Plug Power (PLUG) 9 May 182018 Q1 Earnings call transcript

Ladies and gentlemen, greetings and welcome to the Plug Power First Quarter Earnings Call. At this time, all participants are in a listen-only mode. [Operator Instructions] It is now my pleasure to introduce your host Teal Vivacqua. Thank you.

You may begin.

you. Thank welcome Power and earnings first the call. to morning XXXX Plug quarter Good include but impact further revenue, statements, statements for call collections testing and derived vehicle from gross forward-looking cash expansion the This expansion will those XXXX, outlook the and including margins. liquidity including, Amazon sites service GenDrive be expectations cash and our reductions, full margin, relationships bookings, GenKey usage, about regarding in not growth, the year and to flow for revenue in market of applications and XXXX the Europe, and of deployments in opportunities and positive ProGen, cost units, of future relationships our gross and including to limited achieving electric Walmart on-road to Section these of Securities Section of in be by that statements or XXXX, the XXA Exchange provisions of intend forward-looking of Safe XXE forward-looking Act covered Harbor We XXXX. contained Act the the Securities statements that it We our to is expectations communicate believe investors. important to future

under rely item Schedule but XXA Annual actual to a cautioned they uncertainties and However, the investors risks the materially risks involve factors, definitive to statement and because on risk statements December our proxy and uncertainties Andy on would XX, call. point, on on may or factors, as in March forward-looking SEC. Marsh. ending limited update undertake day any which forward-looking various we our from the Form year XA, the CEO, file with the including of XX, These to made statements to statements as are those I after not discussed turn discussed Report forward-looking result from reports other differ At only fiscal this for speak and as to not time-to-time results the are XX-K over Power's XXXX, XXXX, and the call filed we Plug SEC do well not on as this like statements with of intend unduly

a clear our success everyone. Thank and morning Teal and our you, in of good for description letter provides XXXX. quarterly today performance The investor recipe

this there product EBITDAS breakeven of goal product cells ingredients; to Our in are one, main this the reduction is fueling the such continue half four and To our year. as achieve GenDrive of stations. more objective for two second hydrogen sales GenFuel And cost. fuel to achieve year

years During have consistently for our two the we met objectives these goals. past

and objectives. have The have To our EBITDAS Our combination $XXX challenges of molecule costs these in allocated us second revenue have and half goals items even $XXX to service our between in and for to cost achieve which is guidance break the cost. resources detailed achieve costs million will plans to of sufficient we four, XXXX. been, allow our XXXX, million service molecule three, meet hydrogen hydrogen fuel

stacks These with engines, term to We performance. ProGen an and a especially across to hydrogen engines. our vans and scheduled forgotten electric applications the delivery products in this generation future high focused, plate infrastructure the to The be plans XXXX. not are into interface metal a applicable class airport the initial that of are Leveraging but in support quarter if stack, establishing for for will The our product buses. of of cell system ground the power easily ranges globe, fourth fuel offers are ProGen engines best short future. which out the today. areas integrated designed ProGen trucks can geographical equipment, support existing are integrators highlights is investor roll vehicles. power simply The variety letter density next

trucks, vehicles cells some are rapid specific fuel hours cells, for the fueling fuel and a range cells solutions the such will road powering Power's for valuable goals electric electric Plug foremost open for fuel long our The targets. and questions. year This I as and for hydrogen as markets EBITDAS makes first automatic day many of vehicles. applications. we Paul now and for power markets these to operating meet right said, on we've solution As density develop forklift are buses well vehicles, guided as continue

of Thank at Hallum. will and from first gentlemen Ladies we comes conducting this our from Craig session. Our question ahead. [Operator go Please you. time Q&A be Instructions] Stine line Eric

Hi, Paul. and Andy

Eric. morning, Good

the third you also and I potentially then just the maybe that I mean is to someone the could see or major mentioned, their little it food big or share you've there in the that two wanted about this mean morning, customer about we past is are any characterize customers Good a talk mega if else? you how plans can is bit distributor. about new talked details

distribution happened So rollout food is largest a the in first last quarter. someone answer your Eric, retailer to is retailers first. This footprint. United beginning, just it large in We're food else one of the States, so have question they the rather the

we the company it's So the if proposition proves in future. opportunity customer the out - think for large we value a

opportunities same actually finding cells interesting an with areas that suppliers is auto are are our of we've plants. to This we're some lot customer solutions there's as smaller and were we some customers to geographical one's fuel hydrogen auto is sites. find lower what the down of allow second developed beginning they that who us because rather to visit the auto their of solution cost some The see go companies interesting now around of a located in beginning - to the the Spartansburg as

that's sticking just the customer, still works that anything mega mean Got assume is it and has still third I changed there? or I - maybe in the that with that, third, then

always you of right organizations as and remember It's Amazon still I through quarter can thought going deals difficult months announced in same and customer the I with six the right - I with that customers, we're can and works it's independent and were folks actually of their people, these the working both the through in but I mega to work nine Walmart We're expect tell some a we'll path. with they closed deal. out systems. roll in had I the the large with be doing before the third the you

Maybe me, in got - Okay, just remind backlog. turning it. order of sort to well,

the And way rollouts are we've done already them. with by

Okay, thanks. you're Maybe just turning to something longer and orders that mean no backlog. order, I me this is giving remind

XX did We million bookings.

then And the mean, with that, just sticking obviously I ITC?

but mean beating EBITDAS sales. my is targets organization dominated cash revenue just flow to meet the that's what goal prime our the and so for on, EBITDAS you flows, year revenue so metrics are the know, cash the is you Right, need I and EBITDAS, and by obviously focused

I that any obviously can seeing definitely talk extended. way Great, about helping versus before the mean, is anyway you're now was ITC there, what in you

We week when - dramatically it working the has over had past funnel is and accelerated package, last meeting a the was it months. we're It activity. on the dominated two sales board by

vans at past until So equipment. ground we've interest support that huge, not as two delivery not but help deal of seen months would are XXXX, see it's great only as expect airport well which a handling, really deals been also I look some a of pipeline, the the revenue in the to over with in this material I huge just and

impression the how one see bit terms here was your build me, and quarter, under rest usage, flow, guess the year. should think of little the you a just rather that then of a I that about outlook capital for Got last I cash than in maybe of it there, might in just a working the build we

the metrics on lot Andy we've But and cash key latter mentioned, had flow, year, consistent of run was flow working drive was I be same are is to down mean we're over investment trying more in it levels there well build of laser that and cash Yeah, months. so part activity lot particularly time being discipline. to think the the a with - majority the as manage obviously with inventory focused the past, business our happens and capital, now I coming a tighter tied on volume so next in will years the some the EBITDAS

is we ramp the the But should doing to prepared build we're we see coming. primary profitably, commensurately quarter trying second in the investment to some our it run that's business delivering can. for the So focused on as we businesses as lean on focus and but as

thanks Okay, a lot.

you. Thank

Our next go question comes from the Please line of ahead. Chip from Moore Canaccord.

if first guys, you airport metal plays how Hey new maybe the in maybe core thanks. bit the forklift talk then in into market. that opportunity coming talk then a also think obviously on, the we ground outside vehicle can that expand market, and I QX deploying and you morning, up that Maybe if more out on stack Good you van and the can touch acts your it? about called

with almost the say in in in it's I - performed we vans the after with - trucks. really force and it other start well our the extremes performance see me many this Good delivery of as involved forklift than application an is question and would the easier program ways is our first flawlessly It's partners FedEx. let We've pleased variations week FedEx. as the with

stations that would where could you - geographical for places broader with California areas those I exist we So work regions know pretty been and on expect - today FedEx are, out. that's we've where talking obvious like a our products roll where fueling where about

cost in only to prototypes samples really cost where that the the a that will improvement we start to lab are be them roll can have density view the cells but stacks will And I value this and go the power cost vehicles, electric both are value a Hope make most provide power mobility you the stage cost and vehicles trucks, proposition that that of decision power built chip? second newer around decision somewhere about XX electric I during in for making look fuel in infrastructure the to the or than you because of and work which the and really a the at we're maximize that people initial put so the for purchase density different that. matched are the product, at by stacks we for are six and simple airport density, ground most is Toyota of and a in running an support And the - working On infrastructure really putting deals pretty the I know why have fuel important high can industry. packages critical at equipment the hydrogen one for that a helped you making, fleet - if lower is deployments for of moment we're take stronger. and forklift to versus in are a especially and be which outs probably and airport that our off much about shelf you and quarter, is XX five today support stacks infrastructure is is density equipment, hydrogen that is you're think to works people XX% able the infrastructure actually talking becomes to to hydrogen reduction excited ground when be integrate

if And market? what Yeah, I in ITS doubling is back thanks out we obviously what car on you you acceleration, it's look that got called there, a out Andy. traction the in for, an forklifts, think else how see Europe,

Yeah, all market place, I the infrastructure three fueling that really there's in put and and of at Germany which hydrogen areas commitment, place. in so countries those primarily U.K., France have three real hydrogen we're when look puts focusing,

Europe activities think focused start in It's France I of so units Germany sector, that the seeing up sustainability, of are reasonable aggressive with of that coming is proposition by we're and a Europe not manufacturing the I doublings deal. And a they're the and on fuel year bit great but sustainability the Europe. - but different, in companies retail think indifferent and number the picked - we'll six value, little in much months past more a the it's not, U.K. to over deploying American mainly cells we're expect it's to in over driven we're lot has

process. the are Europe, –more have we also I to in helps which service we teams people have look Europe, We in Europe think beginning European, in sales

Great - back how are Thanks be can May some goals into field this costs, on costs maybe plans the tracking lastly on the quarter. EBITDAS? hydrogen on delivery and just decent and confidence then about your how in on projects talk and half got guys. that service your your you you end

we've And was over success quarter. we meeting Yeah, to made Chip, behind, hydrogen at beat when a due towards so weeks the metrics bit some look are our first goals hours. our on business We But dependent service it, we and some the overtime. were is eight we significant our goals. internal of actually our service that stock past upon targeting on heavily little its in improvement. With

are more quarter. quite time that more we honestly stacks labor can for business profitable monitoring believe improvements spend on looking our and on to service have goals do. we it's there, making out will be we and we meet drive where of And time be great scale, real very we the So more deal comfortable our of a And which more and force track the we than efficiently. our we so business, can hours to as utilize appear we product ultimately

Great, thanks back in very hop much. queue. I'll Thanks.

is we straight and labor hit goals our about all very that's very Our can It's actually And service if and forward. Chip equation. stacks be it profitable. business the

Great.

you. Thank

line Carter from comes B. the go question of FBR. Driscoll from next ahead. Riley Our Please

guys. morning Good

morning. good Carter, Hey

launch play stack terms of - in terms V one how you timing up the partner in made is of critical successful we class to biggest follow with class of VIII. III, to hear the of across the select that just trying that China? on to that to new hoped And and JV electric in the I of vehicles a technology, announcements is Andy expand payload you that with increasingly IV, commercial obviously issues So in up kind

couple Just may those be all have are co-dependent, timing I you two, could of they just a about talk then ups. follow of whether

it's to about out when there term dependent to term, long so as payload. roll Long Sure. valuable offerings mentioned I - are Carter, term products. has beginning and which I you is think term, is us I upon customers I I short it a there - think - and short think think it not

Now, for, I think and in high think us efficiency, which lower will critical for product densities, XXXX position I cost, or plate success metal be XXXX, beyond. stacks XXXX

launch in don't China. it's required to I a think So partnership

market. required it's term successful in to the I business vehicle think a long establish commercial

changed of stations, but remaining it type fair down to, a to in Is it terms the that a discussions still acquisition you encompassing that has turnkey providing really with at has scope fuelling your you solution, are all? if have the that Okay, narrowed of the parties kind whether of really is related all? total

with that yes. think I most,

relatively most. on more But say in deliberate is there been would think these fuel the ProGen systematic emphasis been I than I probably we've that engines discussions - have with if very stations and think rewards I would prints with the opportunity foot risk. who brings discussions sum the have And dealing partners comfort. because both level I me which international say, and four just we are of

you rate XXXX your over But beginning and high may started un-reasonable? the with. think suppliers, grow maybe at Just believe a we in mean, Okay. are to in particular XXXX the you that about I is naturally at some kind want it anything? electric strong obviously –bring and Yeah, customer a comments hydrogen is may in vehicle you the commercial space? be beginning hitting mean, be can ITC of even without potentially really XXXX more electric mega the you quantifying high up into target from obviously then seems to talked least essentially out beginning like to on win about characterization, take is I seems Europe, your to really choose had, to and shipments it XXXX some ramping percolate deployments cannot how that you for not another the you of and business a to just even or XXXX. very a play customers or would may distribution lot mean, of deal con setting that year-on-year I to year, high in or the goals. financial But momentum like you're level acceleration focused third see question, to. given the XXXX I address level starting

participants been Good cells the conversation into with stepping I so a question, to fuel that feel industry be team, Carter. feel think my about I And like electric all you for our never management more with hydrogen feel - I've and I with vehicles. excited I seem Board,

excited So the about I am potential.

and cell opportunities the probably well at hydrogen and gas growth is brighter for fuel the large, For never unique I the what others three and said, the of been and because opportunities are versus All cells think of think you the past. I - the and companies opportunities will fuel but look I it's years, strong for the to are the to product. is the the I and times I of the market count an all Plug think the batteries Shell organization bad have are on going Shell see But XXXX agreed think we different think has being fuel can in like level commitment and the aggressively XX to providers I over I really hydrogen can is am the see companies in advantages. established I growth as with XX industry if mean on at available, haven't the different readily the I an growth industrial have companies cells good beginning that hydrogen then And it's for if I and have opportunities that now in look a I And those larger. tremendous. those Board think - performance makes to numbers will engage technology Shell can next And than like. benefit. more so I seen where market attributes engineer or that it's attributes that be

time good the I know we cell be to but the you off are I a think it's So head industry. not exact I fuel and am numbers, oil giving in

the much to with potentially technology with obviously of vans. Maybe delivery road back that kind think about done of Walmart, I then delivery? that the The are typically with them an we you there you've be some you as scope doing an last mean FedEx collaboration I of something the sure I'm outside ramping last probably update Amazon, that's Amazon, expansion may them can or part year. Andy. with of types and commentary equipments alluded in delivery what obviously are the with mail be on, with the as vehicles But with ground what particular delivery Okay, appreciate may of on mail angle

anything say can't Yes, I Carter. really more

one for Okay, last alright. just Maybe me.

be Just talk their to the hear build delivery may efforts purpose increasing cannibalize may either that drop even potentially about some would economics market or how OEMs to replacement, about be I even it's truck. cycles, to seeing do started or that not in or would a - if commentary of forklift some you've thoughts to build already? fact galvanize your in What's the about change

look the so cars a So at made if certain month II part in of increased you applications by XX%. fuel our where ago, that announcement - about we products for class the we

Now, collaboration so that done are some closely with working we've was OEM's. OEM, been certain in products there with where an

So which of customers, one where that new them provided our the deployment improved value large was for fuel goes at proposition. a into truck that vehicle the which extra

because can four, that and proposition cell engines start density in which - forklift trucks so and the OEMs cell value in with to next X.X going performance collaborating with five we we the OEMs developing them, year that the a fuel two and out So both going the are out. on of the and so will This retrofit truck forklift high are to it, ProGen's - put if integrated is going million high there, to between and Eventually it to engines are be trucks years But you be five you larger Plug out X our call equipment over are essentially are in them old million able go are stronger. fuel of and they'll on, million to integration this than in larger with are closer boxes we've period, to gets we a by there thinking is I companies. tanks of easily of going had there have be mind huge past their forklift that the people be market and activity are box boxes where trucks levels where is engines there's call we much us. throw to think XX selling

been this have some about who talked think Now this it, Day And channels who around develop in in folks where access; market Investor world. are we the have beginning if - I've you are who about I've access other with to OEMs. interested

So into our engines able hydrogen the become to I are think we think I snap ProGen's which easier are more to about trucks. support as and becomes just important going channels as as can smaller well as thinking sites forklift

back Appreciate get details. all queue. the Andy I'll the in

Okay, Carter.

question Our Instructions] Sutter Please comes Cowen. [ph] Thank from you. the following go ahead. line Chris from [Operator of

able wanted thanks second Most if questions taking I of year, mix bit you my my you see between can to to cadence year. of kind for call. the between, know on back half been of be it's any asked, end have quarter Hey and color would third the fourth kind of of a little there? going just provide a I the to of be provide loaded

My be between take two to quarters. expect - would it's be the about to we equal is going revenue

of kind just then many centers And check up wanted guys I after as cadence And the of and rest distributions those also installed kind on Walmart, can of two to just on looks you two year of might have deals to Amazon you the give on big on any the just maybe visibility you warrants? have as this what the timing perfect. the since and far - date. Okay, have how guys of - to like

the say Walmart. every let I to can Last agreed and with question - what's I'm years outlined XX three only to. [ph] public So we sites Paul warrant going take August

now - to can last I did on So roll say I are outs, year. you that's where Amazon's the - the plan to I XX say we we warrants? announce position did we our on as say I information. date can sites publicly Amazon shipping Amazon, can I'm approval not think plans you to success. are. classify a have that the what a Paul public and - in can't

Yeah, just context, probably end a I invested. Amazon's XX% close on think for to

going XX% and and the range but payments and we'll probably They of take the expected probably quantity a on over systems over record just struggle in I and to terms time. the million, works. XX% nature how Amazon structures next structure they though we Walmart probably invest quantity. the on pace on years - invest the XXX more the kind It systems then few on think more three forward will over we'll and next to warrants. of accesses us It's years their the on years two the that both net plus PTA to the that through Walmart just relationship, three the based be of buys and terms in in cash with of the the

in best little So of their to them longer want. for take bit a it terms will

the it's you Amazon years, when tranche of So, being through Paul about talk in invested fully first three XXX?

Yeah.

a Okay, and looking at over next is quarters couple to this stock something of the be that and kind run it's can we year we've rate is going range seen kind a kind be last as think fluctuating of the that's of that or then or a provision common couple number larger going something of quarters? for of in like warrants, just about to

expense purchases. with of and of that XXX recognize until them we'll associate qualified to is million Sure, each so

as get long of of but some in attributes, unfortunately in how stock on price, of XXX we'll have in it it and will price the that So think it particular what and quarter not may period characterize to the far a is time, in quarter. of for total size a be it complicate I stock they of charge go level. volatiles both calculation investing that vary it re-measured has movement or from And of as scale the but so something that that will with time-to-time hit until the other we'll course also million in revenues addition are have each would that terms it's may to there based a the in charge them

Thanks, I queue. appreciate that. I'll the in hop

that management Ladies is and back time have Gentlemen the Thank closing program to for all the would to for turn like Q&A today. you. now over I comments. we

Thank focus the to you. both guidance shareholder in investors call Thank laser I the New like York Officially, at New today. there on our and office, York and you Wednesday, our year, meeting for just the EBITDAS. Times is and to revenue analysts. reiterate see joining our hope the the meeting Procter's next that City, we're in for Goodwin building,

does you teleconference ladies Thank This our and gentlemen. conclude today. for

now at may your You off disconnect your and lines a you for your Thank log day. computer. have wonderful this time and participation