Ballard Power Systems Inc (BLDP)

[XenaLives]

Q4 2018 Financial Highlights

(all comparisons are to Q4 2017 unless otherwise noted)

Total revenue was $28.5 million, a 29% decline.
Power Products revenue was $15.6 million, down 48% year-over-year and reflecting a decline in Heavy Duty Motive shipments to China compared to Q4 2017 as well as a decline in Portable Power/UAV product shipments given the divestiture of the Power Manager business, partially offset by increases in Material Handling and Backup Power.
Technology Solutions revenue was $12.9 million, a 27% increase due primarily to higher amounts earned from the HyMotion program with Audi.
Gross margin was 25%, down 6-points to $7.2 million, due to low sales of MEAs (Membrane Electrode Assemblies) in China and a limited volume of high margin Portable Power/UAV sales given the divestiture of the Power Manager business.
Cash operating costs2 were $11.2 million, essentially flat year-over-year.
Adjusted EBITDA2 declined 349% to ($5.2) million, due to the decrease in revenue and gross margin.
Net loss3 was ($11.5) million or ($0.06) per share, down 297% and 242%, respectively, driven primarily by the increase in Adjusted EBITDA loss.
Adjusted net loss2 was ($7.5) million or ($0.04) per share, down 731% and 613%, respectively.
Cash provided by operating activities was $0.2 million, an improvement of 126%, reflecting cash operating loss of ($4.4) million, offset by net working capital inflows of $4.6 million, driven primarily by higher deferred revenue of $8.5 million related primarily to the $9.0 million program pre-payment received from the joint venture with Weichai Power Co. Ltd. (“Weichai Power”) and lower inventory of $3.7 million.



Full Year 2018 Financial Highlights

(all comparisons are to full year 2017 unless otherwise noted)

Total revenue was $96.6 million, a 20% decline.
Power Products revenue was $57.0 million, down 27% reflecting a decline in Heavy Duty Motive product shipments to customers, principally in China.
Technology Solutions revenue was $39.6 million, down 9% due to a reduction in technology transfer revenue from China compared to 2017, partially offset by increased revenue from the HyMotion program with Audi and other programs.
Gross margin was 31%, down 3-points to $29.7 million primarily due to a shift in revenue mix away from higher margin Heavy Duty Motive and Technology Solutions.
Cash operating costs2 were $43.0 million, an increase of 10% due primarily to higher program development engineering expenses.
Adjusted EBITDA2 declined to ($13.5) million, due to lower revenue and gross margin.
Net loss3 increased to ($27.3) million or ($0.15) per share, down 239% and 222%, respectively. The increase in net loss was driven by the increase in Adjusted EBITDA loss.
Adjusted net loss2 was ($23.4) million or ($0.13) per share, down 351% and 326%, respectively.
Cash used in operating activities was ($31.7) million, a change of (224%) reflecting cash operating loss of ($14.4) million and net working capital outflows of ($17.3) million. This was due to a higher inventory balance of ($12.9) million, largely for expected Heavy Duty Motive shipments in 2019, and a higher accounts receivable balance of ($11.7) million, resulting from timing of revenues and related customer collections, partially offset by higher deferred revenue of $8.6 million.
Cash reserves were $192.2 million at December 31, $131.9 million higher than at the end of 2017, following close of strategic equity investments by Weichai Power and Broad Ocean.

http://ballard.com/about-ballard/newsroom/news-releases/2019/05/01/ballard-reports-q1-2019-results