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 quarter ended April 30, 2021 and key business highlights.
“We remain focused on execution of our
Powerhouse business strategy, including advancing in-flight
projects in our backlog. During the quarter, we added 2.8 megawatts
to our generation backlog with a new project in Derby,
Connecticut,” said Mr. Jason Few, President and CEO. “We continue
to increase our investment in research and development towards the
commercialization of our solid oxide power generation, storage and
hydrogen electrolysis platforms. We also continue to focus on
growing our commercial capabilities. We have increased our
annualized production rate from 17 MWs at the end of fiscal 2020 to
32 MWs as of April 30, 2021, with an objective of reaching an
annualized production rate of 45 MW by the end of this fiscal year,
and have invested in our generation assets to improve operating
output.”
“We are firmly committed to achieving revenue
growth by bringing projects online this year and positioning our
portfolio to meet the significant market opportunities that our
proprietary technology solutions are well positioned to solve,”
continued Mr. Few. “Under our Powerhouse business strategy, we
continue to build a foundation for future success, having
strengthened our financial foundation, increased our manufacturing
output, and increased our talent in critical areas like sales and
engineering. We are focused on expanding our geographic markets and
driving commercial success in the business by advancing the
availability of our Advanced Technologies solutions, including
distributed hydrogen, long duration energy storage, and hydrogen
production. Our scalable carbonate fuel cell platforms provide a
“here now” solution for the increasing requirement of clean,
distributed power and hydrogen generation to strengthen and
supplement the grid power and enable the hydrogen economy. We
believe our proprietary technologies will play a major role in the
decarbonization of the grid and generate revenue growth in the
future by addressing the promising market opportunities in the
global energy transition that is currently underway.”
Mr. Few added, “I am proud to announce that in
addition to being ISO9001:2015 and ISO14001:2015 certified (for
quality management and environmental management), we are now also
ISO 45001:2018 certified, the world's international standard for
occupational health and safety. This certification is important to
our company as it further supports the importance we place on
safety in our everyday practices. Our platforms are designed,
manufactured and constructed to ensure safe and reliable
operations. The ISO 45001:2018 occupational health and safety
management system certification validates FuelCell Energy’s
leadership and commitment to put the health and safety of our team,
partners, stakeholders, visitors and the community at the forefront
of our priorities.”
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 EndedApril 30, |
(Amounts in thousands) |
|
2021 |
|
|
|
2020 |
|
|
Change |
Total revenues |
$ |
13,953 |
|
|
$ |
18,880 |
|
|
-26 |
% |
Gross (loss) profit |
|
(4,756 |
) |
|
|
167 |
|
|
-2,948 |
% |
Loss from operations |
|
(17,390 |
) |
|
|
(8,142 |
) |
|
114 |
% |
Net Loss |
|
(18,917 |
) |
|
|
(14,769 |
) |
|
28 |
% |
EBITDA |
|
(12,582 |
) |
|
|
(3,670 |
) |
|
- 243 |
% |
Net loss attributable to common stockholders |
|
(19,717 |
) |
|
|
(15,569 |
) |
|
27 |
% |
Net loss per basic and diluted share |
$ |
(0.06 |
) |
|
$ |
(0.07 |
) |
|
-14 |
% |
|
|
|
|
|
|
Adjusted EBITDA |
$ |
(11,329 |
) |
|
$ |
(3,295 |
) |
|
-244 |
% |
|
|
|
|
|
|
|
|
|
|
|
Second Quarter of Fiscal 2021
Results
Note: All comparisons between periods are
between the second quarter of fiscal 2021 and the second quarter of
fiscal 2020, unless otherwise specified.
Second quarter revenue of $14.0 million
represents a decrease of 26% from the prior-year quarter, driven by
a $6.3 million decrease in service agreements and license revenues
as there were no new module exchanges during the quarter combined
with cost estimate adjustments related to changes in the expected
timing of future module exchanges.
- Service agreements and
license revenues decreased 91% to $0.7 million from $7.0
million. The decline in revenue is primarily due to the fact that
there were no new module exchanges during the quarter (while new
module exchanges generated approximately $5.5 million of revenue in
the prior year quarter) and cost estimate adjustments related to
changes in the expected timing of future module exchanges (which
reduced revenue recognition in the quarter by approximately $0.8
million).
- Generation
revenues increased 34% to $6.2 million from $4.6 million primarily
due to higher operating output of the generation fleet portfolio
(which resulted in an increase in generation revenues of
approximately $0.8 million) and sales of renewable energy credits
(which resulted in an increase in generation revenues of
approximately $0.8 million).
- Advanced
Technologies contract revenues decreased 2% to $7.1
million from $7.3 million. Compared to the second fiscal quarter of
2020, Advanced Technologies contract revenues recognized under the
Joint Development Agreement with ExxonMobil Research and
Engineering Company (“EMRE”) were approximately $0.4 million higher
during the second fiscal quarter of 2021, reflecting continued
performance under our Joint Development Agreement with EMRE on fuel
cell carbon capture solutions during the quarter. However, the
increased revenues under the Joint Development Agreement with EMRE
were offset by $0.6 million less revenue recognized under
government contracts during the second fiscal quarter of 2021 than
during the second fiscal quarter of 2020.
Gross loss for the second fiscal quarter of 2021
totaled $(4.8) million, compared to a gross profit of $0.2 million
in the comparable prior-year quarter. Impacting gross loss for the
quarter were (i) lower service gross margin due to the fact that no
new module exchanges took place during the quarter and due to
adjustments to the loss accrual reserves to account for changes in
the expected timing of future module exchanges in the second
quarter of 2021, (ii) lower generation gross margin related to
higher costs for plant maintenance as we continue to invest in
efforts to improve fleet performance, and (iii) lower advanced
technologies gross margin given the mix of activities in the
quarter. These impacts were partially offset by lower manufacturing
variances as a result of the increase in the annualized factory
production rate.
Operating expenses for the second fiscal quarter
of 2021 increased to $12.6 million from $8.3 million in the second
fiscal quarter of 2020. Administrative and selling expenses in the
second fiscal quarter of 2021 included additional share-based
compensation expense of $0.8 million due to the non-cash grants
made in August 2020 and November 2020 under our Long-Term
Incentive Plans. An increase in compensation expense and proxy
mailing expenses associated with the Company’s annual stockholder
meeting also contributed to higher administrative and selling
expenses during the second fiscal quarter of 2021. Research and
development expenses of $3.0 million during the second fiscal
quarter of 2021 reflect increased spending on the Company’s
hydrogen commercialization initiatives.
Net loss was $(18.9) million in the second
fiscal quarter of 2021, compared to net loss of $(14.8) million in
the second fiscal quarter of 2020 due to the changes in gross loss
and operating expenses described above.
Adjusted EBITDA totaled $(11.3) million in the
second fiscal quarter of 2021, compared to Adjusted EBITDA of
$(3.3) million in the second fiscal quarter of 2020. Please see the
discussion of non-GAAP financial measures, including Adjusted
EBITDA, in the appendix at the end of this release.
The net loss per share attributable to common
stockholders in the second fiscal quarter of 2021 was $(0.06),
compared to $(0.07) in the second fiscal quarter of 2020. The lower
net loss per common share, despite a higher net loss attributable
to common stockholders, is due to the higher weighted average
shares outstanding due to share issuances since April 30,
2020.
Cash, Restricted Cash and Financing
Update
Cash and cash equivalents and restricted cash
and cash equivalents totaled $171.2 million as of April 30, 2021
compared to $192.1 million as of October 31, 2020. As of April 30,
2021, restricted cash and cash equivalents was $32.1 million, of
which $17.4 million was classified as current and $14.7 million was
classified as non-current, compared to $42.2 million of restricted
cash and cash equivalents as of October 31, 2020, of which $9.2
million was classified as current and $33.0 million was classified
as non-current.
Operations Update
Groton Sub Base. This is a 7.4
MW platform at the U.S. Navy Base in Groton, Connecticut. The
Company has completed the majority of its scope of work on this
project. Also, the Company is close to resolution of the
interconnection issues with two parties prepared to execute the
current form of interconnect agreement. The project is entering the
final stages of construction, with commercial operations currently
expected in late summer. This FuelCell Energy platform, when
operational and incorporated into the Navy’s planned microgrid,
will once again demonstrate the reliability of FuelCell Energy’s
platforms to perform as a microgrid and support the U.S. military’s
efforts to fortify base energy supply while demonstrating its
commitment to clean reliable power.
San Bernardino, CA. This is a
1.4 MW platform at the wastewater treatment facility in San
Bernardino, California. The Company has received the necessary
authorizations from the local utility on the interconnection
process for this platform and, as a result, has entered the
commissioning stage of this project. The project is expected to
achieve its commercial operations date in the third quarter of
fiscal year 2021. This FuelCell Energy platform represents another
project where FuelCell Energy platforms bring flaring at a
wastewater treatment facility to an end.
Derby, CT. During the quarter,
the Company entered into a 20-year power purchase agreement (“PPA”)
with United Illuminating for a 2.8 MW project in Derby, CT, which
was awarded to the Company as part of the state-sponsored Shared
Clean Energy Facility program and added $59.4 million to generation
revenue backlog in the quarter ended April 30, 2021. This FuelCell
Energy power plant will supply 2.8 MW of clean power to the
Connecticut electric grid and will be our second project located in
Derby. The clean baseload power generated by this 2.8 MW platform
will be enough to power approximately 3,000 homes with continuous
clean energy. The next steps in developing the project include
obtaining siting approvals and interconnection agreements and
finalizing site engineering.
Other Projects. Equipment
manufacture, fabrication and early stage construction is also
underway on 24.5 MW of projects, including the Toyota hydrogen
project at the Port of Long Beach in California, and utility scale
projects in Yaphank on Long Island in New York and in Derby,
Connecticut.
Backlog
|
|
As of April 30, |
|
|
(Amounts in thousands) |
|
2021 |
|
2020 |
|
Change |
Service |
|
$ |
141,427 |
|
$ |
160,944 |
|
-12.1 |
% |
Generation |
|
|
1,115,573 |
|
|
1,104,347 |
|
1.0 |
% |
License |
|
|
22,182 |
|
|
22,369 |
|
-0.8 |
% |
Advanced Technologies |
|
|
44,972 |
|
|
56,785 |
|
-20.8 |
% |
Total Backlog |
|
$ |
1,324,154 |
|
$ |
1,344,445 |
|
-1.5 |
% |
Backlog decreased 1.5% to $1.32 billion as of
April 30, 2021, reflecting the continued execution of backlog and
adjustments to generation backlog, primarily resulting from the
decrease in fuel pricing which has lowered estimated future
revenue, offset by the inclusion of the recently awarded project
with United Illuminating in Derby, Connecticut.
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. EDT to discuss second quarter fiscal
2021 results and key business highlights. Participants can access
the live call via webcast on the Company website or by telephone as
follows:
- The live webcast of the call and
supporting slide presentation will be available at
www.fuelcellenergy.com. To listen to the call, select “Investors”
on the home page, proceed to the “Events & Presentations” page
and then click on the “Webcast” link listed under the June 10th
earnings call event, or click here.
- Alternatively, participants can
dial 833-231-8261 and state FuelCell Energy or the conference ID
number 9058997.
The replay of the conference call will be
available via webcast on the Company’s Investors’ page
at www.fuelcellenergy.com approximately two hours after the
conclusion of the call.
Cautionary Language
This news release contains forward-looking
statements within the meaning of the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995 regarding future
events or our future financial performance that involve certain
contingencies and uncertainties, including those discussed in our
Quarterly Report on Form 10-Q for the quarter ended April 30, 2021
in the section entitled "Management's Discussion and Analysis of
Financial Condition and Results of Operations”. Forward-looking
statements include, without limitation, statements with respect to
the Company’s anticipated financial results and statements
regarding the Company’s plans and expectations regarding the
continuing development, commercialization and financing of its fuel
cell technology and its business plans and strategies. These
statements are not guarantees of future performance, and all
forward-looking statements are subject to risks and uncertainties
that could cause actual results to differ materially from those
projected. Factors that could cause such a difference include,
without limitation: general risks associated with product
development and manufacturing; general economic conditions; changes
in the utility regulatory environment; changes in the utility
industry and the markets for distributed generation, distributed
hydrogen, and fuel cell power platforms configured for carbon
capture or carbon sequestration; potential volatility of energy
prices; availability of government subsidies and economic
incentives for alternative energy technologies; our ability to
remain in compliance with U.S. federal and state and foreign
government laws and regulations and the listing rules of The Nasdaq
Stock Market; rapid technological change; competition; the risk
that our bid awards will not convert to contracts or that our
contracts will not convert to revenue; market acceptance of our
products; changes in accounting policies or practices adopted
voluntarily or as required by accounting principles generally
accepted in the United States; factors affecting our liquidity
position and financial condition; government appropriations; the
ability of the government and third parties to terminate their
development contracts at any time; the ability of the government to
exercise “march-in” rights with respect to certain of our patents;
the arbitration and other legal proceedings with POSCO Energy Co.,
Ltd.; our ability to implement our strategy; our ability to reduce
our levelized cost of energy and our cost reduction strategy
generally; our ability to protect our intellectual property;
litigation and other proceedings; the risk that commercialization
of our products will not occur when anticipated; our need for and
the availability of additional financing; our ability to generate
positive cash flow from operations; our ability to service our
long-term debt; our ability to increase the output and longevity of
our power plants and to meet the performance requirements of our
contracts; our ability to expand our customer base and maintain
relationships with our largest customers and strategic business
allies; changes by the U.S. Small Business Administration or other
governmental authorities to, or with respect to the implementation
or interpretation of, the Coronavirus Aid, Relief, and Economic
Security Act, the Paycheck Protection Program or related
administrative matters; and concerns with, threats of, or the
consequences of, pandemics, contagious diseases or health
epidemics, including the novel coronavirus, and resulting supply
chain disruptions, shifts in clean energy demand, impacts to our
customers’ capital budgets and investment plans, impacts to our
project schedules, impacts to our ability to service existing
projects, and impacts on the demand for our products, as well as
other risks set forth in the Company’s filings with the Securities
and Exchange Commission. The forward-looking statements contained
herein speak only as of the date of this press release. The Company
expressly disclaims any obligation or undertaking to release
publicly any updates or revisions to any such statement contained
or incorporated by reference herein to reflect any change in the
Company’s expectations or any change in events, conditions or
circumstances on which any such statement is based.
About FuelCell Energy
FuelCell Energy, Inc. (NASDAQ:
FCEL) is a global leader in sustainable clean energy technologies
that address some of the world’s most critical challenges around
energy, safety and global urbanization. As a leading global
manufacturer of proprietary fuel cell technology platforms,
FuelCell Energy is uniquely positioned to serve customers worldwide
with sustainable products and solutions for businesses, utilities,
governments and municipalities. Our solutions are designed to
enable a world empowered by clean energy, enhancing the quality of
life for people around the globe. We target large-scale power users
with our megawatt-class installations globally, and currently offer
sub-megawatt solutions for smaller power consumers in Europe. To
provide a frame of reference, one megawatt is adequate to
continually power approximately 1,000 average sized U.S. homes. We
develop turn-key distributed power generation solutions and operate
and provide comprehensive service for the life of the power plant.
Our fuel cell solution is a clean, efficient alternative to
traditional combustion-based power generation, and is complementary
to an energy mix consisting of intermittent sources of energy, such
as solar and wind turbines. Our customer base includes utility
companies, municipalities, universities, hospitals, government
entities/military bases and a variety of industrial and commercial
enterprises. Our leading geographic markets are currently the
United States and South Korea, and we are pursuing opportunities in
other countries around the world. FuelCell Energy, based in
Connecticut, was founded in 1969.
SureSource, SureSource 1500, SureSource 3000,
SureSource 4000, SureSource Recovery, SureSource Capture,
SureSource Hydrogen, SureSource Storage, SureSource Service,
SureSource Capital, FuelCell Energy, and FuelCell Energy logo are
all trademarks of FuelCell Energy, Inc.
Contact:
FuelCell Energy,
Inc.ir@fce.com203.205.2491
Source: FuelCell Energy
FUELCELL ENERGY,
INC.Consolidated Balance
Sheets(Unaudited)(Amounts in thousands, except
share and per share amounts)
|
|
April 30,2021 |
|
|
October 31, 2020 |
ASSETS |
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents, unrestricted |
$ |
139,086 |
|
|
$ |
149,867 |
|
Restricted cash and cash equivalents – short-term |
|
17,427 |
|
|
|
9,233 |
|
Accounts receivable, net |
|
12,147 |
|
|
|
9,563 |
|
Unbilled receivables |
|
7,660 |
|
|
|
8,041 |
|
Inventories |
|
58,920 |
|
|
|
50,971 |
|
Other current assets |
|
10,317 |
|
|
|
6,306 |
|
Total current assets |
|
245,557 |
|
|
|
233,981 |
|
|
|
|
|
|
|
Restricted cash and cash
equivalents – long-term |
|
14,669 |
|
|
|
32,952 |
|
Project assets |
|
187,242 |
|
|
|
161,809 |
|
Inventories – long-term |
|
4,586 |
|
|
|
8,986 |
|
Property, plant and equipment,
net |
|
35,417 |
|
|
|
36,331 |
|
Operating lease right-of-use
assets, net |
|
8,201 |
|
|
|
10,098 |
|
Goodwill |
|
4,075 |
|
|
|
4,075 |
|
Intangible assets, net |
|
19,318 |
|
|
|
19,967 |
|
Other assets |
|
16,526 |
|
|
|
15,339 |
|
Total assets |
$ |
535,591 |
|
|
$ |
523,538 |
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
Current portion of long-term debt |
$ |
8,575 |
|
|
$ |
21,366 |
|
Current portion of operating lease liabilities |
|
875 |
|
|
|
939 |
|
Accounts payable |
|
15,884 |
|
|
|
9,576 |
|
Accrued liabilities |
|
13,419 |
|
|
|
15,681 |
|
Deferred revenue |
|
17,464 |
|
|
|
10,399 |
|
Preferred stock obligation of subsidiary |
|
- |
|
|
|
938 |
|
Total current liabilities |
|
56,217 |
|
|
|
58,899 |
|
|
|
|
|
|
|
Long-term deferred
revenue |
|
26,698 |
|
|
|
31,501 |
|
Long-term preferred stock
obligation of subsidiary |
|
- |
|
|
|
18,265 |
|
Long-term operating lease
liabilities |
|
8,190 |
|
|
|
9,817 |
|
Long-term debt and other
liabilities |
|
75,580 |
|
|
|
150,651 |
|
Total liabilities |
|
166,685 |
|
|
|
269,133 |
|
|
|
|
|
|
|
Redeemable Series B preferred
stock (liquidation preference of $64,020 as of April 30, 2021 and
October 31, 2020) |
|
59,857 |
|
|
|
59,857 |
|
Total equity: |
|
|
|
|
|
Stockholders’ equity |
|
|
|
|
|
|
|
Common stock ($0.0001 par value); 500,000,000 and 337,500,000
shares authorized as of April 30, 2021 and October 31, 2020
respectively; 322,492,804 and 294,706,758 shares issued and
outstanding as of April 30, 2021 and October 31, 2020,
respectively |
|
32 |
|
|
|
29 |
|
Additional paid-in capital |
|
1,538,831 |
|
|
|
1,359,454 |
|
Accumulated deficit |
|
(1,229,073 |
) |
|
|
(1,164,196 |
) |
Accumulated other comprehensive loss |
|
(741 |
) |
|
|
(739 |
) |
Treasury stock, Common, at cost (61,836 and 56,411 shares as of
April 30, 2021 and October 31, 2020, respectively) |
|
(503 |
) |
|
|
(432 |
) |
Deferred compensation |
|
503 |
|
|
|
432 |
|
Total stockholders’ equity |
|
309,049 |
|
|
|
194,548 |
|
Total liabilities and stockholders’ equity |
$ |
535,591 |
|
|
$ |
523,538 |
|
|
|
|
|
|
|
|
|
FUELCELL ENERGY,
INC.Consolidated Statements of Operations and
Comprehensive Loss(Unaudited)(Amounts in
thousands, except share and per share amounts)
|
Three Months Ended April 30, |
|
2021 |
|
2020 |
Revenues: |
|
|
|
|
|
Product |
$ |
- |
|
|
$ |
- |
|
Service and license |
|
660 |
|
|
|
6,972 |
|
Generation |
|
6,185 |
|
|
|
4,631 |
|
Advanced Technologies |
|
7,108 |
|
|
|
7,277 |
|
Total revenues |
|
13,953 |
|
|
|
18,880 |
|
|
|
|
|
|
|
Costs of revenues: |
|
|
|
|
|
Product |
|
1,921 |
|
|
|
2,838 |
|
Service and license |
|
2,867 |
|
|
|
5,967 |
|
Generation |
|
9,422 |
|
|
|
5,692 |
|
Advanced Technologies |
|
4,499 |
|
|
|
4,216 |
|
Total cost of revenues |
|
18,709 |
|
|
|
18,713 |
|
|
|
|
|
|
|
Gross (loss) profit |
|
(4,756 |
) |
|
|
167 |
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
Administrative and selling expenses |
|
9,670 |
|
|
|
7,168 |
|
Research and development expense |
|
2,964 |
|
|
|
1,141 |
|
Total costs and expenses |
|
12,634 |
|
|
|
8,309 |
|
|
|
|
|
|
|
Loss from operations |
|
(17,390 |
) |
|
|
(8,142 |
) |
|
|
|
|
|
|
Interest expense |
|
(1,563 |
) |
|
|
(3,584 |
) |
Change in fair value of common stock warrant liability |
|
- |
|
|
|
(3,372 |
) |
Other income, net |
|
32 |
|
|
|
340 |
|
|
|
|
|
|
|
Loss before benefit
(provision) for income taxes |
|
(18,921 |
) |
|
|
(14,758 |
) |
|
|
|
|
|
|
Benefit (provision) for income taxes |
|
4 |
|
|
|
(11 |
) |
|
|
|
|
|
|
Net loss |
|
(18,917 |
) |
|
|
(14,769 |
) |
|
|
|
|
|
|
Series B preferred stock dividends |
|
(800 |
) |
|
|
(800 |
) |
|
|
|
|
|
|
Net loss attributable to
common stockholders |
$ |
(19,717 |
) |
|
$ |
(15,569 |
) |
|
|
|
|
|
|
Loss per share basic and
diluted: |
|
|
|
|
|
Net loss per share attributable to common stockholders |
$ |
(0.06 |
) |
|
$ |
(0.07 |
) |
Basic and diluted weighted average shares outstanding |
|
322,500,592 |
|
|
|
211,000,091 |
|
|
|
|
|
|
|
|
|
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, |
|
|
2021 |
|
2020 |
Revenues: |
|
|
|
|
|
|
|
|
Product |
|
$ |
— |
|
|
$ |
— |
|
Service and license |
|
|
5,573 |
|
|
|
12,584 |
|
Generation |
|
|
11,076 |
|
|
|
10,073 |
|
Advanced Technologies |
|
|
12,181 |
|
|
|
12,487 |
|
Total revenues |
|
|
28,830 |
|
|
|
35,144 |
|
|
|
|
|
|
|
|
|
|
Costs of revenues: |
|
|
|
|
|
|
|
|
Product |
|
|
4,287 |
|
|
|
4,854 |
|
Service and license |
|
|
7,966 |
|
|
|
7,585 |
|
Generation |
|
|
16,537 |
|
|
|
11,249 |
|
Advanced Technologies |
|
|
8,414 |
|
|
|
8,008 |
|
Total costs of revenues |
|
|
37,204 |
|
|
|
31,696 |
|
|
|
|
|
|
|
|
|
|
Gross (loss) profit |
|
|
(8,374 |
) |
|
|
3,448 |
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
Administrative and selling expenses |
|
|
18,602 |
|
|
|
12,434 |
|
Research and development expenses |
|
|
4,787 |
|
|
|
2,296 |
|
Total costs and expenses |
|
|
23,389 |
|
|
|
14,730 |
|
|
|
|
|
|
|
|
|
|
Loss from operations |
|
|
(31,763 |
) |
|
|
(11,282 |
) |
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
(4,108 |
) |
|
|
(6,861 |
) |
Loss on extinguishment of debt |
|
|
(11,156 |
) |
|
|
- |
|
Loss on extinguishment of Series 1 preferred share obligation |
|
|
(934 |
) |
|
|
- |
|
Change in fair value of common stock warrant liability |
|
|
(15,974 |
) |
|
|
(37,617 |
) |
Other (expense) income, net |
|
|
(946 |
) |
|
|
871 |
|
|
|
|
|
|
|
|
|
|
Loss before benefit (provision)
for income taxes |
|
|
(64,881 |
) |
|
|
(54,889 |
) |
|
|
|
|
|
|
|
|
|
Benefit (provision) for income taxes |
|
|
4 |
|
|
|
(31 |
) |
|
|
|
|
|
|
|
|
|
Net loss |
|
|
(64,877 |
) |
|
|
(54,920 |
) |
Series B preferred stock dividends |
|
|
(1,600 |
) |
|
|
(1,731 |
) |
|
|
|
|
|
|
|
|
|
Net loss attributable to common
stockholders |
|
$ |
(66,477 |
) |
|
$ |
(56,651 |
) |
|
|
|
|
|
|
|
|
|
Loss per share basic and
diluted: |
|
|
|
|
|
|
|
|
Net loss per share attributable to common stockholders |
|
$ |
(0.21 |
) |
|
$ |
(0.27 |
) |
Basic and diluted weighted average shares outstanding |
|
|
317,219,129 |
|
|
|
206,560,031 |
|
|
|
|
|
|
|
|
|
|
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) |
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
Net loss |
$ |
(18,917 |
) |
|
$ |
(14,769 |
) |
|
$ |
(64,877 |
) |
|
$ |
(54,920 |
) |
Depreciation and amortization
(1) |
|
4,808 |
|
|
|
4,472 |
|
|
|
10,412 |
|
|
|
9,102 |
|
(Benefit) provision for income
taxes |
|
(4 |
) |
|
|
11 |
|
|
|
(4 |
) |
|
|
31 |
|
Other (income)/expense, net
(2) |
|
(32 |
) |
|
|
(340 |
) |
|
|
946 |
|
|
|
(871 |
) |
Loss on extinguishment of
debt |
|
- |
|
|
|
- |
|
|
|
11,156 |
|
|
|
- |
|
Loss on extinguishment of
Series 1 preferred share obligation |
|
- |
|
|
|
- |
|
|
|
934 |
|
|
|
- |
|
Change in fair value of common
stock warrant liability |
|
- |
|
|
|
3,372 |
|
|
|
15,974 |
|
|
|
37,617 |
|
Interest expense |
|
1,563 |
|
|
|
3,584 |
|
|
|
4,108 |
|
|
|
6,861 |
|
EBITDA |
$ |
(12,582 |
) |
|
$ |
(3,670 |
) |
|
$ |
(21,351 |
) |
|
$ |
(2,180 |
) |
Share-based compensation
expense |
|
1,253 |
|
|
|
375 |
|
|
|
2,670 |
|
|
|
863 |
|
Legal settlement (3) |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(2,200 |
) |
Adjusted EBITDA |
$ |
(11,329 |
) |
|
$ |
(3,295 |
) |
|
$ |
(18,681 |
) |
|
$ |
(3,517 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes depreciation and amortization on
our Generation portfolio of $3.6 million and $8.0 million for the
three and six months ended April 30, 2021, respectively, and $3.2
million and $6.4 million for the three and six months ended April
30, 2020, respectively.(2) Other (income)/expense, net includes
gains and losses from transactions denominated in foreign
currencies, changes in fair value of derivatives, and other items
incurred periodically, which are not the result of the Company’s
normal business operations.(3) The Company received a legal
settlement of $2.2 million during the three months ended January
31, 2020, which was recorded as an offset to administrative and
selling expenses.
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