Ballard Power Systems has released consolidated financial results for the second quarter ended 30th June, 2018.
Randy MacEwen, President and CEO said, “Financial results and new contract bookings for Q2 and year-to-date are consistent with the type of first half to the year we had expected. We delivered Q2 revenue of $26.4m, gross margin of 36% and Adjusted EBITDA of $0.8m. We are excited to have ended the quarter with a record order backlog of $283.3m.”
MacEwen also noted, “The global megatrend of electrification of propulsion systems is accelerating. This megatrend is driving growing interest in fuel cell electric vehicles, or FCEVs, for transportation applications where long range, rapid refuelling, heavy payload and route flexibility are customer requirements. Interest and customer engagement continues to build in heavy-duty motive applications, including bus, truck, rail and marine, along with automotive, material handling and unmanned vehicle applications. During Q2, we were particularly excited with the long-term extension, through to August 2022, of our HyMotion programme with AUDI AG, in support of its automotive fuel cell strategy and deployment plans.”
MacEwen concluded, “As we look out to 2019 and beyond, and to our pathway to profitability, we expect strong growth in FCEV demonstration programmes and commercial scaling in certain heavy and medium duty applications in China, Europe and the United States. With continued investment in technology, products, customer engagement and our brand, we see Ballard having a leading position in these large and growing addressable markets.”
Ballard’s revenue was $26.4m, flat on a year-over-year basis, reflecting growth in Power Products, offset by a decline in Technology Solutions due primarily to the strong contribution in Q2 2017 from one-time technology transfer and related agreements with the company’s joint venture in China.
The Power Products platform generated revenue of $17.8m, an increase of 18%. Heavy Duty Motive revenue was $13.3m, an increase of 9% related primarily to increased product shipments to China, Europe and North America. The Portable Power business generated $2.4m, an increase of 170% due to Power Manager product orders from military customers. Material Handling revenue was $1.7m, a decline of 13% primarily due to the continued in-housing of stack supply by a key customer, combined with lower average selling price resulting from a shift in product mix andTelecom Backup Power revenue was $0.4m, an increase of $0.3m resulting primarily from sales in Europe for a variety of backup power installations.
The Technology Solutions platform generated revenue of $8.6m, a decrease of 24% due primarily to the strong contribution in Q2 2017 from one-time technology transfer and related agreements with the company’s joint venture in China, partially offset by increases in amounts earned from other programmes.
Cash operating costs were $10.5m, an increase of 24% primarily attributable to higher research and product development expenses. Net loss was $4.3m, a decline of $3.1m.
Cash used by operating activities was $16.0m, a decline of $18.7m reflecting cash operating loss of $1.6m and use in working capital of $15.3m, largely associated with an increase in accounts receivable and increased inventory to support expected deliveries in the second half of this year.
Cash reserves were $35.2m at 30thJune, a decrease of 48% from the end of Q2 2017 and a decrease of 33% from the end of the prior quarter, primarily due to an increase in working capital in the quarter.
During Q2 Ballard received $87.7m in new orders and also delivered orders valued at $26.4m, thereby significantly increasing order backlog from $222.0m in the prior quarter, to $283.3m at end-Q2. The 12-month order book also increased from $89.0m in the prior quarter, to $96.0m at end-Q2.