Plug Power, a leader in providing clean, reliable energy solutions, today reports its 2014 third quarter results.
Plug Power closed the third quarter of 2014 with 857 GenDrive units shipped to material handling customers. This equates to a 450% 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 $25.6m 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 centres 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 fuelling infrastructure solution with Praxair’s liquid hydrogen supply capability helping customers realise 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 $19.9m, comprised of $12.6m of product revenue, $6.9m of service revenue and $0.4m of research and development (R&D) contract revenue. This compares to total revenue of $4.6m in the third quarter of 2013, which was comprised of $2.5m of product revenue, $1.6m of service revenue and $0.5m of R&D contract revenue.
Total cost of revenue for the third quarter of 2014 was $21.0m, comprised of $11.1m of cost of product revenue, $9.2m of cost of service revenue and $0.7m of cost of R&D contract revenue. This compares to total cost of revenue of $8.5m in the third quarter of 2013, which was comprised of $3.9m of cost of product revenue, $3.9m of cost of service revenue and $0.7m of cost of R&D contract revenue.
R&D expenses for the third quarter of 2014 were $1.6m compared with $0.8m for the third quarter of 2013. Selling, general and administrative (SG&A) expenses for the third quarter of 2014 were $5.0m compared with $2.8m for the third quarter of 2013. In addition, in the third quarter of 2014 the company accrued a $2.4m liability related to litigation dating back to 2008 with Soroof Trading Development Company Ltd.
Net loss for the third quarter of 2014 was $9.4m, or $0.06 per share on a basic and diluted basis. This compares to net loss for the third quarter of 2013 of $15.9m, 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 $0.5m. Excluding this item and the $2.4m litigation accrual, adjusted net loss for the third quarter of 2014 was $7.5m, or $0.04 per share.
Cash and Liquidity
Plug Power had cash and cash equivalents of $156.5m and net working capital of $177.6m at September 30, 2014. This compares to $5.0m and $11.1m, respectively, at December 31, 2013.