PLUG - Earnings call transcript Q3 2020

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Hello, and welcome to the Plug Power’s Third Quarter 2020 Earnings Conference Call. At this time, all participants are in listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It’s now my pleasure to turn the call over to Teal Hoyos. begin. please Teal,

Teal Hoyos

the harbor to Call. Welcome intend Power XXA investors. Third Act the Section communicate XXXX Exchange Act of XXXX. forward-looking statements our Thank important to We call the will Earnings safe by covered This believe to We future contained XXE of for XXXX include the Quarter forward-looking statements you. be to of Plug in Securities Section provisions is expectations forward-looking Securities these of and that statements. it

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

Andy Marsh

detailed few the I our overview. thank quarter. to you description like Please Teal. And Plug a a Third past Letter conference Thank joining minutes for of Investor just you, Power’s quarter to provide for call. refer

billings. in the increase of from third represents performance. First, Company I’d operational XXX% highlight like achieved This $XXX XXXX. quarter million to gross our

validation quarter of this our years in business a to come. strong model really Second, is

we’re greatly this significant The basis of because know of achievement. past EBITDA generating of warrants our XX% on achieved EBITDA past price, of XXXX. XX% increased which this cost million adjusted this an I think EBITDA. hide adjusted increasing on stock We you quarter, targeting many $XX.X quarter, can

just XXXX, X,XXX the the versus units of and business, to shipped approximately GenDrive the all delivered X,XXX our of Third units acceleration past highlight in quarter. we

built also to record. business again, backup vehicles as power and expected. This moving growing is this stations we’re another hydrogen quarter, And We on-road systems. fueling XX in large-scale

First, on on-road with Doosan, vehicles, Linde, we Lightning. have and dealt

are We also for testing we have Europe. which fourth in deploying a OEM, large vehicles

large standard and Our require to with our vehicle market really low-volume or integrators approach some modifications is part on-road products OEMs, for straightforward. applications. may and business the large-scale Partnerships product on which ventures for

the from same energy the are regional excited market, have have they’re internal backup about Example for Fuel batteries. gravimetric in and reason restrictions data than of of we’ve building is because more our electric of center solutions. logistic Now, competitors, versus center vehicles, that do the combustion deployment on-road truck. told blocks advantages as units both density, similar for that power been engines deployment These backup finding generators XXXX. certain this the forklift of into restrictions scale customer, ProGen vehicles this and on-road customer hydrogen, systems. the increasingly second can become to quarter developed because integrate higher the We’ve deals we deploying of is, high and our cell I power XX% and the same customers regulations I real. opportunity large-scale eliminate to regions vehicles logistic to approach we’ll our for to is which product customers. large the similar and the impacting diesel to battery vehicles easier end now products at also be leveraged same The our both power density closed in for very customers I’m our of seeing ProGen into existing data making density electric now XX% module, for

For is way, backup they are they power, hydrogen We can’t hours use that must say, that these the you of because to really have the of prepare of grid. XX viable diesel to informing the customers electrical gen-sets. by solution meet example, fuel And requirements. believe California the cells only instability

or green wind hydrogen I XXXX. As our plants and more Brookfield say through announced – solar, progress also to opinion, green partnerships We hydrogen more building green tons with of I my a same. and to hearing that think generate important that’s XXX you’re in highlight I the X power. end-customers hydrogen in hydro of by Apex provide source think will like

expect design new of phase We’re of end the in for completion our XXXX. X and the by hydrogen plants,

and And forthcoming the support highlight that The be expect finally, will I increasing products to million for to from Paul billing target day. demand We location. are Plug $XXX another announcement our present With take acquisition, projecting and goals. and $XXX equipment The plants into now be we ability gigafactory quarter. will XXXX, our expect for ready investors, And interest is XXX we grow. of tied sustainability And hydrogen to the record recent gross approach Power the our designing Giner first will production leveraging with The for United green million. own late closely this is our demand of to customers’ note from order. to election renewables continue expertise in on convert QX will I for this we hydrogen that over, our internal are to million questions. our like be from ELX. by our progressing. to acquisition gigafactory an will is another our is in per now green operating to XXXX. $XXX year to tons demand And

Operator

question-and-answer coming you. We’ll Rusch session. conducting [Operator today be a Our from first now Thank is Colin Instructions] Oppenheimer. question from

Your line now is live.

Colin Rusch

guys… congrats all you on guys, and, much progress. the so Thanks Can

Andy Marsh

Thanks Paul and Drew.

Colin Rusch

Andy. hear voice. good always to It’s Hey, your

thinking you’re financing work can just at looking point? hydrogen and where this an and with I finance can structure side, the working the the side, deal give you’re these lot on you done know of sort at on about guys looking at you’re any detail at, of a partners, us As plants, – you might around update you that on number you’ve of be

Andy Marsh

finance being of plants, be probably year. the these by the Colin, question. of the you of thinking I’m to a I to at expect ground going X I just punt give remainder XX% then of equity would about side, on But your tell little, on by financing one XX% we one debt. a we Brookfield, with and the to Apex, When going So, do the to I’m can and look – of end guidance, kind kind being some of break

discussions in financial only industrial also more but who future. potential not – in would be with coming related. people I financial are that will the We And expect backers, more are

Colin Rusch

Okay, shifting the meaningful. a Can power the you about great. customer bit is to talk you just then, Thanks. for having guys, stationary market the opportunity little a in And product dynamics, is, how testing and the little process with those are, those a fuel you of detail the logistics big bit any for around that far through of gensets? funnel folks? How

Andy Marsh

the logistics some we’re space, in that, call. issues Yeah, the that And I quarter as that in have accelerated do space, data think customers really do California beginning in well second center deployment in the the we as has first quite of the both which discussion. really honestly, to

I revenue to continues my perspective, meaningful probably the grow. through XXXX. think funnel From it’s a see business that won’t you

– of the present our operations You see activities mentioned kind not logistics only with I’ve customers.

with activities center customers. the see data You

You thinking micro-grids. see about people also with activities

or almost thinks how So But thinking one points, could but So of depot lot distribution. it’s also about, a demonstrate a be opportunity. And And center I past generated we that, support model become time we actually you point that The a this interesting of Company, being real question a see to site, which is for hydrogen, as hit provide data solutions? the hurricane of. hydrogen success other on center backup, really about like for actually could you these logistics spend during they also a Southern do that on do customers? the

for one XXX of service for or power with Southern backup systems, customers. customers, Company. two we scale And our XXX power small-scale backup small actually So from them have we systems distribution The

but it you many have That’s in because really all one system – it fit of you’re kind So And interesting interesting hydrogen we how opportunities. think always together. that – for a have because so more to guys and question. is of actually sense, of that kind systems makes applications, really the uses about

Colin Rusch

incredibly That’s Andy. helpful, and here. pass it on Yeah. Thanks I’ll so much,

Andy Marsh

Okay.

Operator

Thanks.

Our Partners. next from question ROTH Irwin Craig is coming Capital from

Your now line is live.

Craig Irwin

my and thanks for morning questions. Good taking

Andy Marsh

Good Craig. morning,

Craig Irwin

know, EBITDA this not on guidance maybe a the is on This What focus of the to us solid to learning I result. sort you conservative or that’s ask over Can line? do the really of guidance. it’s see see quarters? Plug is going Congrats really mean, the performance talk Where talk wanted to give Hey, can some deliver. what’s conservative, allowing for on showing that nice EBITDA. we impressive about sustainable things next need right through you is you I you it to kind your is here. to and really about quarter tend earnings really can I you’re whether the of you But more side? couple bottom deliver strong a Andy. to

Andy Marsh

of a guidance. monitoring the and an on next think then revenue. [ph] that monitor. making that item question, customers, But step sales North I be pedestal monitoring [we Jose the systems in actually That’s of increasing that could would fourth is X XXXX delivering next next large a on-road X [ph] good for be Craig. I X in announcement power items America, critical I they I that’s was quarter are – if with is this think of pedestal vehicles, Plug, would EVP report] be back, our is customer. to Crespo, could first, backup scale take an And one Europe, customer. meaningful And, [TGE I are] working I who announcement if

would kind details and year of be would those more with X two look at would saying would use. we’re another I end success, that the by sites meaningful then, be ground sites. I’m of look, our some about I for breaking I hydrogen. the on guidepost looking So And announcements

So XX on for of and I’m track. that’s XXX we’re to – sure kind they’re of next things for make looking the PowerPoint my and the kind days,

Craig Irwin

that. you for Thank

sequential $XX bookings Can raised to the gross there But quarter, bit the So such – a deliveries take expected. in the usually in is is stock where strong Thanksgiving/Christmas a sales? because the out when this a had or It there tepid seasonal stock have maybe make? million. something fourth very forward quarter guidance their us fourth some the on it holiday implies something $XX third giving period, maybe $XX of revenue if the us as billings the you of little progression now would Are guidance, favorably, there you positively. interrupts confident going quarter that than can’t put What’s Is read seems gross strong tell just conservative? us more million there million quarter Is responds pedestal Plug many your it this, you’ve with very just such in was like to like from that given very at quarter? the your numbers you’re doesn’t strong? customers and has consensus and

Andy Marsh

Craig, wrong I’ve for recently the done years. past. been less I’ve than be to learned I’ve I’ve dozen – a this in been

the big taught think customers holiday make year seasons, change with valid said, me being I preparing. And don’t are really the it’s conservative. to to in they everything. – am major spend business holiday their I is another That – the be They want during season. the all season My also associated businesses’ logistics point. and you So

mix – every you happens this think different see the I and so year. quarter of the customers fourth And in

You the in see auto in space. and in see more logistics activity manufacturing generally year, space the the and than in quarter we the earlier fourth less

be next the dramatically this So to of stronger see in from again, I fourth the quarter quarter XXXX quarter we going incredibly of of XXXX. think, quarter And the XXXX. increasing first first is

all progress on. the seeing we’re So

Craig Irwin

about that the for UHG Tennessee plant. question is color. My you Thank next and

is of intensity color the and And given and a fuel for cells you that us the a using of plant you basis North hydrogen plants relative one chemicals guess, versus oil plant, waste then So bit can you little produce Do maybe on can good of America? green/gray/blue transportation hydrogen in color? consider pun. a are carbon this plants? hydrogen a you comment about other that of just give I that

Andy Marsh

Sure.

I do what one, So, consider.

at one Even I solar. it using just doing would conservative And at we a that CI blue look, you think Tennessee, to coming score deep – wind, and coming I coming burned score, though, weren’t a our a off is From is Craig, CI we’re green XX we’re deliver the CI the think, consider a a hydrogen to hydro Craig, And customer. dive if hydrogen from And from pure looking green just that, it’s fair deep, it we is in pump. actually and it. and about And our that mentioned that to plant to goal I score, the and using air that get the fuel plant. from plant definitions. think I’m goal hydrogen about other is for cells the power, hydrogen green hydrogen plant bring moment. in that fuel cells to ultimately be a

wheels, forward So but I telling wells more look about you there’s less from that. of to an to impact

the Hello? going on study Craig? detailed having We’re at a moment.

Operator

you. Thank

from Stine from Craig-Hallum. Our Eric next question is

live. Your now line is

Eric Stine

Hi, Andy.

Andy Marsh

Hi, Eric, you? how are

Eric Stine

are you? fine. I’m doing How

Andy Marsh

Good.

Eric Stine

Good.

on I OEM I So But But targeting I where in start was some things you’re know I you talking cover it have. little some X if to a revenues. we you’ve on-road about talked to where a to programs, curious, Europe. so also there could large apologize, you’re and already jumped can going late. contribute movement see mid-XXXX, about I’m know,

So X can Is part partner? is relationship? new is I And maybe we this of look that as a that mean, what for curious, those or a – customer of then, this X?

Andy Marsh

Sure.

of on the before the And I Doosan So it joined you Lightning mentioned the Linde, is X Eric. at X, have – deals moment. and we going with call,

OEM. Xth have the We

this partnerships I want about, in there’s integrators. is the about one to OEMs. be to programs these think to slightly soon large is market, making X Europe, our March, forward there – going to – market tell standard possible. announcements And it But early ventures channels, I expected than the with June. I force. discussions as announced or as mainly X can always think are One ongoing, June United or you the don’t the U.S. products early is are leveraging be Look in to deal X I X I I in the I take longer more expect. I and late announce in another

ongoing, cautious, a and be learned to soon. to I’ve and more but little So discussions hope be telling meaningful about that it are you plans

Eric Stine

Got it.

Okay, and last then pedestal one on for just customers. me

of wondering is to hope And sign then, that one XXXX in if you XXXX. to still the past the think, X that X that’s said about goals by still the end outlook. I get you to Curious, talked number to target still, as You’ve in mean, it if the total, your I that you well.

Andy Marsh

Yeah.

I number the X. think

X in – Crespo, if is expect I EVP potential X that And of is in mentioned working United we X by customers pedestal Sales working store Jose so call, have Jose yearend. And earlier we’ll the Europe. our with States, in the that with done still

Eric Stine

kind is said of you the X targeting And you’re Okay. for XXXX? number

Andy Marsh

correct. That’s

Eric Stine

Okay. lot. a Thanks

Andy Marsh

Okay. Eric. Thanks,

Operator

you. Thank

Riley. Sadler B. is from today Christopher from question Next coming

live. now is line Your

Christopher Sadler

for guys, the taking Hey, thanks question.

if First, through of walk some mechanics. I could wanted you the to warrant see

hit. orders It half quarter, was warrants as or Amazon were the matter thought the large the how very that? tranches in us in of exercise of of of on installments during of works a these vested remind kind smaller those the of warrants just math could some do quarter I as the Walmart second had those portion onetime. what typically about So paid

Andy Marsh

I’m – going Sure. going to I’m to and start to Chris. to off going Paul, off I’m tell you it then hand

warrants actually order. charged the each get So against

a charges, may is actually higher real So know, a warrant hard understand. I event the for be which folks is – non-cash positive. this The

warrants warrant that the original quarter price the XX is a actually of that of our which fact where the that the gets those for you’ve increased tranche, purchases dilution charges well, fact would that’s versus I warrant strike the of from so price a reset item doing And ultimately in for the is shareholders. price original is in times Yeah, is our with the rate the XX less I customers good and at higher, now, reset. those exceeded it increased think, XX, stock $XX real times highlight over last the So warrant cost products. third actually time, strike one $X.XX. higher these the price and pedestal is why really warrants, warrants strike says is And and it seen price means the

So, though, it’s in somewhat dilution time, financials really good. is this hard GAAP to seeing, really, all maybe the less

to proven years ago something negotiated really And now. it’s and X we shareholders, protect

like you to add from this of view? would an Paul, So accounting to point

Paul Middleton

proven from that and terms rate the XX approach just higher, which those it’s non-cash. the quarter. Yeah, set, which, get it, that’s X because basis, in purchases, It’s tranche, price is X is you the Black-Scholes GAAP see are the cost covered those the that moving the increase Andy final which of drivers and really the I that methodology, drove is a think, a And to are has use factors into accounting is in that change use. now jump which worth cost in Andy. as times, you why value the then we been book the delta said But so effect, the you increased

Christopher Sadler

of kind there? longer It’s going like look kind gives you and the what kind share? be you opportunity be the think just $XXX the it. maybe that announcements just customers as you like to million portion by you’d similar those are targets? pipeline it’s power high to then several that And idea material kind that a of to of of key that visibility, customers to backup where XXXX, And do need see get Got a from lion’s of handling, many this within level. term on Do of progressing targeted to stations going should doing how an wanted ramp hit

Andy Marsh

to know a more, there And the some I maybe One, with large think diesel policy and have I or set the a differences. large Chris, more you’re of scale you customers that that, large generators anymore. more think thinking good today will hotel, say, more customers, business But, allow probably policies absolutely and to which be initial real, really generator scale will market, are customers’ how of going ultimately, take-off associated more initial go think diesel names. because that’s and centers, I large think, customers, data large some yeah, pressure I may question. it opportunities, are a think you’ll And a see as And, policies. with be And I yeah, think, is those pressures. where and that’ll we And post-XXXX and that customer it’s first do ramp right, big in I that of a pick models, think present success. it’s they I well some opportunity. interesting that as of real have logistic our a I’ll enterprise policy, I a earners activity. take-off through both city those with government opportunity, market the won’t think but of

Christopher Sadler

of there, margins last are assume I about margins start the then, a the some to bit, hydrogen of I fuel quarters the of you That’s there. helpful. on any few walk in strategies. just gross were green want over up kind down, next settled was it sales one, some if is we onetime down moving I And through curious, pieces as to you the see Obviously, with there ramping integration could how hydrogen the of margins. of make should items, if kind the think

Andy Marsh

to want you margins the non-GAAP better the about on are basis. margins, probably I talk a think because do Paul,

Paul Middleton

thinking you’re of kick breakeven I actually look for is to non-GAAP if what a facility, continued efficiencies kick investing ramp quarter making United we’ve systems we additional able to And, capacity utilize move invest progression. see basis, it that I big Yeah, the we’re you saying as actually benefit effectively in. as And, and publicly, in mean, the the – starting think, think to that, to of continuing talked on out and Hydrogen the we’re strides. was existing and in year, that to in we’re increased starts into we’re I next you’ll

capacity directionally, the think online, facility, function. XXXX, efficiencies, line, see leverage then, and to to continue we I again, leverage have invested as So capacity, going another start when leverage comes you’re step there’ll to as existing existing in early we that great be we big the product in have new

that that we’re we’re play to pleased and I that to you’re So, see the direction the and think making with going efforts, continue continue to out.

Christopher Sadler

I’ll the for Thanks the color. back queue. in Understood. hop

Operator

you. Thank

Canaccord is Our from next from question Dorsheimer coming Genuity. Jed

line is live. now Your

Andy Marsh

Jed. Hi,

Jed Dorsheimer

I Andy, first, Hi, in I’ve of that misunderstanding, sound if me optimistic A heard read be, the I then backup lines, questions. power. guys. could just and more so thanks. you just – Hey, kind I’ve bullish lot between guess, couple but past, around a the it heard

guess, would more to think acquisitions, because, is Or I paying it? I market wanted that over XX your past to in you’ve been seen X bullish, days dynamics, and it’s more And that. and it optimism, so, unfold or Giner United this I’m And would you just little unpack to what is a – just have have curious, I the wasn’t what changed so? thought bit? always Or attention I’ve your of is maybe with terms that, that do

Andy Marsh

I think, correct. me if of is your Jed, read

customers, have so who about be me you backup the have what would sat people power and, would be – Is would with years I’m you hearing down I If ago, users it never these X.X market, changed. products. of from primarily me think, that positive heard

future, Microsoft I’m National is example, by which they’re And centers I’ll a it’d give Microsoft. internal that was with and everyone solution hydrogen why was So competitive with be cost engines the panel combustion in here when on I for the believing right celebrated, sure explained an data XXXX. Hydrogen Day,

electrolyzers backup as which it’s to now to of bullish hit ability to our provide distribute finally, large I hydrogen, going a you think system customers. from notions, solution a as I I also full And those think important it’s think logistic hear – well be power. scale I our another that ability with for sort on then, point

As this all market. have combination of – bullish of more the me about them made both

Jed Dorsheimer

other wonder, Got for the companies I changing challenges this is and in space it. I you the think conversation. of one

had well mentioned the the isn’t seems the as like it compare to traditional even internal terms competition. of in negative efficiency combustible, really just You compared but as externalities,

that could the that that akin example, refineries I value think battery same electrons blowing fact sky. and backup, the I United, gain that this your just energy Trenton looking Therefore, is in And to lowest grid fruit. and So shuttering into just in is of the used be generation the day of in asked why those the the to and through would the the keep to hanging to, comparison at of – of somewhere California, acquisition is when and some the utilities the particular, at that flaring off that and that’s it. for seems fact from solar hydrogen you in up driving going the the substations in question, complexity the your like look are versus actually shutting middle way

the So conversion trip get of this the ending physics has storage energy. in a lithium to other ion storage comparing of really where you lower down that don’t that conversation in round solutions, hydrogen or

Andy Marsh

question point, to it, When I’m I think, there’s I so think your answer Yeah, think an Jed. going interesting I too. about

First, I valuable on very you this point. think hit

Brouwer, only hydrogen cost Jack view, points. place DOE, seasonal storage. So of long-term a is of that storage point view, that significant from of about to In inter-day not density energy after a storage, XX about point has an from that that there about like have you hours, like but California, UC thing by X storage, the people medium. in Irvine, think One shows by work kind other been done

point the gas make the of in storage, pumped as the hydrogen, that which and hydrogen than short-term would grid, actually think when back I other going that, is line. into valuable creating needed, being for example, really about value it natural is California. think a more or in The for take is fuel, you I to you’re

it So just as when BXB using hydrogen for value the the creating think I a – hydrogen fuel, cells and grid. long-term short-term fuel more for back think actually and putting clear. it about you it hydrogen hydrogen create is and But storage, on really makes using to electricity storage,

Jed Dorsheimer

it. Got

of production, on context hydrogen – that’s going So with of you these based you targets was of in with heavily Are And you’ve rethinking have a do model fuel slight more I contribution – as to that think That of the I in – think this X hydrogen was the seems with respect is, guess then primarily of value this the where increased terms of XXXX. that short-term to which be I’m which business all cells that the a and you of to production. backup provided in seems of skewed created? to fuel mentioned, production, terms and optimism that the more being as just in that follow ups? you largely

Andy Marsh

Sure.

of putting to about make like this day the market in earnings don’t with I how is I out the who And, where who hydrogen folks think in marketplace. like play almost it, to an And build goal out was market. share a just That done we value numbers we get bad try market. business. we an said, about there think unfair having the growth that the the generation Jed, accelerate it’s it our a to this we networks of be So green we I get that call. on will sure for get so beginning of to a dozen wireless going we’re to every will on years, And can being get, think, unfair when think touch I – that have feel comfortable of share the the hydrogen fastest, focus that’s

Jed Dorsheimer

Got it.

Thank So Andy, by the you, X Paul. way. questions for

Andy Marsh

welcome, Jed. You’re

Jed Dorsheimer

just but Paul, quarter this anomaly? well beating in in billings, was we revenue increasing in I’m And on just the this think how an is of racking billings, wondering, to revenue should first ratio on about as between of, question billings or you’re indicative as is think outlook line. is terms

Paul Middleton

use. we equivalent, gross Well, gross just it’s that is term versus billings revenue the

difference the the only how terms warrant in of is the that’s charges So financial. reflected in

the quarter. commercial revenues gross the billings in recognized reflect the I’ve that So really

the you’re correlated the underlying is tracking activity directly business. So that saying to the

I I and the out continue standpoint, to the think and an about, quarter we they’ll we I made we dynamics hope of that the then talk correlated. might from think, progress, true past, about – of we’ve how done I the and being a it’s in understanding that Jed. So that and But in business reflection deliveries perspective underlying can future. be sales from in as just a that’s think, percentage stuff modeling like shipments the think, helpful, play and

Jed Dorsheimer

Got on is. mistake My it. that. It

me. question for second last So and one

you Paul, you I scenario in terms for would a for publication, I’m were to quoted could guys. But vendor that to with if of that’s most upon more just little just analysis heard And outlook. time favorable one the for ITC wondering, wondering, financing for seem you the a the articulate, that you expand which things be would it of the I’m change, was credits I equipment. your first could of like administration I the financing. I’m from it could just how wondering, just customers And speak if was you Plug think, that So, of put to that, spin your a saying me, important if bit. in because that tax that, that seems into assuming

Paul Middleton

maybe is, general, say, to it’s finance play in benefits opposed But the think efficient the there’s operation their and think, traditional lot market, as in often models. it’s I mean, I cell their the traditional lease they forklifts bank the most factors important. would monetize where systems. tax most I many asset. projects, a to Yeah, I too, it’s customers lease they And other to, forklift, trailers customers their and and go the – and one for those of fuel use their our that mean, often I

seen income, because it’s market taxable they you the And of losses when going COVID what solar that this and and the in a so, go And and market. kind the the your for you’ve banks. in for the capacity true general, had of in and you but have year available market, banks the traditional is other the wind investment eligible this others, market. lot tax, tax on in from investment impact the obviously, effects is is But traditional reduce

beneficial. I banks So, were first, ways I that previously discussion quotes, picks income. could when be think that go think we things I as Obviously, economy my – around foremost up, think, more the think, I forward the have

a having to so things change have Secondly, like credits. to income, in that, dependent market XXXX not of able were the big access that’s if grants, we being of they the on the terms take the benefits taxable reinstate

about one I of easier to is it and don’t not And for said, too it’s benefits. we to customers we’ve in think think just So dynamics. be the tremendous programs, about more things enough just general, way banks dynamics the opportunities. just in credits not outside we’ve tax those terms access it’s with customers, sole yield traction and that guess, just can and we best it’s But want on many and factor, the had of many in that, Plug about who and as of got making still fortunately, don’t so, sign the many that enablers. I take the And

Operator

next Thank Wainwright. H.C. from from you. Our Amit Dayal is [Operator coming Instructions] question today

live. Your line now is

Andy Marsh

you? are Amit. How Hi,

Amit Dayal

Good morning, quarter the my you on taking way. Andy. Congrats the Thank strong questions. by for

a you these timeframe? completion utilization X how of ground For give on. sort are levels facilities? you about the the sense us breaking And think we of plants, should then ramping Andy, at Could

Andy Marsh

Sure.

fourth be say, would middle those probably XXXX. Southwest would I which which we the in by X second be come early Northeast; be fully plants would in of one, the half in expect will and XXXX, plants: the the quarter And that utilized, So, one, XXXX. will and online

Amit Dayal

do margin you And of for sense that. a from you have Yeah. the getting period? plants, maybe full of sort impact utilization Understood. in the XXXX Thank these to

Andy Marsh

full XX% we to a with utilization, these So in a line gross XX% margin. be plants to expect

Amit Dayal

a sort protecting cetera, guys? was go Thank competitors, you from little when there given But you were to be not an of really right, to are really you. edge, Wow. at – previously, or the these overhang. an else, pedestal business to being but That of large maybe tied anybody to able protected bit that little has just And customers et of warrants, these do helpful. these bit just of feel now sort a seemed you look

Andy Marsh

on day, customers for spend I item and Amit, really our every focus don’t time need like the key that’s perform for think I preparing is this, next our thinking to And that providing customers – of value. we lot calls a the about warrants.

how delivering making for value Plug I that customers. on Power think keep is to our about sure

Amit Dayal

Understood.

the one, XXXX XXXX, sort guidance? that to contribution to Europe guidance, with what’s be your last of from expected respect towards one Just

Andy Marsh

next it And I our in expect XX% expect Yeah, if by think – XX% to you Europe XXXX, would Europe revenue. think at I can year, of would I I range. the XX% contributes look being

Amit Dayal

I all much. you so have, Yeah, Andy. Understood. that’s Thank

Andy Marsh

right, take All easy, Amit. it

Operator

you. Thank

Moses today Barclays. Sutton from from question next is Our coming

line Your live. now is

Moses Sutton

execution. on Congrats [indiscernible]

Andy Marsh

Moses.

Moses Sutton

Hi, how going, it Andy? is

Andy Marsh

Okay, Moses.

You’re but Moses. not least, last

Moses Sutton

provide is apologies EBITDA $XX more at million in you this before, of thank the squeezing just of very Or could off I we the sort Oh, million much, here. Any you XX%, the did would in XXXX EBITDA $XXX if directional margin generally, but going helpful. there speak for And at quite me to adjusted target? range billings? missed looking are you be view even if above be million Thanks. $XX end

Andy Marsh

there? are Paul, you

Paul Middleton

[ph] was response. on Yeah, I I’m [purview my] sorry

Andy Marsh

Okay.

Paul Middleton

progression in know pipeline, this haven’t mean, haven’t what see guidance, tell be we line. We to the I I point, at really and be that But see higher, continued you margin that. sales provided given I will and I we think going it Moses. can is are – we for product definitely – We all the profiles our guess, higher.

But for to we for every given confident haven’t to accretive January, at a plan lesson give specificity. that as year. be more we specific very scheduled be do might of up. a position business end and So January, – will range we that have And in better you yet. we go But continue a we we’re point,

Moses Sutton

on maybe and full wind some full would consider integrating generation looking you to the to there. that. the But an Maybe question Great, day? some call and ownership third-parties. its of question, production, And solar integration electricity here out-there in you, that’s process, from be not Andy. ultimately, operate I with use? assets there to, this ever for really guess, forward very one assets, out-there truly controlling are to know I the hydrogen Why synergies These control easy could

Andy Marsh

bitten I think to business. and off get I need at And enough you Moses, moment. we their when with plans Brookfield, partners see Well, like don’t the our have into Apex such good any

our generate Sanjay with is been moment And driven hydrogen. And has – is this Sanjay to as So think to know, we activity rates really has I with by make being at green sure competitive plan been Shrestha. folks have allows you working work partners. us the really which that

Moses Sutton

Great, great, exciting Thanks stuff. again.

Andy Marsh

Thank Moses. you, Okay.

Operator

you. the Thank session. for closing comments. our turn or I’d end any of to over question-and-answer back reached to further floor We Andy the like

Andy Marsh

discussion you, talking pleased Well, to fourth Thank with thank everyone. you quarter. It’s quarter. great to forward be the the really look near And of I many to been really today, going enjoyed our another you. future. in

Operator

you. teleconference. does today’s conclude That Thank

today. thank for participation wonderful day. You at line this your your may We you and a have disconnect time

Teal Hoyos	Director, Marketing Communications
Andy Marsh	President and Chief Executive Officer
Paul Middleton	Chief Financial Officer
Colin Rusch	Oppenheimer & Co. Inc.
Craig Irwin	ROTH Capital Partners
Eric Stine	Craig-Hallum Capital Group, LLC
Christopher Sadler	B. Riley FBR, Inc.
Jed Dorsheimer	Canaccord Genuity Group Inc.
Amit Dayal	H.C. Wainwright & Co., LLC
Moses Sutton	Barclays

Plug Power (PLUG) 9 Nov 202020 Q3 Earnings call transcript