UNITED
STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
6-K
REPORT
OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of May 2024
Commission
File Number: 000-53543
Ballard
Power Systems Inc.
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| (Translation
of registrant’s name into English) |
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9000
Glenlyon Parkway
Burnaby, BC
V5J 5J8
Canada |
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(Address of principal executive office) |
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Indicate
by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
☐
Form 20-F ☒ Form 40-F |
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SIGNATURES
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| Pursuant to the
requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized. |
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Ballard Power Systems Inc. |
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| Date: May 7, 2024 |
By: |
/s/
Paul Dobson
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Name: |
Paul Dobson |
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Title: |
Chief Financial Officer |
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EXHIBIT INDEX
Exhibit 99.1
Ballard Reports Q1 2024 Results
VANCOUVER, BC, May 7, 2024 /CNW/ - Ballard Power Systems
(NASDAQ: BLDP) (TSX: BLDP) today announced consolidated financial results for the first quarter ended March 31, 2024. All amounts are
in U.S. dollars unless otherwise noted and have been prepared in accordance with International Financial Reporting Standards (IFRS).
"In our last earnings report, we indicated that
we expected continued growth in our Order Backlog, major order announcements from customers in our Bus and Stationary verticals, and the
announcement of our next manufacturing facility," said Randy MacEwen, Ballard's President and CEO. "In Q1, we delivered on each
of these milestones, highlighting our continuing journey to becoming a commercial products company. We booked $64.5 million in new orders,
increased our Order Backlog by 38%, announced total non-dilutive funding of $94 million for the planned build-out of our Rockwall Gigafactory,
grew revenue by 9%, improved gross margin by 5 points, and reduced cash operating costs1 slightly while continuing to invest
in next generation products and product cost reduction."
"We are particularly encouraged with our progress
over the past 6 months with new order intake," added Mr. MacEwen. "After booking $64.7 million of new orders in the fourth quarter
of 2023, we booked another $64.5 million of new orders in Q1, bringing total new bookings over the past two quarters to $129.2 million.
We are seeing growth indicators across our Bus, Rail, Marine and Stationary verticals. In our Bus segment, so far in 2024, we have announced
or secured repeat orders from three customers totaling approximately 1,200 fuel cell engines. We also announced an order for 15 MW of
fuel cell engines from a repeat customer in our Stationary vertical. We are excited by the increasing order sizes as customers transition
from demonstrations to larger scale deployments."
Mr. MacEwen continued, "Q1 revenue of $14.5 million,
up 9% year-over-year, was overwhelmingly generated by Power Products revenue, which contributed 88% of revenue compared to 71% in Q1 2023.
Despite the continued shift in revenue mix to Power Products and the burden of fixed production overhead costs on seasonally low revenue,
gross margin of (37%) improved 5 points compared to Q1 2023. Similar to prior years, we expect 2024 revenue to be back-half weighted and
expect to realize corresponding gross margin expansion. We also continued our discipline on operating expenses and balance sheet strength.
Notwithstanding inflationary pressures, our cash operating costs1 were slightly down compared to Q1 2023, and we ended
the quarter with $720.7 million in cash and cash equivalents."
"During the quarter, we were pleased to announce
certain non-dilutive funding awards for our proposed Gigafactory in Rockwall, Texas," stated Mr. MacEwen. "The planned 3-gigawatt
facility will feature advanced manufacturing of next-generation fuel cells at scaled production volumes and significantly reduced costs.
The $40 million award from the U.S. Department of Energy Hydrogen and Fuel Cell Technologies Office, and an award valued up to $54 million
from the Qualifying Advanced Energy Project Tax Credit (48C) funded by the Inflation Reduction Act (IRA), provide Ballard with a total
of up to $94 million of U.S. federal funding."
Mr. MacEwen concluded, "In the context of an
increasingly constructive policy environment, a growing Order Backlog, and with sustained investments in product cost reduction, advanced
manufacturing, and capacity expansion, we see an exciting set-up for a strong second half of 2024 and growth in 2025. We are well positioned
to enable our customers to compete in the energy transition and the adoption of hydrogen fuel cells to decarbonize heavy-duty mobility
and select stationary power applications."
Q1 2024 Financial Highlights
(all comparisons are to Q1 2023 unless otherwise
noted)
| • | Total revenue was $14.5 million in the quarter, up 9% year-over-year. |
| • | Heavy Duty Mobility revenue of $10.6 million increased 22%,
driven by higher revenues from our Bus vertical, though offset by weaker revenue in Rail and Marine verticals. |
| • | Stationary revenue of $3.7 million increased 48% year-over-year
driven by the European market. |
| • | Emerging and Other Markets revenue of $0.2 million was down
90% compared to the prior year. |
| • | Gross margin was (37%) in the quarter, a 5-point improvement
year-over-year and 15 points lower from the previous quarter as expected due to lower revenue in Q1 2024 compared to Q4 2023. |
| • | Total Operating Expenses and Cash Operating Costs1 were
$37.1 million and $29.8 million, respectively, a change of 3% and (2%) respectively, from Q1 2023. |
| • | Net loss from continuing operations for the first quarter
of 2024 was ($41.1) million, or ($0.14) per share, compared to a net loss from continuing operations of ($32.4) million, or ($0.11) per
share, in the first quarter of 2023. The ($8.7) million increase in net loss was driven primarily by lower finance and other income of
($7.5) million largely due to higher negative mark to market and foreign exchange impacts on our long-term financial investments. |
| • | Adjusted EBITDA1 was ($36.6) million,
compared to ($36.9) million in Q1 2023, a change of 1%. |
| • | Cash and cash equivalents were $720.7 million, a ($30.5)
million decrease compared to $751.1 million at the end of 2023. |
| • | Ballard received approximately $64.5 million in new orders
in Q1, and delivered orders valued at $14.5 million, resulting in an Order Backlog of approximately $180.5 million at end-Q1, a 38% increase
from the end of Q4 2023. Order Backlog growth was driven predominantly by the European Bus and Stationary verticals and includes the impact
of the recently announced long-term supply agreement with Solaris. Power Products now represent approximately 88% of the total Order Backlog,
with European and North American customers accounting for approximately 86% of the total Order Backlog. |
| • | The 12-month Order Book was $79.7 million at end-Q1, an increase
of $13.0 million, or 20%, from the end of Q4 2023. |
| Order Backlog ($M) |
Order Backlog
at End-Q4 2023 |
Orders Received
in Q1 2024 |
Orders Delivered
in Q1 2024 |
Order Backlog
at End-Q1 2024 |
Total Fuel Cell
Products & Services |
$130.5 |
$64.5 |
$14.5 |
$180.5 |
2024 Outlook
Consistent with the Company's past practice, and in
view of the early stage of hydrogen fuel cell market development, specific revenue or net income (loss) guidance for 2024 is not provided.
The Company expects revenue in 2024 will be back-half weighted, with roughly 30% in the first half and 70% in the second half, similar
to 2023. Ballard's Total Operating Expense2 and Capital Expenditure3 guidance ranges for 2024 are as follows:
| 2024 |
Guidance |
| Total Operating Expense2 |
$145 - $165 million |
| Capital Expenditure3 |
$50 - $70 million |
Q1 2024 Financial Summary
| (Millions of U.S. dollars) |
Three months ended March 31 |
| |
2024 |
2023 |
% Change |
| REVENUE |
|
|
|
| Fuel Cell Products & Services:4 |
|
|
|
| Heavy-Duty Mobility |
$10.6 |
$8.6 |
22 % |
| Bus |
$8.9 |
$2.9 |
206 % |
| Truck |
$1.2 |
$2.4 |
(51 %) |
| Rail |
$0.3 |
$1.7 |
(80 %) |
| Marine |
$0.2 |
$1.7 |
(87 %) |
| Stationary |
$3.7 |
$2.5 |
48 % |
| Emerging and Other Markets |
$0.2 |
$2.1 |
(90 %) |
| Total Fuel Cell Products & Services Revenue |
$14.5 |
$13.2 |
9 % |
| PROFITABILITY |
|
|
|
| Gross Margin $ |
($5.4) |
($5.6) |
4 % |
| Gross Margin % |
(37 %) |
(42 %) |
5 pts |
| Total Operating Expenses |
$37.1 |
$35.8 |
3 % |
| Cash Operating Costs1 |
$29.8 |
$30.5 |
(2 %) |
| Equity loss in JV & Associates |
($0.8) |
($0.9) |
3 % |
| Adjusted EBITDA1 |
($36.6) |
($36.9) |
1 % |
| Net Loss from Continuing Operations4 |
($41.1) |
($32.4) |
(27 %) |
| Loss Per Share from Continuing Operations4 |
($0.14) |
($0.11) |
(27 %) |
| CASH |
|
|
|
| Cash provided by (used in) Operating Activities: |
|
|
|
| Cash Operating Loss |
($24.4) |
($26.9) |
9 % |
| Working Capital Changes |
$4.4 |
($9.6) |
146 % |
| Cash used by Operating Activities |
($20.0) |
($36.6) |
45 % |
| Cash and cash equivalents |
$720.7 |
$863.8 |
(17 %) |
For a more detailed discussion of Ballard Power Systems'
first quarter 2024 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, May
7, 2024 at 8:00 a.m. Pacific Time (11:00 a.m. Eastern Time) to review first quarter 2024 operating results. The live call can be accessed
by dialing 1-844-763-8274. 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, and stationary power. To learn more about Ballard, please visit www.ballard.com.
Important Cautions Regarding Forward-Looking Statements
Some of the statements contained in this release are
forward-looking statements within the meaning of the U.S. Securities Act of 1933, as amended, and U.S. Securities Exchange Act of 1934,
as amended, and forward-looking information within the meaning of Canadian securities laws, such as statements concerning the markets
for our products, Order Backlog, expected revenues, gross margins, operating expenses, capital expenditures, corporate development activities,
impacts of investments in manufacturing and R&D capabilities and cost reduction initiatives and statements that describe any anticipated
offering of securities under Ballard's Shelf Prospectus and Registration Statement or the filing of a Prospectus supplement. 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. Since forward-looking statements are not statements of historical fact and address
future events, conditions and expectations, forward-looking statements by their nature inherently involve unknown risks, uncertainties,
assumptions and other factors well beyond Ballard's ability to control or predict. Actual events, results and developments may differ
materially from those contemplated by such forward-looking statements. Any such statements are based on Ballard's assumptions relating
to its financial forecasts and expectations regarding its product development efforts, manufacturing capacity, market demand and financing
needs. 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, achieving and sustaining profitability, Ballard's condition
requiring anticipated use of proceeds to change and the timing of, and ability to obtain, required regulatory approvals. 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 represent Ballard's views as of the date of this release. There can be no assurance
that forward-looking statements will prove to be accurate, as actual events and future events could differ materially from those anticipated
in such statements. 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 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 the tables below. |
|
Cash Operating Costs measures total 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 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, acquisition related costs, finance
and other income, recovery on settlement of contingent consideration, asset impairment charges, and the impact of unrealized gains or
losses on foreign exchange contracts. |
|
2 Total Operating Expenses refer to the measure reported
in accordance with IFRS. |
|
3 Capital Expenditure is defined as Additions to property,
plant and equipment and Investment in other intangible assets as disclosed in the Consolidated Statements of Cash Flows |
|
4 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 of PEM fuel cell products and
services for a variety of applications including Heavy-Duty Mobility (consisting of bus, truck, rail, and marine applications), Stationary
Power, and Emerging and Other Markets (consisting of material handling, off-road, and other applications). Revenues from the delivery
of Services, including technology solutions, after sales services and training, are included in each of the respective markets. |
|
During the fourth quarter of 2023, we completed a restructuring
of operations at Ballard Motive Solutions in the U.K. and effectively closed the operation. As such, the historic operating results
(including revenue and operating expenses) of the Ballard Motive Solutions business have been removed from continuing operating results
and are instead presented separately in the statement of comprehensive income (loss) as loss from discontinued operations. |
| (Expressed in thousands of U.S. dollars) |
Three months ended March 31, |
| Cash Operating Costs |
2024 |
2023 |
$ Change |
| Total Operating Expenses |
$ 37,060 |
$ 35,832 |
$ 1,228 |
| Stock-based compensation expense |
(2,800) |
(2,243) |
(557) |
Impairment recovery (losses) on trade
receivables |
(1,670) |
- |
(1,670) |
| Acquisition related costs |
- |
(658) |
658 |
| Restructuring and related (costs) recovery |
(30) |
(822) |
792 |
Impact of unrealized gains (losses) on foreign
exchange contracts |
(485) |
490 |
(975) |
| Depreciation and amortization |
(2,236) |
(2,062) |
(174) |
| Cash Operating Costs |
$ 29,839 |
$ 30,537 |
$ (698) |
| (Expressed in thousands of U.S. dollars) |
Three months ended March 31, |
| EBITDA and Adjusted EBITDA |
2024 |
2023 |
$ Change |
| Net loss from continuing operations |
$ (41,066) |
$ (32,388) |
$ (8,678) |
| Depreciation and amortization |
3,382 |
3,051 |
331 |
| Finance expense |
431 |
283 |
148 |
| Income taxes (recovery) |
35 |
- |
35 |
| EBITDA |
$ (37,218) |
$ (29,054) |
$ (8,164) |
| Stock-based compensation expense |
2,800 |
2,243 |
557 |
| Acquisition related costs |
- |
658 |
(658) |
| Finance and other (income) loss |
(2,709) |
(10,209) |
7,500 |
Impairment charge on property, plant and
equipment |
- |
- |
- |
Impact of unrealized (gains) losses on foreign
exchange contracts |
485 |
(490) |
975 |
| Adjusted EBITDA |
$ (36,642) |
$ (36,852) |
$ 210 |
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View original content to download multimedia:https://www.prnewswire.com/news-releases/ballard-reports-q1-2024-results-302137920.html
SOURCE Ballard Power Systems Inc.
View original content to download multimedia: http://www.newswire.ca/en/releases/archive/May2024/07/c6267.html
%CIK: 0001453015
For further information: Kate (Charlton) Igbalode, +1.604.453.3939,
investors@ballard.com or media@ballard.com
CO: Ballard Power Systems Inc.
CNW 08:30e 07-MAY-24
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