VANCOUVER, Aug. 5, 2020 /CNW/ - Ballard Power Systems (NASDAQ: BLDP) (TSX: BLDP) today announced consolidated financial results for the second quarter ended June 30, 2020. All amounts are in U.S. dollars unless otherwise noted and have been prepared in accordance with International Financial Reporting Standards (IFRS).
"While the COVID-19 pandemic continues to cause some delays in customer orders, it has not had an appreciable impact on Ballard operations to this point and we continue to take important precautions to mitigate its impact on our people and our business," said Randy MacEwen, President and CEO. "In Q2 Ballard delivered revenue of $25.8 million, gross margin of 21% and ending cash reserves of $170.3 million."
Mr. MacEwen noted, "Important recent developments in key geographic markets reaffirm our conviction that a strong future is emerging for the deployment of Fuel Cell Electric Vehicles, or FCEVs, particularly for use cases in which Heavy and Medium Duty Motive applications require heavy payload, extended range, and rapid refueling. Ballard is well-positioned to provide leading fuel cell technology and products in bus, truck, rail and marine applications."
Mr. MacEwen added, "In China, the Weichai-Ballard joint venture commenced production activities and assembly of fuel cell stacks and modules. We expect the JV to optimize manufacturing processes and start a production ramp through the remainder of 2020. In Europe, the European Commission set out an ambitious phased approach for the transition to hydrogen, proposing that it become an intrinsic part of an integrated energy system. The plan contemplates the deployment of over 40 gigawatts of renewable hydrogen electrolyzers, producing up to 10 million tons of hydrogen by 2030. In California, the California Air Resources Board passed the Advanced Clean Truck Regulation, which requires increasing percentages of new truck purchases to be zero-emission, starting in 2024 and with 75% of all new Class 4 to 8 trucks and 40% of all new Class 7 and 8 tractors to be zero-emission by 2035, and 100% by 2045. Subsequently, fifteen U.S. states indicated their intention to implement a similar mandate, starting with a requirement for 30% of new medium- and heavy-duty truck sales to be zero-emission by 2030, increasing to 100% by 2050."
Q2 2020 Financial Highlights
(all comparisons are to Q2 2019 unless otherwise noted)
Q2 2020 Operating Highlights
Q2 2020 Financial Summary
(Millions of U.S. dollars)
Three months ended June 30,
Six months ended June 30,
Fuel Cell Products & Services:1
Heavy Duty Motive
Total Fuel Cell Products & Services Revenue
Gross Margin $
Gross Margin %
Cash Operating Costs2
Equity gain (loss) in JV & Associates
Net Income (Loss)
Earnings Per Share
Adjusted Net Loss2
Adjusted Net Loss Per Share2
Cash provided by (used in) Operating Activities:
Cash Operating Income (Loss)
Working Capital Changes
Cash provided by (used in)
For a more detailed discussion of Ballard Power Systems' second quarter 2020 results, please see the company's financial statements and management's discussion & analysis, which are available at www.ballard.com/investors, www.sedar.com and www.sec.gov/edgar.shtml.
Ballard will hold a conference call on Thursday, August 6, 2020 at 8:00 a.m. Pacific Time (11:00 a.m. Eastern Time) to review second quarter 2020 operating results. The live call can be accessed by dialing +1.604.638.5340. Alternatively, a live audio and slide webcast can be accessed through a link on Ballard's homepage (www.ballard.com). Following the call, the audio webcast and presentation materials will be archived in the 'Earnings, Interviews & Presentations' area of the 'Investors' section of Ballard's website (www.ballard.com/investors).
About Ballard Power Systems
Ballard Power Systems' (NASDAQ: BLDP; TSX: BLDP) vision is to deliver fuel cell power for a sustainable planet. Ballard zero-emission PEM fuel cells are enabling electrification of mobility, including buses, commercial trucks, trains, marine vessels, passenger cars, forklift trucks and UAVs. To learn more about Ballard, please visit www.ballard.com.
Important Cautions Regarding Forward-Looking Statements
This release contains forward-looking statements concerning the impact of the coronavirus pandemic on our business and on the long-term demand for fuel cell products, projected product orders and sales and product shipments, expected manufacturing progress at the Weichai-Ballard joint venture, the markets for our products and the effects of governmental regulations on such markets, expected financial results and future offerings of securities. 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 expectations as 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 We report our results in the single operating segment of Fuel Cell Products and Services. Our Fuel Cell Products and Services segment consists of the sale and service of PEM fuel cell products for our power product markets of Heavy Duty Motive (consisting of bus, truck, rail and marine applications), UAV, Material Handling and Backup Power, as well as the delivery of Technology Solutions, including engineering services, technology transfer and the license and sale of our extensive intellectual property portfolio and fundamental knowledge for a variety of fuel cell applications.
2 Note that Cash Operating Costs, EBITDA, Adjusted EBITDA and Adjusted Net Income (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 Adjusted Net Income (Loss) assist investors in assessing Ballard's operating performance. These measures should be used in addition to, and not as a substitute for, net income (loss), 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 Adjusted Net Income (Loss) to the Consolidated Financial Statements, please refer to Ballard's Management's Discussion & Analysis.
Cash Operating Costs measures operating expenses excluding stock based compensation expense, depreciation and amortization, impairment losses or recoveries on trade receivables, restructuring charges, acquisition costs, the impact of unrealized gains or losses on foreign exchange contracts, and financing charges. EBITDA measures net loss excluding finance expense, income taxes, depreciation of property, plant and equipment, and amortization of intangible assets. Adjusted EBITDA adjusts EBITDA for stock based compensation expense, transactional gains and losses, asset impairment charges, finance and other income, the impact of unrealized gains or losses on foreign exchange contracts, and acquisition costs. Adjusted Net Income (Loss) measures net income (loss) excluding transactional gains and losses, asset impairment charges, and acquisition costs.
SOURCE Ballard Power Systems Inc.
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