Plug Power: Q3 Results
LATHAM, New York - Plug Power Inc. (PLUG), a leader in providing clean, reliable energy solutions, reports its 2014 third quarter results.
Plug Power closed out the third quarter of 2014 with 857 GenDrive units shipped to material handling customers. This equates to a 450 percent increase compared to the third quarter of 2013, when 155 GenDrive units were shipped.
Bookings continue to be strong and during the third quarter of 2014, Plug Power brought in over $25.6 million in bookings from customers including Mercedes-Benz, Coca-Cola, BMW, Walmart, Kroger and Newark Farmers Market.
"Plug Power continues to exhibit growth and record numbers, quarter after quarter," said Andy Marsh, CEO. "Our current customer base is seeing value from our products, firsthand, and companies like Newark Farmers Market, BMW and Central Grocers are refreshing their existing GenDrive fleets by reinvesting in more products from Plug Power. That is true validation."
The company continues to view its hydrogen business as a growth opportunity for revenue and margin enhancement. Plug Power's large-scale hydrogen system infrastructure design, known as GenFuel, has been proven-out at manufacturing and distribution centers across North America. In just one year, Plug Power has deployed GenFuel at five sites with commissioning proceeding at another five sites. Two of the sites in the past quarter were for Walmart to support their distribution centers in Sterling, Illinois, and Johnstown, New York.
"GenKey, our turnkey solution, comprised of GenDrive fuel cell units, GenFuel infrastructure, and GenCare aftermarket service and support provides a one-stop-shop for Plug Power's customers," continued Marsh. "GenKey accelerates customer adoption and helps provide a seamless transition to a hydrogen-powered fleet."
Plug Power has also been established as a source for hydrogen gas -- another success demonstrated by its distribution agreement with Praxair. The agreement pairs Plug Power's GenFuel hydrogen fueling infrastructure solution with Praxair's liquid hydrogen supply capability helping customers realize productivity and environmental benefits.
"I've discussed before my belief that ubiquitous hydrogen fuel is the key to rapidly expanding the fuel cell industry," continued Marsh. "Plug Power's goal of becoming the worldwide leader in this market was backed by several, purposeful steps in the quarter to move the company closer to market leadership."
Total revenue for the third quarter of 2014 was $19.9 million, comprised of $12.6 million of product revenue, $6.9 million of service revenue and $0.4 million of research and development (R&D) contract revenue. This compares to total revenue of $4.6 million in the third quarter of 2013, which was comprised of $2.5 million of product revenue, $1.6 million of service revenue and $0.5 million of R&D contract revenue.
Total cost of revenue for the third quarter of 2014 was $21.0 million, comprised of $11.1 million of cost of product revenue, $9.2 million of cost of service revenue and $0.7 million of cost of R&D contract revenue. This compares to total cost of revenue of $8.5 million in the third quarter of 2013, which was comprised of $3.9 million of cost of product revenue, $3.9 million of cost of service revenue and $0.7 million of cost of R&D contract revenue.
R&D expenses for the third quarter of 2014 were $1.6 million compared with $0.8 million for the third quarter of 2013. Selling, general and administrative (SG&A) expenses for the third quarter of 2014 were $5.0 million compared with $2.8 million for the third quarter of 2013. In addition, in the third quarter of 2014 the company accrued a $2.4 million liability related to litigation dating back to 2008 with Soroof Trading Development Company Ltd.
Net loss for the third quarter of 2014 was $9.4 million, or $0.06 per share on a basic and diluted basis. This compares to net loss for the third quarter of 2013 of $15.9 million, or $0.19 per share on a basic and diluted basis. Included in the net loss for the third quarter of 2014 was a gain related to the change in fair value of previously issued common stock warrants of $0.5 million. Excluding this item and the $2.4 million litigation accrual, adjusted net loss for the third quarter of 2014 was $7.5 million, or $0.04 per share.
Cash and Liquidity
Plug Power had cash and cash equivalents of $156.5 million and net working capital of $177.6 million at September 30, 2014. This compares to $5.0 million and $11.1 million, respectively, at December 31, 2013.
Please see the tables at the end of this press release for a reconciliation of net income (loss) to adjusted net loss.
About Plug Power Inc.
The powerhouse in hydrogen fuel cell technology, Plug Power is revolutionizing the industry with cost-effective solutions that increase productivity, lower operating costs and reduce carbon footprint. Its signature solution, GenKey, provides an all-inclusive package for customers, incorporating GenFuel hydrogen and fueling infrastructure, GenCare aftermarket service and either GenDrive or ReliOn fuel cell systems. GenDrive, a lead-acid battery replacement, is used in electric lift trucks in high-throughput material handling applications. With more than 6,000 GenDrive units deployed to material handling customers, GenDrive has been proven reliable with over 25 million hours of runtime. And, ReliOn is Plug Power's modular, scalable fuel cell for customers seeking solutions in critical stationary power applications. Plug Power ReliOn customers have installed fuel cells at more than 2,000 customer locations globally. Plug Power manufactures tomorrow's incumbent power solutions today, so customers can POWERAhead. Additional information about the Plug Power brands is available at www.plugpower.com.