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 second fiscal quarter ended April 30, 2020 and key business
highlights.
“First and foremost, our focus remains on the
health and safety of our employees as we navigate the unprecedented
COVID-19 pandemic. Despite this challenging environment, I’m
pleased with our second quarter performance, where we achieved
significant progress in executing our “Powerhouse” business
strategy,” said Jason Few, President and CEO. “We have made strides
in advancing our integrated business model, which includes
developing and managing generation assets. We remain focused on
accelerating revenue growth, which more than doubled this quarter,
fueled by increases in Generation, Service and Advanced Technology.
At the same time, we continued to manage costs and enhance gross
margin.” Mr. Few concluded, “Despite the challenges of the current
global environment resulting from the COVID-19 pandemic, we
continued to execute against our project pipeline and advanced our
work with ExxonMobil Research and Engineering Company in pursuit of
commercializing our proprietary carbon capture solution. We still
have work to do but are on a clear strategic path to continue
making progress and achieving our goals.”
COVID-19 Update
- We continue to follow appropriate safety precautions, including
continued work-from-home for those who can, and we currently
anticipate the closure of our manufacturing facility in Torrington,
CT to continue through at least June 22nd.
- We remain in contact with global team members, suppliers and
customers to ensure timely sharing of information to help minimize
any interruption in the execution of our business plan, and to help
with the efficient restart of our manufacturing facility when
appropriate.
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. During the second quarter of fiscal 2020, despite the
Torrington, Connecticut facility closure, we made significant
progress on certain projects, including the 7.4 megawatt fuel cell
project located on the U.S. Navy Submarine Base in Groton,
Connecticut, and the start of construction on a 1.4 megawatt
biofuel project located in San Bernardino, California. We also
continued the development of our Advanced Technology platform
applications, including a higher level of activity compared to the
first quarter of fiscal 2020 under the carbon capture program with
ExxonMobil Research and Engineering Company, and made progress on
our solid oxide energy platform, as we work to commercialize
electrolysis, long-duration hydrogen-based energy storage and
hydrogen power generation.
Second Quarter Fiscal 2020
Results
Note: All comparisons between periods are
between the second quarter of fiscal 2020 and the second 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 April 30, |
(Amounts
in thousands) |
|
2020 |
|
|
|
2019 |
|
|
Change |
Total revenues |
$ |
18,880 |
|
|
$ |
9,216 |
|
|
105 |
% |
Gross
profit (loss) |
|
167 |
|
|
|
(3,640 |
) |
|
105 |
% |
Loss from
operations |
|
(8,142 |
) |
|
|
(17,623 |
) |
|
54 |
% |
Net
loss |
|
(14,769 |
) |
|
|
(19,530 |
) |
|
24 |
% |
EBITDA |
|
(3,670 |
) |
|
|
(15,424 |
) |
|
76 |
% |
Net loss
to common stockholders |
|
(15,569 |
) |
|
|
(22,876 |
) |
|
32 |
% |
Net loss
per basic and diluted share |
$ |
(0.07 |
) |
|
$ |
(2.06 |
) |
|
97 |
% |
|
|
|
|
|
|
Adjusted
EBITDA |
$ |
(3,295 |
) |
|
$ |
(14,466 |
) |
|
77 |
% |
Financial Performance
Second quarter revenue of $18.9 million
increased 105%, reflecting an increase in Generation revenues,
Advanced Technologies revenues, and Service and License
revenues.
- Generation revenues increased by 184% to $4.6
million from $1.6 million, primarily benefitting from additional
revenue associated with the Bridgeport Fuel Cell Project, which was
acquired in May 2019, and the closing of a sale-leaseback financing
transaction with respect to the Tulare BioMAT project during the
three months ended April 30, 2020.
- Advanced Technologies contract revenues
increased by 46% to $7.3 million from $5.0 million due to the
addition of the 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.
- Service and License revenues increased by 168%
to $7.0 million from $2.6 million primarily due to revenue from
module replacements under customer service agreements.
Gross profit totaled $0.2 million, compared to a
gross loss of $(3.6) million, benefitting from increased Advanced
Technology work under the Joint Development Agreement with
ExxonMobil Research and Engineering Company as well as lower
manufacturing costs resulting from our reduction in workforce
during fiscal 2019, partially offset by approximately $1.0 million
of manufacturing variances due to the shutdown of our Torrington
manufacturing facility due to the COVID-19 pandemic and a loss from
our Generation portfolio due to maintenance and repairs at several
plants during the quarter.
Operating expenses decreased 41% to $8.3
million, compared to $14.0 million. This reduction consists
primarily of a reduction in Research & Development expenses to
$1.1 million (from $4.2 million), reflecting the decreased
allocation of resources to research and development and lower
headcount, and a reduction in Administrative & Selling expenses
to $7.2 million (from $9.8 million), reflecting lower legal and
consulting costs.
Net loss totaled $(14.8) million compared to net
loss of $(19.5) million.
Adjusted EBITDA totaled $(3.3) million compared
to an Adjusted EBITDA of $(14.5) million. Total depreciation and
amortization expense for the quarter was $4.5 million, of which
$3.2 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.
The net loss per share attributable to common
stockholders was $(0.07) compared to $(2.06), including a non-cash
mark to market accounting expense of $3.4 million 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 $0.02 per share impact on the reported net loss per
share. The lower net loss per common share is primarily due to
higher weighted average shares outstanding due to share issuances
since April 30, 2019. Results in the prior-year quarter
included a deemed contribution of $1.6 million on the Company’s
Series C Convertible Preferred Stock, as well as deemed dividends
of $1.0 million on the Company’s Series D Convertible Preferred
Stock.
Cash and Financing Update
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 and 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, and
which include the proceeds of the Paycheck Protection Program
Promissory Note (the “PPP Note”) received during the quarter ended
April 30, 2020. Unrestricted cash and cash equivalents, as
presented on the Company’s consolidated balance sheets, consist of
the amounts described in (b) and (c) above. As of April 30, 2020,
unrestricted cash and cash equivalents totaled $29.1 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 $18.6 million as of April 30, 2020 compared to $0 as of
October 31, 2019. Excluding project cash and cash equivalents and
the remaining balance of approximately $6.0 million under the PPP
Note, which may only be used for certain payroll and other eligible
expenditures, unrestricted cash and cash equivalents totaled $4.5
million as of April 30, 2020 compared to $9.4 million as of October
31, 2019.
Subsequent to quarter end, on June 8, 2020, in
order to alleviate substantial doubt about the Company’s ability to
continue as a going concern, the Company and certain of its
affiliates as guarantors entered into a fifth amendment to the
Orion Facility with the Agent and its affiliated lenders (the
“Fifth Orion Amendment”). Pursuant to the terms of the Fifth Orion
Amendment and the amended Orion Facility, the lenders have
committed to make available certain delayed-draw loans to the
Company in an aggregate principal amount of up to $35 million (the
“Secondary Facility Loans”) between the execution date and
September 14, 2020. Such Secondary Facility Loans may be used for
general corporate purposes of the Company or the guarantors in
accordance with either (i) the then effective operating budget of
the Company or the guarantors or (ii) the cash use forecast
delivered by the Company to the Agent on June 6, 2020. Any draws
under the Secondary Facility Loans must be repaid by September 1,
2021. Refer to the Company’s Form 10-Q (filed on June 12,
2020), Note 18. “Subsequent Events” for additional details
regarding the Secondary Facility Loans.
Backlog
|
As of April 30, |
|
|
(Amounts
in thousands) |
|
2020 |
|
|
2019 |
|
Change |
Product |
$ |
- |
|
$ |
1 |
|
- |
|
Service(1) |
|
160,944 |
|
|
200,838 |
|
-20 |
% |
Generation |
|
1,104,347 |
|
|
1,006,412 |
|
10 |
% |
License |
|
22,369 |
|
|
23,495 |
|
-5 |
% |
Advanced
Technologies |
|
56,785 |
|
|
32,942 |
|
72 |
% |
Total Contract Backlog |
$ |
1,344,445 |
|
$ |
1,263,688 |
|
6 |
% |
(1) In July 2018, we contracted to operate and
maintain a 20 megawatt plant for Korea Southern Power Company
(“KOSPO”). This contract was originally represented in backlog as
20 years reflecting the total term of the contract. Under the terms
of the contract, KOSPO has a renewal option in year 10. Thus, under
the adoption of Accounting Standards Update (“ASU”) 2014-09,
“Revenue from Contracts with Customers,” which was implemented on
November 1, 2018, service backlog was reduced by $64.3 million in
2019 compared to amounts previously disclosed. Should KOSPO
exercise this option, service backlog will be adjusted
accordingly.
Contract backlog increased to $1.34 billion as
of April 30, 2020, reflecting additional generation backlog as a
result of the acquisition of the Bridgeport Fuel Cell Project,
offset by the removal of the Bolthouse Farms project from backlog
due to the termination of the applicable power purchase agreement
and revenue recognized during the period. Only projects for which
we have a power purchase agreement (“PPA”) are included in
generation backlog, which represents future revenue under long-term
PPAs. Service backlog decreased mainly due to the acquisition of
the Bridgeport Fuel Cell Project. 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 second 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 June 12th earnings call event, or click here.
- Alternatively, participants can dial 647-689-4106 and state
FuelCell Energy or the conference ID number 4307706.
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, 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 regarding 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 fuel
cell technology. We develop turn-key distributed power generation
solutions and operate and provide comprehensive services 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)
|
|
April 30,2020 |
|
|
October 31, 2019 |
ASSETS |
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents, unrestricted |
$ |
29,087 |
|
|
$ |
9,434 |
|
Restricted cash and cash equivalents – short-term |
|
8,082 |
|
|
|
3,473 |
|
Accounts receivable, net |
|
6,117 |
|
|
|
3,292 |
|
Unbilled receivables |
|
7,475 |
|
|
|
7,684 |
|
Inventories |
|
54,945 |
|
|
|
54,515 |
|
Other current assets |
|
5,672 |
|
|
|
5,921 |
|
Total current assets |
|
111,378 |
|
|
|
84,319 |
|
|
|
|
|
|
|
Restricted cash and cash
equivalents – long-term |
|
36,250 |
|
|
|
26,871 |
|
Project assets |
|
153,874 |
|
|
|
144,115 |
|
Inventories – long-term |
|
9,018 |
|
|
|
2,179 |
|
Property, plant and equipment,
net |
|
38,530 |
|
|
|
41,134 |
|
Operating lease right-of-use
assets, net |
|
10,051 |
|
|
|
- |
|
Goodwill |
|
4,075 |
|
|
|
4,075 |
|
Intangible assets |
|
20,615 |
|
|
|
21,264 |
|
Other assets |
|
10,850 |
|
|
|
9,489 |
|
Total assets |
$ |
394,641 |
|
|
$ |
333,446 |
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
Current portion of long-term debt |
$ |
13,834 |
|
|
$ |
21,916 |
|
Current portion of operating lease liabilities |
|
770 |
|
|
|
- |
|
Accounts payable |
|
13,567 |
|
|
|
16,943 |
|
Accrued liabilities |
|
10,905 |
|
|
|
11,452 |
|
Deferred revenue |
|
12,629 |
|
|
|
11,471 |
|
Preferred stock obligation of subsidiary |
|
899 |
|
|
|
950 |
|
Total current liabilities |
|
52,604 |
|
|
|
62,732 |
|
|
|
|
|
|
|
Long-term deferred
revenue |
|
29,907 |
|
|
|
28,705 |
|
Long-term preferred stock
obligation of subsidiary |
|
16,420 |
|
|
|
16,275 |
|
Long-term operating lease
liabilities |
|
9,716 |
|
|
|
- |
|
Long-term debt and other
liabilities |
|
176,821 |
|
|
|
90,140 |
|
Total liabilities |
|
285,468 |
|
|
|
197,852 |
|
|
|
|
|
|
|
Redeemable Series B preferred
stock (liquidation preference of $64,020 at April 30, 2020 and
October 31, 2019) |
|
59,857 |
|
|
|
59,857 |
|
Total Equity: |
|
|
|
|
|
Stockholders’ equity |
|
|
|
|
|
|
|
Common stock ($0.0001 par value); 225,000,000 shares authorized at
April 30, 2020 and October 31, 2019; 211,052,401 and 193,608,684
shares issued and outstanding at April 30, 2020 and October 31,
2019, respectively) |
|
21 |
|
|
|
19 |
|
Additional paid-in capital |
|
1,180,042 |
|
|
|
1,151,454 |
|
Accumulated deficit |
|
(1,130,009 |
) |
|
|
(1,075,089 |
) |
Accumulated other comprehensive loss |
|
(738 |
) |
|
|
(647 |
) |
Treasury stock, Common, at cost (34,194 and 42,496 at April 30,
2020 and October 31, 2019, respectively) |
|
(437 |
) |
|
|
(466 |
) |
Deferred compensation |
|
437 |
|
|
|
466 |
|
Total stockholders’ equity |
|
49,316 |
|
|
|
75,737 |
|
Total liabilities and stockholders’ equity |
$ |
394,641 |
|
|
$ |
333,446 |
|
FUELCELL ENERGY,
INC.Consolidated Statements of Operations and
Comprehensive Loss(Unaudited)(Amounts in
thousands, except share and per share amounts)
|
Three Months EndedApril 30, |
|
2020 |
|
|
2019 |
|
Revenues: |
|
|
|
|
|
Product |
$ |
- |
|
|
$ |
- |
|
Service and license |
|
6,972 |
|
|
|
2,598 |
|
Generation |
|
4,631 |
|
|
|
1,633 |
|
Advanced Technologies |
|
7,277 |
|
|
|
4,985 |
|
Total revenues |
|
18,880 |
|
|
|
9,216 |
|
|
|
|
|
|
|
Costs of revenues: |
|
|
|
|
|
Product |
|
2,838 |
|
|
|
6,393 |
|
Service and license |
|
5,967 |
|
|
|
1,745 |
|
Generation |
|
5,692 |
|
|
|
1,685 |
|
Advanced Technologies |
|
4,216 |
|
|
|
3,033 |
|
Total cost of revenues |
|
18,713 |
|
|
|
12,856 |
|
|
|
|
|
|
|
Gross profit (loss) |
|
167 |
|
|
|
(3,640 |
) |
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
Administrative and selling expenses |
|
7,168 |
|
|
|
9,805 |
|
Research and development expense |
|
1,141 |
|
|
|
4,178 |
|
Total costs and expenses |
|
8,309 |
|
|
|
13,983 |
|
|
|
|
|
|
|
Loss from operations |
|
(8,142 |
) |
|
|
(17,623 |
) |
|
|
|
|
|
|
Interest expense |
|
(3,584 |
) |
|
|
(1,807 |
) |
Change in fair value of common stock warrant liability |
|
(3,372 |
) |
|
|
- |
|
Other income (expense), net |
|
340 |
|
|
|
(31 |
) |
|
|
|
|
|
|
Loss before provision for
income taxes |
|
(14,758 |
) |
|
|
(19,461 |
) |
|
|
|
|
|
|
Provision for income taxes |
|
(11 |
) |
|
|
(69 |
) |
|
|
|
|
|
|
Net loss |
|
(14,769 |
) |
|
|
(19,530 |
) |
|
|
|
|
|
|
Series A warrant exchange |
|
- |
|
|
|
(3,169 |
) |
Series B preferred stock dividends |
|
(800 |
) |
|
|
(800 |
) |
Series C preferred stock deemed contributions |
|
- |
|
|
|
1,599 |
|
Series D preferred stock deemed dividends |
|
- |
|
|
|
(976 |
) |
|
|
|
|
|
|
Net loss attributable to
common stockholders |
$ |
(15,569 |
) |
|
$ |
(22,876 |
) |
|
|
|
|
|
|
Loss per share basic and
diluted: |
|
|
|
|
|
Net loss per share attributable to common stockholders |
$ |
(0.07 |
) |
|
$ |
(2.06 |
) |
Basic and diluted weighted average shares outstanding |
|
211,000,091 |
|
|
|
11,090,698 |
|
FUELCELL ENERGY,
INC.Consolidated Statements of Operations and
Comprehensive Loss(Unaudited)(Amounts in
thousands, except share and per share amounts)
|
|
Six Months Ended April 30, |
|
|
2020 |
|
|
2019 |
|
Revenues: |
|
|
|
|
|
|
Product |
|
$ |
— |
|
|
$ |
— |
|
Service and license |
|
|
12,584 |
|
|
|
14,370 |
|
Generation |
|
|
10,073 |
|
|
|
3,112 |
|
Advanced Technologies |
|
|
12,487 |
|
|
|
9,517 |
|
Total revenues |
|
|
35,144 |
|
|
|
26,999 |
|
|
|
|
|
|
|
|
Costs of revenues: |
|
|
|
|
|
|
Product |
|
|
4,854 |
|
|
|
9,815 |
|
Service and license |
|
|
7,585 |
|
|
|
14,064 |
|
Generation |
|
|
11,249 |
|
|
|
3,321 |
|
Advanced Technologies |
|
|
8,008 |
|
|
|
5,644 |
|
Total costs of revenues |
|
|
31,696 |
|
|
|
32,844 |
|
|
|
|
|
|
|
|
|
|
Gross profit (loss) |
|
|
3,448 |
|
|
|
(5,845 |
) |
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
Administrative and selling expenses |
|
|
12,434 |
|
|
|
16,564 |
|
Research and development expenses |
|
|
2,296 |
|
|
|
10,458 |
|
Total costs and expenses |
|
|
14,730 |
|
|
|
27,022 |
|
|
|
|
|
|
|
|
|
|
Loss from operations |
|
|
(11,282 |
) |
|
|
(32,867 |
) |
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
(6,861 |
) |
|
|
(4,271 |
) |
Change in fair value of common stock warrant liability |
|
|
(37,617 |
) |
|
|
— |
|
Other income, net |
|
|
871 |
|
|
|
129 |
|
|
|
|
|
|
|
|
|
|
Loss before provision for income
taxes |
|
|
(54,889 |
) |
|
|
(37,009 |
) |
|
|
|
|
|
|
|
|
|
Provision for income taxes |
|
|
(31 |
) |
|
|
(69 |
) |
|
|
|
|
|
|
|
|
|
Net loss |
|
|
(54,920 |
) |
|
|
(37,078 |
) |
Series A warrant exchange |
|
|
— |
|
|
|
(3,169 |
) |
Series B preferred stock dividends |
|
|
(1,731 |
) |
|
|
(1,600 |
) |
Series C preferred stock deemed contributions and redemption value
adjustment, net |
|
|
— |
|
|
|
(7,406 |
) |
Series D preferred stock deemed dividends and redemption
accretion |
|
|
— |
|
|
|
(6,661 |
) |
|
|
|
|
|
|
|
|
|
Net loss attributable to common
stockholders |
|
$ |
(56,651 |
) |
|
$ |
(55,914 |
) |
|
|
|
|
|
|
|
Loss per share basic and
diluted: |
|
|
|
|
|
|
Net loss per share attributable to common stockholders |
|
$ |
(0.27 |
) |
|
$ |
(5.77 |
) |
Basic and diluted weighted average shares outstanding |
|
|
206,560,031 |
|
|
|
9,683,253 |
|
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 April 30, |
|
Six Months Ended April 30, |
(Amounts in thousands) |
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
2019 |
|
Net loss |
$ |
(14,769 |
) |
|
$ |
(19,530 |
) |
|
$ |
(54,920 |
) |
|
$ |
(37,078 |
) |
Depreciation and amortization
(1) |
|
4,472 |
|
|
|
2,199 |
|
|
|
9,102 |
|
|
|
4,398 |
|
Provision for income taxes |
|
11 |
|
|
|
69 |
|
|
|
31 |
|
|
|
69 |
|
Other (income)/expense,
net(2) |
|
(340 |
) |
|
|
31 |
|
|
|
(871 |
) |
|
|
(129 |
) |
Change in fair value of common
stock warrant liability |
|
3,372 |
|
|
|
- |
|
|
|
37,617 |
|
|
|
- |
|
Interest expense |
|
3,584 |
|
|
|
1,807 |
|
|
|
6,861 |
|
|
|
4,271 |
|
EBITDA |
$ |
(3,670 |
) |
|
$ |
(15,424 |
) |
|
$ |
(2,180 |
) |
|
$ |
(28,469 |
) |
Stock-based compensation
expense |
|
375 |
|
|
|
958 |
|
|
|
863 |
|
|
|
1,940 |
|
Legal settlement (3) |
|
- |
|
|
|
- |
|
|
|
(2,200 |
) |
|
|
- |
|
Adjusted EBITDA |
$ |
(3,295 |
) |
|
$ |
(14,466 |
) |
|
$ |
(3,517 |
) |
|
$ |
(26,529 |
) |
(1) Includes depreciation and amortization on
our Generation portfolio of $3.2 million and $6.4 million for the
three and six months ended April 30, 2020, respectively, and $1.0
million and $2.0 million for the three and six months ended April
30, 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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