Ballard Reports Q2 2023 Results
- Total revenue for Q2 2023 was $15.3 million, down 27% YoY.
- Heavy Duty Mobility revenue decreased 39% in Q2 2023.
- Stationary revenue decreased 6% in Q2 2023.
- Gross margin was (21)% in Q2 2023.
- Total operating expenses were $37.5 million in Q2 2023.
- Ballard received $25.1 million of new orders in Q2 2023.
- The order backlog at the end of Q2 2023 was approximately $147.5 million.
- The company expects sequential quarterly revenue growth in the second half of 2023.
- None.
"We are making important progress on our strategic priorities as communicated at our 2023 Capital Markets Day. During Q2, we grew our order book, invested in next-generation fuel cell products, and continued to drive our product cost reduction programs," said Randy MacEwen, President and CEO. "We continue to see growing customer interest across our market verticals, which is reflected in
"As a result of the increasingly constructive hydrogen policy landscape and increased market activity in the US and EU, and given the continued hydrogen and fuel cell policy uncertainties and market delays in
"We continue to track to our full-year guidance ranges for operating and capital expenses. Our investments prioritize technology and product development programs, product cost reduction initiatives, customer platform wins, customer experience, and advanced manufacturing," Mr. MacEwen added.
"We expect a busy second half of 2023, with sequential quarterly revenue growth as compared to first half quarters, along with continued progress on our order book to support 2024 revenue growth," Mr. MacEwen concluded.
Q2 2023 Financial Highlights
(all comparisons are to Q2 2022 unless otherwise noted)
- Total revenue was
in the quarter, down$15.3 million 27% year-over-year. - Heavy Duty Mobility revenue of
decreased$8.5 million 39% , driven primarily by lower revenues from our bus, truck, and rail verticals, partially offset by higher marine revenue. - Stationary revenue of
decreased$3.5 million 6% due primarily to lower sales of stationary power generation fuel cell modules, stacks, products, and services inEurope , partially offset by higher stationary revenues inNorth America . - Emerging and Other Markets revenue of
was flat compared to the prior year, with higher revenues in$3.3 million North America mitigating lower shipments toEurope . - Gross margin was (21)% in the quarter, a decrease of 10-points, driven by a combination of a greater weight of power products in the revenue mix, pricing strategy, increased investment in manufacturing capacity, increases in supply and labor costs, and inventory adjustments.
- Total Operating Expenses and Cash Operating Costs3 were
and$37.5 million , respectively, a decrease of$32.9 million 3% and increase of3% , respectively, from Q2 2022. Increases were driven primarily by higher expenditures on research, technology and product development activities, and general and administrative expenses. - Adjusted EBITDA3 was
( , compared to$35.9) million ( in Q2 2022, primarily as a result of the decrease in gross margin and increase in Cash Operating Costs.$35.0) million - Ballard received approximately
of new orders in Q2, and delivered orders valued at$25.1 million , resulting in an Order Backlog of approximately$15.3 million at the end of Q2. Order Backlog growth was driven predominantly by increased orders from$147.5 million North America in the bus, rail, and emerging markets verticals. Backlog from customers inEurope andNorth America now represent close to80% of the total backlog. Additionally, Power Products backlog increased further in Q2, and is now up over140% compared to the prior year period. - The 12-month Order Book was
at end-Q2, an increase of$85.9 million from the end of Q1 2023, an approximately$12.0 million 16% quarter over quarter increase.
Order Backlog ($M) | Order Backlog | Orders Received | Orders Delivered | Order Backlog |
Total Fuel Cell |
2023 Outlook
In 2023, we maintain our guidance ranges for Total Operating Expense3 and Capital Expenditure4 as follows:
2023 | Guidance | |
Total Operating Expense3 | ||
Capital Expenditure4 |
Q2 2023 Financial Summary
(Millions of | Three months ended June 30 | ||
2023 | 2022 | % Change | |
REVENUE | |||
Fuel Cell Products & Services:1 | |||
Heavy-Duty Mobility | (39 %) | ||
Bus | (33 %) | ||
Truck | (68 %) | ||
Rail | (38 %) | ||
Marine | 1,974 % | ||
Stationary | (6 %) | ||
Emerging and Other Markets | - % | ||
Total Fuel Cell Products & Services Revenue | (27) % | ||
PROFITABILITY | |||
Gross Margin $ | ( | (45 %) | |
Gross Margin % | (21 %) | (11 %) | (10)pts |
Total Operating Expenses | (3 %) | ||
Cash Operating Costs2 | 3 % | ||
Equity loss in JV & Associates | ( | ( | 44 % |
Adjusted EBITDA3 | ( | ( | (3 %) |
Net Loss | ( | ( | 46 % |
Loss Per Share | ( | ( | 47 % |
CASH | |||
Cash provided by (used in) Operating Activities: | |||
Cash Operating Loss | ( | ( | 30 % |
Working Capital Changes | ( | ( | 19 % |
Cash used by Operating Activities | ( | ( | 29 % |
Cash and cash equivalents | (19 %) |
For a more detailed discussion of Ballard Power Systems' second quarter 2023 results, please see the company's financial statements and management's discussion & analysis, which are available at www.ballard.com/investors, www.sedarplus.ca and www.sec.gov/edgar.shtml.
Conference Call
Ballard will hold a conference call on Wednesday, August 9, 2023 at 8:00 a.m. Pacific Time (11:00 a.m. Eastern Time) to review second quarter 2023 operating results. The live call can be accessed by dialing +1.604.638.5340. Alternatively, a live audio and webcast can be accessed through a link on Ballard's homepage (www.ballard.com). Following the call, the audio webcast and presentation materials will be archived in the 'Earnings, Interviews & Presentations' area of the 'Investors' section of Ballard's website (www.ballard.com/investors).
About Ballard Power Systems
Ballard Power Systems' (NASDAQ: BLDP; TSX: BLDP) vision is to deliver fuel cell power for a sustainable planet. Ballard zero-emission PEM fuel cells are enabling electrification of mobility, including buses, commercial trucks, trains, marine vessels, and stationary power. To learn more about Ballard, please visit www.ballard.com.
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 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), Stationary Power, and Emerging and Other Markets (consisting of material handling, off-road, and other applications). Revenues from the delivery of Services, including technology solutions, after sales services and training, are included in each of the respective markets. |
2 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.
3 Total Operating Expenses refer to the measure reported in accordance with IFRS. |
4 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 |
(Expressed in thousands of | Three months ended June 30, | |||
Cash Operating Costs | 2023 | 2022 | $ Change | |
Total Operating Expenses | $ 37,518 | $ 38,461 | $ (943) | |
Stock-based compensation expense | (3,094) | (2,780) | (314) | |
Impairment recovery (losses) on trade | (17) | - | (17) | |
Acquisition related costs | (85) | (372) | 287 | |
Restructuring and related (costs) recovery | 95 | (67) | 162 | |
Impact of unrealized gains (losses) on foreign | 765 | (678) | 1,443 | |
Depreciation and amortization | (2,267) | (2,491) | 224 | |
Cash Operating Costs | $ 32,915 | $ 32,073 | $ 842 |
(Expressed in thousands of | Three months ended June 30, | ||||
EBITDA and Adjusted EBITDA | 2023 | 2022 | $ Change | ||
Net loss | $ (30,096) | $ (55,791) | $ 25,695 | ||
Depreciation and amortization | 3,286 | 3,441 | (155) | ||
Finance expense | 264 | 308 | (44) | ||
Income taxes (recovery) | 98 | 88 | 10 | ||
EBITDA | $ (26,448) | $ (51,954) | $ 25,506 | ||
Stock-based compensation expense | 3,094 | 2,780 | 314 | ||
Acquisition related costs | 85 | 372 | (287) | ||
Finance and other (income) loss | (11,865) | 13,123 | (24,988) | ||
Impact of unrealized (gains) losses on foreign | (765) | 678 | (1,443) | ||
Adjusted EBITDA | $ (35,899) | $ (35,001) | $ (898) |
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SOURCE Ballard Power Systems Inc.
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