Plug Power Announces Fourth Quarter and Year-End 2012 Financial Results

Plug Power Announces Fourth Quarter and Year-End 2012 Financial Results

LATHAM, N.Y., March 28, 2013 (GLOBE NEWSWIRE) -- Plug Power Inc.
(Nasdaq:PLUG), a leader in providing clean, reliable energy solutions, today
reported its financial results for the fourth quarter and year-end 2012.

Plug Power is pleased to announce that for the full year 2012, expansion of
our customer base in North America continued with new, first-time orders from
Stihl, Mercedes Benz, Lowe's, Carter's and Ace Hardware. The Company also
received additional orders for existing customers including Walmart, P&G,
Coca-Cola, Sysco Foods, Wegmans, Kroger and BMW. Product shipments also
increased reaching 1,391 units, a 35% growth from the previous year shipments.

Another 2012 success for Plug Power was completing the introduction of the new
product platforms in the third quarter. The new platforms reduced material
cost, a key driver for product margins, by an average of 30%.

As announced in the third quarter, the Company experienced a number of quality
issues in 2012, which negatively impacted its financial performance. The
quality issues have been technically addressed, and a majority of the changes
have been implemented as of the end of the fourth quarter. As previously
discussed, we believe the quality issues have caused our sales to be delayed
by six to nine months, though the Company has been successful in maintaining
customer loyalty.Increased costs and delayed sales forced the Company to
adopt a restructuring plan in the fourth quarter to improve organizational
efficiency and conserve working capital needed to support the growth of its
GenDrive business. Additionally, to continue to support our stakeholders, by
the direction of the board of directors, the Company continues to consider all
strategic options to provide funding for the business plan.The options
include raising additional capital, asset sales, strategic partnerships and a
sale of the Company.In 2012, the Company engaged Stephens, its long-time
investment banking firm, to assist with exploring and implementing these
options.

"The main goal of the Company is to continue to build a successful market in
material handling and expand into related applications such as refrigerated
trucks, ground support equipment and range extending utility vehicles," said
Andy Marsh, CEO at Plug Power."While the Company has experienced significant
challenges in 2012, I believe the future of Plug Power is bright and that we
are in the right market, with the right customers.We remain focused on the
future."

Financial Results

Net loss for the fourth quarter of 2012 and year ended December 31, 2012 was
$8.5 million and $31.9 million, respectively.On a per share basis (basic and
diluted), the loss for the quarter and the year was $0.22 and $0.93,
respectively.This compares with a net loss of $7.2 million, or $0.32 per
share (basic and diluted), for the fourth quarter of 2011 and net loss of
$27.5 million, or $1.46 per share (basic and diluted) for the full year 2011.

Total revenue for the fourth quarter and year ended December 31, 2012 was $5.9
million and $26.1 million, respectively. This compares to total revenue of
$11.9 million and $27.6 million for the same periods of 2011.Product and
service revenue for the fourth quarter and year ended December 31, 2012 was
$5.7 million and $24.4 million, respectively.This compares to $11.3 million
and $23.2 million for the same periods of 2011. Research and development
contract revenue for the quarter and year ended December 31, 2012 was $0.2
million and $1.7 million, respectively.This compares to $0.5 million and $3.9
million for the same periods of 2011.

Total cost of revenue for the fourth quarter of 2012 was $9.5 million,
comprised of $9.1 million for cost of product and service revenue and $0.4
million for cost of research and development contract revenue. For the full
year 2012, total cost of revenue was $40.5 million, comprised of $37.7 million
for cost of product and service revenue and $2.8 million for cost of research
and development contract revenue.Prior year comparable numbers for the fourth
quarter were $12.2 million for total cost of revenue, comprised of $11.5
million for cost of product and service revenue and $0.7 million for cost of
research and development contract revenue.Prior full year comparable numbers
were $36.9 million for total cost of revenue, comprised of $30.7 million for
cost of product and service revenue and $6.2 million for cost of research and
development contract revenue.

Research and development expenses for the fourth quarter and year ended
December 31, 2012 were $1.3 million and $5.4 million, respectively.This
compares to the fourth quarter and year ended December 31, 2011 of $2.0
million and $5.7 million, respectively.

Selling, general and administrative (SG&A) expenses for the fourth quarter and
year ended December 31, 2012 were $4.0 million and $14.6 million,
respectively.This compares to SG&A expenses in the fourth quarter and year
ended December 31, 2011 of $3.5 million and $14.5 million,
respectively.Additionally, $0.6 million was expensed for amortization of
intangible assets during the fourth quarter of 2012 and the fourth quarter of
2011. For the full year, $2.3 million was expensed for amortization of
intangible assets for 2012 and 2011.

Cash and Liquidity

Net cash used in operating activities for the fourth quarter and year ended
December 31, 2012 was $4.6 million and $20.2 million, respectively. On
December 31, 2012, Plug Power had cash and cash equivalents of $9.4 million
and net working capital of $6.9 million.This compares to $13.9 million and
$22.5 million, respectively, at December 31, 2011.

The accompanying financial information and reconciliation tables provide
additional information on the Company's year-to-date performance as it relates
to the full year 2012 milestones previously announced.

Conference Call

Plug Power has scheduled a conference call today at 10:00 am ET to review the
Company's results for the 2012 fourth quarter and year-end results. Interested
parties are invited to listen to the conference call by calling 877.407.8291.

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 of the call will be available online for a period following the call.

About Plug Power Inc.

The architects of modern fuel cell technology, Plug Power revolutionized 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 and Coca-Cola. With more than 3,000 GenDrive units shipped to
material handling customers, accumulating over 8 million hours of runtime,
Plug Power manufactures tomorrow's incumbent power solutions today. Additional
information about Plug Power is available at www.plugpower.com.

Plug Power Inc. Safe Harbor Statement

This communication contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995, including but not
limited to Plug Power's expected use of the net proceeds from the offering.
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 Plug Power's control and that may cause Plug Power's actual results
to differ materially from the expectations in Plug Power's forward-looking
statements including statements regarding the risk that we may not have
sufficient cash to fund our operations to profitability and that we may be
required to seek strategic alternatives, including but not limited to a
potential business combination or a sale of the company, or reduce and/or
cease our operations, other risks and uncertainties related to satisfaction of
the closing conditions of the offering, the estimated proceeds from the
offering and the anticipated use of proceeds from the offering, the risk that
unit orders will not ship, be installed and/or convert to revenue, in whole or
in part; the cost and timing of developing Plug Power's products and its
ability to raise the necessary capital to fund such development costs; the
ability to achieve the forecasted gross margin on the sale of Plug Power's
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 Plug Power's products; market acceptance of
Plug Power's GenDrive system; Plug Power's 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 Plug Power's
products; Plug Power's ability to develop commercially viable products; Plug
Power's ability to reduce product and manufacturing costs; Plug Power's
ability to successfully expand its product lines; Plug Power's ability to
improve system reliability for GenDrive; competitive factors, such as price
competition and competition from other traditional and alternative energy
companies; Plug Power's ability to manufacture products on a large-scale
commercial basis; Plug Power's ability to protect its intellectual property;
the cost of complying with current and future governmental regulations; and
other risks and uncertainties discussed in the reports Plug Power files from
time to time with the SEC. Plug Power does not intend to, and undertakes 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)                                                     
                            December 31, December 31,            
                             2012         2011
Assets                                                         
Current assets:                                                
Cash and cash equivalents   $9,380     $13,857               
Accounts receivable         4,022       13,389                 
Inventory                   8,550       10,355                 
Prepaid expenses and other   1,988       1,894                  
current assets
                                                               
Total current assets        23,940      39,495                 
                                                               
Property, plant and          6,708       8,687                  
equipment, net
Leased property under        2,970       --                    
capital lease, net
Note receivable             571         --                    
Intangible assets, net      5,271       7,474                  
                                                               
Total assets                $39,460    $55,656               
                                                               
Liabilities and                                                 
Stockholders' Equity
Current liabilities:                                           
Borrowings under line of     $3,381     $5,405                
credit
Accounts payable            3,558       4,669                  
Accrued expenses            3,828       3,173                  
Product warranty reserve    2,672       1,211                  
Deferred revenue            2,950       2,505                  
Obligations under capital    650         --                    
lease
Other current liabilities   --         80                     
                                                               
Total current liabilities   17,039      17,043                 
                                                               
Obligations under capital    1,305       --                    
leases
Deferred revenue            4,362       3,037                  
Common stock warrant         476         5,321                  
liability
Other liabilities           1,248       1,219                  
                                                               
Total liabilities           24,430      26,620                 
                                                               
Stockholders' equity        15,030      29,036                 
                                                               
Total liabilities and        $39,460    $55,656               
stockholders' equity
                                                               
                                                               
                                                               
                                                               
Statements of Operations     Three months ended       Twelve months ended
(Dollars in thousands):      December 31,             December 31,
(unaudited)                                                     
                            2012       2011       2012      2011
Revenue                                                         
Product and service revenue $5,696     $11,296    $24,407   $23,223
Research and development     226         544         1,701      3,886
contract revenue
Licensed technology revenue --         27          --        517
Total revenue               5,922       11,867      26,108     27,626
                                                               
                                                               
Cost of revenue and expenses                                    
Cost of product and service  9,106       11,482      37,657     30,670
revenue
Cost of research and         415         726         2,805      6,232
development contract revenue
Research and development     1,345       2,008       5,434      5,656
expense
Selling, general and         4,020       3,495       14,577     14,546
administrative expense
Gain on sale of leased       --         --         --        (673)
assets
Amortization of intangible   580         568         2,306      2,322
assets
                                                               
Operating loss              (9,544)     (6,412)     (36,671)   (31,127)
                                                               
Interest and other income
and net realized losses from 55          27          226        248
available-for-sale
securities
Change in fair value of      1,119       (758)       4,845      3,447
warrant liability
Interest and other expense
and foreign currency gain    (104)       (25)        (262)      (22)
(loss)
                                                               
Net loss                    $(8,474)   $(7,168)   $(31,862) $(27,454)
                                                               
Loss per share: Basic and    $(0.22)    $(0.32)    $(0.93)   $(1.46)
diluted
                                                               
Weighted average number of   38,156,591  22,743,388  34,376,427 18,778,066
common shares outstanding

                                                           
                                                           
Plug Power Inc.                                           
Reconciliation of
Non-GAAP financial                                          
measures
                                                           
                                                           
Reconciliation of
Reported Net loss to                                        
EBITDAS
                                                           
                      Three months ended     Twelve months ended December
                       December 31,           31,
                      2012      2011      2012          2011
                                                           
Operating loss, as    $(9,544)  $(6,412)  $(36,671)     $(31,127)
reported
                                                           
Stock based           501        (150)      2,002          1,452
compensation
Depreciation and      1,190      1,100      4,376          4,455
amortization
                                                           
EBITDAS              $(7,853)  $(5,462)  $(30,293)     $(25,220)
                                                           
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     Twelve months ended December
                       December 31,           31,
                      2012      2011      2012          2011
                                                           
Product and service   $5,696    $11,296   $24,407       $23,223
revenues, as reported
                                                           
Deferred revenue
recognized in the      (1,619)    (939)      (3,362)        (2,020)
reporting period
Current invoiceable
value of shipments,    302        2,615      3,631          3,728
recorded to deferred
revenue
                                                           
Product and service   $4,379    $12,972   $24,676       $24,931
revenues, as adjusted
                                                           
Cost of product and   $9,106    $11,482   $37,657       $30,670
service revenue
                                                           
Gross margin          (59.9%)     (1.6%)      (54.3%)         (32.1%)
percentage
                                                           
Adjusted gross margin (107.9%)    11.5%       (52.6%)         (23.0%)
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)
                                                            
                                                            
                                           Twelve months ended December 31,
                                           2012              2011
Cash Flows From Operating Activities:                      
Net loss                                  $(31,862)       $(27,454)
Adjustments to reconcile net loss to net                    
cash used in operating activities:
Depreciation                              2,070            2,132
Amortization of intangible asset          2,306            2,323
Loss on disposal of property, plant and    52               309
equipment
Loss on sale of leased assets             20               --
Stock-based compensation                  2,002            1,452
Gain sale of leased assets                --               (673)
Realized loss on available-for-sale        --               22
securities
Change in fair value of warrant liability (4,845)          (3,447)
Changes in assets and liabilities that                      
provide (use) cash:
Accounts receivable                       9,368            (9,193)
Inventory                                 (1,295)          1,438
Prepaid expenses and other current assets (94)             (310)
Note receivable                           (571)            --
Accounts payable, accrued expenses,
product warranty reserve and other          914              (1,101)
liabilities
Deferred revenue                          1,770            1,192
Net cash used in operating activities     (20,165)         (33,310)
                                                            
Cash Flows From Investing Activities:                      
Purchase of property, plant and equipment (78)             (1,326)
Restricted cash                           --               525
Proceeds from sale of leased assets       --               673
Proceeds from disposal of property, plant  64               47
and equipment
Proceeds from maturities and sales of      --               10,399
available-for-sale securities
Net cash (used in) provided by investing   (14)             10,318
activities
                                                            
Cash Flows From Financing Activities:                      
Purchase of treasury stock                --               (158)
Proceeds from issuance of common stock    17,192           22,584
Stock issuance costs                      (1,402)          (1,891)
Proceeds (repayment) from borrowings under (2,024)          5,405
line of credit
Proceeds from long term debt              2,105            --
Principal payments on long-term debt      (170)            (10)
Net cash provided by financing activities 15,701           25,930
                                                            
Effect of exchange rate changes on cash   1                (36)
(Decrease) increase in cash and cash       (4,477)          2,902
equivalents
Cash and cash equivalents, beginning of    13,857           10,955
period
                                                            
Cash and cash equivalents, end of period  $9,380          $13,857

CONTACT: Media & Investor Relations Contact:
         Gerard L. Conway, Jr.
         Plug Power Inc.
         Phone: (518) 782-7700
         media@plugpower.com
         investors@plugpower.com

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