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 third fiscal quarter ended July 31,
2020.
“We are excited about our progress toward
fulfilling our purpose of enabling a world empowered by clean
energy,” said Mr. Few, President and CEO. “The hydrogen economy is
currently enjoying unprecedented political and business momentum,
and we are well positioned to capitalize on opportunities
consistent with our goals. We have previously demonstrated our
tri-generation hydrogen technology platform, which will be deployed
at a new facility at the Port of Long Beach, California. This
facility will support Toyota’s local operations using the hydrogen
we produce to power zero-emission fuel cell trucks and consumer
vehicles in California. We continue to advance our innovative
technologies that we believe will enable hydrogen-powered cars and
trucks to cleanly operate globally on a larger scale, enable
hydrogen to repower existing combustion engines to deliver zero
carbon power and extend the economic life of existing power
generation assets. Our Advanced Technologies development drives our
commercialization of solutions for environmentally responsible
distributed baseload power generation, carbon capture and enhanced
hydrogen production capabilities to enable long-duration energy
storage and hydrogen power generation.”
“Our performance for the quarter focused on our
continued execution of projects in our backlog, growing our sales
pipeline of opportunities, and a continued emphasis on effectively
managing operating expenses while positioning our Company for
growth,” added Jason Few. “I am extremely proud of the dedication
of our employees over what has been a difficult period globally,
with each of us affected by the pandemic and related shutdowns and
social distancing mandates. We have fully reopened our main
manufacturing facility in Torrington, Connecticut with a
safety-first approach to resuming our manufacturing operations and
we remain focused on executing our “Powerhouse” business
strategy.”
Mr. Few continued, “Our results for the quarter
also reflected the impact of the early replacement of fuel cell
modules at one of our plants to address site specific issues,
maximize plant efficiencies, and deliver on our customer commitment
and brand promise. Consistent with our philosophy of always
striving to improve our operational performance, we elected to
upgrade all of the modules at this project with newer, longer-life
7-year designs. As a result, we incurred a charge of $2.8 million
in the quarter which we expect will result in improved margins over
time through enhanced platform performance. In the quarter we also
substantially improved our unrestricted cash position as we
continue to execute on strengthening our Company.”
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 the next three
years. This quarter, we:
- Progressed the development of our solid oxide energy platform
in support of commercializing hydrogen power generation and
long-duration hydrogen-based energy storage;
- Continued the development of our Advanced Technology platform
applications under the carbon capture program with ExxonMobil
Research and Engineering Company;
- Terminated our license agreements with POSCO Energy Co., Ltd.,
and subsequently commenced marketing FuelCell Energy products and
services directly in the Korean and broader Asian markets;
- Issued 25.1 million shares of common stock during the quarter
in our new at the market offering program, at an average price per
share of $2.56, resulting in net proceeds of $62.3 million (after
deducting commissions) that provide additional liquidity to support
projects underway, working capital and corporate liquidity.
Subsequent to July 31, the Company issued an additional 3.2 million
shares, resulting in additional net proceeds of $7.8 million and
bringing the total net proceeds raised under the at the market
program to a total of $70.1 million.
Mr. Few concluded, “At the beginning of the
year, we launched the Powerhouse business strategy focused on
strengthening our operations and position within the clean
technology energy industry with the goal of enabling the delivery
of sustained profitable growth to benefit all our stakeholders. We
are on a multi-year journey to transform FuelCell Energy and, while
we still have work to do, we are on the right path toward achieving
our milestone goals.”
Third Quarter Fiscal 2020
Results
Note: All comparisons between periods are
between the third quarter of fiscal 2020 and the third quarter of
fiscal 2019, unless otherwise specified. 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.
Consolidated Financial Metrics
|
Three Months Ended July 31, |
(Amounts in thousands) |
|
2020 |
|
|
|
2019 |
|
|
Change |
Total revenues |
$ |
18,728 |
|
|
$ |
22,712 |
|
|
-18 |
% |
Gross profit (loss) |
|
(3,128 |
) |
|
|
7,965 |
|
|
-139 |
% |
Loss from operations |
|
(10,762 |
) |
|
|
(1,070 |
) |
|
-906 |
% |
Net loss |
|
(15,331 |
) |
|
|
(5,311 |
) |
|
-189 |
% |
EBITDA |
|
(6,036 |
) |
|
|
2,851 |
|
|
-312 |
% |
Net loss to common stockholders |
|
(16,131 |
) |
|
|
(8,328 |
) |
|
-94 |
% |
Net loss per basic and diluted share |
$ |
(0.07 |
) |
|
$ |
(0.18 |
) |
|
61 |
% |
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
$ |
(5,638 |
) |
|
$ |
3,236 |
|
|
-274 |
% |
Financial Performance
Third quarter revenues decreased 18% to $18.7
million, primarily reflecting a decrease in Service and License
revenues and Generation revenues, partially offset by increased
Advanced Technologies contract revenues. The prior-year quarter
included $10.0 million of revenues within Service and License
revenues that was recognized in connection with our license
agreement with ExxonMobil Research and Engineering Company.
- Service and License revenues decreased 38% to
$7.1 million from $11.5 million. Service and license revenues for
the prior year period included revenues of $10.0 million recorded
for a License Agreement that was entered into with ExxonMobil
Research and Engineering Company (“EMRE” and such License
Agreement, the “EMRE License Agreement”). The service and license
revenues for the quarter ended July 31, 2020 include revenues
recorded for module replacements and routine maintenance
activities. There were no module replacement revenues in the prior
year quarter.
- Generation revenues decreased 13% to $4.7
million from $5.4 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 20% to $6.9 million from $5.8 million as a result of
revenues recognized in connection with our Joint Development
Agreement with ExxonMobil Research and Engineering Company (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 increased
$7.7 million to $8.8 million for the quarter ended July 31, 2020
from $1.1 million for the quarter ended July 31, 2019, due to the
fact that there were module replacements in the quarter ended July
31, 2020 compared to no module replacements in the quarter ended
July 31, 2019 and also due to a $2.8 million increase in our loss
accrual during the quarter ended July 31, 2020 to reflect changes
in the expected timing of future module replacements at one plant
in order to improve operating performance. Site specific issues at
one of the Company’s plants required an earlier than expected
module replacement and the Company opted to replace another module
earlier than expected at the same site to maximize plant
efficiencies. Cost of service agreements includes maintenance and
operating costs and module replacements.
Gross loss totaled $(3.1) million, compared to a
gross profit of $8.0 million. This change is partly due to the fact
that the quarter ended July 31, 2019 included $10.0 million of
revenue recognized under the EMRE License Agreement, while there
was no comparable revenue recognized during the quarter ended July
31, 2020 and reflects a $2.8 million increase in our loss accrual
recorded during the quarter ended July 31, 2020 to reflect changes
in the expected timing of future module replacements. Results were
also negatively impacted by manufacturing variances, primarily
related to low production volumes and unabsorbed overhead costs,
which totaled approximately $2.6 million (of which approximately
$1.1 million is related to the shutdown due to the COVID-19
pandemic) in the quarter ended July 31, 2020.
Operating expenses decreased 16% to $7.6
million, compared to $9.0 million. This decrease was driven by a
reduction in Research & Development expenses to $1.0 million
(from $2.0 million), reflecting the reduction in spending resulting
from the restructuring initiatives implemented in 2019 and the
reduction in the resources being allocated to research and
development, and a reduction in Administrative & Selling
expenses to $6.6 million (from $7.1 million), reflecting lower
legal and consulting costs.
Net loss for the quarter ended July 31, 2020
totaled $(15.3) million compared to net loss of $(5.3) million for
the quarter ended July 31, 2019.
Net loss attributable to common stockholders for
the quarter ended July 31, 2020 totaled $(16.1) million compared to
net loss of $(8.3) million for the quarter ended July 31, 2019. The
net loss per share attributable to common stockholders for the
quarter ended July 31, 2020 was $(0.07) compared to $(0.18) for the
quarter ended July 31, 2019, which included a non-cash
mark-to-market accounting expense of $1.7 million for the quarter
ended July 31, 2020 associated with the warrants issued to the
lenders under our credit agreement (the “Orion Facility”) with
Orion Energy Partners Investment Agent, LLC (the “Agent”) and its
affiliated lenders, which accounted for an approximately $0.01 per
share impact on the reported net loss per share for the quarter
ended July 31, 2020. The lower net loss per common share for the
quarter ended July 31, 2020 is due to the higher weighted average
shares outstanding as of July 31, 2020 due to share issuances since
July 31, 2019. Results in the prior-year quarter included a deemed
contribution of $0.9 million on the Company’s Series C Convertible
Preferred Stock, as well as deemed dividends of $3.1 million on the
Company’s Series D Convertible Preferred Stock.
Adjusted EBITDA totaled $(5.6) million for the
quarter ended July 31, 2020 compared to an Adjusted EBITDA of $3.2
million for the quarter ended July 31, 2019. Total depreciation and
amortization expense for the quarter ended July 31, 2020 was $4.7
million, of which $3.4 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.
Cash and Financing Update
As of July 31, 2020, unrestricted cash and cash
equivalents totaled $66.3 million compared to $9.4 million as of
October 31, 2019. Of this amount, project cash and cash equivalents
funded under the Orion Facility totaled $16.2 million as of July
31, 2020 compared to $0 as of October 31, 2019. Excluding project
cash and cash equivalents, unrestricted cash and cash equivalents
totaled $50.1 million as of July 31, 2020 compared to $9.4 million
as of October 31, 2019.
On June 16, 2020, the Company entered into an
Open Market Sale Agreement (the “Open Market Sale Agreement”) with
respect to an at the market offering program under which the
Company may offer and sell up to $75 million of shares of the
Company’s common stock from time to time. From June 16, 2020
through August 6, 2020 28.3 million shares were sold under the Open
Market Sale Agreement at an average sales price per share of $2.55,
resulting in gross proceeds of $72.3 million (before deducting
sales commissions of $2.2 million) and net proceeds of
approximately $70.1 million (after deducting sales commissions of
$2.2 million). Of this amount, 25.1 million shares were issued
during the fiscal third quarter, resulting in gross proceeds of
$64.3 million and net proceeds of $62.3 million.
The Company’s cash, cash equivalents and
restricted cash consist of (a) restricted cash and cash
equivalents, which consist of amounts pledged as performance
security, reserved for future debt service requirements, reserved
for letters of credit for certain banking requirements and
contracts and reserved to pay down the Orion Facility, which can be
accessed or redeployed into other project financing at the option
of and only with the approval of the lenders and the Agent under
the Orion Facility or other lenders or third parties; (b) project
cash and cash equivalents, which consist of amounts borrowed under
the Orion Facility which can be used only by our consolidated
wholly-owned project subsidiaries in the normal course of
operations for project construction, purchase of equipment
(including inventory from FuelCell Energy, Inc.) and working
capital for projects approved under the Orion Facility in
accordance with each project’s construction budget and schedule and
which are classified as unrestricted cash on the Company’s
consolidated balance sheets; and (c) unrestricted cash and cash
equivalents, which can be used by the Company for general corporate
purposes, including working capital at the corporate level.
Unrestricted cash and cash equivalents, as presented on the
Company’s consolidated balance sheets, consist of the amounts
described in (b) and (c) above.
Backlog
|
|
|
As of July 31, |
|
|
|
|
(Amounts
in thousands) |
|
|
2020 |
|
|
2019 |
|
Change |
|
|
Product |
|
$ |
0 |
|
$ |
1 |
|
- |
|
|
|
Service |
|
|
153,818 |
|
|
169,357 |
|
-9.2 |
% |
|
|
Generation |
|
|
1,099,625 |
|
|
1,161,792 |
|
-5.4 |
% |
|
|
License |
|
|
22,182 |
|
|
23,213 |
|
-4.4 |
% |
|
|
Advanced
Technologies |
|
|
51,892 |
|
|
27,179 |
|
90.9 |
% |
|
|
Total Backlog |
|
$ |
1,327,518 |
|
$ |
1,381,541 |
|
-3.9 |
% |
|
Backlog decreased to $1.33 billion as of July
31, 2020, reflecting the continued execution of our backlog,
partially offset by an increase in Advanced Technologies backlog
primarily as a result of the Joint Development Agreement with EMRE.
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 an average weighted
term of approximately 18 years based on dollar 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
2020 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 10th earnings call event, or click
here.
- Alternatively, participants can dial 647-689-4106 and state
FuelCell Energy or the conference ID number 7085463.
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, including,
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 Payroll 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 developing environmentally responsible
distributed baseload power solutions through our proprietary,
molten-carbonate fuel cell technology. We develop turn-key
distributed power generation solutions and operate and provide
comprehensive service for the life of the power plant. We are
working to expand the proprietary technologies that we have
developed over the past five decades into new products,
applications, markets and geographies. Our mission and purpose
remains to utilize our proprietary, state-of-the-art fuel cell
platforms to reduce the global environmental footprint of baseload
power generation by providing environmentally responsible solutions
for reliable electrical power, hot water, steam, chilling,
distributed hydrogen, microgrid applications, electrolysis,
long-duration hydrogen-based energy storage and carbon capture and,
in so doing, drive demand for our products and services, thus
realizing positive stockholder returns. 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 systems answer the needs of diverse customers across several
markets, including utility companies, municipalities, universities,
hospitals, government entities and a variety of industrial and
commercial enterprises. We provide solutions for various
applications, including utility-scale distributed generation,
on-site power generation and combined heat and power, with the
differentiating ability to do so utilizing multiple sources of fuel
including natural gas, renewable biogas (i.e., landfill gas,
anaerobic digester gas), propane and various blends of such fuels.
Our multi-fuel source capability is significantly enhanced by our
proprietary gas-clean-up skid.
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 31,2020 |
|
|
October 31, 2019 |
ASSETS |
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents, unrestricted |
$ |
66,284 |
|
|
$ |
9,434 |
|
Restricted cash and cash equivalents – short-term |
|
6,087 |
|
|
|
3,473 |
|
Accounts receivable, net |
|
7,364 |
|
|
|
3,292 |
|
Unbilled receivables |
|
7,917 |
|
|
|
7,684 |
|
Inventories |
|
51,502 |
|
|
|
54,515 |
|
Other current assets |
|
7,640 |
|
|
|
5,921 |
|
Total current assets |
|
146,794 |
|
|
|
84,319 |
|
|
|
|
|
|
|
Restricted cash and cash
equivalents – long-term |
|
34,909 |
|
|
|
26,871 |
|
Project assets |
|
160,921 |
|
|
|
144,115 |
|
Inventories – long-term |
|
9,018 |
|
|
|
2,179 |
|
Property, plant and
equipment |
|
37,301 |
|
|
|
41,134 |
|
Operating lease right-of-use
assets, net |
|
10,316 |
|
|
|
- |
|
Goodwill |
|
4,075 |
|
|
|
4,075 |
|
Intangible assets |
|
20,291 |
|
|
|
21,264 |
|
Other assets |
|
13,144 |
|
|
|
9,489 |
|
Total assets |
$ |
436,769 |
|
|
$ |
333,446 |
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
Current portion of long-term debt |
$ |
17,692 |
|
|
$ |
21,916 |
|
Current portion of operating lease liabilities |
|
888 |
|
|
|
- |
|
Accounts payable |
|
10,407 |
|
|
|
16,943 |
|
Accrued liabilities |
|
14,622 |
|
|
|
11,452 |
|
Deferred revenue |
|
10,100 |
|
|
|
11,471 |
|
Preferred stock obligation of subsidiary |
|
932 |
|
|
|
950 |
|
Total current liabilities |
|
54,641 |
|
|
|
62,732 |
|
|
|
|
|
|
|
Long-term deferred
revenue |
|
31,026 |
|
|
|
28,705 |
|
Long-term preferred stock
obligation of subsidiary |
|
17,565 |
|
|
|
16,275 |
|
Long-term operating lease
liabilities |
|
9,988 |
|
|
|
- |
|
Long-term debt and other
liabilities |
|
167,367 |
|
|
|
90,140 |
|
Total liabilities |
|
280,587 |
|
|
|
197,852 |
|
|
|
|
|
|
|
Redeemable Series B preferred
stock (liquidation preference of $64,020 at |
|
|
|
|
|
|
|
July 31, 2020 and October 31, 2019) |
|
59,857 |
|
|
|
59,857 |
|
Total Equity: |
|
|
|
|
|
Stockholders’ equity |
|
|
|
|
|
|
|
Common stock ($0.0001 par value); 337,500,000 and 225,000,000
shares authorized at July 31, 2020 and October 31, 2019,
respectively; 236,172,797 and 193,608,684 shares issued and
outstanding at July 31, 2020 and October 31, 2019,
respectively) |
|
24 |
|
|
|
19 |
|
Additional paid-in capital |
|
1,242,518 |
|
|
|
1,151,454 |
|
Accumulated deficit |
|
(1,145,340 |
) |
|
|
(1,075,089 |
) |
Accumulated other comprehensive loss |
|
(877 |
) |
|
|
(647 |
) |
Treasury stock, Common, at cost (44,322 and 42,496 at July 31,
2020 |
|
|
|
|
|
|
|
and October 31, 2019, respectively) |
|
(403 |
) |
|
|
(466 |
) |
Deferred compensation |
|
403 |
|
|
|
466 |
|
Total stockholders’ equity |
|
96,325 |
|
|
|
75,737 |
|
Total liabilities and stockholders’ equity |
$ |
436,769 |
|
|
$ |
333,446 |
|
|
|
|
|
|
|
|
|
FUELCELL ENERGY, INC.Consolidated
Statements of Operations and Comprehensive
Loss(Unaudited)(Amounts in thousands, except share
and per share amounts) |
|
|
Three Months EndedJuly 31, |
|
2020 |
|
|
2019 |
|
Revenues: |
|
|
|
|
|
Product |
$ |
- |
|
|
$ |
- |
|
Service and license |
|
7,113 |
|
|
|
11,496 |
|
Generation |
|
4,722 |
|
|
|
5,448 |
|
Advanced Technologies |
|
6,893 |
|
|
|
5,768 |
|
Total revenues |
|
18,728 |
|
|
|
22,712 |
|
|
|
|
|
|
|
Costs of revenues: |
|
|
|
|
|
Product |
|
2,658 |
|
|
|
4,547 |
|
Service and license |
|
8,833 |
|
|
|
1,102 |
|
Generation |
|
6,327 |
|
|
|
5,726 |
|
Advanced Technologies |
|
4,038 |
|
|
|
3,372 |
|
Total cost of revenues |
|
21,856 |
|
|
|
14,747 |
|
|
|
|
|
|
|
Gross (loss) profit |
|
(3,128 |
) |
|
|
7,965 |
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
Administrative and selling expenses |
|
6,607 |
|
|
|
7,058 |
|
Research and development expense |
|
1,027 |
|
|
|
1,977 |
|
Total costs and expenses |
|
7,634 |
|
|
|
9,035 |
|
|
|
|
|
|
|
Loss from operations |
|
(10,762 |
) |
|
|
(1,070 |
) |
|
|
|
|
|
|
Interest expense |
|
(4,165 |
) |
|
|
(3,536 |
) |
Change in fair value of common stock warrant liability |
|
(1,694 |
) |
|
|
- |
|
Gain on extinguishment of financing obligation |
|
1,801 |
|
|
|
- |
|
Other expense, net |
|
(501 |
) |
|
|
(685 |
) |
|
|
|
|
|
|
Loss before provision for
income taxes |
|
(15,321 |
) |
|
|
(5,291 |
) |
|
|
|
|
|
|
Provision for income taxes |
|
(10 |
) |
|
|
(20 |
) |
|
|
|
|
|
|
Net loss |
|
(15,331 |
) |
|
|
(5,311 |
) |
|
|
|
|
|
|
Series B preferred stock dividends |
|
(800 |
) |
|
|
(810 |
) |
Series C preferred stock deemed contributions |
|
- |
|
|
|
884 |
|
Series D preferred stock deemed dividends |
|
- |
|
|
|
(3,091 |
) |
|
|
|
|
|
|
Net loss attributable to
common stockholders |
$ |
(16,131 |
) |
|
$ |
(8,328 |
) |
|
|
|
|
|
|
Loss per share basic and
diluted: |
|
|
|
|
|
Net loss per share attributable to common stockholders |
$ |
(0.07 |
) |
|
$ |
(0.18 |
) |
Basic and diluted weighted average shares outstanding |
|
217,966,402 |
|
|
|
45,069,911 |
|
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, |
|
|
|
2020 |
|
|
2019 |
|
Revenues: |
|
|
|
|
|
|
|
|
Product |
|
$ |
— |
|
|
$ |
— |
|
Service and license |
|
|
19,697 |
|
|
|
25,866 |
|
Generation |
|
|
14,795 |
|
|
|
8,560 |
|
Advanced Technologies |
|
|
19,380 |
|
|
|
15,285 |
|
Total revenues |
|
|
53,872 |
|
|
|
49,711 |
|
|
|
|
|
|
|
|
|
|
Costs of revenues: |
|
|
|
|
|
|
|
|
Product |
|
|
7,512 |
|
|
|
14,362 |
|
Service and license |
|
|
16,418 |
|
|
|
15,166 |
|
Generation |
|
|
17,576 |
|
|
|
9,047 |
|
Advanced Technologies |
|
|
12,046 |
|
|
|
9,016 |
|
Total costs of revenues |
|
|
53,552 |
|
|
|
47,591 |
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
320 |
|
|
|
2,120 |
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
Administrative and selling expenses |
|
|
19,041 |
|
|
|
23,622 |
|
Research and development expenses |
|
|
3,323 |
|
|
|
12,435 |
|
Total costs and expenses |
|
|
22,364 |
|
|
|
36,057 |
|
|
|
|
|
|
|
|
|
|
Loss from operations |
|
|
(22,044 |
) |
|
|
(33,937 |
) |
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
(11,026 |
) |
|
|
(7,807 |
) |
Change in fair value of common stock warrant liability |
|
|
(39,311 |
|
|
|
— |
|
Gain on extinguishment of financing obligation |
|
|
1,801 |
|
|
|
— |
|
Other income (expense), net |
|
|
370 |
|
|
|
(556 |
|
Loss before provision for
income taxes |
|
|
(70,210 |
) |
|
|
(42,300 |
) |
Provision for income taxes |
|
|
(41 |
) |
|
|
(89 |
|
|
|
|
|
|
|
|
|
|
Net loss |
|
|
(70,251 |
) |
|
|
(42,389 |
) |
Series A warrant exchange |
|
|
— |
|
|
|
(3,169 |
) |
Series B preferred stock dividends |
|
|
(2,531 |
) |
|
|
(2,410 |
) |
Series C preferred stock deemed dividends and redemption value
adjustment, net |
|
|
— |
|
|
|
(6,522 |
) |
Series D preferred stock deemed dividends and redemption
accretion |
|
|
— |
|
|
|
(9,752 |
|
|
|
|
|
|
|
|
|
|
Net loss attributable to
common stockholders |
|
$ |
(72,782 |
) |
|
$ |
(64,242 |
) |
|
|
|
|
|
|
|
|
|
Loss per share basic and
diluted: |
|
|
|
|
|
|
|
|
Net loss per share attributable to common stockholders |
|
$ |
(0.35 |
) |
|
$ |
(2.97 |
) |
Basic and diluted weighted average shares outstanding |
|
|
210,389,907 |
|
|
|
21,608,427 |
|
|
|
|
|
|
|
|
|
|
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 July 31, |
|
Nine Months Ended July 31, |
(Amounts in thousands) |
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
2019 |
|
Net loss |
$ |
(15,331 |
) |
|
$ |
(5,311 |
) |
|
$ |
(70,251 |
) |
|
$ |
(42,389 |
) |
Depreciation and amortization
(1) |
|
4,726 |
|
|
|
3,921 |
|
|
|
13,828 |
|
|
|
8,319 |
|
Provision for income
taxes |
|
10 |
|
|
|
20 |
|
|
|
41 |
|
|
|
89 |
|
Other (income)/expense,
net(2) |
|
501 |
|
|
|
685 |
|
|
|
(370 |
) |
|
|
556 |
|
Change in fair value of common
stock warrant liability |
|
1,694 |
|
|
|
- |
|
|
|
39,311 |
|
|
|
- |
|
Gain on extinguishment of
financing obligation |
|
(1,801 |
) |
|
|
- |
|
|
|
(1,801 |
) |
|
|
- |
|
Interest expense |
|
4,165 |
|
|
|
3,536 |
|
|
|
11,026 |
|
|
|
7,807 |
|
EBITDA |
$ |
(6,036 |
) |
|
$ |
2,851 |
|
|
$ |
(8,216 |
) |
|
$ |
(25,618 |
) |
Stock-based compensation
expense |
|
398 |
|
|
|
385 |
|
|
|
1,261 |
|
|
|
2,325 |
|
Legal settlement (3) |
|
- |
|
|
|
- |
|
|
|
(2,200 |
) |
|
|
- |
|
Adjusted EBITDA |
$ |
(5,638 |
) |
|
$ |
3,236 |
|
|
$ |
(9,155 |
) |
|
$ |
(23,293 |
) |
(1) |
Includes
depreciation and amortization on our Generation portfolio of $3.4
million and $9.9 million for the three and nine months ended July
31, 2020, respectively, and $1.1 million and $3.1 million for the
three and nine months ended July 31, 2019, respectively. |
(2) |
Other (income)/expense, net includes gains and losses from
transactions denominated in foreign currencies, changes in fair
value of embedded 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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