Ballard reports continued growth and positive adjusted Ebitda

Vancouver, Canada - Ballard Power Systems announced its consolidated financial results for the third quarter ended September 30, 2014.

All amounts are in U.S. dollars unless otherwise noted and have been prepared in accordance with International Financial Reporting Standards (IFRS).

"Third quarter results reflect continuing progress in the business, including year-on-year improvements of 21 percent in revenue, 15 percent in cash operating costs, 40 percent in cash used by operating activities in addition to positive Adjusted EBITDA of $0.5 million," said John Sheridan, who retired as President and CEO on October 6.

Randy MacEwen, Mr. Sheridan's successor, added, "The leadership transition has gone very smoothly and now, three weeks into the CEO role, I am fully engaged in driving the Q4 execution priorities together with the 2015 planning process and am excited by Ballard's growth prospects."

Q3 revenue improved 21 percent to 20.6 million US-Dollar. The sequential quarter-on-quarter 2014 growth trend continued, with Q3 revenue improving 11 percent from Q2. Gross margin of 25 percent is a 3-point decline due primarily to the impact of lower-than-expected Telecom Backup Power system shipments on manufacturing overhead allocation, together with a shift in product mix and increase in service related expenses. Adjusted Ebitda was $0.5 million, which means an improvement of 151 percent driven by higher revenue and a lower operating cost base. Net income of ($2.4) million or ($0.02) per share, improvements of 47percent and 60 percent, respectively. While progress in top-line growth has been achieved each quarter in 2014, year-to-date revenue growth of 21 percent is lower than initially expected. The Company is therefore resetting guidance to a revenue growth of approximately 20 percent and an adjusted Ebitda improvement of approximately 65 percent.

Source: IWR Online, 29 Oct 2014