Ballard Reports Q1 2024 Results
"In our last earnings report, we indicated that we expected continued growth in our Order Backlog, major order announcements from customers in our Bus and Stationary verticals, and the announcement of our next manufacturing facility," said
"We are particularly encouraged with our progress over the past 6 months with new order intake," added
"During the quarter, we were pleased to announce certain non-dilutive funding awards for our proposed Gigafactory in
Q1 2024 Financial Highlights
(all comparisons are to Q1 2023 unless otherwise noted)
- Total revenue was
$14.5 million in the quarter, up 9% year-over-year.- Heavy Duty Mobility revenue of
$10.6 million increased 22%, driven by higher revenues from our Bus vertical, though offset by weaker revenue in Rail and Marine verticals. - Stationary revenue of
$3.7 million increased 48% year-over-year driven by the European market. - Emerging and Other Markets revenue of
$0.2 million was down 90% compared to the prior year.
- Heavy Duty Mobility revenue of
- Gross margin was (37%) in the quarter, a 5-point improvement year-over-year and 15 points lower from the previous quarter as expected due to lower revenue in Q1 2024 compared to Q4 2023.
- Total Operating Expenses and Cash Operating Costs1 were
$37.1 million and$29.8 million , respectively, a change of 3% and (2%) respectively, from Q1 2023. - Net loss from continuing operations for the first quarter of 2024 was
($41.1) million , or ($0.14 ) per share, compared to a net loss from continuing operations of($32.4) million , or ($0.11 ) per share, in the first quarter of 2023. The($8.7) million increase in net loss was driven primarily by lower finance and other income of($7.5) million largely due to higher negative mark to market and foreign exchange impacts on our long-term financial investments. - Adjusted EBITDA1 was
($36.6) million , compared to($36.9) million in Q1 2023, a change of 1%. - Cash and cash equivalents were
$720.7 million , a($30.5) million decrease compared to$751.1 million at the end of 2023. - Ballard received approximately
$64.5 million in new orders in Q1, and delivered orders valued at$14.5 million , resulting in an Order Backlog of approximately$180.5 million at end-Q1, a 38% increase from the end of Q4 2023. Order Backlog growth was driven predominantly by the European Bus and Stationary verticals and includes the impact of the recently announced long-term supply agreement with Solaris. Power Products now represent approximately 88% of the total Order Backlog, with European and North American customers accounting for approximately 86% of the total Order Backlog. - The 12-month Order Book was
$79.7 million at end-Q1, an increase of$13.0 million , or 20%, from the end of Q4 2023.
Order Backlog ($M) |
Order Backlog |
Orders Received |
Orders Delivered |
Order Backlog |
Total Fuel Cell |
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2024 Outlook
Consistent with the Company's past practice, and in view of the early stage of hydrogen fuel cell market development, specific revenue or net income (loss) guidance for 2024 is not provided. The Company expects revenue in 2024 will be back-half weighted, with roughly 30% in the first half and 70% in the second half, similar to 2023. Ballard's Total Operating Expense2 and Capital Expenditure3 guidance ranges for 2024 are as follows:
2024 |
Guidance |
Total Operating Expense2 |
|
Capital Expenditure3 |
|
Q1 2024 Financial Summary
(Millions of |
Three months ended |
||
|
2024 |
2023 |
% Change |
REVENUE |
|
|
|
Fuel Cell Products & Services:4 |
|
|
|
Heavy-Duty Mobility |
|
|
22 % |
Bus |
|
|
206 % |
Truck |
|
|
(51 %) |
Rail |
|
|
(80 %) |
Marine |
|
|
(87 %) |
Stationary |
|
|
48 % |
Emerging and Other Markets |
|
|
(90 %) |
Total Fuel Cell Products & Services Revenue |
|
|
9 % |
PROFITABILITY |
|
|
|
Gross Margin $ |
( |
( |
4 % |
Gross Margin % |
(37 %) |
(42 %) |
5 pts |
Total Operating Expenses |
|
|
3 % |
Cash Operating Costs1 |
|
|
(2 %) |
Equity loss in |
( |
( |
3 % |
Adjusted EBITDA1 |
( |
( |
1 % |
Net Loss from Continuing Operations4 |
( |
( |
(27 %) |
Loss Per Share from Continuing Operations4 |
( |
( |
(27 %) |
CASH |
|
|
|
Cash provided by (used in) Operating Activities: |
|
|
|
Cash Operating Loss |
( |
( |
9 % |
Working Capital Changes |
|
( |
146 % |
Cash used by Operating Activities |
( |
( |
45 % |
Cash and cash equivalents |
|
|
(17 %) |
For a more detailed discussion of
Conference Call
Ballard will hold a conference call on
About
Important Cautions Regarding Forward-Looking Statements
Some of the statements contained in this release are forward-looking statements within the meaning of the
Endnotes
1 Note that Cash Operating Costs, EBITDA, and Adjusted EBITDA 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, and Adjusted EBITDA 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, and Adjusted EBITDA to the Consolidated Financial Statements, please refer to the tables below. |
Cash Operating Costs measures total operating expenses excluding stock-based compensation expense, depreciation and amortization, impairment losses or recoveries on trade receivables, restructuring charges, acquisition related 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, acquisition related costs, finance and other income, recovery on settlement of contingent consideration, asset impairment charges, and the impact of unrealized gains or losses on foreign exchange contracts. |
2 Total Operating Expenses refer to the measure reported in accordance with IFRS. |
3 Capital Expenditure is defined as Additions to property, plant and equipment and Investment in other intangible assets as disclosed in the Consolidated Statements of Cash Flows |
4 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 of PEM fuel cell products and services for a variety of applications including Heavy-Duty Mobility (consisting of bus, truck, rail, and marine applications), |
During the fourth quarter of 2023, we completed a restructuring of operations at Ballard Motive Solutions in the U.K. and effectively closed the operation. As such, the historic operating results (including revenue and operating expenses) of the Ballard Motive Solutions business have been removed from continuing operating results and are instead presented separately in the statement of comprehensive income (loss) as loss from discontinued operations. |
(Expressed in thousands of |
Three months ended |
||
Cash Operating Costs |
2024 |
2023 |
$ Change |
Total Operating Expenses |
$ 37,060 |
$ 35,832 |
$ 1,228 |
Stock-based compensation expense |
(2,800) |
(2,243) |
(557) |
Impairment recovery (losses) on trade |
(1,670) |
- |
(1,670) |
Acquisition related costs |
- |
(658) |
658 |
Restructuring and related (costs) recovery |
(30) |
(822) |
792 |
Impact of unrealized gains (losses) on foreign |
(485) |
490 |
(975) |
Depreciation and amortization |
(2,236) |
(2,062) |
(174) |
Cash Operating Costs |
$ 29,839 |
$ 30,537 |
$ (698) |
(Expressed in thousands of |
Three months ended |
|||
EBITDA and Adjusted EBITDA |
2024 |
2023 |
$ Change |
|
Net loss from continuing operations |
$ (41,066) |
$ (32,388) |
$ (8,678) |
|
Depreciation and amortization |
3,382 |
3,051 |
331 |
|
Finance expense |
431 |
283 |
148 |
|
Income taxes (recovery) |
35 |
- |
35 |
|
EBITDA |
$ (37,218) |
$ (29,054) |
$ (8,164) |
|
Stock-based compensation expense |
2,800 |
2,243 |
557 |
|
Acquisition related costs |
- |
658 |
(658) |
|
Finance and other (income) loss |
(2,709) |
(10,209) |
7,500 |
|
Impairment charge on property, plant and |
- |
- |
- |
|
Impact of unrealized (gains) losses on foreign |
485 |
(490) |
975 |
|
Adjusted EBITDA |
$ (36,642) |
$ (36,852) |
$ 210 |
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