MISSISSAUGA, Ontario, May 9, 2012 (GLOBE NEWSWIRE) -- Hydrogenics Corporation (Nasdaq:HYGS - News) (TSX:HYG.TO - News), a leading developer and manufacturer of hydrogen generation and fuel cell products, today reported first quarter 2012 results. Results are reported in US dollars and are prepared in accordance with International Financial Reporting Standards (IFRS)1.
"While we posted lower revenue in the first quarter due to the timing of orders, we could not be more pleased with where the Company stands today across our entire product portfolio," said Daryl Wilson, President and Chief Executive Officer. "Our strategic relationship with Enbridge, just announced, is a game-changer for Hydrogenics and, for that matter, the world of clean energy storage. Working together, we can rapidly advance the commercialization of hydrogen-based energy storage solutions for North America's grid operators, where it is sorely needed. In addition, our backlog remains solid, the global electrolyzer market continues to exhibit strong demand, and our work with CommScope gives us confidence in the outlook for fuel cell applications as well. Given this backdrop and what we see as a robust pipeline of opportunities, the future looks bright for Hydrogenics. I'd like to thank our investors for their patience and our talented employees for the hard work and dedication during this exciting time."
Recent Highlights
- On April 20, 2012 announced a CA$5.0 million equity investment by Enbridge Inc. to develop the hydrogen energy storage "Power-to-Gas" opportunity.
- During the first quarter secured $1.8 million of orders for industrial gas and fuel cell applications.
- Announced the award of a development project for HyPM(TM) HD-90 rail applications in conjunction with the NRC-CSTT (National Research Council -- Centre for Surface Transportation Technology) of Ontario.
- Ended the quarter with an order backlog of $25.2 million, for which over 85% of the backlog is anticipated to be delivered and recognized as revenues in 2012, in addition to the $5.7 million in revenues for the three months ended March 31, 2012.
- Order backlog movement (in $ millions), is as follows:
Dec. 31, 2011
Backlog
Orders
Received
Orders
Delivered
Mar. 31, 2012
Backlog
OnSite Generation
$ 27.2
$ 0.8
$ 5.2
$ 22.8
Power Systems
1.9
1.0
0.5
2.4
Total
$ 29.1
$ 1.8
$ 5.7
$ 25.2
- Ended the first quarter with $8.4 million of cash and restricted cash, reflecting: (i) $2.2 million of cash used in operations; and (ii) $0.2 million of capital expenditures; partially offset by (iii) $0.7 million of operating borrowings. After the end of the quarter, received CA$5.0 million of cash from Enbridge as a result of their equity investment in Hydrogenics.
- Revenues decreased $1.7 million, or 22.5%, to $5.7 million in the quarter, primarily reflecting lower revenues in Power Systems as a result of timing of receipt and delivery of orders.
- Gross profit was $0.8 million, or 14.1% of revenue, reflecting a 300 basis point increase in gross profit within the OnSite Generation business unit resulting from product cost reductions, offset by lower gross profit in the Power Systems business unit as a result of (i) lower overhead absorption resulting from lower revenues and (ii) variations in product mix.
- EBITDA2 loss increased $0.2 million, or 7%, to $3.1 million primarily due to lower revenue and gross profit.
Notes
- Cash operating costs are defined as the sum of SG&A and R&D, less amortization and depreciation, and stock-based compensation expense inclusive of compensation costs indexed to our share price. This is a non-IFRS measure and may not be comparable to similar measures used by other companies. Management uses this measure as a rough estimate of the amount of fixed costs to operate the Corporation and believes this is a useful measure for investors for the same purpose.
- EBITDA is defined as net loss excluding finance income, net, other losses, depreciation and amortization. EBITDA is a non-IFRS measure and may not be comparable to similar measures used by other companies. Management uses EBITDA as a useful measure of cash flows.
