Plug Power Reports 4th Q Results

Net loss for the fourth quarter of 2000 was $22.3 million, or $0.51 diluted loss per share.

Published: 09-Feb-2001

LATHAM, N.Y., Feb. 9 /PRNewswire/ -- Plug Power Inc. (Nasdaq: PLUG), today reported results for its fourth quarter and year ended December 31, 2000.

Net cash spending for the fourth quarter ended December 31, 2000 was $18.7 million, in line with management expectations.

Contract revenue for the fourth quarter of 2000 was $1.5 million as compared to $4.3 million for the fourth quarter ended December 31, 1999. Net loss for the fourth quarter of 2000 was $22.3 million, or $0.51 diluted loss per share, as compared to $8.5 million, or $0.23 diluted loss per share, for the fourth quarter ended December 31, 1999.

Contract revenues, derived primarily from government grants, for the year ended December 31, 2000, were $8.4 million as compared to $11.0 million for the prior year. Net loss for the year ended December 31, 2000, which includes a one-time non-cash charge in the amount of $7.4 million related to stock-based compensation for the company's former President and CEO, was $86.2 million, or $1.99 diluted loss per share. Excluding the one-time charge, net loss for the year ended December 31, 2000 was $78.8 million, or $1.82 diluted loss per share, as compared to $33.5 million, or $1.27 diluted loss per share, for the year ended December 31, 1999.

Research and development expenditures for the fourth quarter ended December 31, 2000 were $19.0 million as compared to $6.6 million for the same period of the prior year. For the year ended December 31, 2000, research and development expenditures were $65.9 million as compared to $20.5 million.

Interest income was $1.7 million in the fourth quarter of 2000 and $8.2 million for the year ended December 31, 2000.

Weighted average shares outstanding for the quarter ended December 31, 2000 increased to 43.7 million shares compared to 36.9 million for the same period last year. For the year ended December 31, 2000, weighted average shares were 43.3 million shares, as compared to 26.3 million shares for the year ended December 31, 1999. As of December 31, 2000 there were 43,795,513 shares issued and outstanding.

Over the past few months, Plug Power's executive management team was significantly strengthened with the hiring of Roger Saillant, President and Chief Executive Officer, and Robert Sinuc, Vice President of Engineering.

"My first weeks at Plug Power have been extremely busy and exciting," said Roger Saillant, Plug Power's president and chief executive officer. "I have focused my attention on customer requirements, cost reduction, reliability growth, and strategic relationships. I expect to complete my initial assessment of the company's operations in March, review my findings with the Board of Directors, and begin implementation of associated action plans."

Technical and manufacturing milestones were achieved during the fourth quarter, including the manufacture of the first 18 RU1 (Residential Unit 1) prototypes. In addition to the 18 prototypes, four RU1 development systems were built bringing the total to 113 systems built during 2000. These systems will be used to finalize design and prepare for the validation units, which are to be used for the reliability growth testing.

Plug Power's first product, RU1, will be a fully integrated, 60 Hz grid-parallel unit that will operate on natural gas. RU1 will be tightly marketed to selected utilities, General Electric and DTE Energy. Plug Power's fully integrated units convert natural gas into hydrogen-rich fuel that is passed through the system's fuel cell stack where electricity is electrochemically generated. The fuel cell's power conditioner then converts the electricity into high-quality alternating current for normal household use.

Other fourth quarter achievements included accumulation of 32,451 hours of system run-time on fuel cell units operating in the field, in laboratories and at Plug Power's fuel cell farm in Latham, N.Y. This brings the cumulative hours of system run-time to 133,451 through the end of the year.

On November 21, 2000, Plug Power was awarded its 18th patent. The U.S. Patent Office also recently approved another Plug Power patent, to issue later this spring, which covers a new "anti-islanding" technology for connecting distributed power generation systems to the utility grid. This technology provides a "smart" grid connection system to improve the safety and reliability associated with grid interaction. To date, Plug Power has filed a total of 125 patents related to fuel cell technology.

Plug Power has scheduled a conference call on February 9th at 10:00 AM (EST) to review its year-end and fourth quarter 2000 results. Interested parties are invited to participate. To listen to the conference call, please call (913) 981-5572. The live webcast can be accessed by logging onto http://www.plugpower.com. A playback of the call will be available on the web site for at least one month following the call. Please send any questions related to the financial results to investorrelations@plugpower.com or call Steven Zenker, Director of Investor Relations at 518-782-7700 extension 1248.

See the attached financial highlights for the year-end and fourth quarter 2000. For more information about Plug Power and to view its FAQ's and general presentation, please visit its web site at http://www.plugpower.com.

Plug Power is a leading designer and developer of on-site, electricity generation systems utilizing proton exchange membrane fuel cells for residential applications. The Latham, N.Y.- based company was founded in 1997, as a joint venture of DTE Energy Company and Mechanical Technology Incorporated. Plug Power Holland was founded in February 2000 as the first European operation base of Plug Power. The product will be sold globally through a joint venture with the General Electric Company, one of the world's leading suppliers of power generation technology and energy services. DTE Energy Technologies will distribute the units in Michigan, Illinois, Ohio and Indiana.

This press release may contain statements which are not historical facts and are considered forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements contain projections of Plug Power's future results of operations or of Plug Power's financial position or state other forward-looking information. In some cases you can identify these statements by forward-looking words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "should," "will" and "would" or similar words. You should not rely on forward-looking statements because Plug Power's actual results may differ materially from those indicated by these forward-looking statements as a result of a number of important factors. These factors include, but are not limited to, Plug Power's ability to develop a commercially viable fuel cell system; the cost and timing of developing Plug Power's fuel cell systems; market acceptance of Plug Power's fuel cell systems; Plug Power's reliance on Plug Power's relationship with General Electric; competitive factors, such as price competition, competition from other power technologies and competition from other fuel cell companies; the cost and availability of components and parts for Plug Power's fuel cell systems; the ability to raise and provide the necessary capital to develop, manufacture and market Plug Power's fuel cell systems; the cost of complying with current and future governmental regulations; and other risks and uncertainties discussed under the heading "Risk Factors" in Plug Power's Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 30, 2000 and the reports Plug Power files from time to time with the Securities and Exchange Commission. Plug Power undertakes no duty to update the information contained in this press release.


    Plug Power Inc.
    Condensed Consolidated Balance Sheets

                                                December 31,      December 31,
    Assets                                          2000              1999
    Current assets:
      Cash and cash equivalents                $58,496,563      $171,496,286
      Restricted cash                              290,000           275,000
      Marketable securities                     28,221,852                --
      Accounts receivable                        1,415,049         5,212,943
      Inventory                                  2,168,006           304,711
      Prepaid development costs                  2,041,668                --
      Other current assets                         694,178           124,380
        Total current assets                    93,327,316       177,413,320

    Restricted cash                              5,325,274         5,600,274
    Property, plant and equipment, net          32,290,492        23,333,791
    Intangible assets                            6,827,066                --
    Investment in affiliates                     9,778,784         9,778,250
    Prepaid development costs                    2,513,093                --
    Other Assets                                   767,193                --
      Total assets                            $150,829,218      $216,125,635

    Liabilities and Stockholders' Equity
    Current liabilities:
      Accounts payable                          $3,479,031        $4,644,496
      Accrued expenses and other current
       liabilities                               6,511,730         3,557,301
        Total current liabilities                9,990,761         8,201,797

    Long-term debt and other liabilities         6,707,813         6,517,304
      Total liabilities                         16,698,574        14,719,101

    Stockholders' equity                       134,130,644       201,406,534
      Total liabilities and stockholders'
       equity                                 $150,829,218      $216,125,635


    Plug Power Inc.
    Condensed Consolidated Statements of Operations

                             Three Months Ended             Year Ended
                                 December 31,               December 31,
                              2000         1999          2000          1999
    Contract revenue      $1,479,852   $4,298,748    $8,378,200   $11,000,344
    Cost of contract
     revenue               2,623,173    5,648,149    13,055,437    15,497,837
      Loss on contracts   (1,143,321)  (1,349,401)   (4,677,237)   (4,497,493)

    In-process research
     and development              --           --     4,984,000            --
    Research and
     development
     expense:
         Noncash research
          and development    247,782           --       247,782            --
         Other research
          and development 18,754,261    6,619,521    65,656,604    20,506,156
    General and
     administrative
     expense:
         Noncash general and
          administrative      81,440      866,700     7,595,073     3,228,800
         Other general and
          administrative   3,269,025    1,773,502     8,572,256     6,699,482
    Interest expense          97,557       81,737       362,996       189,586
      Operating loss     (23,593,386) (10,690,861)  (92,095,948)  (35,121,517)

    Interest income        1,706,798    2,756,372     8,181,265     3,123,955
    Loss before equity
     in losses of
     affiliate           (21,886,588)  (7,934,489)  (83,914,683)  (31,997,562)

    Equity in losses of
     affiliate              (425,893)    (559,500)   (2,327,216)   (1,471,750)
    Net loss            $(22,312,481) $(8,493,989) $(86,241,899) $(33,469,312)

    Loss per share -
     basic and diluted        $(0.51)      $(0.23)       $(1.99)       $(1.27)

    Weighted average
     number of shares
     outstanding          43,685,549   36,947,165    43,308,158    26,282,705
SOURCE Plug Power Inc.

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