Plug Power announces 2013 Fourth Quarter and Year-End Results

Growth Continues: Customer Order Goal for Q1 2014 Already Exceeded

Plug Power Inc. (NASDAQ: PLUG), a leader in providing clean, reliable energy solutions, today reported its 2013 fourth quarter and year-end financial results.

Plug Power’s growing sales momentum in 2013 continued as the year progressed, with bookings in the fourth quarter of $32 million.

Strong fourth quarter product sales and maintenance orders were received from significant customers such as Walmart, Kroger, BMW and Mercedes-Benz. These orders followed on the heels of an investor update on October 8th during which CEO Andy Marsh discussed company plans to expand into providing hydrogen to customers and revealed negotiations that were underway for new multi-site deals with several customers preparing to deploy fuel cells in their material handling fleets.

Sales orders for the year 2014 already exceed $60 million. The company also has a strong balance sheet, with over $66 million in cash as of today.

In January 2014, Plug Power launched its new all-inclusive GenKey solution that provides customers with GenDrive fuel cells, GenFuel hydrogen infrastructure and fuel supply, and GenCare year-round maintenance service. In February, Plug Power announced that Walmart would be the first multiple site GenKey customer, with a contract that is being implemented at six Walmart North America distribution centers over the next two years.

“Although a lot has happened since our last call, I am more bullish than ever that Plug Power is moving into a rapid-growth cycle,” said Andy Marsh. “We kicked off the first quarter of 2014 by signing a multi-site, multi-year GenKey contract with Walmart that surpassed our Q1 goals. I firmly believe that this continuing momentum will carry on throughout 2014, and that orders for this year will total more than $150 million – almost four times our total for 2013. We also are on track to achieve our goal of EBITDAS break even by Q3 2014.”

Financial Results
The financial information below consists of preliminary estimates prepared by Plug Power’s management and as such may be subject to final adjustment. Therefore, actual results may differ from these estimates. The final financial information will be included in our filing of the Form 10-K on or before March 31, 2014.

Total revenue for the fourth quarter of 2013 was $8.0 million, comprised of $7.8 million for product and service revenue and $0.2 million for research and development (R&D) contract revenue. This compares to total revenue of $5.9 million in the fourth quarter of 2012, which was comprised of $5.7 million for product and service revenue and $0.2 million for R&D contract revenue.

For the full year 2013, total revenue was $26.6 million, comprised of $25.1 million for product and service revenue and $1.5 million for R&D contract revenue. This compares to total revenue of $26.1 million in 2012, which was comprised of $24.4 million for product and service revenue and $1.7 million for R&D contract revenue.

The Company shipped 279 units during the fourth quarter of 2013 compared to 518 units in the fourth quarter of 2012. For the full year, the Company shipped 918 units compared to 1,391 in 2012.

Total cost of revenue for the fourth quarter of 2013 was $11.2 million, comprised of $10.6 million for cost of product and service revenue and $0.6 million for cost of R&D contract revenue. This compares to total cost of revenue of $9.5 million in the fourth quarter of 2012, which was comprised of $9.1 million for cost of product and service revenue and $0.4 million for cost of R&D contract revenue.

For the full year 2013, total cost of revenue was $37.8 million, comprised of $35.3 million for cost of product and service revenue and $2.5 million for cost of R&D contract revenue. This compares to total cost of revenue of $40.5 million in 2012, which was comprised of $37.7 million for cost of product and service revenue and $2.8 million for cost of R&D contract revenue.

R&D expenses for the fourth quarter and year ended 2013 were $0.8 million and $3.1 million, respectively. This compares to the fourth quarter and year ended 2012 of $1.3 million and $5.4 million, respectively.

Selling, general and administrative (SG&A) expenses for the fourth quarter and year ended 2013 were $3.5 million and $12.3 million, respectively. This compares to the fourth quarter and year ended 2012 of $4.0 million and $14.6 million, respectively.

Net loss for the fourth quarter and year ended 2013 was $28.9 million, or $0.28 per share on a basic and diluted basis, and $62.7 million, or $0.83 per share on a basic and diluted basis, respectively. Included in the net loss for the fourth quarter and year ended 2013 were charges related to the change in fair value of previously issued common stock warrants of $20.9 million and $37.1 million, respectively. Excluding these items from both periods, adjusted net loss for the fourth quarter and year ended 2013 was $8.0 million, or $0.08 per share on a basic and diluted basis, and $25.7 million, or $0.34 per diluted share.

Net loss for the fourth quarter and year ended 2012 was $8.5 million, or $0.22 per share on a basic and diluted basis, and $31.9 million, or $0.93 per share on a basic and diluted basis, respectively. Included in the net loss for the fourth quarter and year ended 2012 were benefits related to the change in fair value of previously issued common stock warrants of $1.1 million and $4.9 million, respectively. Excluding these items from both periods, adjusted net loss for the fourth quarter and year ended 2012 was $9.6 million, or $0.25 per share on a basic and diluted basis, and $36.7 million, or $1.07 per share on a basic and diluted basis, respectively.

The accompanying consolidated financial information and reconciliation tables provide additional information on the Company’s year-to-date performance including a reconciliation of net income, as reported, to net income, as adjusted.
Cash and Liquidity

Net cash used in operating activities for the fourth quarter and full year 2013 was $8.9 million and $26.9 million respectively. Plug Power had cash and cash equivalents of $5.0 million and net working capital of $11.1 million at December 31, 2013. This compares to $9.4 million and $6.9 million, respectively, at December 31, 2012.

Conference Call
Plug Power has scheduled a conference call today at 10:00 am ET to review the Company’s results for the fourth quarter of 2013. Interested parties are invited to listen to the conference call by calling 877.407.8291.

The webcast can be accessed at www.plugpower.com, selecting the conference call link on the home page, or directly at http://www.media-server.com/m/p/ge6327sd. A playback of the call will be available online for a period following the event.

 

The architects of modern fuel cell technology, Plug Power is revolutionizing the industry with cost-effective power solutions that increase productivity, lower operating costs and reduce carbon footprints. Long-standing relationships with industry leaders, including Walmart, Sysco, Procter & Gamble, and Mercedes Benz, forged the path for Plug Power’s innovative GenKey hydrogen and fuel cell system solutions. With more than 4,500 GenDrive units deployed to material handling customers, accumulating over 20 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 may cause Plug Power’s actual results to differ materially from the expectations in Plug Power’s forward-looking statements including the risk that Plug Power does not become profitable when expected or at all or requires additional external funding to become profitable, the risk that unit orders will not ship, be installed and/or convert to revenue, in whole or in part; the risk that pending orders may not convert to purchase orders; the cost and timing of developing, marketing and selling Plug Power’s products and its ability to fund such costs; the risk that Plug Power does not achieve the expected gross margin on the sale of its products; the risk that actual net cash used for operating expenses exceeds 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 systems; 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 Plug Power’s GenDrive system; 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.

Source: Plug Power

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