Plug Power Inc. (PLUG, Financial) filed Quarterly Report for the period ended 2010-09-30.
Plug Power Inc. has a market cap of $65.8 million; its shares were traded at around $0.5005 with and P/S ratio of 5.4. PLUG is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Interest and other income for the three months ended September 30, 2010 decreased approximately $485,000, or 77.4%, to $142,000 from $627,000 for the three months ended September 30, 2009. This decrease is primarily related to lower cash balances coupled with lower yields on our investments due to a declining interest rate environment offset by increased rental income received from our Latham facility. Interest income on trading securities and available-for-sale securities for the three months ended September 30, 2010 was approximately $0 and $49,000, respectively. Interest income on trading securities and available-for-sale securities for the three months ended September 30, 2009 was approximately $95,000 and $94,000, respectively.
Interest and other income for the nine months ended September 30, 2010 decreased approximately $565,000, or 42.9%, to $753,000 from $1.3 million for the nine months ended September 30, 2009. This decrease is primarily related to lower cash balances coupled with lower yields on our investments due to a declining interest rate environment offset by increased rental income received from our Latham facility. Interest income on trading securities and available-for-sale securities for the nine months ended September 30, 2010 was approximately $352,000 and $157,000, respectively. Interest income on trading securities and available-for-sale securities for the nine months ended September 30, 2009 was approximately $570,000 and $299,000, respectively.
Gain on auction rate debt securities repurchase agreement. In December 2008, the Company entered into a Repurchase Agreement with the third-party lender such that the Company may require the third-party lender to repurchase the auction rate debt securities pledged as collateral for the Credit Line Agreement, at their par value, from June 30, 2010 through July 2, 2012. As a result of the Repurchase Agreement entered into with a third party lender in December 2008, the Company reclassified the auction rate debt securities from available-for-sale securities to trading securities. The Company elected to record this item at its fair value in accordance with FASB ASC No. 825-10-25, Fair Value Option. The third-party lender repurchased the securities on July 1, 2010 in accordance with the Repurchase Agreement. The corresponding Credit Line Agreement was paid in full on July 1, 2010 in conjunction with the repurchase of the auction rate debt securities. The change in fair value of approximately $2.8 million and $6.0 million during the three and nine months ended September 30, 2010 was recorded as a loss in the condensed consolidated statements of operations which is offset by the change in fair value of the auction rate debt securities held as collateral of approximately $2.8 million and $6.0 million that is recorded as a gain in the condensed consolidated statements of operations for the three and nine months ended September 30, 2010. At December 31, 2009, the fair value of this item was $6.0 million. The change in fair value of approximately $570,000 and $4.1 million during the three and nine months ended September 30, 2009 was recorded as a loss in the condensed consolidated statements of operations which is offset by the change in fair value of the auction rate debt securities held as collateral of approximately $570,000 and $4.1 million that is recorded as a gain in the condensed consolidated statements of operations for the three and nine months ended September 30, 2009.
The Company had pledged these securities as collateral to a third-party lender for a Credit Line Agreement (See Note 10, Credit Line Agreement and Auction Rate Debt Securities Repurchase Agreement) entered into in December 2008. In December 2008, the Company entered into a Repurchase Agreement with a third-party lender such that the Company may require the third-party lender to repurchase the auction rate debt securities pledged as collateral for the Credit Line Agreement at their par value, from June 30, 2010 through July 2, 2012 as full settlement for the advances on the Credit Line Agreement. The fair value of the Repurchase Agreement at its origination was $10.2 million. The fair value of the Repurchase Agreement at September 30, 2010 and December 31, 2009 was $0 and $6.0 million, respectively and is recorded as an asset on the condensed consolidated balance sheets. The change in fair value of approximately $2.8 million and $570,000 during the three months ended September 30, 2010 and 2009, respectively, was recorded as a loss in the condensed consolidated statements of operations which is offset by the change in fair value of the auction rate debt securities held as collateral of approximately $2.8 million and $570,000 that is recorded as a gain in the condensed consolidated statements of operations for the three months ended September 30, 2010 and 2009, respectively. The change in fair value of approximately $6.0 million and $4.1 million during the nine months ended September 30, 2010 and 2009, respectively, was recorded as a loss in the condensed consolidated statements of operations which is offset by the change in fair value of the auction rate debt securities held as collateral of approximately $6.0 million and $4.1 million that is recorded as a gain in the condensed consolidated statements of operations for the nine months ended September 30, 2010 and 2009, respectively.
During the nine months ended September 30, 2010, cash used for operating activities was $39.5 million, consisting primarily of a net loss of $38.4 million offset, in part, by non-cash expenses in the amount of $5.5 million, including $4.1 million for amortization and depreciation, $1.3 million for stock based compensation, $99,000 for loss on disposal of property, plant and equipment and $10,000 in bad debt. Cash provided by investing activities for the nine months ended September 30, 2010 was $95.4 million, consisting of $59.4 million in proceeds from trading securities and $37.5 million of maturities (net of purchases) of available-for-sale securities offset, in part, by $1.2 million used to purchase property, plant and equipment and $284,000 used as an investment in leased property. Cash used for financing activities for the nine months ended September 30, 2010 was approximately $60.1 million consisting of $59.4 million in repayment of borrowings under line of credit, $442,000 for the purchase of treasury stock and $314,000 in principal payments on long-term debt.
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Plug Power Inc. has a market cap of $65.8 million; its shares were traded at around $0.5005 with and P/S ratio of 5.4. PLUG is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
In the product and service revenue category, during the nine months ended September 30, 2010, we shipped 371 fuel cell systems (361 are related to sales to end customers and 10 were delivered to Central Grocers under a lease arrangement whereby Plug Power retains title and ownership of the equipment) as compared to 172 fuel cell systems (32 are related to sales to end customers and 140 were delivered to Central Grocers under a lease arrangement whereby Plug Power retains title and ownership of the equipment) shipped during the nine months ended September 30, 2009. In the nine months ended September 30, 2010, we recognized approximately $8.1 million of revenue for products shipped or delivered or services rendered in the nine months ended September 30, 2010 as compared to approximately $1.0 million of revenue recognized in the nine months ended September 30, 2009 for products shipped or delivered or services rendered in the nine months ended September 30, 2009, which includes approximately $934,000 of non-deferred revenue. Additionally, in the nine months ended September 30, 2010 we recognized approximately $2.2 million of product and services revenue from fuel cell shipments made prior to 2010, whereas in the nine months ended September 30, 2009 we recognized approximately $2.6 million of product and service revenue from fuel cell shipments made prior to 2009.Interest and other income for the three months ended September 30, 2010 decreased approximately $485,000, or 77.4%, to $142,000 from $627,000 for the three months ended September 30, 2009. This decrease is primarily related to lower cash balances coupled with lower yields on our investments due to a declining interest rate environment offset by increased rental income received from our Latham facility. Interest income on trading securities and available-for-sale securities for the three months ended September 30, 2010 was approximately $0 and $49,000, respectively. Interest income on trading securities and available-for-sale securities for the three months ended September 30, 2009 was approximately $95,000 and $94,000, respectively.
Interest and other income for the nine months ended September 30, 2010 decreased approximately $565,000, or 42.9%, to $753,000 from $1.3 million for the nine months ended September 30, 2009. This decrease is primarily related to lower cash balances coupled with lower yields on our investments due to a declining interest rate environment offset by increased rental income received from our Latham facility. Interest income on trading securities and available-for-sale securities for the nine months ended September 30, 2010 was approximately $352,000 and $157,000, respectively. Interest income on trading securities and available-for-sale securities for the nine months ended September 30, 2009 was approximately $570,000 and $299,000, respectively.
Gain on auction rate debt securities repurchase agreement. In December 2008, the Company entered into a Repurchase Agreement with the third-party lender such that the Company may require the third-party lender to repurchase the auction rate debt securities pledged as collateral for the Credit Line Agreement, at their par value, from June 30, 2010 through July 2, 2012. As a result of the Repurchase Agreement entered into with a third party lender in December 2008, the Company reclassified the auction rate debt securities from available-for-sale securities to trading securities. The Company elected to record this item at its fair value in accordance with FASB ASC No. 825-10-25, Fair Value Option. The third-party lender repurchased the securities on July 1, 2010 in accordance with the Repurchase Agreement. The corresponding Credit Line Agreement was paid in full on July 1, 2010 in conjunction with the repurchase of the auction rate debt securities. The change in fair value of approximately $2.8 million and $6.0 million during the three and nine months ended September 30, 2010 was recorded as a loss in the condensed consolidated statements of operations which is offset by the change in fair value of the auction rate debt securities held as collateral of approximately $2.8 million and $6.0 million that is recorded as a gain in the condensed consolidated statements of operations for the three and nine months ended September 30, 2010. At December 31, 2009, the fair value of this item was $6.0 million. The change in fair value of approximately $570,000 and $4.1 million during the three and nine months ended September 30, 2009 was recorded as a loss in the condensed consolidated statements of operations which is offset by the change in fair value of the auction rate debt securities held as collateral of approximately $570,000 and $4.1 million that is recorded as a gain in the condensed consolidated statements of operations for the three and nine months ended September 30, 2009.
The Company had pledged these securities as collateral to a third-party lender for a Credit Line Agreement (See Note 10, Credit Line Agreement and Auction Rate Debt Securities Repurchase Agreement) entered into in December 2008. In December 2008, the Company entered into a Repurchase Agreement with a third-party lender such that the Company may require the third-party lender to repurchase the auction rate debt securities pledged as collateral for the Credit Line Agreement at their par value, from June 30, 2010 through July 2, 2012 as full settlement for the advances on the Credit Line Agreement. The fair value of the Repurchase Agreement at its origination was $10.2 million. The fair value of the Repurchase Agreement at September 30, 2010 and December 31, 2009 was $0 and $6.0 million, respectively and is recorded as an asset on the condensed consolidated balance sheets. The change in fair value of approximately $2.8 million and $570,000 during the three months ended September 30, 2010 and 2009, respectively, was recorded as a loss in the condensed consolidated statements of operations which is offset by the change in fair value of the auction rate debt securities held as collateral of approximately $2.8 million and $570,000 that is recorded as a gain in the condensed consolidated statements of operations for the three months ended September 30, 2010 and 2009, respectively. The change in fair value of approximately $6.0 million and $4.1 million during the nine months ended September 30, 2010 and 2009, respectively, was recorded as a loss in the condensed consolidated statements of operations which is offset by the change in fair value of the auction rate debt securities held as collateral of approximately $6.0 million and $4.1 million that is recorded as a gain in the condensed consolidated statements of operations for the nine months ended September 30, 2010 and 2009, respectively.
During the nine months ended September 30, 2010, cash used for operating activities was $39.5 million, consisting primarily of a net loss of $38.4 million offset, in part, by non-cash expenses in the amount of $5.5 million, including $4.1 million for amortization and depreciation, $1.3 million for stock based compensation, $99,000 for loss on disposal of property, plant and equipment and $10,000 in bad debt. Cash provided by investing activities for the nine months ended September 30, 2010 was $95.4 million, consisting of $59.4 million in proceeds from trading securities and $37.5 million of maturities (net of purchases) of available-for-sale securities offset, in part, by $1.2 million used to purchase property, plant and equipment and $284,000 used as an investment in leased property. Cash used for financing activities for the nine months ended September 30, 2010 was approximately $60.1 million consisting of $59.4 million in repayment of borrowings under line of credit, $442,000 for the purchase of treasury stock and $314,000 in principal payments on long-term debt.
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