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EXHIBIT 99.1
Plug Power Announces Fourth Quarter and Year-End 2011 Financial Results
LATHAM, N.Y., March 8, 2012 (GLOBE NEWSWIRE) -- Plug Power Inc. (Nasdaq:PLUG), a leader in providing clean, reliable energy solutions, today reported its financial results for the fourth quarter and year-end 2011.
Plug Power is pleased to announce its order results for 2011. For the full year, Plug Power received orders for $46.1 million from material handling customers; $18.1 million worth of those orders were received during the fourth quarter. The 2,503 GenDrive unit order total in 2011 represents almost a five fold increase over the 543 GenDrive unit orders in 2010.
The 2011 orders include:
- First time customers in North America: Associated Wholesale Grocers , Proctor and Gamble and Kroger;
- Repeat customers in North America: Walmart Canada, Walmart USA, Sysco, Coca-Cola, Wegmans and BMW; and
- Global expansion into Europe: Air Liquide, who received Plug Power's first CE-certified products.
Plug Power enters 2012 with a backlog of more than 1,900 GenDrive units representing approximately $36.0 million in revenue.
The Company now has more than 2,000 GenDrive fuel cell units deployed at live customer sites. Units shipped during the fourth quarter include its next-generation GenDrive architecture products. The new offering is designed to increase reliability and improve lift and towing capacity. The simplified GenDrive features 30 percent fewer components; GenDrive product options now provide customers with a flexible, more cost-effective solution to meet fleet requirements.
In 2011 Plug Power announced the formation of a joint venture with Axane, an Air Liquide subsidiary to develop the European market for fuel cell powered forklift trucks. The JV formation was finalized in February 2012 and is formally known as HyPulsion. Plug Power projects that the market opportunity in Europe is larger than North America.
"The sales momentum that the Company experienced in 2011 is continuing in 2012," said Andy Marsh, CEO at Plug Power. "The fuel cell industry is going through a full-fledged renaissance, as applications from lift trucks to automobiles to on-site power generation become more broadly deployed. Our technology provides sustainability and measurable operational benefits to our distribution and manufacturing customers, driving GenDrive unit adoption and contributing to the overall success of the fuel cell market."
Financial Results
Net loss for the fourth quarter of 2011 and year ended December 31, 2011 was $7.2 million and $27.5 million, respectively. On a per share basis the loss for the quarter and the year was $0.32 and $1.46, respectively, on a basic and diluted basis. This compares with a net loss of $8.6 million, or $0.65 per share, for the fourth quarter of 2010 and net loss of $47.0 million, or $3.58 per share for the full year 2010.
Total revenue for the fourth quarter and year ended December 31, 2011 was $11.9 million and $27.6 million, respectively. This compares to total revenue of $6.2 million and $19.5 million for the same periods of 2010. Product and service revenue for the fourth quarter and year ended December 31, 2011 was $11.3 million and $23.2 million, respectively. This compares to $5.5 million and $15.7 million for the same periods of 2010. Research and development contract revenue for the quarter and year ended December 31, 2011 was $0.5 million and $3.9 million, respectively. This compares to $0.7 million and $3.6 million for the same periods of 2010.
Total cost of revenue for the fourth quarter of 2011 was $12.2 million, comprised of $11.5 million for product and service cost of revenue and $0.7 million for R&D contract cost of revenue. For the full year 2011, total cost of revenue was $36.9 million, comprised of $30.7 million for product and service cost of revenue and $6.2 million for R&D contract cost of revenue. Prior year comparable numbers for the fourth quarter were $9.0 million for total cost of revenue, comprised of $7.9 million for product and service cost of revenue and $1.1 million for R&D contract cost of revenue. Prior full year comparable numbers were $29.5 million for total cost of revenue, comprised of $23.1 million for product and service cost of revenue and $6.4 million for R&D contract cost of revenue.
R&D expenses for the fourth quarter and year ended December 31, 2011 were $2.0 million and $5.7 million, respectively. This compares to the fourth quarter and year ended December 31, 2010 of $0.9 million and $12.9 million, respectively. The overall decline in R&D expenses is related to our corporate restructuring plan, and our transition from a development stage enterprise focused on research and development to a company focused on the commercial production of our products.
Selling, general and administrative (SG&A) expenses for the fourth quarter and year ended December 31, 2011 were $3.5 million and $14.5 million, respectively. This compares to SG&A expenses in the fourth quarter and year ended December 31, 2010 of $7.7 million and $25.6 million, respectively. These figures include charges of $3.7 million and $10.2 million for the fourth quarter and year ended December 31, 2010 for restructuring charges and related asset write-offs in Plug Power Canada. Additionally, $0.6 million was expensed for amortization of intangible assets during the fourth quarter of 2011 compared to $0.6 million for the fourth quarter of 2010. For the full year, $2.3 million was expensed for amortization of intangible assets compared to $2.3 million in 2010.
Gain on sale of assets for the year ended December 31, 2011 was $0.7 million. In December, 2010, the Company assigned all of its rights, title and interest in its leased property to Somerset Capital Group, Ltd. (Somerset). During the quarter ended September 30, 2011 the contingent provisions of the assignment were met, and the remaining gain on the transaction was recognized. Gain on sale of assets was $3.2 million for the fourth quarter and year ended December 31, 2010. Effective October 26, 2010, the Company licensed the intellectual property relating to its stationary power products, GenCore® and GenSys®, to IdaTech plc on a non-exclusive basis. As part of the transaction, Plug Power also sold inventory, equipment and certain other assets related to its stationary power business. Total consideration for the licensing and assets was net against costs incurred to close the deal, and was recorded to gain on sale of assets.
Cash and Liquidity
Net cash used in operating activities for the fourth quarter and year ended December 31, 2011 was $14.2 million and $33.3 million, respectively. On December 31, 2011, Plug Power had cash and cash equivalents of $13.9 million and net working capital of $19.4 million. This compares to $21.4 million and $23.7 million, respectively, at December 31, 2010.
The accompanying financial statements and reconciliation tables provide additional information on the Company's year-to-date performance as it relates to the full year 2011 milestones previously announced.
Conference Call
Plug Power has scheduled a conference call today at 10:00 am ET to review the Company's results for the 2011 fourth quarter and year-end 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 2,000 GenDrive units shipped to material handling customers, accumulating over 5.5 million hours of runtime, Plug Power manufactures tomorrow's incumbent power solutions today. Additional information about Plug Power is available at www.plugpower.com.
The Plug Power Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4446
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 statements regarding increased reliability and improved lift and towing capacity of Plug Power's GenDrive product, and Plug Power's expectations regarding its HyPulsion joint venture. 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 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 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 under "Item IA-Risk Factors" in (i) Plug Power's annual report on Form 10-K for the fiscal year ended December 31, 2010, filed with the Securities and Exchange Commission ("SEC") on March 31, 2011 and (ii) in Plug Power's quarterly report on Form 10-Q for the quarter ended September 30, 2011 filed with the SEC on November 9, 2011, as well as in the other 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) | ||
| December 31, 2011 | December 31, 2010 | |
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $ 13,857 | $ 10,955 |
| Available-for-sale securities | - | 10,403 |
| Accounts receivable | 13,389 | 4,196 |
| Inventory | 10,355 | 10,539 |
| Assets held for sale | - | 1,000 |
| Prepaid expenses and other current assets | 1,894 | 1,585 |
| Total current assets | 39,495 | 38,678 |
| Restricted cash | - | 525 |
| Property, plant and equipment, net | 8,687 | 9,839 |
| Investment in leased property | - | 263 |
| Intangible assets, net | 7,474 | 9,872 |
| Total assets | $ 55,656 | $ 59,177 |
| Liabilities and Stockholders' Equity | ||
| Current liabilities: | ||
| Accounts payable | $ 4,669 | $ 3,560 |
| Accrued expenses | 3,173 | 4,336 |
| Product warranty reserve | 1,211 | 863 |
| Borrowings under line of credit | 5,405 | - |
| Current portion long term debt | - | 10 |
| Deferred revenue | 5,542 | 4,350 |
| Other current liabilities | 80 | 1,901 |
| Total current liabilities | 20,080 | 15,020 |
| Common stock warrant liability | 5,321 | - |
| Other liabilities | 1,219 | 1,244 |
| Total liabilities | 26,620 | 16,264 |
| Stockholders' equity | 29,036 | 42,913 |
| Total liabilities and stockholders' equity | $ 55,656 | $ 59,177 |
| Statements of Operations (Dollars in thousands): | Three months ended December 31, | Twelve months ended December 31, | ||
| (unaudited) | ||||
| 2011 | 2010 | 2011 | 2010 | |
| Revenue | ||||
| Product and service revenue | $ 11,296 | $ 5,454 | $ 23,223 | $ 15,739 |
| Research and development contract revenue | 544 | 655 | 3,886 | 3,598 |
| Licensed technology revenue | 27 | 136 | 517 | 136 |
| Total revenue | 11,867 | 6,245 | 27,626 | 19,473 |
| Cost of revenue and expenses | ||||
| Cost of product and service revenue | 11,482 | 7,936 | 30,669 | 23,111 |
| Cost of research and development contract revenue | 726 | 1,080 | 6,232 | 6,371 |
| Research and development expense | 2,008 | 947 | 5,656 | 12,901 |
| Selling, general and administrative expense | 3,495 | 7,744 | 14,546 | 25,573 |
| Gain on sale of assets | -- | (3,218) | (673) | (3,218) |
| Amortization of intangible assets | 568 | 572 | 2,323 | 2,264 |
| Operating loss | (6,412) | (8,816) | (31,127) | (47,529) |
| Interest and other income and net realized losses from | ||||
| available-for-sale securities | 27 | 304 | 248 | 1,057 |
| Change in fair value of warrant liability | (758) | - | 3,447 | - |
| Change in fair value of auction rate securities repurchase agreement | - | - | - | (5,978) |
| Net trading gain | - | - | - | 5,978 |
| Interest and other expense and foreign currency gain (loss) | (25) | (81) | (22) | (487) |
| Net loss | $ (7,168) | $ (8,593) | $ (27,454) | $ (46,959) |
| Loss per share: Basic and diluted | $ (0.32) | $ (0.65) | $ (1.46) | $ (3.58) |
| Weighted average number of common shares outstanding * | 22,743,388 | 13,180,507 | 18,778,066 | 13,123,162 |
| * - Share information for the prior periods has been retroactively adjusted to reflect the May 19, 2011 one-for-ten reverse stock split of the Company's common stock. | ||||
| Plug Power Inc. | ||||
| Reconciliation of Non-GAAP financial measures | ||||
| Reconciliation of Reported Net loss to EBITDAS | ||||
| Three months ended December 31, | Twelve months ended December 31, | |||
| 2011 | 2010 | 2011 | 2010 | |
| Operating loss, as reported | $ (6,412) | $ (8,816) | $ (31,127) | $ (47,529) |
| Stock based compensation | (150) | (160) | 1,452 | 1,175 |
| Depreciation and amortization | 1,100 | 3,198 | 4,455 | 7,233 |
| EBITDAS | $ (5,462) | $ (5,778) | $ (25,220) | $ (39,121) |
| EBITDAS is defined as net income before interest expense, provision for income taxes, 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 December 31, | Twelve months ended December 31, | |||
| 2011 | 2010 | 2011 | 2010 | |
| Total revenues, as reported | $ 11,867 | $ 6,245 | $ 27,626 | $ 19,473 |
| Licensed technology revenue | (27) | (136) | (517) | (136) |
| Deferred revenue recognized from previous reporting periods | (598) | (325) | (1,606) | (2,529) |
| Current invoiceable value of shipments, recorded to deferred revenue | 556 | 1,183 | 1,369 | 2,418 |
| Total revenues, as adjusted | $ 11,798 | $ 6,967 | $ 26,872 | $ 19,226 |
|
Total cost of product and service revenue and cost of research and development revenue |
$ 12,208 | $ 9,016 | $ 36,901 | $ 29,482 |
| Gross margin percentage | (2.9%) | (44.4%) | (33.6%) | (51.4%) |
| Adjusted gross margin percentage | (3.5%) | (29.4%) | (37.3%) | (53.3%) |
| Gross margin percentage is a financial ratio used to indicate the relationship between cost of sales and total revenue. We use the term adjusted gross margin percentage to refer to total revenue, as adjusted, less total cost of product and service revenue and total cost of research and development contract revenue as a percentage of total revenues, 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) | ||
| Twelve months ended | ||
| December 31, | ||
| 2011 | 2010 | |
| Cash Flows From Operating Activities: | ||
| Net loss | $ (27,454) | $ (46,959) |
| Adjustments to reconcile net loss to net cash used in operating activities: | ||
| Depreciation | 2,132 | 4,969 |
| Amortization of intangible asset | 2,323 | 2,264 |
| Loss on disposal of property, plant and equipment | 309 | 87 |
| Stock-based compensation | 1,452 | 1,175 |
| Gain on sale of leased assets | (673) | 290 |
| Provision for bad debts | -- | 10 |
| Realized loss on available for sale securities | 22 | -- |
| Net unrealized gains on trading securities | -- | (5,978) |
| Change in fair value of auction rate debt securities repurchase agreement | -- | 5,978 |
| Change in fair value of warrant liability | (3,447) | -- |
| Changes in assets and liabilities: | ||
| Accounts receivable | (9,193) | (2,193) |
| Inventory | 1,438 | (4,410) |
| Prepaid expenses and other current assets | (310) | 1,624 |
| Accounts payable, accrued expenses, product warranty reserve and other liabilities | (1,101) | 2,619 |
| Deferred revenue | 1,192 | (247) |
| Net cash used in operating activities | (33,310) | (40,771) |
| Cash Flows From Investing Activities: | ||
| Purchase of property, plant and equipment | (1,326) | (1,100) |
| Investment in leased property | -- | (2,233) |
| Proceeds from the sale of leased assets | 673 | 3,221 |
| Restricted cash | 525 | 1,740 |
| Proceeds from disposal of property, plant and equipment | 47 | 122 |
| Proceeds from trading securities | -- | 59,375 |
| Proceeds from maturities and sales of available-for-sale securities | 10,399 | 79,754 |
| Purchases of available-for-sale securities | -- | (42,312) |
| Net cash provided by investing activities | 10,318 | 98,567 |
| Cash Flows From Financing Activities: | ||
| Purchase of treasury stock | (158) | (441) |
| Proceeds from issuance of common stock and warrants | 22,584 | -- |
| Stock issuance costs | (1,891) | -- |
| Proceeds (repayment) from borrowings under line of credit | 5,405 | (59,375) |
| Principal payments on long-term debt | (10) | (1,561) |
| Net cash provided by (used in) financing activities | 25,930 | (61,377) |
| Effect of exchange rate changes on cash | (36) | (45) |
| Increase (decrease) in cash and cash equivalents | 2,902 | (3,626) |
| Cash and cash equivalents, beginning of period | 10,955 | 14,581 |
| Cash and cash equivalents, end of period | $ 13,857 | $ 10,955 |
CONTACT: Media Contact:
Reid Hislop
Plug Power Inc.
Phone: (518) 782-7700 ext. 1360
media@plugpower.com
Investor Relations Contact:
Cathy Yudzevich
Plug Power Inc.
Phone: (518) 782-7700 ext. 1448
investors@plugpower.com