Thursday, 17 November 2011
BEACON POWER CORP
MORE Credit Rating
C
D
CC CCC
B
BB BBB
A
AA AAA
key
Company name
BEACON POWER CORP
Identification number If you want to know more, ASKMORE modeFinance’s credit report.
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United States of America
ZIP code and city
01887 - WILMINGTON
Address
234, Ballardvale Street +1 978 694 9121 www.beaconpower.com
Legal form Account
Consolidated
Incorporation date
1997
NACE 2 Sector
3511 - Production of electricity
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Listed Status
Active
MORE Credit limit
18,000 e
plans 2 types of reports:
Turnover (th e) Rating Basic
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ASKMORE Basic: This report includes modeFinance ’ s MORE Credit Ratings and MORE Credit Limit to help you in the decision making. It covers all essential information including financial statements of the last three years and descriptive information including trade description and sector analysis. This report type is ideally suited for decisions on transactions with each level of credit risk.
31/12/2009
31/12/2008
670
672
49
CCC
B
B
16.00%
3.80%
3.80%
92%
92%
100%
Leverage ratio
1.65
0.25
0.51
Total asset/Total liabilties
1.61
5.04
2.97
0.58
4.34
1.72
-
-
1.72
Return on investement ROI (%)
-29.54
-37.89
-60.88
Return on equity ROE (%)
-79.21
-47.56
-92.02
0.01
0.02
0.00
-0.01
-0.01
0.00
0.40
-0.02
0.22
-91.82
-164.38
-335.86
Probability of default
Plus
31/12/2010
Confidence Level
TM
Solvency ratios
Liquidity ratios Current Ratio Quick Ratio Profitability and economic equilibrium ratios
Asset turnover Interest paid weight Gross Profit/Operating revenue Interest Coverage ratios EBIT interest coverage ratio
Analysis and trend of financial strength
modeFinance Headquarter Building A - AREA Science Park Padriciano 99 - 34149 Trieste - Italy Ph.: +39 040 375 5337 Fax: +39 040 375 6741 info@modefinance.com TM
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MORE Credit Rating
D not available
non return
C
CC
extremly pathological pathological
CCC
B
BB
BBB
A
AA
AAA
high danger
weak
sufficient
adequate
good
very strong
extremely strong
BEACON POWER CORP
Thursday, 17 November 2011 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Sector Analysis Company
Healthy
Balanced
Vulnerable
Risky
Leverage ratio
1.65
0.56
1.99
6.23
-3.95
Total asset/Total liabilties
1.61
2.79
1.50
1.10
0.98
0.58
2.11
1.13
0.93
0.46
-
1.90
1.01
0.80
0.35
Return on investement ROI (%)
-29.54
16.69
6.99
3.28
-4.56
Return on equity ROE (%)
-79.21
18.73
10.18
-0.45
-85.76
Solvency ratios
Liquidity ratios Current Ratio Quick Ratio Profitability and economic equilibrium ratios
Asset turnover
0.01
0.70
0.42
0.26
0.64
Interest paid weight
-0.01
0.02
0.24
0.55
-0.06
Gross Profit/Operating revenue
0.40
0.39
0.36
0.22
-0.01
-91.82
54.95
3.52
0.97
-2.84
Interest Coverage ratios EBIT interest coverage ratio Cash Conversion Cycle (days) Days Sales Of Inventory (DIO)
-
9
13
18
26
Days Sales Outstanding (DSO)
114
48
53
53
60
2,515
18
29
29
56
Cash Conversion Cycle (DIO + DSO - DPO)
-
36
33
24
26
Numer of analyzed companies
-
503
1,506
748
172
CCC
A
BB
B
CC
Days Payable Outstanding (DPO)
(Average) Rating
The sector has been chosen according to: international companies in the sector NACE 2 3511 with financial data of year 2009.
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
BEACON POWER CORP
Thursday, 17 November 2011 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
key
Sector Analysis - Graphs
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
AA AAA
BEACON POWER CORP
Thursday, 17 November 2011 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Balance Sheet BALANCE SHEET (th e)
31/12/2010
31/12/2009
31/12/2008
Accounting practice
Local GAAP
Local GAAP
Local GAAP
0.74839
0.69416
0.71855
Total assets
56,831
34,709
27,733
Fixed assets
47,897
18,143
16,763
172
80
0
42,054
16,919
16,547
Exchange rate USD - EUR
Intangible fixed assets Tangible fixed assets Other fixed assets Current assets
5,671
1,143
216
8,934
16,567
10,970
-
-
0
209
33
9
8,725
16,534
10,961
8,132
15,691
10,317
21,429
27,820
18,403
157
1,191
772
Other shareholders funds
21,272
26,629
17,631
Total liabilities
35,401
6,890
9,330
Non current liabilities
19,919
3,070
2,962
Long term debt
18,837
2,552
2,326
1,082
518
636
15,482
3,819
6,368
495
422
84
4,619
801
2,749
Stocks Debtors Other current assets Cash & cash equivalent Shareholders funds Capital
Other non-current liabilities Current liabilities Loans Creditors
10,368
2,596
3,535
56,831
34,709
27,733
31/12/2010
31/12/2009
31/12/2008
Other current liabilities Total shareh. funds & liab. NET DEBT (th e) Short term debts Long term debt Cash & cash equivalent
495
422
84
18,837
2,552
2,326
8,132
15,691
10,317
11,200
-12,717
-7,906
31/12/2010
31/12/2009
Net debt
Working capital
31/12/2008
-
-
-
-6,548
12,748
4,602
31/12/2010
31/12/2009
Net Current Assets
31/12/2008
Days Sales Of Inventory (DIO)
-
-
0
Days Sales Outstanding (DSO)
114
18
64
2,515
435
20,534
-
-
-20,470
Days Payable Outstanding (DPO) Cash Conversion Cycle (DIO + DSO - DPO)
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
BEACON POWER CORP
Thursday, 17 November 2011 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Income Statement INCOME STATEMENT (th e)
31/12/2010
31/12/2009
31/12/2008
Accounting practice
Local GAAP
Local GAAP
Local GAAP
0.74839
0.69416
0.71855
Sales
670
672
49
Revenues growth (%)
-0.3
1,275.8
-
0
0
0
Exchange rate USD - EUR
Other revenues +/- variation in inventories and contract in progress + Fixed assets own construction capitalized Operating revenue / turnover
670
672
49
17,657
13,822
17,178
Costs growth (%)
28
-20
-
Service costs
-
-
-
Material costs
-
-
-
Costs of employees
-
-
-
-15,113
-11,873
-16,199
1,873
1,277
931
-16,987
-13,150
-17,129
13
-81
194
Financial revenue
260
9
245
Financial expenses
246
90
51
185
80
51
-16,973
-13,231
-16,935
0
0
0
-
-
-
Total operating costs
EBITDA Depreciation EBIT Financial P/L
Interest paid P/L before tax Extr. and other P/L Extr. and other revenue Extr. and other expenses P/L before tax + Extr. and other P/L Taxation
-
-
-
-16,973
-13,231
-16,935
0
0
0
-16,973
-13,231
-16,935
31/12/2010
31/12/2009
31/12/2008
P/L for period
Costs of Good Sold
404
688
Gross Profit
266
-16
11
17,253
13,134
17,140
31/12/2010
31/12/2009
31/12/2008
-15,100
-11,954
-16,005
-
-
-
Other Operating Expenses
Cash flow Added value
31/12/2010 Number of employees
78
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
31/12/2009
38
31/12/2008
69
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
61
BEACON POWER CORP
Thursday, 17 November 2011 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
key
Evolutions and trends
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
AA AAA
BEACON POWER CORP
Thursday, 17 November 2011 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Qualitative information Full overview
Beacon Power Corp is a publicly quoted American company which is engaged in the development, deployment and production of sustainable energy storage and power conversion solutions. It was founded in 1997 as a spin - off of SatCon’s Energy Systems Division, to develop flywheel - based energy storage. The company’s registered corporate headquarters is located in Wilmington, Massachusetts. The company’s products include photovoltaic (solar energy) inverters, as well as flywheel - based energy storage solutions. These products help increase energy independence and promote renewable power. Beacon Power’s Smart Power solutions are designed to deliver instantaneous power from solar energy systems or battery backup in the event of a grid outage. Its main product brand names are Smart Energy Matrix and Patented Co - mingled Rim Technology. Beacon Power aims to further the use of environmentally sound energy - related technology to deliver improved performance and long term value for all company stakeholders to offer sustainable power quality solutions for utility - grade frequency and voltage regulation, as well as power flow stabilization.
History
Founded as a spin - off of SatCon’s Energy Systems Division, to develop flywheel - based energy storage.
Primary business line
Engaged in the development, deployment and production of sustainable energy storage and power conversion solutions.
Secondary business line
Not available.
Main activity
Manufacturing; Services.
Secondary activity
Not available.
Main products and services
Not available.
Size estimate
Not available.
Strategy, organization and policy
To further the use of environmentally sound energy - related technology to deliver improved performance and long term value for all company stakeholders to offer sustainable power quality solutions for utility - grade frequency and voltage regulation, as well as power flow stabilization.
Strategic alliances
Not available.
Membership of a network
Not available.
Main brand names
Smart Energy Matrix; Patented Co - mingled Rim Technology.
Main domestic country
United States of America.
Main foreign countries or regions
Not available.
Main production sites
United States of America.
Main distribution sites
Not available.
Main sales representation sites
Not available.
Main customers
Not available.
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
BEACON POWER CORP
Thursday, 17 November 2011 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Auditor/Advisor/Bank name
type
address
MILLER - WACHMAN & CO.
Auditor
-
Computershare Investor Services
Transfer Agent
-
Board name
date of birth
nationality
function
Mr Virgil G Rose Mr Daniel Ernest Kletter Mr Edward A Weihman Mr F. William Capp
03/10/1938 -
United States -
-
Mr Jack P Smith
-
-
-
Sharehoders (the first twenty shareholders ordered by Direct %)) Rating:
CREDIT SUISSE GROUP AG via its funds Country ISO code NACE Rev. 2, Core code Direct % Total %
-
CH 0.39
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
32,087 1,098,345 50,100 2011/06
Rating:
BBB
US 0.37
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
US -
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees
Address: Not available
BLACKROCK, INC. via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address: Not available
Rating:
VANGUARD GROUP, INC. THE via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address: Not available
0.33
-
Information date
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
8,612 178,459 9,127 2011/06
2,018 1,830 9,500 2011/06
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
BEACON POWER CORP
Thursday, 17 November 2011 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Rating:
GEODE CAPITAL MANAGEMENT, LLC via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address: Not available
US 0.27
Information date
US 0.17
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
Country ISO code NACE Rev. 2, Core code Direct % Total % Address: Not available
US -
2011/06
-
Operating revenue (MIL $) Total Assets (MIL $)
15,501 264,284
0.16
Number of Employees Information date
44,817 2011/06
US 0.12
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
CA
Operating revenue (MIL $)
19,204
Total Assets (MIL $) Number of Employees Information date
608,113 68,725 2011/06
Rating:
NORTHERN TRUST CORPORATION via its funds Country ISO code NACE Rev. 2, Core code Direct % Total %
-
Rating:
PNC FINANCIAL SERVICES GROUP INC via its funds
0 2 2011/06
Rating:
WEXFORD CAPITAL LLC via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address: Not available
-
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees
3,648 83,844 12,834 2011/06
Address: Not available
Rating:
TORONTO DOMINION BANK via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address: Not available
0.11
-
Subsidiaries (the first twenty subsidiaries ordered by Direct %) Rating:
BEACON POWER SECURITIES CORPORATION Country ISO code NACE Rev. 2, Core code Direct % Total %
US >50.00 -
-
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
2010/12
BEACON POWER CORP
Thursday, 17 November 2011 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Rating:
STEPHENTOWN HOLDING LLC Country ISO code NACE Rev. 2, Core code Direct % Total %
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
US >50.00 -
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
US >50.00 -
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
US >50.00 -
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
Rating:
STEPHENTOWN REGULATION SERVICES LLC Country ISO code NACE Rev. 2, Core code Direct % Total %
Country ISO code NACE Rev. 2, Core code Direct % Total %
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3 2010/12 -
Rating:
TYNGSBORO REGULATION SERVICES LLC
0 2 2010/12 -
Rating:
TYNGSBORO HOLDING LLC Country ISO code NACE Rev. 2, Core code Direct % Total %
-
US >50.00 -
2010/12 -
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
2010/12
BEACON POWER CORP
Thursday, 17 November 2011 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
ASKMORE rating guide General vision
A credit rating is an opinion of the general creditworthiness of an obligor (issuer rating), or the creditworthiness of an obligor in respect of a specific debt security, or other financial obligation (issue rating), based on relevant risk factors. The Multi Objective Rating Evaluation (MORE) model is essentially used to assess the level of distress of industrial companies by using data included in financial statements. The basic idea of the model is to analyze a set of financial and economic ratios in a predictive corporate bankruptcy model with the purpose of creating a fundamental credit rating model for each industrial sector. Results of the model are obtained by applying newly developed numerical methodologies, drawing together financial theory, data mining and engineering design methodologies. The heart of MORE is a multi dimensional and multi objective algorithm that produces a classification of each company, by taking into account any attributes (such as sector and country) characterizing a firm. The model gives the opportunity to assign a rating to a company even without considering a complete data analysis and allows to process quality information. It induces a better understanding of a company’s strength and weakness thanks to sophisticated data mining tools and taking into account the analyst knowledge. The MORE rating vision is to look at the fundamental economics of the company. The main idea is to evaluate the rating observing every aspect of the economical and financial behavior of the company: better is the equilibrium between the different aspects, better will be the final rating. This is done studying, evaluating and aggregating the most important sections of the financial and economic behavior of a company such as: profitability, liquidity, solvency, interest coverage and efficiency.
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Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
BEACON POWER CORP
Thursday, 17 November 2011 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Rating scale Rating class
Rating macro class
The company’s capacity to meet its financial commitments is extremely strong. The company shows an excellent
AAA
AA
Assessment
economic and financial flow and fund equilibrium. Healthy
The company has very strong creditworthiness. It also has a good capital structure and economic and financial equilibrium. Difference from AAA is slight. The company has a high solvency. The company is however more susceptible to the adverse effects of changes in
A
circumstances and economic conditions than companies in higher rated categories. Capital structure and economic equilibrium are considered adequate. The company’s capacity to meet its financial commitments could be affected by serious unfavourable events.
BBB Balanced
A company rated BB is more vulnerable than companies rated BBB. Furthermore the company faces major ongoing uncertainties or exposure to adverse business, financial, or economic conditions.
BB
The company presents vulnerable signals with regards to its fundamentals. Adverse business, financial, or economic
B
conditions will be likely to impair the company’s capacity or willingness to meet its financial commitments. Vulnerable
CCC
A company rated CCC has a dangerous disequilibrium on the capital structure and on its economic and financial fundamentals. Adverse market events and an inadequate management could affect with high probability the company’s solvency.
CC
The company shows signals of high vulnerability. In the event of adverse market and economic conditions, the company’s strong disequilibrium could increase. Risky
C
The company shows considerable pathological situations. commitments is very low.
D
The company has not any longer the capacity to meet its financial commitments.
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The company’s capacity to meet its financial
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
BEACON POWER CORP
Thursday, 17 November 2011 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Fundamental Credit Rating Ratios Analysis area
Ratio
Assessment This measures the level of total liabilities of the company in comparison
Leverage ratio
with equity.
Solvency ratios
Financial ratios
Assets to debt
This indicates company’s solvency. The company shows a level of deficit when the value of this ratio is under one unit.
Fixed Assets coverage ratio
This is calculated only for holdings. It measures the capital structure i.e. whether a company covers the fixed assets with long term capital.
Current ratio
This measures whether a company has sufficient short-term assets to cover its short-term liabilities.
Liquidity ratios This compares current liabilities only to those assets that can be readily
Quick ratio
turned into cash.
Return on Investement(ROI)
This measures the profitability of company investments without regard to the way the investment is financed.
Return on Equity(ROE)
This measures the profitability of the equity.
Asset turnover
This indicates the investments turnover with regards to sales. The level assumed from the ratio depends on the sector in which the company operates.
Profit margin
This indicates the profitability of sales.
Interest Paid coverage
This indicate the ability of the company to cover interest expenses through the economic margins (Gross profit and EBIT) and through the cash flow from operating activities.
Profitability and economic ratios
Interest coverage ratio
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Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
BEACON POWER CORP
Thursday, 17 November 2011 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
MORE Credit Limit, Probability of default and Confidence Level MORE Credit Limit
MORE Credit limit is the estimation of the amount of maximum credit that is possible to assign on a commercial relationship with the analyzed company with an outlook of one year. modeFinance used the following values associated with the company analyzed while computing the credit limit:
• Size; • Years in Business; • Average number of suppliers; • Liquidity of the company and the comparison with its sector; • The funds dedicated to be paid to suppliers; • The likelihood that a company may pay its debts in the next 12 months (MORE Ratings).
The credit limit in this report is merely a suggested value of commercial credit limit calculated on the basis of annual public data. This value should be reviewed by paying attention to the Confidence Level value and by using other information such as other business information, news... etc; and private information such as the relationship with client, history of payments, guarantees and the knowledge of the sector.
Probability of default e Confidence Level
In addition to the MORE Rating, modeFinance also estimates the probability of default and provides a level of confidence. The probability of default is the degree of certainty (in quantitative terms) that the company will go into default. As the probability of default is strongly affected by the economic climate that the company is operating in, companies in the same MORE class will not necessarily have the same probability of default. The MORE model can produce a MORE rating even if there is missing data by using an associated confidence level:
Confidence =
P Available Information P Total Information
The level of confidence does not indicate financial confidence in the company. It is a reflection of the variations in availability of financial data across Europe due to filing regulations and suggests the degree of financial detail the MORE rating is able to take into account for each company. For companies with fully populated records a confidence level of 100% would be applied: companies where no financial data is provided, 0%. This puts the MORE rating in a context for the user and aids interpretation.
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Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
BEACON POWER CORP
Thursday, 17 November 2011 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Notes and disclaimer NOTES
The present analysis was based on the company available financial statements as provided by Bureau Van Dijk Electronic Publishing - ORBIS database (lack of both Notes to financial statements and Report on operations).
DISCLAIMER
All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher modeFinance. The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the findings, conclusions and recommendations that modeFinance delivers will be based on information gathered in good faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. As such modeFinance can accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect.
Contacts Company
modeFinance
Products Where
MORE rating AREA Science Park 34149 Trieste, via Padriciano 99 - ITALY info@modefinance.com www.modefinance.com +39 040 3755337
Info web Phone
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741