VANCOUVER, BC - May 4, 2021 (Investorideas.com Newswire) Ballard Power Systems (NASDAQ: BLDP) (TSX: BLDP) today announced consolidated financial results for the first quarter ended March 31, 2021. All amounts are in U.S. dollars unless otherwise noted and have been prepared in accordance with International Financial Reporting Standards (IFRS).
"Supported by a strengthening policy backdrop and increased customer engagement, we have clearer line of sight on long-term growth in our core medium- and heavy-duty motive applications of bus, truck, rail and marine," said Randy MacEwen, President and CEO. "As a result, 2021 will be marked by increased and accelerated investment ahead of market tipping points. Bolstered by a fortified balance sheet, we will deepen our investments in talent, technology, products, advanced manufacturing, localization and customer experience."
Mr. MacEwen continued, "In Q1, we delivered revenue of $17.6 million, gross margin of 15% and ending cash reserves of $1.27 billion. Although the China market remained muted while awaiting further policy pronouncements, activity levels were high across the entire Ballard organization. Indeed, on the commercial front, we witnessed unprecedented customer and industry engagement across our markets."
Mr. MacEwen added, "We are pleased with the growing underlying interest for fuel cell buses in Europe, including follow-on orders from Wrightbus and Solaris. In the truck market, we progressed our co-development work with the Weichai-Ballard joint venture in China and with MAHLE on a fuel cell engine for the European market. Furthermore, yesterday we announced a strategic collaboration with Linamar, focused on powertrains and components for the class 1 and 2 vehicle market in North America and Europe. We have also announced a collaboration with Chart Industries for the joint development of integrated liquid hydrogen storage and fuel cell solutions for heavy-duty vehicles. We launched several rail programs during the quarter, including a fuel cell locomotive program with CP in Canada, a switching locomotive program in California, and a passenger train program in Scotland. We also initiated design work for a large-scale propulsion system for a marine customer in Australia and announced our membership in the Hydra Consortium for development of fuel cell systems to power heavy-duty mining equipment."
Mr. MacEwen further noted, "On the technology and product development front, we continued to make measured progress on our key development programs, including ongoing work with our Weichai-Ballard JV in China. We are also tracking ahead of plan on our '3x3' fuel cell stack cost reduction program, enhanced by breakthrough designs and performance from our MEAs and bipolar plates, continued progress with our supply chain, and implementation of advanced manufacturing initiatives."
Mr. MacEwen concluded, "All indicators are that we will be set up for strong long-term growth as a result of the accelerated investment we are making this year. We also continue to assess strategic acquisition opportunities that will reduce customer friction points and simplify the customer experience."
Q1 2021 Financial Highlights
(all comparisons are to Q1 2020 unless otherwise noted)
During Q1 Ballard received $11.8 million in new orders and delivered orders valued at $17.6 million, reducing the Order Backlog by $5.8 million from the prior quarter, ending Q1 at $112.0 million. The 12-month Order Book was $73.1 million at end-Q1, a decrease of $10.4 million from the prior quarter.
Q1 2021 Operating Highlights
Ballard will hold a conference call on Tuesday, May 4, 2021 at 8:00 a.m. Pacific Time (11:00 a.m. Eastern Time) to review first 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 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.
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.
SOURCE Ballard Power Systems Inc.
Guy McAree, +1.604.412.7919, firstname.lastname@example.org or email@example.com
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