard's third quarter revenue is disappointing, the improvements in both operating loss and operating cash consumption(1) reflect the significant changes that have been implemented in the business," said
Given the continued softness in general economic conditions, Ballard has narrowed its full-year guidance to:
- Revenue: expected to come in at the low end of the previously stated
range at $50.0 million, compared with $59.8 million in 2008. This
reflects essentially flat performance year on year in Fuel Cell
Products and significant decline in supporting business segments.
- Operating cash consumption(1): expected to come in at the high end of
the previously stated range at $27.0 million, compared to $29.3
million in 2008.
Third Quarter Highlights
- Organizational restructuring was completed, resulting in the
elimination of approximately 20% of Ballard's workforce. This action,
in tandem with other cost optimization initiatives, has resulted in a
significant resetting of the company's cost base of approximately
30%.
- Status update to the supply agreement between IdaTech, LLC, ACME
Group and Ballard was issued by IdaTech, indicating that the product
acceptance test (PAT) for the natural gas system, scheduled for
October 16, 2009, would likely be missed. The agreement provides for
an extension of the PAT deadline for up to six months if IdaTech
files an acceptable remediation plan by November 16, 2009, with
committed volumes to be reduced commensurate with the length of the
delay.
- FCgen(TM)-1300 development program is substantially complete. This
low-cost, reformate-tolerant stack is a cornerstone for Ballard's
future product platforms.
- The first bus in BC Transit's 2010 Olympic fleet of 20 hydrogen fuel
cell buses was introduced. BC Transit's fleet will become the largest
single deployment of zero-emission fuel cell buses worldwide and it
is powered by Ballard's heavy-duty fuel cell module, the
FCvelocity(TM)-HD6.
Third Quarter 2009 Financial Highlights
- Revenue was $9.0 million (Q3 2008: $12.3 million), for a total of
$30.2 million year-to-date.
- Fuel Cell Products revenue declined 49% over the prior year
quarter and are flat on a year-to-date basis.
- Supporting business segment revenue (Contract Automotive and
Material Products) declined 6% over the prior year quarter.
- Operating cash consumption(1) was $4.4 million, representing an
improvement of $2.1 million from the third quarter of 2008 ($6.5
million).
- This represents a $12.6 million improvement compared with Q2
2009 ($17.0 million).
- Ballard expects a positive cash flow in the fourth quarter of
2009.
- Net Loss was $12.0 million or ($0.14) per share, a decrease of
$3.5 million from Q3 2008 net loss of $15.5 million or ($0.19) per
share.
- Normalized net loss(1) was $7.2 million or ($0.09) per share,
representing a $6.1 million decrease in loss from Q3 2008 ($13.2
million or ($0.16) per share), primarily as a result driven by
reductions in operating expenses.
- Operating expenses were $8.7 million, excluding restructuring
and related costs and depreciation and amortization,
representing a decrease of $5.2 million from 2008.
- Cash reserves of $42.0 million and debt-free balance sheet.
Third Quarter 2009 Financial Results
Quarter Ended
Our revenues for the three months ended
In our core Fuel Cell Products business segment, revenues decreased 49% to
In our supporting Contract Automotive and Material Products business segments, revenues decreased 6% to
Our net loss for the three months ended
Our normalized net loss(1) for the third quarter of 2009 decreased
Operating cash consumption1 for the third quarter of 2009 decreased
Nine Months Ended
Our revenues for the nine months ended
Fuel Cell Products revenues increased 2% to
Contract Automotive and Material Products revenues decreased 44% to
Our net loss for the nine months ended
Our normalized net loss(1) the first nine months of 2009 decreased
Operating cash consumption(1) for the first three quarters of 2009 increased
Product Shipments:
-------------------------------------------------------------------------
Three months ended Nine months ended
September 30, September 30,
2009 2008 % Change 2009 2008 % Change
-------------------------------------------------------------------------
Material
Handling 61 168 -64% 80 254 -69%
Backup Power 197 127 +55% 613 364 +68%
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Revenue breakdown:
-------------------------------------------------------------------------
(Expressed in Three months ended Nine months ended
millions of September 30, September 30,
U.S. dollars) 2009 2008 % Change 2009 2008 % Change
-------------------------------------------------------------------------
Fuel Cell
Products $ 2.9 $ 5.7 -49% $ 16.4 $ 16.1 +2%
Contract
Automotive 1.9 3.6 -46% 4.7 15.4 -70%
Material
Products 4.2 3.0 +40% 9.1 9.2 -1%
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Total Revenue $ 9.0 $ 12.3 -26% $ 30.2 $ 40.7 -26%
-------------------------------------------------------------------------
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Endnotes:
---------
(1) Normalized net loss and operating cash consumption are non-GAAP
measures used to assist in assessing Ballard's financial performance.
Non-GAAP measures do not have any standardized meaning prescribed by
GAAP and are therefore unlikely to be comparable to similar measures
presented by other companies. Normalized net loss measures Ballard's
net loss after excluding items that are unusual in nature or do not
reflect the normal continued operating activity of the business.
Gains on sale of assets held for sale, losses from discontinued
operations, write-downs of long-lived assets, restructuring and
related expenses, and equity income (loss) in associated companies
are not considered part of our core activities, and are expected to
occur infrequently. Therefore Ballard removes these in the
calculation of normalized net loss. Operating cash consumption
measures the amount of cash required to fund the operating activities
of our business (net of restructuring and related costs) and excludes
financing and investing activities except for net additions to
property, plant and equipment.
For a more detailed discussion of Ballard Power Systems' third quarter 2009 results, please see the company's financial statements and management's discussion & analysis, which are available at www.ballard.com, www.sedar.com and www.sec.gov/edgar.shtml.
Third Quarter 2009 Conference Call
Ballard will hold a conference call on
About Ballard Power Systems
Ballard Power Systems (TSX: BLD; NASDAQ: BLDP) is recognized as a world leader in the design, development, manufacture and sale of clean energy fuel cell products. Ballard's mission is to accelerate fuel cell product adoption. To learn more about what Ballard is doing with Power to Change the World(R), visit www.ballard.com.
This release contains forward-looking statements, including estimated revenue and operating cash consumption contained in Ballard's outlook, which 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. These forward-looking statements are based on the beliefs and assumptions of Ballard's management and 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. Such assumptions relate to Ballard's financial forecasts and expectations regarding its product development efforts, manufacturing capacity, and market demand, and include matters such as generating new sales, producing, delivering and selling the expected number of units, and controlling its costs.
These statements involve risks and uncertainties that may cause Ballard's actual results to be materially different, including, without limitation, the condition of the global economy, the rate of mass adoption of its products, product development delays, changing environmental regulations, its ability to attract and retain business partners and customers, its access to funding, increased competition, its ability to protect its intellectual property, changes in its customers' requirements, foreign exchange impacts on its net monetary assets and its ability to provide the capital required for product development, operations and marketing. For a detailed discussion of these risk factors and other risk factors that could affect Ballard's future performance, please refer to Ballard's most recent Annual Information Form.
Readers should not place undue reliance on Ballard's forward-looking statements and Ballard assumes no obligation to update or release any revisions to these forward looking statements, other than as required under applicable legislation.
Ballard, the Ballard logo and Power to Change the World are registered trademarks of Ballard Power Systems Inc.
For further information: or to arrange an interview with a Ballard spokesperson, please contact Lori Rozali at telephone number (604) 453-3683, or on e-mail [email protected].
Share this article