FuelCell Energy, Inc. (Nasdaq: FCEL) -- a global
leader in fuel cell technology—with a purpose of utilizing its
proprietary, state-of-the-art fuel cell platforms to enable a world
empowered by clean energy—today reported financial results for its
third quarter ended July 31, 2021 and key business highlights.
“FuelCell Energy delivered higher revenue in the
third fiscal quarter, both sequentially compared to the second
fiscal quarter and year over year. We are pleased by the continued
execution of our project backlog and the advancement of our
strategic agenda in terms of infrastructure, solutions and talent
to support our ability to achieve our long-term goals,” said Mr.
Jason Few, President and CEO. “We made progress in advancing our
inflight projects and combined with an increase in our investment
in commercial capabilities and research and development activities,
we believe we are positioning FuelCell Energy for long-term growth
and sustainable commercial success.”
“We are almost two years into our Powerhouse
business strategy, and we continue to make progress,” continued Mr.
Few. “The ability to deliver these results while simultaneously
increasing our annualized production rate, repositioning our brand
for the future and building the next generation sales structure
underscores the hard work and effort of the over 380 employees of
FuelCell Energy. To further deepen our bench and ensure we are well
positioned for the future, we recently announced additions to our
team, significantly expanding our sales and marketing presence with
the goal of enhancing customer engagement and effectiveness.”
Mr. Few added, “We have increased our investment
in innovation and are making progress towards the availability of
our Advanced Technologies solutions, including distributed
hydrogen, long duration energy storage, and hydrogen production via
our solid oxide platform. These offerings will complement our
commercially available carbonate fuel cell platforms that provide a
scalable solution to deliver against the increasing requirements of
clean, distributed power and hydrogen generation to strengthen and
supplement the grid power and enable the hydrogen economy. The
global energy transition continues to accelerate, and we believe
FuelCell Energy is positioned to answer these opportunities with
our patented portfolio of platform solutions.”
Consolidated Financial Metrics
In this press release, FuelCell Energy refers to
various GAAP (U.S. generally accepted accounting principles) and
non-GAAP financial measures. The non-GAAP financial measures
may not be comparable to similarly titled measures being used and
disclosed by other companies. FuelCell Energy believes that
this non-GAAP information is useful to an understanding of its
operating results and the ongoing performance of its business. A
reconciliation of EBITDA, Adjusted EBITDA and any other non-GAAP
measures is contained in the appendix to this press release.
|
|
|
|
|
|
|
Three MonthsJuly 31, |
(Amounts in thousands except for share amounts and
percentages) |
2021 |
|
2020 |
|
Change |
Total revenues |
$ |
26,820 |
|
|
$ |
18,728 |
|
|
43 |
% |
Gross profit (loss) |
|
1,100 |
|
|
|
(3,128 |
) |
|
135 |
% |
Loss from operations |
|
(10,585 |
) |
|
|
(10,762 |
) |
|
-2 |
% |
Net Loss |
|
(11,997 |
) |
|
|
(15,331 |
) |
|
-22 |
% |
Net loss attributable to common stockholders |
|
(12,797 |
) |
|
|
(16,131 |
) |
|
-21 |
% |
Net loss per basic and diluted share |
$ |
(0.04 |
) |
|
$ |
(0.07 |
) |
|
-43 |
% |
EBITDA |
|
(6,076 |
) |
|
|
(6,036 |
) |
|
1 |
% |
Adjusted EBITDA |
|
(5,173 |
) |
|
|
(5,638 |
) |
|
-8 |
% |
Third Quarter of Fiscal 2021
Results
Note: All comparisons between periods are
between the third quarter of fiscal 2021 and the third quarter of
fiscal 2020, unless otherwise specified.
Third quarter revenue of $26.8 million
represents an increase of 43% over the prior-year quarter, driven
by a $7.2 million increase in service agreements and license
revenues, which was primarily due to the fact that there were more
module exchanges during the quarter than in the prior year
quarter.
- Service agreements and
license revenues increased 102% to $14.3 million from $7.1
million. The increase in revenue is primarily due to the fact that
there were more module exchanges during the quarter, generating
approximately $13.4 million of revenue in the current year quarter
compared to revenue of $6.0 million in the prior year quarter.
- Generation
revenues increased 32% to $6.2 million from $4.7 million primarily
due to higher operating output of the generation fleet portfolio as
a result of investments in maintenance activities and an increase
in the size of the fleet.
- Advanced
Technologies contract revenues decreased 9% to $6.2
million from $6.9 million. Compared to the third fiscal quarter of
2020, Advanced Technologies contract revenues recognized under the
Joint Development Agreement with ExxonMobil Research and
Engineering Company (“EMRE”) were approximately $0.1 million higher
during the third fiscal quarter of 2021, reflecting continued
performance under our Joint Development Agreement with EMRE during
the quarter. However, the increased revenues under the Joint
Development Agreement with EMRE were offset by $0.8 million less
revenue recognized under government contracts during the third
fiscal quarter of 2021 than during the third fiscal quarter of
2020.
Gross profit for the third fiscal quarter of
2021 totaled $1.1 million, compared to a gross loss of $(3.1)
million in the comparable prior-year quarter. Higher gross profit
for the quarter was the result of (i) higher service gross margin
primarily due to more new module exchanges for projects with higher
margins during the current year quarter, (ii) improved generation
gross margin primarily related to an increase in revenues and a
decrease in depreciation expense, and (iii) lower manufacturing
variances primarily as a result of increased production volumes.
This was partially offset by lower Advanced Technologies gross
margin primarily related to the mix of government contracts in the
quarter.
Operating expenses for the third fiscal quarter
of 2021 increased to $11.7 million from $7.6 million in the third
fiscal quarter of 2020. Administrative and selling expenses in the
third fiscal quarter of 2021 included legal expenses associated
with tax equity financings and additional share-based compensation
expense of $0.5 million due to the non-cash grants made in
August 2020 and November 2020 under our Long-Term
Incentive Plans. Research and development expenses of $3.0 million
during the third fiscal quarter of 2021 reflect increased spending
on the Company’s hydrogen commercialization initiatives compared to
the prior year period.
Net loss was $(12.0) million in the third
fiscal quarter of 2021, compared to net loss of $(15.3) million in
the third fiscal quarter of 2020, due, in part, to higher gross
margin for the third fiscal quarter of 2021 compared to the third
fiscal quarter of 2020. Additional contributing factors included
lower interest expense as a result of the early repayment of the
Orion Facility and the fact that there was no charge for the change
in fair value of common stock warrant liability, partially offset
by higher operating expenses for the period and the fact that there
was no gain on the extinguishment of financing obligation recorded
in the quarter.
The net loss per share attributable to common
stockholders in the third fiscal quarter of 2021 was $(0.04),
compared to $(0.07) in the third fiscal quarter of 2020. The lower
net loss per common share was primarily due to the higher weighted
average shares outstanding due to share issuances since July 31,
2020, and the lower net loss attributable to common
stockholders.
Adjusted EBITDA totaled $(5.2) million in the
third fiscal quarter of 2021, compared to Adjusted EBITDA of $(5.6)
million in the third fiscal quarter of 2020. Please see the
discussion of non-GAAP financial measures, including Adjusted
EBITDA, in the appendix at the end of this release.
Cash, Restricted Cash and Financing
Update
On June 11, 2021, the Company entered into an
Open Market Sale Agreement with Jefferies LLC and Barclays Capital
Inc. (the “Agents”) with respect to an at the market offering
program under which the Company may, from time to time, offer and
sell shares of the Company’s common stock having an aggregate
offering price of up to $500 million. Pursuant to the Open Market
Sale Agreement, the Company paid the Agent making each sale a
commission equal to 2.0% of the aggregate gross proceeds it
received from such sale by such Agent of shares under the Open
Market Sale Agreement. From the date of the Open Market Sale
Agreement through July 31, 2021, approximately 44.0 million shares
were sold under the Open Market Sale Agreement at an average sales
price of $8.56 per share, resulting in gross proceeds of $376.6
million, before deducting expenses and sales commissions. Net
proceeds to the Company totaled approximately $369.0 million after
deducting commissions and offering expenses totaling approximately
$7.6 million. The Company plans to use the net proceeds from this
offering to accelerate the development and commercialization of our
Advanced Technologies products, including our solid oxide platform,
for project development, for internal research and development, to
invest in capacity expansion for solid oxide and carbonate fuel
cell manufacturing, and for project financing, working capital
support, and general corporate purposes.
Cash and cash equivalents and restricted cash
and cash equivalents totaled $494.0 million as of July 31, 2021
compared to $192.1 million as of October 31, 2020. The breakdown of
unrestricted and restricted cash is as follows:
- As of July 31,
2021, unrestricted cash and cash equivalents totaled $468.6
million, compared to $149.9 million of unrestricted cash and cash
equivalents as of October 31, 2020.
- As of July 31,
2021, restricted cash and cash equivalents totaled $25.5 million,
of which $10.2 million was classified as current and $15.2 million
was classified as non-current, compared to $42.2 million of
restricted cash and cash equivalents as of October 31, 2020, of
which $9.2 million was classified as current and $33.0 million was
classified as non-current.
Operations Update
Groton Sub Base. The Company
achieved mechanical completion, executed the interconnect agreement
in July, and commenced the process of commissioning the 7.4 MW
platform at the U.S. Navy Submarine Base in Groton, Connecticut.
During the commissioning process (the final stage prior to
commercial operation), a localized and contained elevated
temperature was observed inside a component on one of the two
installed plants and, as a result, the commissioning process was
suspended. Due to the temporary elevated temperature being above
the heat rating, we need to repair the gasket seals and insulation.
Our team has identified the root cause of the issue and is in the
process of applying improvements and preventative upgrades as well
as making the necessary repairs to the plant. The issue identified
affects unique aspects of this plant and does not affect the rest
of our fleet. We expect to resume commissioning on the project in
late September but timing is dependent on non-FuelCell Energy
related activities on the Navy base. Our intent is to achieve
commercial operations as expeditiously as possible. If commercial
operations are delayed beyond October 18, 2021, an extension will
be required from the Navy and the Navy will determine whether such
extension will be granted. This platform, when fully operational,
will demonstrate the ability of FuelCell Energy’s platforms to
perform at high efficiencies and provide low CO2 to MWh output.
Incorporation of the platform into a microgrid will demonstrate the
ability of FuelCell Energy’s platforms to increase grid stability
and resilience while supporting the U.S. military’s efforts to
fortify base energy supply and demonstrating the Navy’s commitment
to clean reliable power.
Subsequent to quarter end, in August 2021, the
Company closed on a tax equity financing transaction with East West
Bank for this project. East West Bank’s tax equity commitment
totals $15 million. In connection with the initial closing, the
Company was able to draw down $3.0 million, of which approximately
$0.8 million was used to pay closing costs including appraisal
fees, title insurance expenses and legal and consulting fees. The
Company is eligible to draw the remaining amount of the commitment,
approximately $12 million, once the Groton Project achieves
commercial operation. Under the terms of our agreement with East
West Bank, the project has a required commercial operations
deadline of October 18, 2021, unless that deadline is amended or
waived. If commercial operations are delayed beyond October 18,
2021, an extension will be required from the Navy and the Navy will
determine whether such extension will be granted.
San Bernardino, CA. This 1.4 MW
platform located at the wastewater treatment facility in San
Bernardino, California commenced commercial operation in July
2021.
Subsequent to quarter end, in August 2021, the
Company closed on a tax equity sale-leaseback financing transaction
with Crestmark Equipment Finance (“Crestmark”) for this project. In
this transaction, a subsidiary of the Company sold the fuel cell
power plant located at the wastewater treatment plant in San
Bernardino, California to Crestmark for a purchase price of $10.2
million and then leased the plant back from Crestmark. Net proceeds
of unrestricted cash to the Company were approximately $5.3 million
after deducting an initial rental down payment and one quarter’s
rent totaling $2.2 million, debt service and future module
replacement reserves totaling $2.5 million (classified as
restricted cash of the Company until such time as it meets its
performance obligations under the Long-Term Service Agreement for
the project), and taxes and transaction fees.
LIPA -- Yaphank, NY. On-site
civil construction of this 7.4 MW project has materially advanced,
with all foundations having been completed and most equipment
necessary for the complete construction of the fuel cell project
having been delivered to the site.
Derby, CT. On-site civil
construction of this 14.8 MW project has advanced, having largely
completed the foundational construction necessary in order to begin
to receive delivery of the fuel cell platform equipment. This
utility scale fuel cell platform will contain 5 SureSource 3000
fuel cell systems that will be installed on engineering platforms
alongside the Housatonic River.
Toyota -- Port of Long Beach,
CA. This 2.3 MW trigeneration platform, which will produce
electricity, hydrogen and hot water, has advanced to early site
civil construction. It is anticipated that the fuel cell platform
equipment will be received on-site over the next 90 days following
the date of this release.
Backlog
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of July 31, |
|
|
(Amounts in thousands) |
|
2021 |
|
2020 |
|
Change |
Service |
|
$ |
127,048 |
|
$ |
153,818 |
|
-17 |
% |
Generation |
|
|
1,109,343 |
|
|
1,099,625 |
|
1 |
% |
License |
|
|
22,182 |
|
|
22,182 |
|
0 |
% |
Advanced Technologies |
|
|
40,027 |
|
|
51,892 |
|
-23 |
% |
Total Backlog |
|
$ |
1,298,600 |
|
$ |
1,327,517 |
|
-2 |
% |
Backlog decreased 2.2% to $1.30 billion as of
July 31, 2021, reflecting the continued execution of backlog and
adjustments to generation backlog, primarily resulting from the
decrease in fuel pricing which has lowered estimated future
revenue, offset by the inclusion of the project with United
Illuminating in Derby, Connecticut which was awarded in the second
quarter of this fiscal year.
Only projects for which we have an executed
power purchase agreement (“PPA”) are included in generation
backlog, which represents future revenue under long-term PPAs.
Together, the service and generation portion of backlog had a
weighted average term of approximately 18 years, with weighting
based on the dollar amount of backlog and utility service contracts
of up to 20 years in duration at inception.
Backlog represents definitive agreements
executed by the Company and our customers. Projects sold to
customers (and not retained by the Company) are included in product
sales and service backlog and the related generation backlog is
removed upon the sale.
Conference Call Information
FuelCell Energy will host a conference call
today beginning at 10:00 a.m. EDT to discuss third quarter fiscal
2021 results and key business highlights. Participants can access
the live call via webcast on the Company website or by telephone as
follows:
- The live webcast of the call and
supporting slide presentation will be available at
www.fuelcellenergy.com. To listen to the call, select “Investors”
on the home page, proceed to the “Events & Presentations” page
and then click on the “Webcast” link listed under the September
14th earnings call event, or click here.
- Alternatively, participants can
dial 647-689-4106 and state FuelCell Energy or the conference ID
number 8137459.
The replay of the conference call will be
available via webcast on the Company’s Investors’ page
at www.fuelcellenergy.com approximately two hours after the
conclusion of the call.
Cautionary Language
This news release contains forward-looking
statements within the meaning of the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995 regarding future
events or our future financial performance that involve certain
contingencies and uncertainties, including those discussed in our
Quarterly Report on Form 10-Q for the quarter ended July 31, 2021
in the section entitled "Management's Discussion and Analysis of
Financial Condition and Results of Operations”. Forward-looking
statements include, without limitation, statements with respect to
the Company’s anticipated financial results and statements
regarding the Company’s plans and expectations regarding the
continuing development, commercialization and financing of its fuel
cell technology and its business plans and strategies. These
statements are not guarantees of future performance, and all
forward-looking statements are subject to risks and uncertainties
that could cause actual results to differ materially from those
projected. Factors that could cause such a difference include,
without limitation: general risks associated with product
development and manufacturing; general economic conditions; changes
in the utility regulatory environment; changes in the utility
industry and the markets for distributed generation, distributed
hydrogen, and fuel cell power platforms configured for carbon
capture or carbon sequestration; potential volatility of energy
prices; availability of government subsidies and economic
incentives for alternative energy technologies; our ability to
remain in compliance with U.S. federal and state and foreign
government laws and regulations and the listing rules of The Nasdaq
Stock Market; rapid technological change; competition; the risk
that our bid awards will not convert to contracts or that our
contracts will not convert to revenue; market acceptance of our
products; changes in accounting policies or practices adopted
voluntarily or as required by accounting principles generally
accepted in the United States; factors affecting our liquidity
position and financial condition; government appropriations; the
ability of the government and third parties to terminate their
development contracts at any time; the ability of the government to
exercise “march-in” rights with respect to certain of our patents;
the arbitration and other legal proceedings with POSCO Energy Co.,
Ltd.; our ability to implement our strategy; our ability to reduce
our levelized cost of energy and our cost reduction strategy
generally; our ability to protect our intellectual property;
litigation and other proceedings; the risk that commercialization
of our products will not occur when anticipated; our need for and
the availability of additional financing; our ability to generate
positive cash flow from operations; our ability to service our
long-term debt; our ability to increase the output and longevity of
our power plants and to meet the performance requirements of our
contracts; our ability to expand our customer base and maintain
relationships with our largest customers and strategic business
allies; changes by the U.S. Small Business Administration or other
governmental authorities to, or with respect to the implementation
or interpretation of, the Coronavirus Aid, Relief, and Economic
Security Act, the Paycheck Protection Program or related
administrative matters; and concerns with, threats of, or the
consequences of, pandemics, contagious diseases or health
epidemics, including the novel coronavirus, and resulting supply
chain disruptions, shifts in clean energy demand, impacts to our
customers’ capital budgets and investment plans, impacts to our
project schedules, impacts to our ability to service existing
projects, and impacts on the demand for our products, as well as
other risks set forth in the Company’s filings with the Securities
and Exchange Commission. The forward-looking statements contained
herein speak only as of the date of this press release. The Company
expressly disclaims any obligation or undertaking to release
publicly any updates or revisions to any such statement contained
or incorporated by reference herein to reflect any change in the
Company’s expectations or any change in events, conditions or
circumstances on which any such statement is based.
About FuelCell Energy
FuelCell Energy, Inc. (NASDAQ:
FCEL) is a global leader in sustainable clean energy technologies
that address some of the world’s most critical challenges around
energy, safety and global urbanization. As a leading global
manufacturer of proprietary fuel cell technology platforms,
FuelCell Energy is uniquely positioned to serve customers worldwide
with sustainable products and solutions for businesses, utilities,
governments and municipalities. Our solutions are designed to
enable a world empowered by clean energy, enhancing the quality of
life for people around the globe. We target large-scale power users
with our megawatt-class installations globally, and currently offer
sub-megawatt solutions for smaller power consumers in Europe. To
provide a frame of reference, one megawatt is adequate to
continually power approximately 1,000 average sized U.S. homes. We
develop turn-key distributed power generation solutions and operate
and provide comprehensive service for the life of the power plant.
Our fuel cell solution is a clean, efficient alternative to
traditional combustion-based power generation, and is complementary
to an energy mix consisting of intermittent sources of energy, such
as solar and wind turbines. Our customer base includes utility
companies, municipalities, universities, hospitals, government
entities/military bases and a variety of industrial and commercial
enterprises. Our leading geographic markets are currently the
United States and South Korea, and we are pursuing opportunities in
other countries around the world. FuelCell Energy, based in
Connecticut, was founded in 1969.
SureSource, SureSource 1500, SureSource 3000,
SureSource 4000, SureSource Recovery, SureSource Capture,
SureSource Hydrogen, SureSource Storage, SureSource Service,
SureSource Capital, FuelCell Energy, and FuelCell Energy logo are
all trademarks of FuelCell Energy, Inc.
Contact:
FuelCell Energy,
Inc.ir@fce.com203.205.2491
Source: FuelCell Energy
FUELCELL ENERGY,
INC.Consolidated Balance
Sheets(Unaudited)(Amounts in thousands, except
share and per share amounts)
|
|
|
|
|
|
|
|
July 31,2021 |
|
|
October 31,2020 |
ASSETS |
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents, unrestricted |
$ |
468,565 |
|
|
$ |
149,867 |
|
Restricted cash and cash equivalents – short-term |
|
10,212 |
|
|
|
9,233 |
|
Accounts receivable, net |
|
14,182 |
|
|
|
9,563 |
|
Unbilled receivables |
|
8,690 |
|
|
|
8,041 |
|
Inventories |
|
60,413 |
|
|
|
50,971 |
|
Other current assets |
|
12,170 |
|
|
|
6,306 |
|
Total current assets |
|
574,232 |
|
|
|
233,981 |
|
|
|
|
|
|
|
Restricted cash and cash
equivalents – long-term |
|
15,243 |
|
|
|
32,952 |
|
Project assets |
|
199,218 |
|
|
|
161,809 |
|
Inventories – long-term |
|
4,586 |
|
|
|
8,986 |
|
Property, plant and equipment,
net |
|
35,961 |
|
|
|
36,331 |
|
Operating lease right-of-use
assets, net |
|
7,993 |
|
|
|
10,098 |
|
Goodwill |
|
4,075 |
|
|
|
4,075 |
|
Intangible assets, net |
|
18,994 |
|
|
|
19,967 |
|
Other assets |
|
19,330 |
|
|
|
15,339 |
|
Total assets |
$ |
879,632 |
|
|
$ |
523,538 |
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
Current portion of long-term debt |
$ |
9,154 |
|
|
$ |
21,366 |
|
Current portion of operating lease liabilities |
|
950 |
|
|
|
939 |
|
Accounts payable |
|
10,893 |
|
|
|
9,576 |
|
Accrued liabilities |
|
13,531 |
|
|
|
15,681 |
|
Deferred revenue |
|
8,454 |
|
|
|
10,399 |
|
Preferred stock obligation of subsidiary |
|
- |
|
|
|
938 |
|
Total current liabilities |
|
42,982 |
|
|
|
58,899 |
|
|
|
|
|
|
|
Long-term deferred
revenue |
|
28,969 |
|
|
|
31,501 |
|
Long-term preferred stock
obligation of subsidiary |
|
- |
|
|
|
18,265 |
|
Long-term operating lease
liabilities |
|
8,011 |
|
|
|
9,817 |
|
Long-term debt and other
liabilities |
|
73,582 |
|
|
|
150,651 |
|
Total liabilities |
|
153,544 |
|
|
|
269,133 |
|
|
|
|
|
|
|
Redeemable Series B preferred
stock (liquidation preference of $64,020 as of July 31, 2021 and
October 31, 2020) |
|
59,857 |
|
|
|
59,857 |
|
Total equity: |
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
Common stock ($0.0001 par value); 500,000,000 and 337,500,000
shares authorized as of July 31, 2021 and October 31, 2020
respectively; 366,483,758 and 294,706,758 shares issued and
outstanding as of July 31, 2021 and October 31, 2020,
respectively |
|
37 |
|
|
|
29 |
|
Additional paid-in capital |
|
1,908,011 |
|
|
|
1,359,454 |
|
Accumulated deficit |
|
(1,241,070 |
) |
|
|
(1,164,196 |
) |
Accumulated other comprehensive loss |
|
(747 |
) |
|
|
(739 |
) |
Treasury stock, Common, at cost (67,694 and 56,411 shares as of
July 31, 2021 and October 31, 2020, respectively) |
|
(544 |
) |
|
|
(432 |
) |
Deferred compensation |
|
544 |
|
|
|
432 |
|
Total stockholders’ equity |
|
666,231 |
|
|
|
194,548 |
|
Total liabilities and stockholders’ equity |
$ |
879,632 |
|
|
$ |
523,538 |
|
FUELCELL ENERGY,
INC.Consolidated Statements of Operations and
Comprehensive Loss(Unaudited)(Amounts in
thousands, except share and per share amounts)
|
|
|
|
|
|
|
Three Months Ended July 31, |
|
2021 |
|
2020 |
Revenues: |
|
|
|
|
|
Product |
$ |
- |
|
|
$ |
- |
|
Service and license |
|
14,344 |
|
|
|
7,113 |
|
Generation |
|
6,230 |
|
|
|
4,722 |
|
Advanced Technologies |
|
6,246 |
|
|
|
6,893 |
|
Total revenues |
|
26,820 |
|
|
|
18,728 |
|
|
|
|
|
|
|
Costs of revenues: |
|
|
|
|
|
Product |
|
1,903 |
|
|
|
2,658 |
|
Service and license |
|
13,026 |
|
|
|
8,833 |
|
Generation |
|
6,728 |
|
|
|
6,327 |
|
Advanced Technologies |
|
4,063 |
|
|
|
4,038 |
|
Total cost of revenues |
|
25,720 |
|
|
|
21,856 |
|
|
|
|
|
|
|
Gross profit (loss) |
|
1,100 |
|
|
|
(3,128 |
) |
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
Administrative and selling expenses |
|
8,662 |
|
|
|
6,607 |
|
Research and development expense |
|
3,023 |
|
|
|
1,027 |
|
Total costs and expenses |
|
11,685 |
|
|
|
7,634 |
|
|
|
|
|
|
|
Loss from operations |
|
(10,585 |
) |
|
|
(10,762 |
) |
|
|
|
|
|
|
Interest expense |
|
(1,554 |
) |
|
|
(4,165 |
) |
Gain on extinguishment of financing obligation |
|
- |
|
|
|
1,801 |
|
Change in fair value of common stock warrant liability |
|
- |
|
|
|
(1,694 |
) |
Other income (expense), net |
|
149 |
|
|
|
(501 |
) |
|
|
|
|
|
|
Loss before provision for
income taxes |
|
(11,990 |
) |
|
|
(15,321 |
) |
|
|
|
|
|
|
Provision for income taxes |
|
(7 |
) |
|
|
(10 |
) |
|
|
|
|
|
|
Net loss |
|
(11,997 |
) |
|
|
(15,331 |
) |
|
|
|
|
|
|
Series B preferred stock dividends |
|
(800 |
) |
|
|
(800 |
) |
|
|
|
|
|
|
Net loss attributable to
common stockholders |
$ |
(12,797 |
) |
|
$ |
(16,131 |
) |
|
|
|
|
|
|
Loss per share basic and
diluted: |
|
|
|
|
|
Net loss per share attributable to common stockholders |
$ |
(0.04 |
) |
|
$ |
(0.07 |
) |
Basic and diluted weighted average shares outstanding |
|
337,291,562 |
|
|
|
217,966,402 |
|
FUELCELL ENERGY,
INC.Consolidated Statements of Operations and
Comprehensive Loss(Unaudited)(Amounts in
thousands, except share and per share amounts)
|
|
|
|
|
|
|
Nine Months Ended July 31, |
|
2021 |
|
2020 |
Revenues: |
|
|
|
|
|
Product |
$ |
— |
|
|
$ |
— |
|
Service and license |
|
19,917 |
|
|
|
19,697 |
|
Generation |
|
17,306 |
|
|
|
14,795 |
|
Advanced Technologies |
|
18,427 |
|
|
|
19,380 |
|
Total revenues |
|
55,650 |
|
|
|
53,872 |
|
Costs of revenues: |
|
|
|
|
|
Product |
|
6,190 |
|
|
|
7,512 |
|
Service and license |
|
20,992 |
|
|
|
16,418 |
|
Generation |
|
23,265 |
|
|
|
17,576 |
|
Advanced Technologies |
|
12,477 |
|
|
|
12,046 |
|
Total costs of revenues |
|
62,924 |
|
|
|
53,552 |
|
Gross (loss) profit |
|
(7,274 |
) |
|
|
320 |
|
Operating expenses: |
|
|
|
|
|
Administrative and selling expenses |
|
27,264 |
|
|
|
19,041 |
|
Research and development expenses |
|
7,810 |
|
|
|
3,323 |
|
Total costs and expenses |
|
35,074 |
|
|
|
22,364 |
|
Loss from operations |
|
(42,348 |
) |
|
|
(22,044 |
) |
Interest expense |
|
(5,662 |
) |
|
|
(11,026 |
) |
(Loss) gain on extinguishment of debt and financing obligation |
|
(11,156 |
) |
|
|
1,801 |
|
Loss on extinguishment of Series 1 preferred share obligation |
|
(934 |
) |
|
|
- |
|
Change in fair value of common stock warrant liability |
|
(15,974 |
) |
|
|
(39,311 |
) |
Other (expense) income, net |
|
(797 |
) |
|
|
370 |
|
Loss before provision for income
taxes |
|
(76,871 |
) |
|
|
(70,210 |
) |
Provision for income taxes |
|
(3 |
) |
|
|
(41 |
) |
Net loss |
|
(76,874 |
) |
|
|
(70,251 |
) |
Series B preferred stock dividends |
|
(2,400 |
) |
|
|
(2,531 |
) |
Net loss attributable to common
stockholders |
$ |
(79,274 |
) |
|
$ |
(72,782 |
) |
Loss per share basic and
diluted: |
|
|
|
|
|
Net loss per share attributable to common stockholders |
$ |
(0.24 |
) |
|
$ |
(0.35 |
) |
Basic and diluted weighted average shares outstanding |
|
323,983,465 |
|
|
|
210,389,907 |
|
Appendix
Non-GAAP Financial Measures
Financial results are presented in accordance
with accounting principles generally accepted in the United States
(“GAAP”). Management also uses non-GAAP measures to analyze
and make operating decisions on the business. Earnings before
interest, taxes, depreciation and amortization (“EBITDA”) and
Adjusted EBITDA are alternate, non-GAAP measures of operations and
operating performance by the Company.
These supplemental non-GAAP measures are
provided to assist readers in determining operating performance.
Management believes EBITDA and Adjusted EBITDA are useful in
assessing performance and highlighting trends on an overall basis.
Management also believes these measures are used by companies in
the fuel cell sector and by securities analysts and investors when
comparing the results of the Company with those of other companies.
EBITDA differs from the most comparable GAAP measure, net loss
attributable to the Company, primarily because it does not include
finance expense, income taxes and depreciation of property, plant
and equipment and project assets. Adjusted EBITDA adjusts EBITDA
for stock-based compensation, restructuring charges and other
unusual items such as the legal settlement recorded during the
first quarter of fiscal 2020, which are considered either non-cash
or non-recurring.
While management believes that these non-GAAP
financial measures provide useful supplemental information to
investors, there are limitations associated with the use of these
measures. The measures are not prepared in accordance with GAAP and
may not be directly comparable to similarly titled measures of
other companies due to potential differences in the exact method of
calculation. The Company’s non-GAAP financial measures are not
meant to be considered in isolation or as a substitute for
comparable GAAP financial measures and should be read only in
conjunction with the Company’s consolidated financial statements
prepared in accordance with GAAP.
The following table calculates EBITDA and
Adjusted EBITDA and reconciles these figures to the GAAP financial
statement measure Net loss.
|
Three Months Ended July 31, |
|
Nine Months Ended July 31, |
(Amounts in thousands) |
2021 |
|
2020 |
|
2021 |
|
2020 |
Net loss |
$ |
(11,997 |
) |
|
$ |
(15,331 |
) |
|
$ |
(76,874 |
) |
|
$ |
(70,251 |
) |
Depreciation and amortization
(1) |
|
4,509 |
|
|
|
4,726 |
|
|
|
14,921 |
|
|
|
13,828 |
|
Provision for income taxes |
|
7 |
|
|
|
10 |
|
|
|
3 |
|
|
|
41 |
|
Other (income)/expense, net
(2) |
|
(149 |
) |
|
|
501 |
|
|
|
797 |
|
|
|
(370 |
) |
(Gain) loss on extinguishment of
debt and financing obligation |
|
- |
|
|
|
(1,801 |
) |
|
|
11,156 |
|
|
|
(1,801 |
) |
Loss on extinguishment of Series
1 preferred share obligation |
|
- |
|
|
|
- |
|
|
|
934 |
|
|
|
- |
|
Change in fair value of common
stock warrant liability |
|
- |
|
|
|
1,694 |
|
|
|
15,974 |
|
|
|
39,311 |
|
Interest expense |
|
1,554 |
|
|
|
4,165 |
|
|
|
5,662 |
|
|
|
11,026 |
|
EBITDA |
$ |
(6,076 |
) |
|
$ |
(6,036 |
) |
|
$ |
(27,427 |
) |
|
$ |
(8,216 |
) |
Share-based compensation
expense |
|
903 |
|
|
|
398 |
|
|
|
3,573 |
|
|
|
1,261 |
|
Legal settlement (3) |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(2,200 |
) |
Adjusted EBITDA |
$ |
(5,173 |
) |
|
$ |
(5,638 |
) |
|
$ |
(23,854 |
) |
|
$ |
(9,155 |
) |
(1) Includes depreciation and amortization on
our Generation portfolio of $3.3 million and $11.2 million for the
three and nine months ended July 31, 2021, respectively, and $3.4
million and $9.9 million for the three and nine months ended July
31, 2020, respectively.(2) Other (income)/expense, net includes
gains and losses from transactions denominated in foreign
currencies, changes in fair value of derivatives, and other items
incurred periodically, which are not the result of the Company’s
normal business operations.(3) The Company received a legal
settlement of $2.2 million during the three months ended January
31, 2020, which was recorded as an offset to administrative and
selling expenses.
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