Plug Power Unveils Five-Year Plan Targeting $1 Billion of Revenue by 2024
September 18 2019 - 7:00AM
Plug Power Inc. (NASDAQ: PLUG), a leading provider of hydrogen
engines and fueling solutions enabling e-mobility, has rolled out a
new five-year plan that will position the company to deliver on an
annual basis by 2024 $1 billion of revenue, $170 million of
operating income, and $200 million of adjusted EBITDA. The plan is
being presented today during the 2019 Plug Power Symposium in
Latham, NY. The majority of the revenue growth is expected to come
from material handling industry, the Company’s core market, with
increasing contribution from on-road and stationary markets.
Operating margin and adjusted EBITDA margin expansion reflects
underlying operating leverage in the business model with potential
for upside from the multiple potential strategic moves in the
hydrogen generation business.
Within its core market of material handling, the Company expects
to generate annual revenue of approximately $750 million and sell
more than 25,000 units annually by 2024, up from about $235 to $245
million of expected revenue in 2019, an increase of over 3X. Plug
Power expects that this revenue acceleration will come from
continued growth from its anchor customers and the addition of one
new multi-site customer on an annual basis, coupled with expansion
in Europe/additional channel partners. By 2024 the Company expects
to generate $200 million of annual revenue from the on-road
electric vehicle market and $50 million of revenue from stationary
applications. Today, the Company estimates that the global total
available market (TAM) for the material handling industry is about
$30 billion. With its entry into the on-road market, the Company
believes the medium-term addressable market opportunity increases
more than 3X to over $100 billion and the long-term addressable
market opportunity increases 10X to $300 billion.
PLUG Power will also highlight its strong position in the
hydrogen business as the Company has now become the largest buyer
of liquid hydrogen in the world with over 80 hydrogen stations
deployed. The Company internal demand for hydrogen is expected to
increase to 85tons per day by 2024, up from 20tons per day today.
The Company is exploring various strategic initiatives, which could
turn hydrogen into a substantial recurring cash generating business
and providing upside to current operating income and adjusted
EBITDA targets for 2024.
Plug Power will also discuss its strong technology position in
the industry. Today Plug Power is the largest MEA manufacturer in
the US and plans to be the largest MEA manufacturer in the world by
2024. The Company has the best stack technology in the world and
expects to see continued technology improvements while opening new
markets. The Company’s modular ProGen Product allows it to power
any electric motor ranging from sub1KW to 250KW plus, essentially
being able to serve entire spectrum of class 1- class 8 engines. In
addition, the Company has the largest fleet of fuel cell systems
and associated hydrogen infrastructure in the field and has
accumulated over 1 billion miles of operational experience.
The Company will also provide details on its path to get to
operating income margin to 17% and adjusted EBITDA margin to
20%.
“We are delighted to be a leading solution provider to meet
unfolding vehicle electrification on a global basis and to
facilitate the growth of hydrogen economy” said Andy Marsh, CEO of
Plug Power. “We believe we have the team, technology and platform
in place to execute on this five-year plan. Furthermore, this $1
billion B in sales target represents less than one percent of our
long-term addressable market and believe we have substantial runway
for growth beyond this target.”
Broadcast Details Plug Power will be providing
a live webcast during day-two of the Plug Symposium.
- Date: September 18, 2019
- Time: 8:45 – 11:00 am ET
- Participant Dial-In: 877-405-1239
- Direct webcast:
https://event.webcasts.com/starthere.jsp?ei=1262628&tp_key=0901073ef4
The webcast can also be accessed at www.plugpower.com, selecting
the link on the home page.
About Plug Power Inc. The architect of modern
hydrogen and fuel cell technology, Plug Power is the innovator that
has taken hydrogen and fuel cell technology from concept to
commercialization. Plug Power has revolutionized the material
handling industry with its full-service GenKey solution, which is
designed to increase productivity, lower operating costs and reduce
carbon footprints in a reliable, cost-effective way. The Company’s
GenKey solution couples together all the necessary elements to
power, fuel and serve a customer. With proven hydrogen and fuel
cell products, Plug Power replaces lead acid batteries to power
electric industrial vehicles, such as the lift trucks customers use
in their distribution centers. Extending its reach into the
on-road electric vehicle market, Plug Power’s ProGen platform of
modular fuel cell engines empowers OEMs and system integrators to
rapidly adopt hydrogen fuel cell technology. ProGen engines are
proven today, with thousands in service, supporting some of the
most rugged operations in the world. Plug Power is the partner that
customers trust to take their businesses into the future. Learn
more at www.plugpower.com.
Cautionary Note on Forward Looking Statements
This communication contains “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995
that involve significant risks and uncertainties about Plug Power,
including but not limited to statements about Plug Power’s
expectations regarding full-year 2019 results, its five-year growth
plan, future growth in revenue, gross billings, gross margin,
operating income, adjusted EBITDA, annual system shipments,
hydrogen fuel sales and fueling stations, market size for products,
total GenDrive deployments, customer base and systems for delivery
vans, expansion into new markets, expansion with existing
customers, reductions in material costs and operating expenses,
increased fuel cell stack life, reductions in stack cost, size and
weight, and increased utilization of manufacturing capacity. You
are cautioned that such statements should not be read as a
guarantee of future performance or results, and will not
necessarily be accurate indications of the times that, or by which,
such performance or results will have been achieved. Such
statements are subject to risks and uncertainties that could cause
actual performance or results to differ materially from those
expressed in these statements. In particular, the risks and
uncertainties include, among other things, the risk that we
continue to incur losses and might never achieve or maintain
profitability; the risk that we will need to raise additional
capital to fund our operations and such capital may not be
available to us; the risk that 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 converted to revenue, in whole or in part; the
risk that pending orders may not convert to purchase orders, in
whole or in part; the risk that a loss of one or more of our major
customers could result in a material adverse effect on our
financial condition; the risk that a sale of a significant number
of shares of stock could depress the market price of our common
stock; the risk that negative publicity related to our business or
stock could result in a negative impact on our stock value and
profitability; the risk of potential losses related to any product
liability claims or contract disputes; the risk of loss related to
an inability to maintain an effective system of internal controls
or key personnel; the risks related to use of flammable fuels in
our products; the cost and timing of developing, marketing and
selling our products and our ability to raise the necessary capital
to fund such costs; the ability to achieve the forecasted gross
margin on the sale of our products; the risk that our actual net
cash used for operating expenses may exceed the projected net cash
for operating expenses; the cost and availability of fuel and
fueling infrastructures for our products; market acceptance of our
products, including GenDrive, GenSure and GenKey systems; the
volatility of our stock price; our 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 our products; our ability to develop
commercially viable products; our ability to reduce product and
manufacturing costs; our ability to successfully expand our product
lines; our ability to successfully expand internationally; our
ability to improve system reliability for our GenDrive, GenSure and
GenKey systems; competitive factors, such as price competition and
competition from other traditional and alternative energy
companies; our ability to protect our intellectual property; the
cost of complying with current and future federal, state and
international governmental regulations; risks associated with
potential future acquisitions; and other risks and uncertainties
referenced in our public filings with the Securities and Exchange
Commission (the “SEC”). For additional disclosure regarding these
and other risks faced by Plug Power, see disclosures contained in
our public filings with the SEC including, the “Risk Factors”
section of our Annual Report on Form 10-K for the year ended
December 31, 2018. You should consider these factors in evaluating
the forward-looking statements included in this presentation and
not place undue reliance on such statements. The forward-looking
statements are made as of the date hereof, and Plug Power
undertakes no obligation to update such statements as a result of
new information.
SOURCE: PLUG POWER
Plug Power Inc. |
Reconciliation of Non-GAAP Financial Measures |
(Dollars in 000's) |
|
|
|
|
Reconciliation of Forecasted
Operating Income to AdjustedEBITDA |
For the year ended December 31, 2024 |
|
|
|
Operating income, as
forecasted |
$ |
170,000 |
Stock-based compensation(1) |
|
15,000 |
Depreciation and amortization(2) |
|
15,000 |
Adjusted EBITDA |
$ |
200,000 |
|
|
Non-GAAP Measure |
|
To supplement the
Company’s unaudited financial data presented on a generally
accepted accounting principles (GAAP) basis, management has used
adjusted EBITDA, which is a non-GAAP measure. Forecasted
adjusted EBITDA for 2024 is defined as operating income, as
forecasted, plus stock-based compensation, plus depreciation and
amortization. This non-GAAP measure is an indicator management uses
as a basis for evaluating the Company’s performance and its ability
to service debt and other finance obligations, as well as for
forecasting future periods. Management also establishes
performance targets, annual budgets and makes operating decisions
based in part upon adjusted EBITDA. Disclosure of this non-GAAP
measure provides investors with the same information that
management uses for these purposes. In addition, investors have
historically requested, and the Company has historically reported
this non-GAAP financial measure as a means of providing consistent
and comparable information with past reports of financial results.
Adjusted EBITDA is not a measure of our performance under GAAP and
should not be considered in isolation or as an alternative to
operating income or any other measures prepared in accordance with
GAAP. While management believes that adjusted EBITDA provides
useful supplemental information to investors, there are limitations
associated with the use of this measure. Adjusted EBITDA is
not prepared in accordance with GAAP and may not be directly
comparable to a similarly titled measure of other companies due to
potential differences in the exact method of calculation.
Adjusted EBITDA should be read only in conjunction with the
Company’s consolidated financial statements prepared in accordance
with GAAP. |
|
|
Notes |
|
(1) Represents
employee compensation in form of the Company's shares. |
(2) Represents
depreciation and amortization expense related to the Company's
fixed assets and intangibles. |
Media Contact Kate GundryPluck
617.797.5174plugpower@pluckpr.com
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