- Continued top-line growth and positive Adjusted EBITDA
VANCOUVER, CANADA – Ballard Power Systems (NASDAQ: BLDP)(TSX: BLD) today announced its consolidated financial results for the third quarter ended September 30, 2014. All amounts are in U.S. dollars unless otherwise noted and have been prepared in accordance with International Financial Reporting Standards (IFRS).
“Third quarter results reflect continuing progress in the business, including year-on-year improvements of 21% in revenue, 15% in cash operating costs, 40% in cash used by operating activities in addition to positive Adjusted EBITDA of $0.5 million,” said John Sheridan, who retired as President and CEO on October 6.
Randy MacEwen, Mr. Sheridan’s successor, added, “The leadership transition has gone very smoothly and now, three weeks into the CEO role, I am fully engaged in driving the Q4 execution priorities together with the 2015 planning process and am excited by Ballard’s growth prospects.”
Third Quarter 2014 Highlights
Growth (all comparisons to Q3 2013 unless otherwise noted)
- Q3 revenue improved 21%, to $20.6 million. The sequential quarter-on-quarter 2014 growth trend continued, with Q3 revenue improving 11% from Q2.
Fuel Cell Product Sales:
Telecom Backup Power
- Revenue of $6.3 million, an increase of 60%. While the shipment of 111 ElectraGenTM systems in Q3 represented an increase over Q2, this volume was significantly less than the Company’s expectation for 170 systems, due primarily to a delay in purchase orders from an existing telecom carrier end-customer.
- Announced an order for 13 ElectraGenTM methanol-fuelled backup power systems to be deployed in Digicel Group Limited’s Jamaica network. This will bring the total number of ElectraGenTM systems deployedin Digicel’s Jamaica network to 25.
- A major U.S. telecom carrier received conditional approval from the New York Fire Department (NYFD) for deployment of ElectraGenTM systems at rooftop trial sites. Ballard is working with the carrier to meet additional requirements specified by the NYFD.
1 Cash Operating Costs measures operating expenses excluding stock based compensation expense, depreciation and amortization, restructuring charges, acquisition costs and financing charges. EBITDA measures net loss attributable to Ballard Power Systems Inc. excluding finance expense, income taxes, depreciation of property, plant and equipment, amortization of intangible assets, and goodwill impairment charges. Adjusted EBITDA adjusts EBITDA for stock based compensation expense, transactional gains and losses, asset impairment charges, finance and other income and acquisition costs. Normalized Net Loss measures net loss attributable to Ballard from continuing operations, excluding transactional gains and losses and asset impairment charges.
Note that Cash Operating Costs, EBITDA, Adjusted EBITDA and Normalized Net 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 Normalized Net Loss assist investors in assessing Ballard’s operating performance and liquidity. These measures should be used in addition to, and not as a substitute for, net income, 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 Normalized Net Loss to the Consolidated Financial Statements, please refer to Ballard’s Management’s Discussion & Analysis.