Plug Power Inc. (NASDAQ:PLUG), a leader in providing energy
solutions that change the way the world moves, today announced its
financial results for the second quarter of 2016. Plug Power
continues to show growth and improvements in all areas of the
business during the second quarter, including:
- Total GAAP revenues of $20.5 million; Total adjusted revenues
of $37.9 million;
- 99% growth in recurring revenue versus Q2 2015 (service and
fuel delivery);
- Bookings of $63 million for the quarter and $135 million year
to date;
- Earnings per share (EPS) loss of $0.07 per share; adjusted EPS
loss of $0.04 per share.
Please refer to the tables at the end of this
press release for a description of adjusted revenue, adjusted gross
margin, adjusted earnings per share and a reconciliation of these
non-GAAP measures to their comparable GAAP measures.
New customers represent more than 60% of
bookings in the second quarter, driven by four new GenKey customer
wins. These wins continue to build the Company’s strong foundation
of major accounts, and include a leading North American retailer
with global presence that has multi-site potential over the next 12
to 18 months. In addition, the second quarter bookings include
first-time Plug Power fuel cell users that are deploying turnkey
hydrogen and fuel cell systems, one with a major food-manufacturer
and another with a food distribution business in the United
States.
In Europe, The Carrefour Group, the leading
European retailer, adds to an impressive list of Plug Power
accounts. Plug Power now has the number one and number two global
retailers deploying GenDrive fuel cells. Securing a powerhouse like
Carrefour is a significant milestone, and highlights the
effectiveness of Plug Power’s sales strategy in Europe.
“New large-scale accounts, significant traction
in Europe and continued margin improvements keep us on track for
achieving our targeted 2016 goals,” said Andy Marsh, CEO for Plug
Power. “Continued strong commercial progress combined with a focus
on research and development will ensure Plug Power’s leadership in
current and future markets.”
Financial Results
GAAP revenue for the second quarter of 2016 was
$20.5 million and adjusted revenue was $37.9 million, as compared
to $24.0 million of GAAP revenue in the second quarter of
2015. As previously discussed, in 2016 the Company is
utilizing alternative financing approaches for its Power Purchase
Agreement (PPA) deployments to improve liquidity and long-term
customer economics. The second quarter 2016 PPA deployments
represent expansion and growth from new sites with the same
customer and PPA program as in 2015. The alternative financing
requires different accounting treatment as compared to the previous
approaches, which required upfront revenue recognition of GenDrive
shipments and hydrogen infrastructure deployed.
The Company has shown 2016 PPA deployments with
adjusted revenue as if the programs had been financed under
approaches similar to 2015 for transparency and
comparability. The adjusted revenue for the second quarter
reflects 58% growth over prior year on similar basis and reflects
growth in deployments of all products and services.
Key metrics reflecting our continued growth
include:
- Deployed 926 GenDrive units in the second quarter of 2016
versus 888 in the second quarter of 2015;
- Completed hydrogen infrastructure at six customer sites during
second quarter of 2016 versus three in second quarter of 2015;
- More than 10,000 GenDrive units are under service contract at
June 30, 2016, versus more than 6,900 under service contract at
June 30, 2015.
GAAP gross margin in the second quarter of 2016 was $384,000
(1.9% of sales) and adjusted gross margin was $6.1 million (16.1%
of sales) as compared to GAAP gross margin in second quarter 2015
of $1.6 million (6.5% of sales). In order to provide better
visibility to shareholders regarding Plug Power’s progress on
margins and cost downs, the Company is presenting adjusted gross
margin which is the total gross margin that would have been
realized, if the second quarter PPA deployments had been financed
on a similar basis to the prior year. Comparatively, this quarter
reflects the ongoing progress Plug is making in leveraging its cost
base and more importantly significantly improving its margin
profile.
Net loss attributable to common shareholders for
the second quarter of 2016 was $13.2 million, or $0.07 per share on
a diluted basis. Adjusted net loss for the second quarter of
2016, was $7.4 million, or $0.04 per share on a diluted basis, and
reflects net loss adjusted to include the total gross margin that
would have been realized if the three PPA sites deployed in the
quarter had been financed on a similar basis to prior year. This
compares to a net loss attributable to common shareholders in the
second quarter of 2015 of $9.3 million, or $0.05 per share on a
diluted basis.
Cash and Liquidity
Net cash used in operating activities for the
second quarter of 2016 and 2015 was $8.8 million and $10.6 million,
respectively. As of June 30, 2016, Plug Power had total cash
of $113.9 million, including cash and cash equivalents of $66.0
million and restricted cash of $47.9 million. The Company’s
net working capital was $77.8 million at June 30, 2016.
As previously disclosed, the Company closed a
$40.0 million term loan facility during the second quarter and drew
$25.0 million from the facility. Also during the second
quarter of 2016, the Company converted the $25.0 million borrowed
under the short term agreement established in the first quarter of
2016 to long-term project financing for first-half PPA
deployments. This financing and the related strategic
partnerships are additional key steps towards developing a more
robust project financing platform for Plug Power and its
customers.
Conference Call
Plug Power has scheduled a conference call and
webcast today at 10:00 am ET to review the Company's results for
the second quarter of 2016.
Interested parties are invited to listen to the conference call
by calling 877-465-1289. Online, the webcast can be accessed at
www.plugpower.com, by selecting the conference call link on the
home page, or directly
https://event.webcasts.com/starthere.jsp?ei=1110940. A playback of
the call will be available online for a period following the
event.
About Plug Power
Inc.
The architects of modern hydrogen and fuel cell
technology, Plug Power has revolutionized the industry with its
simple GenKey solution, elements of which are designed to increase
productivity, lower operating costs and reduce carbon footprints in
a reliable, cost-effective way. Plug Power’s GenKey solution
couples together all the necessary elements to power, fuel and
serve a customer. Plug Power is the partner that customers trust to
take their businesses into the future. For more information about
Plug Power, visit www.plugpower.com.
Safe Harbor Statement
This communication contains "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995
that involve significant risks and uncertainties about Plug Power
Inc. ("PLUG"), including but not limited to statements about PLUG's
expectations regarding growth in Europe, revenue, growth with
GenKey customers and its project financing platform. You are
cautioned that such statements should not be read as a guarantee of
future performance or results, and will not necessarily be accurate
indications of the times that, or by which, such performance or
results will have been achieved. Such statements are subject to
risks and uncertainties that could cause actual performance or
results to differ materially from those expressed in these
statements. In particular, the risks and uncertainties include,
among other things, the risk that we continue to incur losses and
might never achieve or maintain profitability; the risk that we
will need to raise additional capital to fund our operations and
such capital may not be available to us; the risk that our lack of
extensive experience in manufacturing and marketing products may
impact our ability to manufacture and market products on a
profitable and large-scale commercial basis; the risk that unit
orders will not ship, be installed and/or converted to revenue, in
whole or in part; the risk that pending orders may not convert to
purchase orders, in whole or in part; the risk that a loss of one
or more of our major customers could result in a material adverse
effect on our financial condition; the risk that a sale of a
significant number of shares of stock could depress the market
price of our common stock; the risk that negative publicity related
to our business or stock could result in a negative impact on our
stock value and profitability; the risk of potential losses related
to any product liability claims or contract disputes; the risk of
loss related to an inability to maintain an effective system of
internal controls or key personnel; the risks related to use of
flammable fuels in our products; the cost and timing of developing,
marketing and selling our products and our ability to raise the
necessary capital to fund such costs; the ability to achieve the
forecasted gross margin on the sale of our products; the risk that
our actual net cash used for operating expenses may exceed the
projected net cash for operating expenses; the cost and
availability of fuel and fueling infrastructures for our products;
market acceptance of our products, including GenDrive, GenSure and
GenKey systems; the volatility of our stock price; our ability to
establish and maintain relationships with third parties with
respect to product development, manufacturing, distribution and
servicing and the supply of key product components; the cost and
availability of components and parts for our products; our ability
to develop commercially viable products; our ability to reduce
product and manufacturing costs; our ability to successfully expand
our product lines; our ability to successfully expand
internationally; our ability to improve system reliability for our
GenDrive, GenSure and GenKey systems; competitive factors, such as
price competition and competition from other traditional and
alternative energy companies; our ability to protect our
intellectual property; the cost of complying with current and
future federal, state and international governmental regulations;
risks associated with potential future acquisitions; and other
risks and uncertainties referenced in our public filings with the
Securities and Exchange Commission (the “SEC”). For additional
disclosure regarding these and other risks faced by PLUG, see
disclosures contained in PLUG's public filings with the SEC
including, the "Risk Factors" section of PLUG's Annual Report on
Form 10-K for the year ended December 31, 2015. You should consider
these factors in evaluating the forward-looking statements included
in this presentation and not place undue reliance on such
statements. The forward-looking statements are made as of the date
hereof, and PLUG undertakes no obligation to update such statements
as a result of new information.
Plug Power Inc. |
|
Selected Financial Data |
|
(Dollars in 000's except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
For the three months ended June 30, |
|
For the six months ended June 30, |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
Revenue: |
|
|
|
|
|
|
|
|
Sales of fuel cell systems and
related infrastructure |
$ |
9,121 |
|
|
$ |
18,663 |
|
|
$ |
14,339 |
|
|
$ |
23,753 |
|
|
Services performed on fuel cell
systems and related infrastructure |
|
5,360 |
|
|
|
2,883 |
|
|
|
10,633 |
|
|
|
5,528 |
|
|
Power Purchase Agreements |
|
3,062 |
|
|
|
1,077 |
|
|
|
5,768 |
|
|
|
2,054 |
|
|
Fuel delivered to customers |
|
2,638 |
|
|
|
1,128 |
|
|
|
4,648 |
|
|
|
1,787 |
|
|
Other |
|
278 |
|
|
|
258 |
|
|
|
403 |
|
|
|
303 |
|
|
Total revenue |
$ |
20,459 |
|
|
$ |
24,009 |
|
|
$ |
35,791 |
|
|
$ |
33,425 |
|
|
Gross profit
(loss): |
|
|
|
|
|
|
|
|
Sales of fuel cell systems and
related infrastructure |
$ |
1,078 |
|
|
$ |
3,910 |
|
|
$ |
2,398 |
|
|
$ |
3,921 |
|
|
Services performed on fuel cell
systems and related infrastructure |
|
(566 |
) |
|
|
(2,485 |
) |
|
|
(1,076 |
) |
|
|
(4,610 |
) |
|
Provision for loss contracts
related to service |
|
1,071 |
|
|
|
- |
|
|
|
1,071 |
|
|
|
- |
|
|
Power Purchase Agreements |
|
(554 |
) |
|
|
144 |
|
|
|
(729 |
) |
|
|
370 |
|
|
Fuel delivered to customers |
|
(570 |
) |
|
|
45 |
|
|
|
(971 |
) |
|
|
(172 |
) |
|
Other |
|
(75 |
) |
|
|
(52 |
) |
|
|
(139 |
) |
|
|
(58 |
) |
|
Total gross profit
(loss) |
$ |
384 |
|
|
$ |
1,562 |
|
|
$ |
554 |
|
|
$ |
(549 |
) |
|
|
|
|
|
|
|
|
|
|
Total administration
costs (1) |
$ |
13,760 |
|
|
$ |
11,427 |
|
|
$ |
26,880 |
|
|
$ |
22,077 |
|
|
|
|
|
|
|
|
|
|
|
EBITDAS |
$ |
(10,109 |
) |
|
$ |
(7,519 |
) |
|
$ |
(20,126 |
) |
|
$ |
(17,500 |
) |
|
Net loss |
$ |
(13,154 |
) |
|
$ |
(9,253 |
) |
|
$ |
(24,934 |
) |
|
$ |
(20,330 |
) |
|
Diluted net loss per
share |
$ |
(0.07 |
) |
|
$ |
(0.05 |
) |
|
$ |
(0.14 |
) |
|
$ |
(0.12 |
) |
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDAS |
$ |
(4,395 |
) |
|
$ |
(7,519 |
) |
|
$ |
(10,801 |
) |
|
$ |
(17,500 |
) |
|
Adjusted net loss |
$ |
(7,440 |
) |
|
$ |
(9,253 |
) |
|
$ |
(15,609 |
) |
|
$ |
(20,330 |
) |
|
Adjusted diluted net
loss per share |
$ |
(0.04 |
) |
|
$ |
(0.05 |
) |
|
$ |
(0.09 |
) |
|
$ |
(0.12 |
) |
|
|
|
|
|
|
|
|
|
|
Cash used in operating
activities |
$ |
(8,845 |
) |
|
$ |
(10,610 |
) |
|
$ |
(15,761 |
) |
|
$ |
(24,255 |
) |
|
|
|
|
|
|
|
|
|
|
|
At June 30, 2016 |
|
At December 31, 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash, cash equivalents
and restricted cash |
$ |
113,935 |
|
|
$ |
111,796 |
|
|
|
|
|
|
Working capital |
$ |
77,801 |
|
|
$ |
88,524 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Administration costs represent total research and
development, and selling, general and administrative costs,
including amortization of intangible assets. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Plug Power Inc. |
|
Reconciliation of Non-GAAP Financial Measures |
|
(Dollars in 000's except per share amounts) |
|
|
|
|
|
|
|
|
|
|
Reconciliation of Reported Total Revenue to Adjusted Total
Revenue |
For the three months ended June 30, |
|
For the six months ended June 30, |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
Total revenue, as
reported |
$ |
20,459 |
|
|
$ |
24,009 |
|
|
$ |
35,791 |
|
|
$ |
33,425 |
|
|
Revenue that would have been
realized under traditional financing |
|
17,484 |
|
|
|
- |
|
|
|
32,301 |
|
|
|
- |
|
|
Adjusted
total revenue |
$ |
37,943 |
|
|
$ |
24,009 |
|
|
$ |
68,092 |
|
|
$ |
33,425 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Reported Gross Loss to Adjusted Gross Profit
(Loss) |
For the three months ended June 30, |
|
For the six months ended June 30, |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
Gross profit (loss), as
reported |
$ |
384 |
|
|
$ |
1,562 |
|
|
$ |
554 |
|
|
$ |
(549 |
) |
|
Gross profit that would have been
realized under traditional financing |
|
5,714 |
|
|
|
- |
|
|
|
9,325 |
|
|
|
- |
|
|
Adjusted
gross profit (loss) |
$ |
6,098 |
|
|
$ |
1,562 |
|
|
$ |
9,879 |
|
|
$ |
(549 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Reported Operating Loss to Adjusted EBITDAS |
For the three months ended June 30, |
|
For the six months ended June 30, |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
Operating loss, as
reported |
$ |
(13,376 |
) |
|
$ |
(9,865 |
) |
|
$ |
(26,326 |
) |
|
$ |
(22,626 |
) |
|
Stock-based compensation |
|
2,160 |
|
|
|
1,738 |
|
|
|
4,377 |
|
|
|
3,435 |
|
|
Depreciation and amortization |
|
1,107 |
|
|
|
608 |
|
|
|
1,823 |
|
|
|
1,691 |
|
|
EBITDAS |
$ |
(10,109 |
) |
|
$ |
(7,519 |
) |
|
$ |
(20,126 |
) |
|
$ |
(17,500 |
) |
|
Gross profit that would have been
realized under traditional financing |
|
5,714 |
|
|
|
- |
|
|
|
9,325 |
|
|
|
- |
|
|
Adjusted EBITDAS |
$ |
(4,395 |
) |
|
$ |
(7,519 |
) |
|
$ |
(10,801 |
) |
|
$ |
(17,500 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Reported Net Loss to Adjusted Net Loss |
For the three months ended June 30, |
|
For the six months ended June 30, |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
Net loss attributable
to common shareholders, as reported |
$ |
(13,154 |
) |
|
$ |
(9,253 |
) |
|
$ |
(24,934 |
) |
|
$ |
(20,330 |
) |
|
Gross profit that would have been
realized under traditional financing |
|
5,714 |
|
|
|
- |
|
|
|
9,325 |
|
|
|
- |
|
|
Adjusted net loss |
$ |
(7,440 |
) |
|
$ |
(9,253 |
) |
|
$ |
(15,609 |
) |
|
$ |
(20,330 |
) |
|
|
|
|
|
|
|
|
|
|
Adjusted
diluted net loss per share |
$ |
(0.04 |
) |
|
$ |
(0.05 |
) |
|
$ |
(0.09 |
) |
|
$ |
(0.12 |
) |
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average number of common shares outstanding |
|
180,282,904 |
|
|
|
173,439,391 |
|
|
|
180,204,334 |
|
|
|
173,402,611 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
To supplement the Company’s unaudited financial
data presented on a generally accepted accounting principles (GAAP)
basis, management has used certain non-GAAP measures, including
adjusted total revenue, adjusted gross profit, EBITDAS, adjusted
EBITDAS, adjusted net loss and adjusted diluted net loss per share.
In 2016, the Company began utilizing an alternative financing
structure for its customer Power Purchase Agreement (PPA)
deployments that requires different accounting treatment compared
to the prior structure under which the Company recognized upfront
revenue for GenDrive shipments and hydrogen infrastructure
deployed. The non-GAAP measures are a result of adjusting the
revenue associated with PPA’s in the second quarter to reflect
those transactions as if the PPA’s were financed under the same
type of financing arrangement used in 2015. Accordingly, the
non-GAAP measures reflect upfront revenue recognition for GenDrive
shipments and hydrogen infrastructure deployed. Management believes
that the presentation of these measures is useful for investors
when comparing current results to prior period results and also
provides greater transparency, including with respect to better
understanding deployment of and cost reductions in our fuel cell
systems, two important metrics that investors use to assess the
Company’s performance. These non-GAAP results are among the
indicators management uses as a basis for evaluating the Company’s
financial performance as well as for forecasting future
periods. Management establishes performance targets, annual
budgets and makes operating decisions based upon these metrics.
Accordingly, disclosure of these non-GAAP measures provides
investors with the same information that management uses to
understand the Company’s economic performance year over year. The
presentation of this additional information is not meant to be
considered in isolation or as a substitute for net income or other
measures prepared in accordance with GAAP. EBITDAS is defined as
net income before interest expense, provision for income taxes,
depreciation and amortization expense and stock compensation
expense. Adjusted EBITDAS is EBITDAS further adjusted to reflect
the upfront revenue recognition as described above. EBITDAS and
Adjusted EBITDAS are not measures of our liquidity or financial
performance under GAAP and should not be considered as alternatives
to net income or any other performance measure derived in
accordance with GAAP, or as an alternative to cash flows from
operating activities as a measure of our liquidity. Our management
believes EBITDAS and Adjusted EBITDAS are useful to investors
because they help enable investors to evaluate our business in the
same manner as our management. Management uses EBITDAS and
Adjusted EBITDAS to evaluate the Company’s historical and
prospective financial performance. In addition, investors
have historically requested and the Company has historically
reported these non-GAAP financial measures as a means of providing
consistent and comparable information with past reports of
financial results. While management believes that the non-GAAP
financial measures provide useful supplemental information to
investors, there are limitations associated with the use of these
measures. The measures are not prepared in accordance with
GAAP and may not be directly comparable to similarly titled
measures of other companies due to potential differences in the
exact method of calculation. Further, EBITDAS and Adjusted
EBITDAS exclude certain expenses, such as depreciation and
amortization expense, which represent significant and unavoidable
operating costs of our business. In addition, our measures of
EBITDAS and Adjusted EBITDAS are different from those used in the
covenants contained in our credit facility. Management compensates
for these limitations by relying primarily on our GAAP results and
by using EBITDAS and Adjusted EBITDAS only supplementally and by
reviewing the reconciliations of the non-GAAP financial measures to
their most comparable GAAP financial measures. Non-GAAP financial
measures are not in accordance with, or an alternative for,
generally accepted accounting principles in the United
States. The Company’s non-GAAP financial measures are not
meant to be considered in isolation or as a substitute for
comparable GAAP financial measures, and should be read only in
conjunction with the Company’s consolidated financial statements
prepared in accordance with GAAP. |
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Media and Investor Relations Contact:
Teal Vivacqua
Plug Power Inc.
Phone: 518.738.0269
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