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TheStreet Open House

Plug Power Announces Second Quarter 2012 Financial Results

Cash and Liquidity

Net cash used in operating activities for the second quarter of 2012 was $4.9 million. Plug Power had cash and cash equivalents of $15.9 million and net working capital of $25.5 million at June 30, 2012. This compares to $13.9 million and $22.5 million, respectively, at December 31, 2011.

The accompanying consolidated financial information and reconciliation tables provide additional information on the Company's year-to-date performance as it relates to milestones previously announced.

Conference Call

Plug Power has scheduled a conference call on August 14, 2012 at 10:00 am ET to review the Company's results for the second quarter of 2012. Interested parties are invited to listen to the conference call by calling 877.407.8291 or 201.689.8345 for international participants.

The webcast can be accessed by going directly to the Plug Power Web site ( www.plugpower.com ) and selecting the conference call link on the home page. A playback will be available online for a period following the call.

About Plug Power Inc.

The architects of modern fuel cell technology, Plug Power revolutionized the industry with cost-effective power solutions that increase productivity, lower operating costs and reduce carbon footprints. Long-standing relationships with industry leaders forged the path for Plug Power's key accounts, including Walmart, Sysco, P&G and Mercedes. With more than 2,800 GenDrive units deployed to material handling customers, accumulating over 8 million hours of runtime, Plug Power manufactures tomorrow's incumbent power solutions today. Additional information about Plug Power is available at www.plugpower.com .

The Plug Power Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4446

Plug Power Inc. Safe Harbor Statement

This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.These statements are based on current expectations that are subject to certain assumptions, risks and uncertainties, any of which are difficult to predict, are beyond Plug Power's control and that may cause Plug Power's actual results to differ materially from the expectations in Plug Power's forward-looking statements including the risk that we continue to incur losses and might never achieve or maintain profitability, the risk that we expect we will need to raise additional capital to fund our operations and such capital may not be available to us; the risk that the previously disclosed expected uses of the Company's recently raised capital may change; our lack of extensive experience in manufacturing and marketing products may impact our ability to manufacture and market products on a profitable and large-scale commercial basis; the risk that unit orders will not ship, be installed and/or convert to revenue, in whole or in part; the cost and timing of developing Plug Power's products and its ability to raise the necessary capital to fund such development costs; the cost and availability of fuel and fueling infrastructures for Plug Power's products; market acceptance of Plug Power's GenDrive system; Plug Power's ability to establish and maintain relationships with third parties with respect to product development, manufacturing, distribution and servicing and the supply of key product components; the cost and availability of components and parts for Plug Power's products; Plug Power's ability to develop commercially viable products; Plug Power's ability to reduce product and manufacturing costs; Plug Power's ability to successfully expand its product lines; Plug Power's ability to improve system reliability for GenDrive; competitive factors, such as price competition and competition from other traditional and alternative energy companies; Plug Power's ability to manufacture products on a large-scale commercial basis; Plug Power's ability to protect its intellectual property; the cost of complying with current and future governmental regulations; and other risks and uncertainties discussed under "Item IA-Risk Factors" in (i) Plug Power's annual report on Form 10-K for the fiscal year ended December 31, 2011, filed with the Securities and Exchange Commission ("SEC") on March 30, 2012 and (ii) in Plug Power's quarterly report on Form 10-Q for the quarter ended March 31, 2012 filed with the SEC on May 15, 2012, as well as in the other reports Plug Power files from time to time with the SEC. Plug Power does not intend to, and undertakes no duty to update any forward-looking statements as a result of new information or future events.

Plug Power Inc.        
Financial Highlights       
         
Balance Sheets (Dollars in thousands):        
(unaudited)        
  June 30, 2012 December 31, 2011    
Assets         
Current assets:         
Cash and cash equivalents   $ 15,851  $ 13,857    
Accounts receivable   11,126  13,389    
Inventory   9,511  10,355    
Prepaid expenses and other current assets   1,182  1,894    
         
Total current assets   37,670  39,495    
         
Property, plant and equipment, net   7,637  8,687    
Note receivable   601  --     
Intangible assets, net   6,316  7,474    
         
Total assets   $ 52,224  $ 55,656    
         
Liabilities and Stockholders' Equity         
Current liabilities:         
Accounts payable   $ 4,144  $ 4,669    
Accrued expenses   2,404  3,173    
Product warranty reserve   1,020  1,211    
Borrowings under line of credit   --   5,405    
Deferred revenue   4,038  2,505    
Other current liabilities   545  80    
         
Total current liabilities   12,151  17,043    
         
Common stock warrant liability   3,029  5,321    
Deferred revenue   3,061  3,037    
Other liabilities   1,214  1,219    
         
Total liabilities   19,455  26,620    
         
Stockholders' equity   32,769  29,036    
         
Total liabilities and stockholders' equity   $ 52,224  $ 55,656    
         
         
Statements of Operations (Dollars in thousands):  Three months ended June 30,   Six months ended June 30, 
(unaudited)        
   2012   2011   2012   2011 
Revenue        
Product and service revenue   $ 7,201  $ 2,621  $ 14,438  $ 7,614
Research and development contract revenue   458  1,563  973  2,348
Licensed technology revenue   --   163  --   326
Total revenue   7,659  4,347  15,411  10,288
         
         
Cost of revenue and expenses        
Cost of product and service revenue  8,643  4,931  17,703  11,622
Cost of research and development contract revenue  833  2,474  1,598  3,811
Research and development expense   1,577  1,106  2,805  2,169
Selling, general and administrative expense   3,567  3,883  7,503  7,444
Amortization of intangible assets   573  589  1,149  1,170
         
Operating loss   (7,534)  (8,636)  (15,347)  (15,928)
         
Interest and other income and net realized losses from available-for-sale securities   44  87  91  121
Change in fair value of warrant liability   1,053  1,791  2,292  1,791
Interest and other expense and foreign currency gain (loss)   (43)  5  (99)  20
         
Net loss   $ (6,480)  $ (6,753)  $ (13,063)  $ (13,996)
         
Loss per share: Basic and diluted  $ (0.17)  $ (0.41)  $ (0.43)  $ (0.95)
         
Weighted average number of common shares outstanding  37,853,358  16,320,235  30,645,479  14,781,215
         
         
         
Plug Power Inc.         
Reconciliation of Non-GAAP financial measures         
         
Reconciliation of Reported Net loss to EBITDAS        
         
   Three months ended June 30,   Six months ended June 30, 
         
   2012   2011   2012   2011 
         
Operating loss, as reported   $ (7,534)  $ (8,636)  $ (15,347)  $ (15,928)
         
Stock based compensation   499  611  1,023  1,003
Depreciation and amortization   1,062  1,137  2,124  2,223
         
EBITDAS   $ (5,973)  $ (6,888)  $ (12,200)  $ (12,702)
         
EBITDAS is defined as operating income (loss), as adjusted for depreciation and amortization expense and charges for equity compensation. EBITDAS is a non-GAAP measure of our financial performance and should not be considered as alternatives to net income or any other performance measure derived in accordance with GAAP, or as an alternative to cash flows from operating activities as a measure of our liquidity.
 
 
Reconciliation of Gross margin percentage to Adjusted gross margin percentage      
         
   Three months ended June 30,   Six months ended June 30, 
         
   2012   2011   2012   2011 
         
Product and service revenues, as reported   $ 7,201  $ 2,621  $ 14,438  $ 7,614
         
Deferred revenue recognized in the reporting period   (648)  (327)  (1,578)  (802)
Current invoiceable value of shipments, recorded to deferred revenue   669  273  2,655  526
         
Product and service revenues, as adjusted   $ 7,222  $ 2,567  $ 15,515  $ 7,338
         
Cost of product and service revenue   $ 8,643  $ 4,931  $ 17,703  $ 11,622
         
Gross margin percentage  (20.0%) (88.1%) (22.6%) (52.6%)
         
Adjusted gross margin percentage  (19.7%) (92.1%) (14.1%) (58.4%)
         
Gross margin percentage is a financial ratio used to indicate the relationship between cost of product and service revenue and product and service revenue. We use the term adjusted gross margin percentage to refer to product and service revenue, as adjusted, less total cost of product and service revenue as a percentage of product and service revenue, as adjusted. This non-GAAP financial measure allows management to view gross margin percentage as if revenue had been fully recognized upon invoicing. We believe that these non-GAAP measures, when taken together with our GAAP financial measures, allow us and our investors to better evaluate short-term and long-term profitability trends.
 
While management believes that these non-GAAP financial measures provide useful supplemental information to investors, there are limitations associated with the use of these non-GAAP financial measures. These measures are not prepared in accordance with GAAP and may not be directly comparable to similarly titled measures of other companies due to potential differences in the exact method of calculation.     
 
 
 
Plug Power Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(Unaudited)
 
  Six months ended
  June 30,
  2012 2011
Cash Flows From Operating Activities:     
Net loss   $ (13,063)  $ (13,996)
Adjustments to reconcile net loss to net cash used in operating activities:     
Depreciation   975  1,053
Amortization of intangible asset   1,149  1,170
Loss on disposal of property, plant and equipment   58  309
Stock-based compensation   1,023  1,003
Realized loss on available-for-sale securities   --  22
Change in fair value of warrant liability   (2,292)  (1,791)
Changes in assets and liabilities:     
Accounts receivable   2,263  66
Inventory   843  4,165
Prepaid expenses and other current assets   713  227
Issuance of note receivable   (601)  --
Accounts payable, accrued expenses, product warranty reserve and other liabilities   (1,033)  (4,799)
Deferred revenue   1,558  (601)
Net cash used in operating activities   (8,407)  (13,172)
     
Cash Flows From Investing Activities:     
Purchase of property, plant and equipment   (41)  (1,065)
Proceeds from disposal of property, plant and equipment   58  45
Proceeds from maturities and sales of available-for-sale securities   --  10,399
Net cash provided by investing activities   17  9,379
     
Cash Flows From Financing Activities:     
Purchase of treasury stock   --  (158)
Proceeds from issuance of common stock   17,192  22,027
Stock issuance costs   (1,402)  (1,862)
Proceeds (repayment) from borrowings under line of credit   (5,405)  --
Principal payments on long-term debt   --  (10)
Net cash provided by financing activities   10,385  19,997
     
Effect of exchange rate changes on cash   (1)  (8)
Increase in cash and cash equivalents   1,994  16,196
Cash and cash equivalents, beginning of period   13,857  10,955
     
Cash and cash equivalents, end of period   $ 15,851  $ 27,151
CONTACT: Media Contact:
         Reid Hislop
         Plug Power Inc.
         Phone: (518) 782-7700 ext. 1360
         media@plugpower.com
         
         Investor Relations Contact:
         Cathy Yudzevich
         Plug Power Inc.
         Phone: (518) 782-7700 ext. 1448
         investors@plugpower.com

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