Plug Power Announces First Quarter 2013 Financial Results LATHAM, N.Y., May 14, 2013 (GLOBE NEWSWIRE) -- Plug Power Inc. (Nasdaq:PLUG), a leader in providing clean, reliable energy solutions, today reported its financial results for the first quarter 2013. Plug Power (the "Company") business highlights in the first quarter of 2013 include product shipments to customers such as Lowes, P&G, and Sysco. The Lowes' shipment was to support the opening of a brand new distribution center in Georgia. Also, the Company completed conversion of all the units at Walmart's Washington Courthouse, Ohio, facility to fuel cell powered forklift trucks with over 250 units in operation. Plug Power, to date, has shipped over 4,000 GenDrive® units to over 23 different customers. These units consume more than 90% of the hydrogen fuel used to power fuel cell products in North America. This is a clear indication of Plug Power's leadership position in the fuel cell industry. A prime focus of Plug Power management in 2013 has been to strengthen its financial position to support all stakeholders. The Company recently announced a $6.5 million strategic investment from Air Liquide. An Air Liquide representative will also be joining the board of directors, which will provide the Company additional industrial insight. The Company also recently added Johannes Minho Roth, founder of 5T Capital, to the board of directors. Mr. Roth offers the Company financial depth and international experience. "I am pleased with our business progress in 2013," said Andy Marsh, CEO of Plug Power. "We have dramatically improved our quality, have added to our customer list, and have enhanced our financial position. The sales prospects and funnel remain strong for the rest of the year, and we expect that the business steps taken over the past six months will result in increased customer traction." Marsh concluded, "I remain upbeat about the future of Plug Power." Financial Results Operating loss for the first quarter of 2013 was $6.4 million compared to an operating loss of $7.8 million for the first quarter 2012. Total revenue for the first quarter 2013 was $6.4 million compared to total revenue of $7.8 million for the first quarter of 2012. Product and service revenue for the first quarter 2013 was $6.0 million compared to $7.2 million for the first quarter 2012. Research and development contract revenue for the first quarter 2013 was $0.4 million compared to $0.5 million for the first quarter 2012. Total cost of revenue for the first quarter of 2013 was $8.6 million, comprised of $8.0 million for cost of product and service revenue and $0.6 million for cost of research and development contract revenue. Prior year comparable numbers for the first quarter were $9.8 million for total cost of revenue, comprised of $9.0 million for cost of product and service revenue and $0.8 million for cost of research and development contract revenue. Research and development expenses for the first quarter 2013 were $0.8 million compared to the first quarter of 2012 of $1.2 million. Selling, general and administrative (SG&A) expenses for the first quarter 2013 were $2.9 million compared to SG&A expenses in the first quarter 2012 of $3.9 million. Additionally, $0.6 million was expensed for amortization of intangible assets during the first quarter of 2013 and the first quarter of 2012. Net loss for the first quarter of 2013 was $8.6 million.On a per share basis (basic and diluted), the loss for the quarter was $0.18.This compares with a net loss of $6.6 million, or $0.28 per share (basic and diluted), for the first quarter of 2012. Included in the net loss for the first quarter of 2013 is a $2.1 million non-cash charge for the change in the fair value of the Company's common stock warrants. This non-cash charge compares to an increase to income (non-cash) of $1.2 million during the first quarter of 2012. Cash and Liquidity Net cash used in operating activities for the first quarter 2013 was $5.9 million compared to $3.5 million for the first quarter 2012. On March 31, 2013, Plug Power had cash and cash equivalents of $4.5 million and net working capital of $7.9 million.This compares to $9.4 million and $6.9 million, respectively, at December 31, 2012. The accompanying financial information and reconciliation tables provide additional information on the Company's year-to-date performance. Conference Call Plug Power has scheduled a conference call today at 10:00 am ET to review the Company's results for the 2013 first quarter 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 4,000 GenDrive units shipped to material handling customers, accumulating over 10 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) March 31, 2013 December 31, 2012 Assets Current assets: Cash and cash equivalents $4,503 $9,380 Accounts receivable 5,577 4,022 Inventory 10,090 8,550 Prepaid expenses and other current assets 1,897 1,988 Total current assets 22,067 23,940 Restricted cash 750 -- Property, plant and equipment, net 6,294 6,708 Leased property under capital lease, net 2,841 2,970 Note receivable 556 571 Intangible assets, net 4,635 5,271 Total assets $37,143 $39,460 Liabilities and Stockholders' Equity Current liabilities: Borrowings under line of credit $-- $3,381 Accounts payable 5,602 3,558 Accrued expenses 2,206 3,828 Product warranty reserve 1,873 2,672 Deferred revenue 2,779 2,950 Obligations under capital lease 667 650 Other current liabilities 1,065 -- Total current liabilities 14,192 17,039 Obligations under capital leases 1,132 1,305 Deferred revenue 5,767 4,362 Common stock warrant liability 4,575 476 Finance obligation 2,544 -- Other liabilities 1,223 1,248 Total liabilities 29,433 24,430 Stockholders' equity 7,710 15,030 Total liabilities and stockholders' equity $37,143 $39,460 Statements of Operations (Dollars in Three months ended March 31, thousands): (unaudited) 2013 2012 Revenue Product and service revenue $6,045 $7,237 Research and development contract revenue 400 515 Total revenue 6,445 7,752 Cost of revenue and expenses Cost of product and service revenue 7,998 9,061 Cost of research and development contract 620 767 revenue Research and development expense 750 1,227 Selling, general and administrative expense 2,881 3,935 Amortization of intangible assets 574 576 Operating loss (6,378) (7,814) Interest and other income 16 48 Change in fair value of warrant liability (2,131) 1,239 Interest and other expense (83) (56) Net loss $(8,576) $(6,583) Loss per share: Basic and diluted $(0.18) $(0.28) Weighted average number of common shares 48,566,794 23,437,600 outstanding Plug Power Inc. Reconciliation of Non-GAAP financial measures Reconciliation of Reported Net loss to EBITDAS Three months ended March 31, 2013 2012 Operating loss, as reported $(6,378) $(7,814) Stock based compensation 506 524 Depreciation and amortization 1,119 1,062 EBITDAS $(4,753) $(6,228) 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 March 31, 2013 2012 Product and service revenues, as $6,045 $7,237 reported Deferred revenue recognized in the (470) (930) reporting period Current invoiceable value of shipments, recorded to deferred 36 1,986 revenue Product and service revenues, as $5,611 $8,293 adjusted Cost of product and service revenue $7,998 $9,061 Gross margin percentage (32.3%) (25.2%) Adjusted gross margin percentage (42.5%) (9.3%) 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) Three months ended March 31, 2013 2012 Cash Flows From Operating Activities: Net loss $(8,576) $(6,583) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation 545 486 Amortization of intangible asset 574 576 Loss on disposal of property, plant and -- 58 equipment Stock-based compensation 506 524 Change in fair value of warrant liability 2,131 (1,239) Changes in assets and liabilities that provide (use) cash: Accounts receivable (1,555) 420 Inventory (1,540) 2,245 Prepaid expenses and other current assets 92 717 Note receivable 15 -- Accounts payable, accrued expenses, product 643 (2,121) warranty reserve and other liabilities Deferred revenue 1,233 1,441 Net cash used in operating activities (5,932) (3,476) Cash Flows From Investing Activities: Purchase of property, plant and equipment (2) -- Proceeds from disposal of property, plant and -- 58 equipment Net cash (used in) provided by investing (2) 58 activities Cash Flows From Financing Activities: Restricted cash (750) -- Proceeds from exercise of warrants 435 -- Proceeds from issuance of common stock and 3,257 17,685 warrants Stock issuance costs (944) (1,891) Repayment from borrowings under line of (3,381) (5,405) credit Proceeds from finance obligation 2,600 -- Principal payments on obligations under (158) -- capital lease and finance obligation Net cash provided by financing activities 1,059 10,389 Effect of exchange rate changes on cash (2) 1 (Decrease) increase in cash and cash (4,877) 6,972 equivalents Cash and cash equivalents, beginning of 9,380 13,857 period Cash and cash equivalents, end of period $4,503 $20,829 CONTACT: Media & Investor Relations Contact: Gerard L. Conway, Jr. Plug Power Inc. Phone: (518) 782-7700 firstname.lastname@example.org email@example.com Plug Power, Inc Logo
Plug Power Announces First Quarter 2013 Financial Results
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