Ballard Reports 2012 Results and 2013 Outlook

                Ballard Reports 2012 Results and 2013 Outlook

PR Newswire

VANCOUVER, Feb. 20, 2013

VANCOUVER, Feb. 20, 2013 /PRNewswire/ - Ballard Power Systems (NASDAQ: BLDP)
(TSX: BLD) today announced its consolidated financial results for the fourth
quarter ended December 31, 2012. All amounts are in U.S. dollars unless
otherwise noted and have been prepared in accordance with International
Financial Reporting Standards (IFRS).

"Q4 results reflected a marked turnaround from weak results earlier in the
year - both top line and bottom line," said John Sheridan, President and CEO.
"This Q4 top line momentum and a solid yearend order book support our business
outlook for 2013 revenue growth in excess of 30%. This top line growth, along
with continued reductions in the cost base and a projected increase in gross
margin, underpin our expectation for improvement in Adjusted EBITDA in excess
of 50%."


On January 31, 2013 Ballard closed the sale of its Material Products division,
a non-core asset located in Lowell, MA, in order to focus on high growth fuel
cell products and to fortify the Company's cash position. Therefore, as per
IFRS, Ballard's 2012 audited financial statements reflect "continuing
operations" (excluding Material Products). In order to portray results
comprehensively relative to the results reported throughout 2012 and to
guidance for the full year, the financial results are also shown in the "2012
Financial Highlights" table below in a format which includes the Material
Products division. Also, since the sale of the Material Products division was
not completed until early 2013, the following section - with commentary on Q4
and full year 2012 results - addresses Ballard's performance including
Material Products.

Q4 and Full Year 2012 Results (including Material Products)

● Q4 revenue improved 50% to $21.3 million over the prior quarter, and
  improved 1% year-on-year.
  ○ A key driver of the quarter-on-quarter revenue improvement was the
      addition of methanol-fueled ElectraGen^TM systems to the backup power
      product line in August 2012. In Q4, 204 ElectraGen^TM systems were
      shipped, 75% of which were methanol-fueled.
  ○ In addition, engineering services contributed significantly to the
      growth, with revenue of $6.6 million in Q4 and more than $10 million for
      the year, a significant increase from less than $5 million in 2011.
● Full year revenue declined $16.8 million or 22% to $59.2 million
  year-on-year, consistent with the Company's revised guidance for revenue of
  approximately $60 million.
  ○ This year-on-year decline in 2012 revenue reflected weak performance in
      Material Products and Bus, in addition to the 2011 wind down of contract
      manufacturing. Excluding 2011 contract manufacturing, revenue improved
● In terms of product volume metrics, the 204 ElectraGen^TM systems shipped
  for backup power in Q4 represented a 172% improvement over Q4 2011. In
  addition, Q4 stack shipments for material handling of 468 represented a 41%
  decline from Q4 2011.
  ○ Full year ElectraGen^TM system shipments for backup power of 399
      represented a 175% improvement relative to 2011. Full year stack
      shipments for material handling of 2,022 represented a 42% improvement
      relative to 2011.

Path to Profitability
● Q4 gross margin improved 10 points to 24% over Q3, and improved 4 points
  relative to Q4
  ○ Full year gross margin improved 2 points to 20%.
● Q4 cash operating costs increased 10% to $7.8 million over Q3, but improved
  10% relative
  to Q4 2011.
  ○ Full year cash operating costs improved 18% relative to 2011, to $32.2
● Q4 Adjusted EBITDA improved 65% to ($1.9) million over Q3, and improved 50%
  to Q4 2011.
    ○ Full year Adjusted EBITDA improved 17% to ($18.5) million, consistent
    with the
      Company's revised guidance for Adjusted EBITDA of approximately ($18)
● Q4 cash used by operating activities improved 58% to ($0.5) million over Q3.
    ○ Full year cash used by operating activities improved 15% to ($28.1)
    million relative
      to 2011.
● Cash reserves at yearend were $12.5 million net of $9.3 million outstanding
  on the
  Company's bank operating line.
    ○ This cash position was fortified with the sale of the Material Products
    division on
      January 31, 2013, which generated proceeds of up to $12 million.
● Q4 normalized net loss from continuing operations was unchanged at ($6.2)
  compared to Q4 2011.
    ○ Full year normalized net loss from continuing operations improved 11% to
      million relative to 2011.

2013 Business Outlook

The Company expects revenue growth in excess of 30%, led by backup power and
engineering services, which together represent more than half of the $36.8
million 2012 yearend order book (excluding Material Products). It is expected
that this growth, along with higher gross margins and a lower cost base, will
contribute to improvements in bottom line performance.

2013 Guidance

The Company's guidance is for the following improvements in 2013 continuing

  *Revenue growth in excess of 30%; and
  *Adjusted EBITDA improvement in excess of 50%.

2012 Financial Highlights

Results of         Three months ended December    Twelve months ended December
Operations                     31,                                         31,
                                             %                              %
                    2012    2011    Improvement   2012     2011    Improvement
(expressed in millions of U.S. dollars, except per share amounts and gross
margin %)
Total (including Material
   Fuel Cell
    Products        $16.5   $16.9         (2%)    $43.7    $46.5         (6%)
    Automotive           -    $0.1       (100%)        -     $9.3       (100%)
    Products          $4.8    $4.0          19%    $15.5    $20.2        (23%)
Total Revenue        $21.3   $21.0           1%    $59.2    $76.0        (22%)
Gross margin         $5.2    $4.1          27%    $11.8    $13.9        (15%)
Gross margin %         24%     20%     4-points      20%      18%     2-points
Cash Operating
Costs ^(1)            $7.8    $8.6          10%    $32.2    $39.3          18%
Adjusted EBITDA
^(1)                ($1.9)  ($3.8)          50%  ($18.5)  ($22.3)          17%
Cash Used by
    Income (Loss)   ($2.4)  ($4.7)          49%  ($22.2)  ($26.5)          16%
    Changes           $1.9    $8.8        (79%)   ($5.9)   ($6.7)          12%
    Cash Used by
    Activities      ($0.5)    $4.1       (113%)  ($28.1)  ($33.2)          15%
Cash Reserves        $21.8   $46.2                                        
Cash Reserves,
Net of Operating
Line                 $12.5   $41.6                                        
From continuing                                              
   Fuel Cell
    Products         $16.5   $16.9         (2%)    $43.7    $46.5         (6%)
    Automotive           -     0.1       (100%)        -     $9.3       (100%)
Total Revenue        $16.5   $17.0         (3%)    $43.7    $55.8        (22%)
12 Month Rolling
Order Book           $36.8   $32.0                                        
Gross margin         $3.7    $2.9          25%     $7.4     $7.3           1%
Gross margin %        22%     17%     5-points      17%      13%     4-points
Cash Operating
Costs ^(1)            $7.3    $8.2          11%    $30.3    $37.0          18%
Adjusted EBITDA
^(1)                ($3.2)  ($4.9)          34%  ($22.1)  ($27.9)          21%
Net loss
attributable to
Ballard from
operations        ($16.8)  ($8.0)       (111%)  ($42.1)  ($37.2)        (13%)
Net loss
attributable to
Ballard per
share, basic and
diluted           ($0.18) ($0.09)       (100%)  ($0.48)  ($0.44)         (9%)
Normalized Net
Loss ^(1)           ($6.2)  ($6.2)            -  ($31.5)  ($35.4)          11%
Normalized Net
Loss ^(1) per
share, basic and
diluted            ($0.07) ($0.07)            -  ($0.36)  ($0.42)          14%

For a more detailed discussion of Ballard Power Systems' 2012 results, please
see the company's financial statements and management's discussion & analysis,
which are available at, and

Conference Call

Ballard will hold a conference call on Thursday, February 21, 2013 at 8:00
a.m. PST (11:00 a.m. EST) to review its 2012 operating results and 2013
outlook. The live call can be accessed by dialing +1.604.638.5340.
Alternatively, a live audio webcast can be accessed through a link on
Ballard's homepage ( Following the call, the audio webcast
will be archived in the Quarterly Results area of the Investor section of
Ballard's website (

About Ballard Power Systems

Ballard Power Systems (NASDAQ: BLDP) (TSX: BLD) provides clean energy fuel
cell products enabling optimized power systems for a range of applications.
Products deliver incomparable performance, durability and versatility. To
learn more about Ballard, please visit

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 and product sales. 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 expectationsas 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 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 &

Guy McAree +1.604.412.7919,

SOURCE Ballard Power Systems Inc.


Guy McAree +1.604.412.7919,
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