Plug Power Announces Third Quarter 2012 Financial Results Company Updates 2012 Guidance LATHAM, N.Y., Nov. 13, 2012 (GLOBE NEWSWIRE) -- Plug Power Inc. (Nasdaq:PLUG), a leader in providing clean, reliable energy solutions, today reported its financial results for the third quarter of 2012. The deployment of GenDrive® units continued in the third quarter with shipments to customers such as Walmart, Procter & Gamble, BMW and Stihl. The order from Stihl, announced earlier this year, was delivered in less than six months, including the installation of the hydrogen fueling infrastructure. The Company now has over 3,000 units in the field sited at 33 different customer locations across North America. There are over 15,000 hydrogen re-fuelings performed each week on this installed base. Year-to-date shipments are double what they were during the same period in 2011. Additionally, the Company has achieved a significant milestone in reduction of its product costs. The Company's new product platforms have a material cost that is now 60% of the product's price, a key indicator of the potential long term profitability of Plug Power. "Plug Power has certainly seen success in the third quarter, but we also encountered a number of product quality challenges," said Andy Marsh, CEO of Plug Power. "These issues have been technically addressed and implementation will be significantly completed by year end.Most of the higher product costs for the quarter are associated with these quality issues." These challenges have affected the timing on several orders and have increased our costs for the year. As a result, Plug Power is adjusting its guidance for 2012 to the following: oFrom $30M-$35M range in product and service revenue to $26M-$30M total revenue range oFrom $17M-$19M EBITDAS loss range to $27M-$29M loss range Marsh continued, "We have a large market opportunity, a supportive customer base and a solid, stable, cost effective product platform.These have always been the key ingredients for our business and we are well positioned to be successful in 2013 and beyond." Financial Results Net loss for the third quarter of 2012 was $10.3 million, or $0.27 per share on a basic and diluted basis. This compares with a net loss of $6.3 million, or $0.28 per share, for the third quarter of 2011. Total revenue for the third quarter of 2012 was $4.8 million, comprised of $4.3 million for product and service revenue and $0.5 million for research and development (R&D) contract revenue. This compares to total revenue of $5.5 million in the third quarter of 2011, which was comprised of $4.3 million for product and service revenue, $1.0 million for R&D contract revenue, and $0.2 million for licensed technology revenue. The Company shipped 186 units during the third quarter of 2012 compared to 195 units in the third quarter of 2011.Additionally, the Company shipped 245 units during the third quarter of 2012 to a customer site in connection with a customer lease that is not yet complete. Total cost of revenue for the third quarter of 2012 was $11.7 million, comprised of $10.9 million for cost of product and service revenue and $0.8 million for cost of R&D contract revenue. This compares to total cost of revenue of $9.3 million in the third quarter of 2011, which was comprised of $7.6 million for cost of product and service revenue and $1.7 million for cost of R&D contract revenue. R&D expenses for the third quarter of 2012 were $1.3 million compared with $1.5 million for the third quarter of 2011. Selling, general and administrative (SG&A) expenses were $3.1 million for the third quarter of 2012 compared with $3.6 million for the third quarter of 2011. Additionally, $0.6 million was expensed for amortization of intangible assets during the third quarter of 2012 and 2011. Cash and Liquidity Net cash used in operating activities for the third quarter of 2012 was $7.1 million. Plug Power had cash and cash equivalents of $9.5 million and net working capital of $15.6 million at September 30, 2012. This compares to $13.9 million and $22.5 million, respectively, at December 31, 2011. The accompanying consolidated financial information and reconciliation tables provide additional information on the Company's year-to-date performance as it relates to milestones previously announced. Conference Call Plug Power has scheduled a conference call on November 13, 2012 at 10:00 am ET to review the Company's results for the third quarter of 2012. Interested parties are invited to listen to the conference call by calling 877.407.8291 or 201.689.8345 for international participants. The webcast can be accessed by going directly to the Plug Power Web site (www.plugpower.com) and selecting the conference call link on the home page.A playback will be available online for a period following the call. About Plug Power Inc. The architects of modern fuel cell technology, Plug Power is revolutionizing the industry with cost-effective power solutions that increase productivity, lower operating costs and reduce carbon footprints. Long-standing relationships with industry leaders forged the path for Plug Power's key accounts, including Walmart, Sysco, P&G and Mercedes. With more than 3,000 GenDrive units deployed to material handling customers, accumulating over 8.5 million hours of runtime, Plug Power manufactures tomorrow's incumbent power solutions today. Additional information about Plug Power is available at www.plugpower.com. The Plug Power Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4446 Plug Power Inc. Safe Harbor Statement This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.These statements are based on current expectations that are subject to certain assumptions, risks and uncertainties, any of which are difficult to predict, are beyond our control and that may cause our actual results to differ materially from the expectations in our forward-looking statements including, but not limited to:the risk that we continue to incur losses and might never achieve or maintain profitability, the risk that we expect we will need to raise additional capital to fund our operations and such capital may not be available to us; 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; the risk that our continued failure to comply with NASDAQ's listing standards may severely limit our ability to raise additional capital; the cost and timing of developing 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 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 GenDrive systems; 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 improve system reliability for our GenDrive 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; and other risks and uncertainties discussed, but are not limited to, those set forth in (i) "Item IA-Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2011, filed with the Securities and Exchange Commission ("SEC") on March 30, 2012 and (ii) in our quarterly report on Form 10-Q for the quarter ended June 30, 2012 filed with the SEC on August 14, 2012, as well as in the other reports we file from time to time with the SEC. We do not intend to, and undertake no duty to; update any forward-looking statements as a result of new information or future events. Plug Power Inc. Financial Highlights Balance Sheets (Dollars in thousands): (unaudited) September December 31, 30, 2012 2011 Assets Current assets: Cash and cash equivalents $9,461 $13,857 Accounts receivable 7,661 13,389 Inventory 13,005 10,355 Prepaid expenses and other 1,553 1,894 current assets Total current assets 31,680 39,495 Property, plant and 7,404 8,687 equipment, net Note receivable 586 -- Intangible assets, net 5,897 7,474 Total assets $45,567 $55,656 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $5,542 $4,669 Accrued expenses 2,075 3,173 Product warranty reserve 2,969 1,211 Borrowings under line of 1,000 5,405 credit Deferred revenue 4,176 2,505 Other current liabilities 334 80 Total current liabilities 16,096 17,043 Common stock warrant 1,594 5,321 liability Deferred revenue 3,568 3,037 Other liabilities 1,264 1,219 Total liabilities 22,522 26,620 Stockholders' equity 23,045 29,036 Total liabilities and $45,567 $ 55,656 stockholders' equity Statements of Operations Three months ended Nine months ended (Dollars in thousands): September 30, September 30, (unaudited) 2012 2011 2012 2011 Revenue Product and service $4,274 $4,313 $18,712 $11,928 revenue Research and development 502 994 1,475 3,342 contract revenue Licensed technology -- 163 -- 489 revenue Total revenue 4,776 5,470 20,187 15,759 Cost of revenue and expenses Cost of product and 10,850 7,566 28,552 19,187 service revenue Cost of research and development contract 791 1,695 2,390 5,506 revenue Research and development 1,285 1,479 4,090 3,648 expense Selling, general and 3,053 3,606 10,556 11,051 administrative expense Gain on sale of leased -- (673) -- (673) assets Amortization of intangible 578 585 1,727 1,755 assets Operating loss (11,781) (8,788) (27,128) (24,715) Interest and other income and net realized losses 80 100 171 221 fromavailable-for-sale securities Change in fair value of 1,435 2,414 3,727 4,205 warrant liability Interest and other expense and foreign currency gain (59) (17) (158) 3 (loss) Net loss $(10,325) $(6,291) $(23,388) $(20,286) Loss per share: Basic and $(0.27) $ (0.28) $(0.71) $(1.16) diluted Weighted average number of 37,977,052 22,676,114 33,107,175 17,441,767 common shares outstanding Plug Power Inc. Reconciliation of Non-GAAP financial measures Reconciliation of Reported Net loss to EBITDAS Three months ended Nine months ended September 30, September 30, 2012 2011 2012 2011 Operating loss, as $(11,781) $(8,788) $(27,128) $(24,715) reported Stock based compensation 478 599 1,500 1,602 Depreciation and 1,062 1,131 3,186 3,355 amortization EBITDAS $(10,241) $(7,058) $(22,442) $(19,758) EBITDAS is defined as operating income (loss), as adjusted for depreciation and amortization expense and charges for equity compensation.EBITDAS is a non-GAAP measure of our financial performance 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. Reconciliation of Gross margin percentage to Adjusted gross margin percentage Three months ended Nine months ended September 30, September 30, 2012 2011 2012 2011 Product and service $4,274 $4,313 $18,712 $11,928 revenues, as reported Deferred revenue recognized in the (166) (279) (1,744) (1,081) reporting period Current invoiceable value of shipments, recorded to 673 588 3,328 1,114 deferred revenue Product and service $4,781 $4,622 $20,296 $11,961 revenues, as adjusted Cost of product and $10,850 $7,566 $28,552 $19,187 service revenue Gross margin percentage (153.9%) (75.4%) (52.6%) (60.9%) Adjusted gross margin (126.9%) (63.7%) (40.7%) (60.4%) percentage Gross margin percentage is a financial ratio used to indicate the relationship between cost of product and service revenue and product and service revenue.We use the term adjusted gross margin percentage to refer to product and service revenue, as adjusted, less total cost of product and service revenue as a percentage of product and service revenue, as adjusted.This non-GAAP financial measure allows management to view gross margin percentage as if revenue had been fully recognized upon invoicing.We believe that these non-GAAP measures, when taken together with our GAAP financial measures, allow us and our investors to better evaluate short-term and long-term profitability trends. While management believes that these non-GAAP financial measures provide useful supplemental information to investors, there are limitations associated with the use of these non-GAAP financial measures.These 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. Plug Power Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (Unaudited) Nine months ended September 30, 2012 2011 Cash Flows From Operating Activities: Net loss $(23,388) $(20,286) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation 1,459 1,600 Amortization of intangible 1,727 1,755 asset Loss on disposal of property, plant and 58 309 equipment Stock-based compensation 1,500 1,602 Gain sale of leased assets (673) Realized loss on available-for-sale -- 22 securities Change in fair value of (3,727) (4,205) warrant liability Changes in assets and liabilities: Accounts receivable 5,728 (1,029) Inventory (2,650) 5,303 Prepaid expenses and other 342 (180) current assets Issuance of note (586) -- receivable Accounts payable, accrued expenses, product warranty 1,788 (2,915) reserve and other liabilities Deferred revenue 2,201 (456) Net cash used in operating (15,548) (19,153) activities Cash Flows From Investing Activities: Purchase of property, (292) (1,156) plant and equipment Restricted cash 525 Proceeds from sale of 673 leased assets Proceeds from disposal of property, plant and 58 45 equipment Proceeds from maturities and sales of -- 10,399 available-for-sale securities Net cash (used in) provided by investing (234) 10,486 activities Cash Flows From Financing Activities: Purchase of treasury stock -- (158) Proceeds from issuance of 17,192 22,584 common stock Stock issuance costs (1,403) (1,891) Proceeds (repayment) from borrowings under line of (4,405) -- credit Principal payments on -- (10) long-term debt Net cash provided by 11,384 20,525 financing activities Effect of exchange rate 2 (11) changes on cash Increase in cash and cash (4,396) 11,847 equivalents Cash and cash equivalents, 13,857 10,955 beginning of period Cash and cash equivalents, $9,461 $22,802 end of period CONTACT: Media Contact: Reid Hislop Plug Power Inc. Phone: (518) 782-7700 ext. 1360 email@example.com Investor Relations Contact: Cathy Yudzevich Plug Power Inc. Phone: (518) 782-7700 ext. 1448 firstname.lastname@example.org Plug Power, Inc Logo
Plug Power Announces Third Quarter 2012 Financial Results
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