Record First Quarter 2021 with Gross Billings of Over $70 Million, Up More Than 60% Year-Over-Year; Reiterates Long-term Annual Gross Billings Targets
- Continues to Work Expeditiously to Complete Previously Announced Financial Restatement and Expects to File 2020 Annual Report on Form 10-K Inclusive of the Restated Period Within the Next Five Days
- Files Form 12b-25 to Extend Filing Date for First Quarter 2021 Form 10-Q
LATHAM, N.Y — Plug Power Inc. (NASDAQ: PLUG), a leading provider of turnkey hydrogen solutions building the global green hydrogen economy, today provided a business update as it works to complete its previously announced financial restatement and file its Form 10-K for the year ended December 31, 2020.
Plug Power continues to execute on its business objectives and remains well-positioned to leverage its industry leadership to capture a meaningful share of the $10T+ hydrogen economy. For the first quarter of 2021, the Company expects to report over $70 million in gross billings, a more than 60% increase from the first quarter of 2020 and expects to report over $67 million of net revenue, also a more than 60% increase from the first quarter of 2020. In addition, the Company maintains a strong balance sheet with over $5 billion of cash to fund future growth initiatives. The Company expects its second-quarter gross billings to exceed $105 million, an approximate 50% increase from the second quarter of 2020, and expects to report over $102 million of net revenue, also an approximate 50% increase from the second quarter of 2020. The Company is reiterating its previously disclosed annual gross billings targets of $475 million in 2021, $750 million in 2022, and $1.7 billion in 2024.
Andy Marsh, Plug Power’s President, and Chief Executive Officer, said, “The fundamentals of our business remain robust with record first-quarter gross billings. As evidenced by the continued advancement of our strategic pipeline, we remain firmly committed to executing our mission to build out the hydrogen economy in North America and beyond. We continue to deliver state-of-the-art fuel cell and green hydrogen solutions to our customers and remain confident in the growth trajectory of the business. We are working to complete our previously announced financial restatement as expeditiously as possible.”
The Company’s business momentum is further reinforced by recent strategic partnerships, including:
- An agreement with BAE Systems, a premier supplier and integrator of low and zero-emission electric propulsion systems and application integration, to collaborate on supplying zero-emission powertrains to heavy-duty transit bus original equipment manufacturers in North America. Plug Power will integrate its ProGen fuel cell engines into BAE Systems’ smart electric drive systems, providing hydrogen and refueling infrastructure to end-customers’ use points.
- Finalizing Power Purchase Agreements with multiple strategic partners including Brookfield Renewables, APEX, NYPA, and others, reflecting continued execution on building the first green hydrogen generation network in the U.S.
- An agreement to develop two 15 ton per day liquefaction plants with Chart Industries, which will utilize Chart’s helium refrigeration technology, cold box design, and rotating equipment. This positions the Company to have two hydrogen facilities operating by the end of 2022 as previously announced, and a technology platform to leverage for future hydrogen generation sites. These green hydrogen plants will be located in the Mid-Atlantic and Southeast U.S.
- Formalizing the formation of the Company’s joint venture with Renault expected by the end of the second quarter for on-road light commercial vehicles in Europe.
- Additionally, the Company expects to finalize joint ventures with SK for the Asian market and Acciona for hydrogen production in the Iberian Peninsula by the end of the third quarter.
Financial Restatement and Filing of Form 12b-25
As previously announced on March 16, 2021, the Company has determined to restate its previously issued financial statements for fiscal years 2018 and 2019 and its quarterly filings for 2019 and 2020, which will be disclosed in the Company’s Form 10-K for the year ended December 31, 2020, primarily relating to errors in accounting for various non-cash items, including:
- The reported book value of the right of use assets and related financial obligations;
- Loss accruals for certain service contracts;
- The impairment of certain long-lived assets; and,
- The classification of certain costs, resulting in a decrease in research and development expense and a corresponding increase in the cost of revenue.
As previously disclosed, the restatement is not expected to impact the Company’s cash position, business operations, or economics of commercial arrangements, and the restatement does not change the fundamentals of the Company’s business or growth trends.
Plug Power is working expeditiously with its independent auditor, KPMG LLP, to complete the restatement and file its Form 10-K. Plug Power and KPMG currently expect that the Company will file its Form 10-K within the next five days.
Given the time and focus dedicated to the restatement process and the completion and filing of the Company’s 2020 Form 10-K, the Company requires additional time to complete its customary quarterly review and reporting process and the filing of its Form 10-Q for the first quarter ended March 31, 2021. As a result, the Company has filed a Form 12b-25 with the U.S. Securities and Exchange Commission to extend the Form 10-Q filing due date from May 10, 2021, to May 17, 2021. The Company is committed to filing its Form 10-Q as expeditiously as possible following the completion of its restatement and filing of its Form 10-K.