A123 Systems (Nasdaq:AONE), a developer and manufacturer of advanced Nanophosphate® lithium ion batteries and systems, today announced financial results for the fourth quarter and full year ended December 31, 2011, consistent with preliminary results as announced on March 1, 2012.
"We believe our customer momentum and recent actions taken across our business will position A123 for strong revenue growth and improving profitability margins during 2012," said David Vieau, CEO of A123 Systems. "Our growing success in grid and commercial markets is expected to be a meaningful driver of our revenue growth in 2012, and it also has the potential to dramatically increase the diversification of our overall revenue base. At the same time, our pipeline of business in the transportation sector was at a record level as we began the new fiscal year, which provides us with optimism regarding A123's long-term revenue growth opportunity."
"We believe that A123 is well positioned to make progressive improvements in margins during 2012. While we faced challenges with manufacturing yields during 2011, we are pleased to see that our Michigan plant has recently produced prismatic cells within our targeted yield range. In addition, with more than 60 production programs across our targeted vertical markets, we expect to see a significant increase in capacity utilization by mid-2012, providing additional cost benefits," Vieau added. "In addition, our strengthened balance sheet provides us with resources to continue executing our growth strategy, and we will continue to seek additional opportunities to further expand our available resources."
Financial Highlights
Revenue:Total revenue for the fourth quarter of 2011 was $40.4 million, an increase of 68% from $24.0 million in the fourth quarter of 2010. Within total revenue, product revenue was $34.5 million, a 76% increase from $19.5 million in the fourth quarter of 2010, and services revenue was $5.9 million, compared to $4.5 million the fourth quarter of 2010.
For the year ended December 31, 2011, total revenue was $159.1 million, an increase of 64% compared to revenue of $97.3 million in the same period in 2010. Product revenue for the year ended 2011 was $139.1 million, compared to $73.8 million in the same period of 2010, and services revenue was $20.1 million, compared to $23.5 million in the same period of 2010.
Gross Profit/(Loss): Gross loss was ($37.5) million in the fourth quarter of 2011, compared to a gross loss of ($9.4) million in the fourth quarter of 2010. For the year ended December 31, 2011, gross loss was ($90.0) million, compared to ($17.4) million in the same period of 2010.
Net Income/(Loss):Net loss was ($85.0) million, or ($0.65) per common share, based on 129.9 million weighted average common shares outstanding in the fourth quarter of 2011. This compared to a net loss of ($45.7) million in the fourth quarter of 2010, or ($0.43) per common share, based on 105.0 million weighted average common shares outstanding.
For the year ended December 31, 2011, net loss was ($257.7) million, or ($2.12) per common share, based on 121.6 million weighted average common shares outstanding. This compares to a net loss of ($152.6) million, or ($1.46) per common share based on 104.4 million weighted average common shares outstanding.
Adjusted EBITDA: Adjusted EBITDA, a non-GAAP financial measure, was a loss of ($58.6) million in the fourth quarter of 2011, compared to ($35.2) million in the fourth quarter of 2010. For the year ended December 31, 2011, Adjusted EBITDA was ($194.5) million, compared to ($119.8) million for the full year 2010.
A reconciliation of GAAP to non-GAAP results has been provided in the financial statement tables included at the end of this press release. An explanation of these measures is also included below under the heading "Non-GAAP Financial Measures."
Cash:A123 Systems had cash and cash equivalents of $186.9 million as of December 31, 2011, compared to $225.8 million as of September 30, 2011.
Other Fourth Quarter and Recent Business Highlights
Product Revenue Mix:During the fourth quarter of 2011, transportation revenue was $13.1 million, grid revenue was $16.9 million and commercial revenue was $4.5 million. This compares to transportation revenue of $13.4 million, $2.3 million grid revenue and $3.8 million in commercial revenue in the fourth quarter of 2010.
For the full year 2011, transportation revenue was $84.3 million, an increase of 93% from 2010, electric grid revenue was $37.4 million, an increase of 176% from 2010, and commercial revenue was $17.4 million, an increase of 5% from 2010.
Product Shipments:During the fourth quarter of 2011, product shipments were 21.7 million watt hours, an increase of 21% compared to 18.0 million watt hours in the fourth quarter of 2010. For the full year 2011, A123 Systems recorded product shipments equivalent to 146.4 million watt hours, an increase of 133% compared to 2010.
Financial and Business Metric Summary
|
($ millions, except margins) |
4Q10 |
3Q11 |
4Q11 |
|
Revenue: |
$24.0 |
$64.3 |
$40.4 |
|
Gross Profit/(Loss): |
($9.4) |
($19.6) |
($37.5) |
|
Gross Margin: |
-39.0% |
-30.4% |
-92.8% |
|
Net Income/(Loss): |
($45.7) |
($63.7) |
($85.0) |
|
Adjusted EBITDA: |
($35.2) |
($49.4) |
($58.6) |
|
Cash and Equivalents: |
$216.8 |
$225.8 |
$186.9 |
|
Product Revenue Mix: |
|
|
|
|
Transportation |
$13.4 |
$34.5 |
$13.1 |
|
Grid |
$2.3 |
$20.5 |
$16.9 |
|
Commercial |
$3.8 |
$4.6 |
$4.5 |
|
Product shipments: |
18.0 MWh |
67.7 MWh |
21.7 MWh |
Non-GAAP Financial Measures
This press release contains a non-GAAP financial measure under the rules of the U.S. Securities and Exchange Commission for adjusted EBITDA. This non-GAAP information supplements and is not intended to represent a measure of performance in accordance with disclosures required by generally accepted accounting principles. Non-GAAP financial measures are used internally to manage the business, such as in establishing an annual operating budget. Non-GAAP financial measures are used by A123 Systems management in its operating and financial decision-making because management believes these measures reflect ongoing business in a manner that allows meaningful period-to-period comparisons. Accordingly, A123 Systems believes it is useful for investors and others to review both GAAP and non-GAAP measures in order to (a) understand and evaluate current operating performance and future prospects in the same manner as management does and (b) compare in a consistent manner the company's current financial results with past financial results. The primary limitations associated with the use of non-GAAP financial measures are that these measures may not be directly comparable to the amounts reported by other companies and they do not include all items of income and expense that affect operations. A123 Systems management compensates for these limitations by considering the company's financial results and outlook as determined in accordance with GAAP and by providing a detailed reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures in the tables attached to this press release.
A123 Systems defines "Adjusted EBITDA" as operating loss plus depreciation and amortization of tangible and intangible assets, which includes impairment charges, and stock-based compensation expense.
Conference Call Information
|
What: |
A123 Systems' fourth quarter 2011 financial results conference call |
|
When: |
Thursday, March 8, 2012 |
|
Time: |
8:00 a.m. ET |
|
Webcast: |
//ir.a123systems.com/ (live and replay) |
|
Live Call: |
(877) 266-0479, domestic |
|
|
(678) 894-3048, international |
|
Replay: |
(855) 859-2056, domestic |
|
|
(404) 537-3406, international |
|
Live and replay conference ID code: 45529995 |
|
