Hydrogenics Reports Fourth Quarter and Full Year 2017 Results

Similar documents
Hydrogenics Reports Fourth Quarter and Full Year 2018 Results

Hydrogenics Reports First Quarter 2018 Results

Hydrogenics Reports First Quarter 2017 Results

Hydrogenics Reports Fourth Quarter and Full Year 2012 Results

Q EARNINGS PRESENTATION. May 12, 2017

Q2 EARNINGS PRESENTATION. August 2nd, 2018

Hydrogenics Corporation. Second Quarter 2013 Management s Discussion and Analysis of Financial Condition and Results of Operations

Q Earnings Presentation March 4, 2015

Exhibit 99.1 Hydrogenics Corporation

Hydrogenics Corporation

Altus Group Reports Second Quarter 2018 Financial Results

Hydrogenics Corporation. Third Quarter 2017 Management s Discussion and Analysis

HYDROGENICS CORP FORM 6-K. (Report of Foreign Issuer) Filed 05/06/08 for the Period Ending 05/06/08

Aastra Reports Second Quarter Financial Results

Altus Group Reports First Quarter 2018 Financial Results

Three and six-month periods ended November 30, Second Quarter Report

HYDROGENICS CORP FORM 40-F. (Annual Report (foreign private issuer)) Filed 03/04/15 for the Period Ending 12/31/14

Selling, general and administrative expenses 35,645 33,787. Net other operating income (292) (270) Operating profit 44,202 17,756

Stock Symbol: TSX CCL.A and CCL.B. CCL Industries Reports a 25% Increase in Third Quarter 2012 Net Earnings and Declares Dividend Results Summary

quarterly dividend. for the year HIGHLIGHTS Tenth of $94.5 million OVERVIEW to deliver also pleased won $30 Fred Di Tosto, on a basic and

TSX: MFI Investor Contact: Jennifer Postelnik Media Contact: Scott Bonikowsky

Hydrogenics Overview. MB: March 2019

Investor Relations Contact: Michael Porter President Porter, LeVay & Rose

NATURE S SUNSHINE PRODUCTS REPORTS FIRST QUARTER 2017 FINANCIAL RESULTS

ATS AUTOMATION TOOLING SYSTEMS INC. Interim Condensed Consolidated Financial Statements. For the period ended December 31, 2017.

Hydrogenics Corporation

Sierra Wireless Reports First Quarter 2017 Results

MANAGEMENT DISCUSSION AND ANALYSIS OF OPERATING RESULTS AND FINANCIAL POSITION. For the three and nine months ended September 30, 2017

MANAGEMENT DISCUSSION AND ANALYSIS OF OPERATING RESULTS AND FINANCIAL POSITION. For the three and six months ended June 30, 2018

TSX: MFI

Press Release For immediate release

Aastra Reports Third Quarter Financial Results

MANAGEMENT DISCUSSION AND ANALYSIS OF OPERATING RESULTS AND FINANCIAL POSITION. For the three months ended March 31, 2018

IPG PHOTONICS ANNOUNCES 40% REVENUE GROWTH FOR FULL YEAR Fourth Quarter Revenue and Operating Income Increase 29% and 41%, Respectively

KP Tissue Releases Second Quarter 2017 Financial Results

VELAN INC. REPORTS ITS SECOND QUARTER 2018/19 FINANCIAL RESULTS

NATURE S SUNSHINE PRODUCTS REPORTS THIRD QUARTER 2018 FINANCIAL RESULTS

FuelCell Energy Reports Second Quarter 2017 Financial Results and Business Update

MARTINREA INTERNATIONAL INC. Martinrea International Inc. Reports Record First Quarter Results, New Product Awards and Announces Increased Dividend

Consolidated Balance Sheets Consolidated Balance Sheet

Press Release For immediate release

IMMUNOTEC ANNOUNCES THIRD QUARTER 2012 FINANCIAL RESULTS - Network sales increased 23% compared to previous year-

LogMeIn Announces Second Quarter 2018 Results

PRESS RELEASE MARTINREA INTERNATIONAL INC. REPORTS RECORD SECOND QUARTER RESULTS, NEW PRODUCT AWARDS AND ANNOUNCES DIVIDEND

The Caldwell Partners International Issues Fiscal 2017 First Quarter Financial Results

IPG PHOTONICS ANNOUNCES RECORD THIRD QUARTER 2017 FINANCIAL RESULTS Revenue and Earnings per Diluted Share Increase 48% and 64%, Respectively

INC. ANNOUNCES FOURTH QUARTER AND FULL YEAR 2018 RESULTS

RESEARCH IN MOTION REPORTS SECOND QUARTER RESULTS

CELESTICA ANNOUNCES SECOND QUARTER 2016 FINANCIAL RESULTS. Second Quarter 2016 Highlights

Enghouse Releases Fourth Quarter and Year End Results

Interim Condensed Consolidated Financial Statements of FIERA CAPITAL CORPORATION For the periods ended March 31, 2016 and 2015 (unaudited)

2017 FIRST QUARTER INTERIM REPORT

CPI Card Group Inc. Reports Fourth Quarter and Full Year 2016 Results

SNIPP INTERACTIVE INC. SNIPP INTERACTIVE REPORTS FINANCIAL RESULTS FOR Q August 29, 2018 TSX Venture Exchange Trading Symbol: SPN

HEADLINE: Streamline Health(R) Reports Third Quarter 2018 Revenues of $5.4 Million; ($0.7 Million) Net Loss; Adjusted EBITDA of $0.

ServiceNow, Inc. Condensed Consolidated Statements of Operations (in thousands, except share and per share data) (unaudited)

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS OF. Photon Control Inc.

BRIO GOLD REPORTS THIRD QUARTER 2017 FINANCIAL RESULTS

American Railcar Industries, Inc. Reports Second Quarter 2018 Results

Consolidated Statement of Profit or Loss (in million Euro)

Consolidated Statement of Profit or Loss (in million Euro)

Press Release For immediate release

CommScope Reports Fourth Quarter and Full Year 2018 Results

POINTS INTERNATIONAL LTD. MANAGEMENT'S DISCUSSION AND ANALYSIS INTRODUCTION

CELESTICA ANNOUNCES FIRST QUARTER 2017 FINANCIAL RESULTS. First Quarter 2017 Highlights

Enghouse Releases First Quarter Results

CPI Card Group Inc. Reports Fourth Quarter and Full Year 2015 Results

Condensed Consolidated Interim Financial Statements (Expressed in U.S. dollars) BALLARD POWER SYSTEMS INC.

Revenues $ 130,168 $ 120,563 $ 66,237 $ 67,898 Cost of revenues 93,258 92,984 46,668 52,717. Gross profit 36,910 27,579 19,569 15,181

Exhibit 99.2 Hydrogenics Corporation

Endurance International Group Reports 2017 Fourth Quarter and Full Year Results

Cooper Standard Reports Record Sales, Strong Net Income and Record Adjusted EBITDA

Stock Symbol: TSX CCL.A and CCL.B. CCL Industries Reports a 68% increase in Net Earnings for fiscal 2010 and Declares Dividend

LogMeIn Announces Fourth Quarter and Fiscal Year 2017 Results

CELESTICA ANNOUNCES THIRD QUARTER 2017 FINANCIAL RESULTS AND INTENTION TO LAUNCH NORMAL COURSE ISSUER BID. Third Quarter 2017 Highlights

ServiceNow, Inc. Condensed Consolidated Statements of Operations (in thousands, except share and per share data) (unaudited)

Maxwell Reports Third Quarter 2017 Results

ORIENTAL UNION CHEMICAL CORPORATION AND SUBSIDIARIES

LE CHÂTEAU REPORTS THIRD QUARTER RESULTS Q3 Comparable Store Sales Increased by 1.3%

Cintas Corporation Announces Fiscal 2017 Fourth Quarter Results

ServiceNow, Inc. Condensed Consolidated Statements of Operations (in thousands, except share and per share data) (unaudited)

NATURE S SUNSHINE PRODUCTS REPORTS FOURTH QUARTER 2017 FINANCIAL RESULTS

SECOND QUARTER REPORT

Third Quarter Fiscal 2019 Earnings Call

ACER INCORPORATED AND SUBSIDIARIES. Consolidated Balance Sheets

Immunotec Announces Financial Results for the Second Quarter Ended April 30, 2011

Milacron Holdings Corp. Reports Third Quarter 2018 Results. Margin expansion and increased cash flow generation highlight solid third quarter

LOS ANGELES--(BUSINESS WIRE)-- Herbalife Ltd. (NYSE: HLF) reports results for the fourth quarter and full year ended December 31, 2016.

MARTINREA INTERNATIONAL INC. INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Horizon Global Third Quarter 2017 Earnings Presentation

HÉROUX-DEVTEK REPORTS FISCAL 2018 FIRST QUARTER RESULTS Annual meeting of shareholders later this morning

5N PLUS INC. Condensed Interim Consolidated Financial Statements (Unaudited) For the three month periods ended March 31, 2018 and 2017 (in thousands

Restaurant Brands International Inc. Reports First Quarter 2017 Results

Double Digit Growth Again Drives Record Sales and Earnings at Linamar, Diversification Strategy Paying Dividends

FOR RELEASE ON: November 6, Robert Cherry, VP - Business Development & Investor Relations

Materialise Reports Second Quarter 2017 Results

L.B. FOSTER REPORTS FOURTH QUARTER AND FULL YEAR OPERATING RESULTS

Note 1st Q 2nd Q 3rd Q 4th Q TOTAL 1st Q 2nd Q 3rd Q 4th Q TOTAL VEHICLE VOLUME STATISTICS (in millions)

QUAKER CHEMICAL CORPORATION ANNOUNCES FIRST QUARTER 2012 RESULTS

Solarfun Reports Third Quarter 2010 Results

Transcription:

PRESS RELEASE Hydrogenics Reports Fourth Quarter and Full Year 2017 Results Record Quarterly and Annual Revenue Underscore Increasing Business Traction Mississauga, Ontario. March 8, 2018 Hydrogenics Corporation (NASDAQ: HYGS; TSX: HYG) ("Hydrogenics" or "the Company"), a leading developer and manufacturer of hydrogen generation and hydrogenbased power modules, today reported fourth quarter and full year 2017 financial results. Results are reported in US dollars and are prepared in accordance with International Financial Reporting Standards (IFRS). 2017 Highlights Record fourth quarter and full year 2017 revenue of $19.5 million and $48.1 million, respectively, up 124 percent and 66 percent, respectively, compared to the prior-year periods Fourth quarter 2017 gross margin of 28.6% compared to 22.5% in the fourth quarter of 2016 Breakeven Adjusted EBITDA 2 in the 2017 fourth quarter versus a loss of $1.7 million in the prior-year period Increase in total cash to $22.4 million as of December 31, 2017, reflecting $6.5 million in positive cash flow from operations during the fourth quarter I am pleased to announce record results for both the fourth quarter and 2017 as a whole, said Daryl Wilson, President and Chief Executive Officer. We posted revenue of $19.5 million in the final three months of 2017, driving top line performance up 66% to over $48 million for the year. This clearly illustrates the increasing demand for our proprietary applications, the breadth of our product portfolio, and the desire of many nations particularly China to move towards hydrogen-based energy solutions. Our Chinese revenue was strong last year, as we continued expanding our presence and the customers we serve across this robust market. Going forward, we remain bullish on the fuel cell mobility space, whether for buses in China, trains in Europe, or trucks in North America. At the same time, our gross margin rebounded by over 6% to close to 29%% in the fourth quarter, benefiting from product mix as well as higher economies of scale, which we expect to continue given the strength of our backlog and current trends within the industry. In addition, our total cash balance rose to $22.4 million at year-end due to improved financial results and resulting positive cash flow from operations. We believe 2018 will be a year of strong growth and improving performance, which should leave the Company well positioned for higher shareholder returns going forward.

Summary of Results for the Quarter Ended December 31, 2017 (compared to the Quarter Ended December 31, 2016 unless otherwise noted) Company revenue was $19.5 million for the fourth quarter of 2017, an improvement of 124%, or $10.8 million, from the $8.7 million reported in the prior-year period. This increase reflects solid growth in both OnSite Generation and Power Systems. Hydrogenics secured $13.9 million of orders for renewable energy storage, industrial gas and power system applications during the quarter, resulting in an order backlog of $144.6 million as of December 31, 2017. Order backlog movement during the fourth quarter (in $ millions) was as follows: September 30, 2017 backlog Orders Received FX Orders Delivered/ Revenue Recognized December 31, 2017 backlog OnSite Generation $ 27.0 $ 4.8 $ 0.7 $ 12.6 $ 19.9 Power Systems 120.5 9.1 2.0 6.9 124.7 Total $ 147.5 $ 13.9 $ 2.7 $ 19.5 $ 144.6 Of the above backlog of $144.6 million, Hydrogenics expects to recognize approximately $55 million in the following twelve months as revenue. Sales for the year ending December 31, 2018 will also include orders received and delivered in 2018. Gross profit was $5.6 million (28.6% of revenue) in 2017 compared to $2.0 million (22.5% of revenue) in the fourth quarter of 2016. The increase in gross profit was principally due to improved product mix through increased production and delivery of standardized fuel cells for the mobility market, and economies of scale, particularly within the Power Systems business segment. Cash operating costs 1 increased $1.7 million, to $5.5 million, for the current quarter compared to $3.8 million for the prior-year period. This was principally due to an increase of $1.0 million in net research and development expenses ( R&D ) associated with the pending rollout of the Enbridge Power-to-Gas facility in Toronto, Canada and additional R&D related to hydrogen rail applications. The Company reported break-even Adjusted EBITDA 2 for the fourth quarter of 2017 compared to a $1.7 million loss in the prior-year period. This change reflects the increase in both gross profit and cash operating costs noted above. The net loss for the quarter was $1.1 million, or $(0.07) per share, versus $2.5 million, or $(0.20) per share, in the prior-year period. Total cash increased in the quarter by $2.1 million to $22.4 million on December 31, 2017 from $20.3 million on September 30, 2017 reflecting improved cash flow from operations offset by investments in capital assets and financing costs. Summary of Results for the Year Ended December 31, 2017 (compared to the Year Ended December 31, 2016, unless otherwise noted) Revenue increased by $19.1 million, or 66%, to $48.1 million for the year ended December 31, 2017 compared to $29.0 million in the prior year. The year-over-year increase reflected (i) an $11.6 million improvement in Power Systems revenue driven almost exclusively by growth within the Chinese mobility market; and (ii) a $7.5 million increase in OnSite Generation revenue principally driven by the delivery of energy storage projects in Europe and Asia. Gross margin increased to 23.7% ($11.4 million) in 2017 from 20.7% ($6.0 million) in 2016, reflecting an improvement within the Power Systems group due principally to product mix, partially offset by a decline in the OnSite Generation gross margin from 20.0% to 14.1%, primarily due to lower than expected margins on some select projects in the second quarter of 2017. These projects faced unanticipated delays and Page 2

overruns due to postponed construction and scope changes by the engineering firms responsible for the facilities where Hydrogenics electrolyzers would be located. Cash operating costs were $17.8 million in 2017 compared to $13.9 million for 2016, with the increase principally driven by a $2.8 million increase in net R&D expense (primarily in the third and fourth quarter of 2017, as previously noted) and a $1.1 million increase in cash selling, general and administrative ( SG&A ) expense driven partially by the foreign currency impact of the strengthening euro on eurodenominated SG&A expenses. Hydrogenics Adjusted EBITDA loss decreased to $6.3 million for the year ended December 31, 2017 from $7.6 million in the prior-year period due to the improved gross profit in the year, largely offset by the increase in cash operating costs noted above. Net loss for the year ended December 31, 2017, was $11.1 million, or $(0.80) per share, compared to a net loss of $9.9 million, or $(0.79) per share, for the prior year. The net loss in 2017 reflects a year-overyear increase in other finance gains (losses) of $1.7 million, reflecting a change in the fair value of outstanding warrants of $1.4 million due to an increase in Hydrogenics share price, combined with a $0.2 million expense related to the revaluation of variable-rate long term debt. Cash used in operating activities for the year improved by $8.4 million from $13.2 million in 2016 to $4.8 million in 2017. Notes 1. Cash operating costs are defined as the sum of SG&A and R&D, less amortization and depreciation, and stock-based compensation expense inclusive of compensation costs indexed to the Company s share price. This is a non-ifrs measure and may not be comparable to similar measures used by other companies. Management uses this measure as a rough estimate of the amount of fixed costs to operate the Corporation and believes this is a useful measure for investors for the same purpose. 2. Adjusted EBITDA is defined as net loss excluding stock-based compensation (both cash settled long term compensation indexed to share price and share based compensation), other finance income and expenses, depreciation and amortization. These items are considered by management to be outside of Hydrogenics ongoing operational results. Adjusted EBITDA is a non-ifrs measure and may not be comparable to similar measures used by other companies. Conference Call Details Hydrogenics will hold a conference call at 10:00 a.m. EST on March 8, 2018 to review the fourth quarter results. The telephone number for the conference call is (877) 307-1373 or, for international callers, (678) 224-7873. A live webcast of the call will also be available on the company's website, www.hydrogenics.com. An archived copy of the conference call and webcast will be available on the company's website, www.hydrogenics.com, approximately six hours following the call. About Hydrogenics Hydrogenics Corporation is a world leader in engineering and building the technologies required to enable the acceleration of a global power shift. Headquartered in Mississauga, Ontario, Hydrogenics provides hydrogen generation, energy storage and hydrogen power modules to its customers and partners around the world. Hydrogenics has manufacturing sites in Germany, Belgium and Canada and service centers in Russia, Europe, the US and Canada. Forward-looking Statements This release contains forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, and under applicable Canadian securities law. These statements are based on management s current expectations and actual results may differ from these forward-looking statements due to numerous factors, including: our inability to increase our revenues or raise additional funding to continue operations, execute our business plan, or to grow our business; inability to address a slow return to economic growth, and its impact on our business, results of operations and consolidated financial condition; our limited operating history; inability to implement our business strategy; fluctuations in our quarterly results; failure to maintain our customer base that generates the majority of our revenues; currency fluctuations; failure to maintain sufficient insurance coverage; changes in value of our goodwill; failure of a significant market to develop for our products; failure of hydrogen being readily available on a cost-effective basis; changes in government Page 3

policies and regulations; failure of uniform codes and standards for hydrogen fueled vehicles and related infrastructure to develop; liability for environmental damages resulting from our research, development or manufacturing operations; failure to compete with other developers and manufacturers of products in our industry; failure to compete with developers and manufacturers of traditional and alternative technologies; failure to develop partnerships with original equipment manufacturers, governments, systems integrators and other third parties; inability to obtain sufficient materials and components for our products from suppliers; failure to manage expansion of our operations; failure to manage foreign sales and operations; failure to recruit, train and retain key management personnel; inability to integrate acquisitions; failure to develop adequate manufacturing processes and capabilities; failure to complete the development of commercially viable products; failure to produce cost-competitive products; failure or delay in field testing of our products; failure to produce products free of defects or errors; inability to adapt to technological advances or new codes and standards; failure to protect our intellectual property; our involvement in intellectual property litigation; exposure to product liability claims; failure to meet rules regarding passive foreign investment companies; actions of our significant and principal shareholders; dilution as a result of significant issuances of our common shares and preferred shares; inability of US investors to enforce US civil liability judgments against us; volatility of our common share price; and dilution as a result of the exercise of options. Readers should not place undue reliance on Hydrogenics forward-looking statements. Investors are encouraged to review the section captioned Risk Factors in Hydrogenics regulatory filings with the Canadian securities regulatory authorities and the US Securities and Exchange Commission for a more complete discussion of factors that could affect Hydrogenics future performance. Furthermore, the forwardlooking statements contained herein are made as of the date of this release, and Hydrogenics undertakes no obligations to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release, unless otherwise required by law. The forward-looking statements contained in this release are expressly qualified by this. Hydrogenics Contacts: Bob Motz, Chief Financial Officer Hydrogenics Corporation (905) 361-3660 investors@hydrogenics.com Chris Witty Hydrogenics Investor Relations (646) 438-9385 cwitty@darrowir.com Page 4

Reconciliation of Cash Operating Costs to Operating Costs and Adjusted EBITDA to Net Loss (in thousands of US dollars) (unaudited) Cash operating costs Three months ended Years ended 2017 2016 2017 2016 Selling, general and administrative expenses $ 4,524 $ 3,106 $ 13,742 $ 10,825 Research and product development expenses 1,722 745 6,376 3,576 Total operating costs $ 6,246 $ 3,851 $ 20,118 $ 14,401 Less: Amortization and depreciation (147) (109) (461) (407) Less: DSUs recovery (expense) (402) 190 (950) 290 Less: Stock-based compensation expense (203) (136) (742) (390) Less: Loss on disposal of assets (14) (131) Cash operating costs $ 5,480 $ 3,796 $ 17,834 $ 13,894 Adjusted EBITDA Three months ended Years ended 2017 2016 2017 2016 Net loss $ (1,129) $ (2,504) $ (11,140) $ (9,857) Finance income (loss), net 473 618 2,442 1,451 Amortization and depreciation 72 203 672 751 DSUs expense (recovery) 402 (190) 950 (290) Stock-based compensation expense (including PSUs & RSUs) 203 136 742 390 Adjusted EBITDA $ 21 $ (1,737) $ (6,334) $ (7,555) Page 5

Hydrogenics Corporation Condensed Consolidated Balance Sheets (in thousands of US dollars) (unaudited) 2017 2016 Assets Current assets Cash and cash equivalents $ 21,511 $ 10,338 Restricted cash 435 405 Trade and other receivables 14,292 9,802 Inventories 15,164 17,208 Prepaid expenses 978 918 52,380 38,671 Non-current assets Restricted cash 468 535 Non-current receivables 645 Investment in joint ventures 2,797 1,750 Property, plant and equipment 3,874 4,095 Intangible assets 180 203 Goodwill 4,569 4,019 12,533 10,602 Total assets $ 64,913 $ 49,273 Liabilities Current liabilities Operating borrowings $ 1,200 $ 2,111 Trade and other payables 9,736 7,235 Financial liabilities 4,913 3,939 Warranty provisions 1,174 1,221 Deferred revenue 12,734 10,788 29,757 25,294 Non-current liabilities Other non-current liabilities 8,516 9,262 Non-current warranty provisions 921 841 Non-current deferred revenue 2,223 3,494 Deferred research and development funding 11,660 13,597 Total liabilities 41,417 38,891 Share capital 387,746 365,923 Contributed surplus 19,885 19,255 Accumulated other comprehensive loss (1,822) (3,623) Deficit (382,313) (371,173) Total equity 23,496 10,382 Total equity and liabilities $ 64,913 $ 49,273 Page 6

Hydrogenics Corporation Consolidated Statements of Operations and Comprehensive Loss (in thousands of US dollars, except share and per share amounts) (unaudited) Three months ended Years ended 2017 2016 2017 2016 Revenues $ 19,528 $ 8,730 $ 48,052 $ 28,990 Cost of sales 13,938 6,765 36,632 22,995 Gross profit 5,590 1,965 11,420 5,995 Operating expenses Selling, general and administrative expenses 4,524 3,106 13,742 10,825 Research and product development expenses 1,722 745 6,376 3,576 6,246 3,851 20,118 14,401 Loss from operations (656) (1,886) (8,698) (8,406) Finance income (loss) Interest expense, net (425) (452) (1,812) (1,762) Foreign currency gains (losses), net (1) 122 (229) 635 (268) Loss from joint ventures (76) (130) (334) (156) Other finance gains (losses), net (94) 193 (931) 735 Finance income (loss), net (473) (618) (2,442) (1,451) Loss before income taxes (1,129) (2,504) (11,140) (9,857) Income tax expense Net loss for the period (1,129) (2,504) (11,140) (9,857) Items that will not be reclassified subsequently to net loss: Re-measurements of actuarial liability 98 (101) 98 (101) Items that may be reclassified subsequently to net loss Exchange differences on translating foreign operations 346 (744) 1,703 (298) Comprehensive loss for the period $ (685) $ (3,349) $ (9,339) $ (10,256) Net loss per share Basic and diluted $ (0.07) $ (0.20) $ (0.80) $ (0.79) Weighted average number of common shares outstanding 15,133,194 12,544,960 13,947,636 12,542,950 Page 7

Hydrogenics Corporation Consolidated Statements of Cash Flows (in thousands of US dollars) (unaudited) Three months ended Years ended 2017 2016 2017 2016 Cash and cash equivalents provided by (used in): Operating activities Net loss for the period $ (1,129) $ (2,504) $ (11,140) $ (9,857) Decrease in restricted cash 1,003 171 134 542 Items not affecting cash Loss on disposal of assets 14 5 131 5 Amortization and depreciation 72 203 672 751 Warrants 60 (238) 675 (760) Unrealized foreign exchange losses 337 1 483 146 Unrealized loss on joint ventures 76 130 334 156 Accreted interest and amortization of deferred financing fees 467 259 2,075 1,086 Stock-based compensation 202 136 742 390 Stock-based compensation DSUs 402 (190) 950 (290) Net change in non-cash operating assets and liabilities 5,020 944 162 (5,382) Cash used in operating activities 6,524 (1,083) (4,782) (13,213) Investing activities Investment in joint venture - Enbridge (93) Purchase of property, plant and equipment (1,665) (777) (3,920) (2,955) Receipt of government funding (91) 811 1,792 1,201 Proceeds from disposals of property, plant and equipment 1,035 Purchase of intangible assets 9 (1) (25) (48) Cash provided by (used in) investing activities (1,747) 33 (1,211) (1,802) Financing activities Common shares issued and stock options exercised, net of issuance costs 15 19,745 Principal repayment of long-term debt (1,154) (1,654) Exercise of warrants 1,374 1,077 1,374 Interest payment (471) 466 (1,259) (155) Proceeds (repayment) of operating borrowings (1,160) (1,176) (873) 1,072 Repayment of repayable government contributions (58) (55) (171) (218) Repayment of long-term debt institutional (7,500) (7,500) Proceeds of borrowings, net of transaction costs 8,714 8,714 Cash provided by financing activities (1,454) 1,526 17,162 1,913 Increase (decrease) in cash and cash equivalents during the 3,323 476 11,169 (13,102) period Cash and cash equivalents Beginning of period 18,345 9,997 10,338 23,398 Effect of exchange rate fluctuations on cash and cash (157) (135) 4 42 equivalents Cash and cash held equivalents End of period $ 21,511 $ 10,338 $ 21,511 $ 10,338 Page 8