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 and key
business highlights for its fourth fiscal quarter and fiscal year
ended October 31, 2020.
“One year ago we launched our Powerhouse
business strategy, with the first pillar of the strategy –
Transform – containing the key deliverable of building a solid
financial foundation,” said Mr. Jason Few, President and CEO.
“Having made progress toward this goal, and as we look toward the
second year of our journey, we intend to focus on operational and
commercial excellence, while maintaining prudent capital
deployment, reducing our overall cost of capital and focusing on
lean resource management, cost reduction opportunities, and
developing and defining a clear strategic roadmap for the Company.
We are firmly focused on delivering revenue growth as we strive to
capture the significant market opportunities that we believe lay
before us with our proprietary technologies.”
Mr. Few continued, “During fiscal year 2020, we
made progress executing on our project backlog, including
completion of our 2.8 megawatt biogas power platform in Tulare,
California. Additionally, we are near completion on the combined
8.8 megawatts of new power platforms at the U.S. Navy base in
Groton, Connecticut and at the wastewater treatment facility in San
Bernardino, California. We also recently began early stage
construction activity on 24.5 megawatts of projects, including the
Toyota hydrogen project at the Port of Long Beach, and utility
scale projects in Yaphank, New York and Derby, Connecticut.
Financially, we have improved our balance sheet through a series of
strategic capital raises, allowing us to retire high-cost debt and
providing unrestricted cash to execute on our strategic initiatives
and growth plans.”
“The global marketplace is increasingly looking
for cleaner energy solutions to combat climate change, made
possible by regulatory support and private capital being deployed
around the world. We are developing compelling innovations in
distributed hydrogen, long-duration storage and carbon capture that
we believe will differentiate FuelCell Energy solutions from others
in the marketplace and will enable end-users to meet sustainability
goals. Based on the initial policy objectives outlined by the
incoming White House administration, we expect clean energy and
climate policies in the U.S. to begin to match the pace of
advancement seen in other markets such as Europe and Asia, and to
be favorable toward development of the growing hydrogen economy,”
added Mr. Jason Few.
“Operationally, continuous improvement and
accelerating execution of our business plan are major focus areas
for FuelCell Energy. For example, during fiscal year 2020, we made
a number of improvements in our manufacturing processes and
capabilities, focusing on increasing throughput and simplifying and
streamlining production steps, while implementing applicable social
distancing protocols. In late June, we restarted operations at our
Torrington manufacturing facility with an annualized production
rate of 17 megawatts. As a result of the improvements in our
manufacturing processes and capabilities, the Company now has the
capability to increase our annualized production rate up to 45
megawatts on a single production shift.”
Powerhouse Business Strategy
Update
In January 2020, we launched our Powerhouse
business strategy, which is focused on initiatives intended to
Transform, Strengthen and Grow our company over a three-year
period.
In the fourth quarter of fiscal 2020, we:
- Received $3.0 million of funding
support from the U.S. Department of Energy (“DOE”) to be used
toward the development and commercialization of FuelCell Energy’s
reversible solid oxide fuel cell (RSOFC) system, which performs
water electrolysis for the production of hydrogen, stores hydrogen,
and then produces power by using the produced hydrogen; and
- Received an $8.0 million funding
award from the DOE, in collaboration with the Office of Nuclear
Energy, to support the design and manufacture of a SureSource®
electrolysis platform capable of producing hydrogen.
Additionally, since the end of fiscal year 2020,
we have:
- Completed an underwritten offering
of 25 million shares of common stock, resulting in net proceeds to
the Company of approximately $156.3 million, after deducting
underwriting discounts and commissions and other offering
expenses;
- Repaid all amounts owed, including
accrued interest and prepayment fees, to the lenders and the agent
under the Orion Credit Agreement, which totaled approximately $87.3
million, and resulted in the extinguishment of the Orion Credit
Facility and the release of $11.2 million of restricted cash to the
Company; and
- Paid all amounts owed to Enbridge
Inc. under the Series 1 Preferred Shares issued by a subsidiary of
the Company, which totaled Cdn. $27.4 million, or approximately
U.S. $21.5 million, following which Enbridge Inc. surrendered its
Series 1 Preferred Shares.
Mr. Few concluded, “The four key product
opportunities we are pursuing are: (1) distributed generation, (2)
distributed hydrogen, (3) long-duration hydrogen energy storage and
power generation as well as electrolysis, and (4) carbon capture,
sequestration and utilization (CCSU). These technologies provide an
opportunity for FuelCell Energy to be a key solutions provider and
an enabler in the global clean energy transition. In fiscal year
2021, we are focused on commercially advancing new applications of
our technology, including working toward delivery of our first
demonstration solid oxide electrolysis platform, while continuing
to execute on our backlog of projects and delivering our
traditional distributed generation solutions.”
Consolidated Financial
MetricsIn 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 Months Ended October 31, |
|
Twelve Months Ended October 31, |
(Amounts in thousands) |
|
2020 |
|
|
|
2019 |
|
|
Change |
|
|
2020 |
|
|
|
2019 |
|
|
Change |
Total revenues |
$ |
16,999 |
|
|
$ |
11,041 |
|
|
54 |
% |
|
$ |
70,871 |
|
|
$ |
60,752 |
|
|
17 |
% |
Gross loss |
|
(8,045 |
) |
|
|
(23,389 |
) |
|
-66 |
% |
|
|
(7,725 |
) |
|
|
(21,269 |
) |
|
-64 |
% |
Loss from operations |
|
(17,122 |
) |
|
|
(32,992 |
) |
|
-48 |
% |
|
|
(39,166 |
) |
|
|
(66,929 |
) |
|
-41 |
% |
Net Loss |
|
(18,856 |
) |
|
|
(35,179 |
) |
|
-46 |
% |
|
|
(89,107 |
) |
|
|
(77,568 |
) |
|
15 |
% |
EBITDA |
|
(11,573 |
) |
|
|
(28,958 |
) |
|
-60 |
% |
|
|
(19,789 |
) |
|
|
(54,576 |
) |
|
-64 |
% |
Net loss attributable to common stockholders |
|
(19,656 |
) |
|
|
(36,003 |
) |
|
-45 |
% |
|
|
(92,438 |
) |
|
|
(100,245 |
) |
|
-8 |
% |
Net loss per basic and diluted share |
$ |
(0.08 |
) |
|
$ |
(0.23 |
) |
|
-65 |
% |
|
$ |
(0.42 |
) |
|
$ |
(1.82 |
) |
|
-77 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
$ |
(8,550 |
) |
|
$ |
(10,959 |
) |
|
-22 |
% |
|
$ |
(17,704 |
) |
|
$ |
(31,412 |
) |
|
-44 |
% |
Fourth Quarter Fiscal 2020
ResultsNote: All comparisons are between the fourth
quarter of fiscal 2020 and the fourth quarter of fiscal 2019,
unless otherwise specified.
Fourth quarter revenues increased 54% to $17.0
million, primarily reflecting increases in Service and License and
Advanced Technologies contract revenues, partially offset by a
decrease in Generation revenues.
- Service and
License revenues increased 623% to $5.4 million from $0.8
million. Service revenues included revenue recognized for module
exchanges at three plant locations compared to no module exchanges
in the comparable prior year period.
- Generation
revenues decreased 6% to $5.1 million from $5.5 million due to
plant maintenance activities, primarily related to downtime while
upgrades were performed at our 14.9 MW Bridgeport Fuel Cell
facility.
- Advanced
Technologies contract revenues increased 48% to $6.4
million from $4.3 million as a result of revenues recognized in
connection with our Joint Development Agreement with ExxonMobil
Research and Engineering Company (“EMRE”), which was executed
during the first quarter of fiscal 2020, and the timing of activity
under other existing contracts.
Cost of service and license revenues in the
quarter increased to $8.1 million from $3.8 million in the
comparable prior year period, as the Company performed module
exchanges for three projects, compared to no module exchanges in
the comparable prior year period. Cost of generation revenues
decreased to $10.3 million from $22.6 million. Results for the
fourth fiscal quarter of 2019 include a non-cash impairment charge
of $14.4 million, and results for the fourth fiscal quarter of 2020
include a non-cash impairment charge of $2.4 million. These
non-cash impairment charges related to a decision by the Company
made in the fourth fiscal quarter of 2019 to operate the Triangle
Street Project under a merchant model and the Company’s use of the
Triangle Street Project as a development platform for the Company’s
advanced applications.
Gross loss totaled $(8.0) million, compared to
$(23.4) million. The fourth quarter of fiscal 2020 was impacted by,
among other things, timing and mix of advanced technology
activities, higher service costs during the quarter, and an
impairment charge of $2.4 million during the quarter relating to
our Triangle Street Project. The fourth quarter of fiscal 2019
included non-cash impairment charges totaling $17.5 million related
to our Triangle Street Project and the termination of the Bolthouse
Farms Project power purchase agreement due to unfavorable
regulatory changes.
Operating expenses decreased 5% to $9.1 million,
compared to $9.6 million. This decrease was driven by a reduction
in administrative and selling expenses reflecting the restructuring
initiatives implemented in 2019, slightly offset by an increase in
research and development expenses.
Net loss for the quarter totaled $(18.9) million
compared to net loss of $(35.2) million. Net loss attributable to
common stockholders for the quarter totaled $(19.7) million, or
$(0.08) per share, compared to net loss attributable to common
stockholders of $(36.0) million, or $(0.23) per share. The lower
net loss per common share for the quarter ended October 31, 2020 is
primarily due to the higher weighted average shares outstanding due
to share issuances since October 31, 2019.
Adjusted EBITDA totaled $(8.6) million for the
quarter compared to an Adjusted EBITDA of $(11.0) million for the
comparable prior year period. Total depreciation and amortization
expense for the quarter was $5.5 million, of which $4.3 million was
attributable to our generation portfolio. Please see the discussion
of non-GAAP financial measures, including EBITDA and Adjusted
EBITDA, as well as applicable reconciliations in the appendix at
the end of this release.
Fiscal Year 2020 ResultsNote:
All comparisons are between fiscal year 2020 and fiscal year 2019,
unless otherwise specified.
Revenues increased 17% to $70.9 million from
$60.8 million, primarily attributable to expanded Generation and
Advanced Technologies activities.
- Service and
License revenues decreased 6% to $25.1 million from $26.6
million. Fiscal year 2020 included license revenues of $4.0 million
recorded in connection with the Joint Development Agreement that
was entered into with EMRE in early fiscal year 2020, compared with
$10.0 million recorded in the prior fiscal year related to a
separate license agreement entered into with EMRE. In addition, the
prior fiscal year included revenue recorded for the Bridgeport Fuel
Cell Project service agreement. Revenues are no longer being
recognized under this service agreement as a result of the purchase
of the project by a subsidiary of FuelCell Energy in May 2019.
- Generation
revenues increased 42% to $19.9 million from $14.0 million,
reflecting revenue from electricity generated under our PPAs. The
increase was due to additional revenue that was recorded for the
PPA associated with the Bridgeport Fuel Cell Project, which was
acquired in May 2019, and the Tulare BioMAT project, which
commenced operations in December 2019.
- Advanced
Technologies contract revenues increased 31% to $25.8
million from $19.6 million, primarily due to revenues recognized in
connection with the Company’s Joint Development Agreement with
EMRE.
- Product Sales
decreased to $0 from $0.5 million.
Gross loss in fiscal year 2020 totaled $(7.7)
million, compared to gross loss of $(21.3) million in fiscal year
2019.
Operating expenses for fiscal year 2020
decreased 31% to $31.4 million compared to $45.7 million in fiscal
year 2019. Research and development expenses were $4.8 million in
fiscal year 2020 compared to $13.8 million in fiscal year 2019.
This decrease reflects the reduction in spending resulting from the
restructuring initiatives implemented in fiscal year 2019 and the
reduction in the resources being allocated to internal research and
development activities, as resources were instead allocated to
funded Advanced Technologies projects. Administrative and selling
expenses in fiscal year 2020 decreased to $26.6 million from $31.9
million in fiscal year 2019. The decrease primarily relates to
proceeds from a legal settlement of $2.2 million received during
the fiscal year ended October 31, 2020, which was recorded as an
offset to administrative and selling expenses, and higher legal and
consulting costs incurred during the year ended October 31, 2019 in
connection with the restructuring and refinancing initiatives
undertaken by the Company in fiscal year 2019.
Net loss for fiscal year 2020 totaled $(89.1)
million compared to net loss of $(77.6) million. Net loss
attributable to common stockholders for fiscal year 2020 totaled
$(92.4) million, or $(0.42) per share, compared to net loss
attributable to common stockholders of $(100.2) million, or $(1.82)
per share. Net loss and net loss attributable to common
stockholders for fiscal year 2020 included a negative non-cash
impact related to the change in fair value of common stock warrant
liability of $37.1 million. The lower net loss per common share for
the fiscal year ended October 31, 2020 is primarily due to the
higher weighted average shares outstanding due to share issuances
since October 31, 2019.
Adjusted EBITDA in fiscal year 2020 improved 44%
to ($17.7) million, compared to ($31.4) million in fiscal year
2019. Please see the discussion of non-GAAP financial measures and
Adjusted EBITDA in the appendix at the end of this release.
Unrestricted Cash and Financing
Update
Fiscal Year 2020
During the fourth quarter, on October 2, 2020,
the Company closed on an underwritten offering of approximately 50
million shares of its common stock. Net proceeds to the Company
after deducting underwriting discounts and commissions and offering
expenses totaled approximately $98.3 million.
As of October 31, 2020, unrestricted cash and
cash equivalents totaled $149.9 million compared to $9.4 million as
of October 31, 2019.
Subsequent to the 2020 Fiscal Year End:
On December 4, 2020, the Company closed on an
underwritten offering of 25 million shares of its common stock. Net
proceeds to the Company after deducting underwriting discounts and
commissions and offering expenses totaled approximately $156.3
million.
Proceeds from this offering have been utilized
as follows:
- Extinguishment of Senior Secured
Debt: On December 7, 2020, the Company paid $87.3 million to settle
the outstanding principal, accrued but unpaid interest, prepayment
premium, fees, costs and other expenses due and owing to the agent
and the lenders under the Orion Credit Facility and the Orion
Credit Agreement and related loan documents. Concurrently, the
agent released all of the collateral from the liens granted under
the security documents associated with the Orion Credit Facility,
which included the release of $11.2 million of restricted cash to
the Company.
- Payment under the
Series 1 Preferred Shares: On December 17, 2020, the Company
paid all amounts owed to Enbridge Inc. under the Series 1
Preferred Shares previously issued by a subsidiary of the Company,
totaling $21.5 million U.S. dollars. Following such payment,
Enbridge Inc. surrendered its Series 1 Preferred Shares and the
Guarantee executed by the Company in favor of Enbridge was
terminated.
- Working Capital:
The remaining $47.5 million of proceeds from the offering is
unrestricted cash and may be used to accelerate the development and
commercialization of our solid oxide platform and for project
development, project financing, working capital support and general
corporate purposes.
Backlog
|
|
As of October 31, |
|
|
(Amounts in thousands) |
|
|
2020 |
|
|
|
2019 |
|
|
Change |
Service |
|
|
146,810 |
|
|
|
169,371 |
|
|
-13.3 |
% |
Generation |
|
|
1,067,228 |
|
|
|
1,114,366 |
|
|
-4.2 |
% |
License |
|
|
22,182 |
|
|
|
22,931 |
|
|
-3.3 |
% |
Advanced Technologies |
|
|
49,153 |
|
|
|
11,978 |
|
|
310.4 |
% |
Total Backlog |
|
$ |
1,285,373 |
|
|
$ |
1,318,646 |
|
|
-2.5 |
% |
Backlog decreased 2.5% to $1.29 billion as of
October 31, 2020, 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. Partially offsetting these decreases was an increase in
our Advanced Technologies backlog, primarily as a result of the
Joint Development Agreement with EMRE.
Only projects for which we have an executed 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. EST to discuss the fourth fiscal
quarter and full year results for fiscal year 2020 as well as 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 January 21
earnings call event, or click here.
- Alternatively, participants can
dial 647-689-4106 and state FuelCell Energy or the conference ID
number 9572604.
The replay of the conference call will be
available via webcast on the Company’s Investors’ page
atwww.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. 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. 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, changes to projected deliveries and order flow,
changes to production rate and product costs, general risks
associated with product development, manufacturing, changes in the
regulatory environment, customer strategies, ability to access
certain markets, unanticipated manufacturing issues that impact
power plant performance, changes in critical accounting policies,
access to and ability to raise capital and attract financing,
potential volatility of energy prices, rapid technological change,
competition, the Company’s ability to successfully implement its
new business strategies and achieve its goals, the Company’s
ability to achieve its sales plans and cost reduction targets,
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
customers’ capital budgets and investment plans, impacts to the
Company’s project schedules, impacts to the Company’s ability to
service existing projects, and impacts on the demand for the
Company’s 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 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)
|
|
October 31,2020 |
|
|
October 31, 2019 |
ASSETS |
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents, unrestricted |
$ |
149,867 |
|
|
$ |
9,434 |
|
Restricted cash and cash equivalents – short-term |
|
9,233 |
|
|
|
3,473 |
|
Accounts receivable, net |
|
9,563 |
|
|
|
3,292 |
|
Unbilled receivables |
|
8,041 |
|
|
|
7,684 |
|
Inventories |
|
50,971 |
|
|
|
54,515 |
|
Other current assets |
|
6,306 |
|
|
|
5,921 |
|
Total current assets |
|
233,981 |
|
|
|
84,319 |
|
|
|
|
|
|
|
Restricted cash and cash
equivalents – long-term |
|
32,952 |
|
|
|
26,871 |
|
Project assets |
|
161,809 |
|
|
|
144,115 |
|
Inventories – long-term |
|
8,986 |
|
|
|
2,179 |
|
Property, plant and equipment,
net |
|
36,331 |
|
|
|
41,134 |
|
Operating lease right-of-use
assets, net |
|
10,098 |
|
|
|
- |
|
Goodwill |
|
4,075 |
|
|
|
4,075 |
|
Intangible assets, net |
|
19,967 |
|
|
|
21,264 |
|
Other assets |
|
15,339 |
|
|
|
9,489 |
|
Total assets |
$ |
523,538 |
|
|
$ |
333,446 |
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
Current portion of long-term debt |
$ |
21,366 |
|
|
$ |
21,916 |
|
Current portion of operating lease liabilities |
|
939 |
|
|
|
- |
|
Accounts payable |
|
9,576 |
|
|
|
16,943 |
|
Accrued liabilities |
|
15,681 |
|
|
|
11,452 |
|
Deferred revenue |
|
10,399 |
|
|
|
11,471 |
|
Preferred stock obligation of subsidiary |
|
938 |
|
|
|
950 |
|
Total current liabilities |
|
58,899 |
|
|
|
62,732 |
|
|
|
|
|
|
|
Long-term deferred
revenue |
|
31,501 |
|
|
|
28,705 |
|
Long-term preferred stock
obligation of subsidiary |
|
18,265 |
|
|
|
16,275 |
|
Long-term operating lease
liabilities |
|
9,817 |
|
|
|
- |
|
Long-term debt and other
liabilities |
|
150,651 |
|
|
|
90,140 |
|
Total liabilities |
|
269,133 |
|
|
|
197,852 |
|
|
|
|
|
|
|
Redeemable Series B preferred
stock (liquidation preference of $64,020 as of October 31, 2020 and
2019) |
|
59,857 |
|
|
|
59,857 |
|
Total equity: |
|
|
|
|
|
Stockholders’ equity |
|
|
|
|
|
|
|
Common stock ($0.0001 par value); 337,500,000 shares and
225,000,000 shares authorized as of October 31, 2020 and 2019,
respectively; 294,706,758 and 193,608,684 shares issued and
outstanding as of October 31, 2020 and 2019, respectively) |
|
29 |
|
|
|
19 |
|
Additional paid-in capital |
|
1,359,454 |
|
|
|
1,151,454 |
|
Accumulated deficit |
|
(1,164,196 |
) |
|
|
(1,075,089 |
) |
Accumulated other comprehensive loss |
|
(739 |
) |
|
|
(647 |
) |
Treasury stock, Common, at cost (56,411 and 42,496 shares as of
October 31, 2020 and 2019, respectively) |
|
(432 |
) |
|
|
(466 |
) |
Deferred compensation |
|
432 |
|
|
|
466 |
|
Total stockholders’ equity |
|
194,548 |
|
|
|
75,737 |
|
Total liabilities and stockholders’ equity |
$ |
523,538 |
|
|
$ |
333,446 |
|
FUELCELL ENERGY,
INC.Consolidated Statements of Operations and
Comprehensive Loss(Unaudited)(Amounts in
thousands, except share and per share amounts)
|
Three Months EndedOctober
31, |
|
2020 |
|
2019 |
Revenues: |
|
|
|
|
|
Product |
$ |
- |
|
|
$ |
481 |
|
Service and license |
|
5,436 |
|
|
|
752 |
|
Generation |
|
5,148 |
|
|
|
5,474 |
|
Advanced Technologies |
|
6,415 |
|
|
|
4,334 |
|
Total revenues |
|
16,999 |
|
|
|
11,041 |
|
|
|
|
|
|
|
Costs of revenues: |
|
|
|
|
|
Product |
|
2,412 |
|
|
|
4,190 |
|
Service and license |
|
8,127 |
|
|
|
3,777 |
|
Generation |
|
10,297 |
|
|
|
22,595 |
|
Advanced Technologies |
|
4,208 |
|
|
|
3,868 |
|
Total cost of revenues |
|
25,044 |
|
|
|
34,430 |
|
|
|
|
|
|
|
Gross loss |
|
(8,045 |
) |
|
|
(23,389 |
) |
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
Administrative and selling expenses |
|
7,603 |
|
|
|
8,252 |
|
Research and development expense |
|
1,474 |
|
|
|
1,351 |
|
Total costs and expenses |
|
9,077 |
|
|
|
9,603 |
|
|
|
|
|
|
|
Loss from operations |
|
(17,122 |
) |
|
|
(32,992 |
) |
|
|
|
|
|
|
Interest expense |
|
(4,268 |
) |
|
|
(2,816 |
) |
Change in fair value of common stock warrant liability |
|
2,225 |
|
|
|
- |
|
Other income, net |
|
314 |
|
|
|
649 |
|
|
|
|
|
|
|
Loss before provision for
income taxes |
|
(18,851 |
) |
|
|
(35,159 |
) |
|
|
|
|
|
|
Provision for income taxes |
|
(5 |
) |
|
|
(20 |
) |
|
|
|
|
|
|
Net loss |
|
(18,856 |
) |
|
|
(35,179 |
) |
|
|
|
|
|
|
Series B preferred stock dividends |
|
(800 |
) |
|
|
(821 |
) |
Series D preferred stock deemed dividends |
|
- |
|
|
|
(3 |
) |
|
|
|
|
|
|
Net loss attributable to
common stockholders |
$ |
(19,656 |
) |
|
$ |
(36,003 |
) |
|
|
|
|
|
|
Loss per share basic and
diluted: |
|
|
|
|
|
Net loss per share attributable to common stockholders |
$ |
(0.08 |
) |
|
$ |
(0.23 |
) |
Basic and diluted weighted average shares outstanding |
|
256,375,578 |
|
|
|
154,408,279 |
|
FUELCELL ENERGY,
INC.Consolidated Statements of Operations and
Comprehensive Loss(Unaudited)(Amounts in
thousands, except share and per share amounts)
|
|
Year Ended October 31, |
|
|
2020 |
|
2019 |
Revenues: |
|
|
|
|
|
|
|
|
Product |
|
$ |
— |
|
|
$ |
481 |
|
Service and license |
|
|
25,133 |
|
|
|
26,618 |
|
Generation |
|
|
19,943 |
|
|
|
14,034 |
|
Advanced Technologies |
|
|
25,795 |
|
|
|
19,619 |
|
Total revenues |
|
|
70,871 |
|
|
|
60,752 |
|
Costs of revenues: |
|
|
|
|
|
|
Product |
|
|
9,924 |
|
|
|
18,552 |
|
Service and license |
|
|
24,545 |
|
|
|
18,943 |
|
Generation |
|
|
27,873 |
|
|
|
31,642 |
|
Advanced Technologies |
|
|
16,254 |
|
|
|
12,884 |
|
Total costs of revenues |
|
|
78,596 |
|
|
|
82,021 |
|
Gross loss |
|
|
(7,725 |
) |
|
|
(21,269 |
) |
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
Administrative and selling expenses |
|
|
26,644 |
|
|
|
31,874 |
|
Research and development expenses |
|
|
4,797 |
|
|
|
13,786 |
|
Total costs and expenses |
|
|
31,441 |
|
|
|
45,660 |
|
|
|
|
|
|
|
|
|
|
Loss from operations |
|
|
(39,166 |
) |
|
|
(66,929 |
) |
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
(15,294 |
) |
|
|
(10,623 |
) |
Change in fair value of common stock warrant liability |
|
|
(37,086 |
) |
|
|
— |
|
Gain on extinguishment of financing obligation |
|
|
1,801 |
|
|
|
— |
|
Other income, net |
|
|
684 |
|
|
|
93 |
|
|
|
|
|
|
|
|
|
|
Loss before provision for
income taxes |
|
|
(89,061 |
) |
|
|
(77,459 |
) |
|
|
|
|
|
|
|
|
|
Provision for income taxes |
|
|
(46 |
) |
|
|
(109 |
) |
|
|
|
|
|
|
|
|
|
Net loss |
|
|
(89,107 |
) |
|
|
(77,568 |
) |
Series A warrant exchange |
|
|
— |
|
|
|
(3,169 |
) |
Series B preferred stock dividends |
|
|
(3,331 |
) |
|
|
(3,231 |
) |
Series C preferred stock deemed dividends and redemption value
adjustment, net |
|
|
— |
|
|
|
(6,522 |
) |
Series D preferred stock deemed dividends and redemption
accretion |
|
|
— |
|
|
|
(9,755 |
) |
|
|
|
|
|
|
|
|
|
Net loss attributable to
common stockholders |
|
$ |
(92,438 |
) |
|
$ |
(100,245 |
) |
|
|
|
|
|
|
|
Loss per share basic and
diluted: |
|
|
|
|
|
|
Net loss per share attributable to common stockholders |
|
$ |
(0.42 |
) |
|
$ |
(1.82 |
) |
Basic and diluted weighted average shares outstanding |
|
|
221,960,288 |
|
|
|
55,081,266 |
|
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 cash
utilization 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 October 31, |
|
Year Ended October 31, |
(Amounts in thousands) |
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
2019 |
|
Net loss |
$ |
(18,856 |
) |
|
$ |
(35,179 |
) |
|
$ |
(89,107 |
) |
|
$ |
(77,568 |
) |
Depreciation and amortization (1) |
|
5,549 |
|
|
|
4,034 |
|
|
|
19,377 |
|
|
|
12,353 |
|
Provision for income taxes |
|
5 |
|
|
|
20 |
|
|
|
46 |
|
|
|
109 |
|
Other income, net(2) |
|
(314 |
) |
|
|
(649 |
) |
|
|
(684 |
) |
|
|
(93 |
) |
Change in fair value of common stock warrant liability |
|
(2,225 |
) |
|
|
- |
|
|
|
37,086 |
|
|
|
- |
|
Gain on extinguishment of financing obligation |
|
- |
|
|
|
- |
|
|
|
(1,801 |
) |
|
|
- |
|
Interest expense |
|
4,268 |
|
|
|
2,816 |
|
|
|
15,294 |
|
|
|
10,623 |
|
EBITDA |
$ |
(11,573 |
) |
|
$ |
(28,958 |
) |
|
$ |
(19,789 |
) |
|
$ |
(54,576 |
) |
Impairment expense |
|
2,417 |
|
|
|
17,520 |
|
|
|
2,417 |
|
|
|
20,360 |
|
Stock-based compensation expense |
|
606 |
|
|
|
479 |
|
|
|
1,868 |
|
|
|
2,804 |
|
Legal settlement (3) |
|
- |
|
|
|
- |
|
|
|
(2,200 |
) |
|
|
- |
|
Adjusted EBITDA |
$ |
(8,550 |
) |
|
$ |
(10,959 |
) |
|
$ |
(17,704 |
) |
|
$ |
(31,412 |
) |
(1) |
|
Includes depreciation and amortization on our Generation portfolio
of $4.3 million and $13.9 million for the three months and year
ended October 31, 2020, respectively, and $3.2 million and $7.4
million for the three months and year ended October 31, 2019,
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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