FuelCell Energy, Inc. (NASDAQ: FCEL) today reported financial
results for its third quarter ended July 31, 2024.
“In the third quarter, our team achieved solid performance and
continued cost management, while advancing our Powerhouse
strategy,” said Mr. Jason Few, President and Chief Executive
Officer. “We continue to build upon and expand our prospective
customer relationships at home and around the world, ranging from
interest in our new solid oxide fuel cell and electrolysis
platforms, to repowering projects in Korea, such as with Gyeonggi
Green Energy Co., Ltd.’s Hwaseong Balan Industrial Complex where we
are supplying 42 upgraded fuel cell modules over the next couple of
years. With our recent wins, backlog grew meaningfully in the
quarter. We also see meaningful potential to capture the rapidly
increasing time-to-power opportunity as grids are challenged by AI
data center growth.”
“While we execute on our current opportunity set, we are also
focused on building our sales pipeline,” added Mr. Few. “We believe
we are positioned to capitalize on market opportunities, ranging
from built-in fuel diversity which supports biogas applications and
hydrogen blending, similar to our work with Ameresco in Sacramento,
CA, to the growing power and absorption or electrical cooling needs
of edge data centers. Our goal is to generate steady, predictable
results now while keeping our focus on future growth.”
Consolidated Financial Metrics
|
|
|
Three Months Ended July 31, |
|
|
|
|
(Amounts in thousands) |
|
2024 |
|
|
|
2023 |
|
|
Change |
|
|
|
Total revenues |
|
$23,695 |
|
|
|
$25,510 |
|
|
(7 |
%) |
|
|
|
Gross
loss |
|
(6,202 |
) |
|
|
(8,215 |
) |
|
(25 |
%) |
|
|
|
Loss
from operations |
|
(33,617 |
) |
|
|
(41,395 |
) |
|
(19 |
%) |
|
|
|
Net
loss |
|
(35,123 |
) |
|
|
(23,601 |
) |
|
49 |
% |
|
|
|
Net
loss attributable to common stockholders |
|
(33,460 |
) |
|
|
(25,079 |
) |
|
33 |
% |
|
|
|
Net
loss per basic and diluted share |
|
(0.07 |
) |
|
|
(0.06 |
) |
|
17 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA * |
|
(24,379 |
) |
|
|
(34,772 |
) |
|
(30 |
%) |
|
|
|
Adjusted EBITDA * |
|
($20,134 |
) |
|
|
($31,606 |
) |
|
(36 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* A
reconciliation of EBITDA, Adjusted EBITDA and any other non-GAAP
measures is contained in the appendix to this press release. |
| |
Third Quarter of Fiscal 2024 Results
(All comparisons are between third quarter of fiscal 2024 and
third quarter of fiscal 2023 unless otherwise noted)
Third quarter revenue of $23.7 million represents a decrease of
7% from the comparable prior year quarter.
- Product revenues were $0.3 million during the
three months ended July 31, 2024, and there were no product
revenues in the comparable prior year period. The product revenues
during the three months ended July 31, 2024 were recognized under
the Company’s new sales contract with Ameresco, Inc., which was
entered into during the second quarter of fiscal 2024.
- Service agreements revenues decreased to $1.4
million from $9.8 million. The decrease in service agreements
revenues during the three months ended July 31, 2024 was primarily
driven by the fact that there were no module exchanges during the
quarter. Service agreements revenues recognized during the third
quarter of fiscal 2023 were primarily driven by module exchanges at
the plants owned by Korea Southern Power Company in Korea.
- Generation revenues increased 22% to $13.4
million from $11.0 million, primarily driven by revenue generated
by the Toyota and Derby projects, all of which began operations in
the first quarter of fiscal 2024.
- Advanced Technologies contract revenues
increased to $8.6 million from $4.7 million. Advanced Technologies
contract revenues recognized under our Joint Development Agreement
with ExxonMobil Technology and Engineering Company (“EMTEC”) were
approximately $1.8 million, revenues arising from the purchase
order received from Esso Nederland B.V. (“Esso”), an affiliate of
EMTEC and Exxon Mobil Corporation, related to the Rotterdam project
were approximately $3.5 million and revenue recognized under
government contracts and other contracts were approximately $3.3
million for the three months ended July 31, 2024. This compares to
Advanced Technologies contract revenues recognized under our Joint
Development Agreement with EMTEC of approximately $2.8 million and
revenue recognized under government contracts and other contracts
of approximately $1.9 million the three months ended July 31,
2023.
Gross loss for the third quarter of fiscal 2024 totaled $(6.2)
million, compared to a gross loss of $(8.2) million in the
comparable prior year quarter. The reduction in gross loss for the
third quarter of fiscal 2024 was, in part, a result of favorable
margins for Advanced Technologies of $1.9 million and Generation of
$1.1 million, partially offset by higher gross losses for product
of $(1.0) million. Service gross margin remained consistent quarter
over quarter.
Operating expenses for the third quarter of fiscal 2024
decreased to $27.4 million from $33.2 million in the third quarter
of fiscal 2023. Selling and administrative expenses decreased to
$14.6 million during the third quarter of fiscal 2024 from $17.6
million during the third quarter of fiscal 2023. The decrease in
selling and administrative expenses is a result of lower legal,
consulting and shareholder relations expenses and lower
compensation expense. Research and development expenses decreased
to $12.8 million during the third quarter of fiscal 2024 compared
to $15.6 million in the third quarter of fiscal 2023. The decrease
in research and development expenses reflects the previously
announced decrease in spending on the Company’s ongoing commercial
development efforts related to our solid oxide power generation and
electrolysis platforms and carbon separation and carbon recovery
solutions compared to the comparable prior year period as well as a
shift in engineering resource allocation toward supporting the
increase in funded Advanced Technologies activities.
Net loss was $(35.1) million in the third quarter of fiscal
2024, compared to net loss of $(23.6) million in the third quarter
of fiscal 2023. The net loss in the prior-year third quarter
included the benefit of a gain on extinguishment of finance
obligations and debt of $15.3 million.
Adjusted EBITDA totaled $(20.1) million in the third quarter of
fiscal 2024, compared to Adjusted EBITDA of $(31.6) million in the
third quarter of fiscal 2023. 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 third quarter of fiscal 2024 was $(0.07), compared to $(0.06)
in the third quarter of fiscal 2023. The net loss per common share
in the third quarter of fiscal 2024 was a result of the higher net
loss offset by the benefit of the higher number of weighted average
shares outstanding due to share issuances since July 31, 2023. The
net loss per share attributable to common stockholders in the third
quarter of fiscal 2024 included the one-time benefit of a gain on
extinguishment of finance obligations and debt of approximately
$0.04.
Cash, Restricted Cash and Short-Term
Investments
Cash and cash equivalents, restricted cash and cash equivalents,
and short-term investments totaled $326.0 million as of July 31,
2024, compared to $403.3 million as of October 31, 2023. Of the
$326.0 million total as of July 31, 2024, unrestricted cash and
cash equivalents totaled $159.3 million, short-term investments
totaled $107.8 million and restricted cash and cash equivalents
totaled $58.8 million. Of the $403.3 million total as of October
31, 2023, unrestricted cash and cash equivalents totaled $250.0
million, short-term investments totaled $103.8 million, and
restricted cash and cash equivalents totaled $49.6 million.
Short-term investments represent the amortized cost of U.S.
Treasury Securities outstanding as of July 31, 2024 and October 31,
2023 as part of the Company’s cash management optimization effort,
all of which are expected to be held to maturity.
“We are taking proactive steps to help preserve balance sheet
strength while continuing to execute on our growth objectives and
position our platforms to capitalize on the energy transition and
the growing distributed power generation opportunity,” said Mr.
Michael Bishop, Executive Vice President, Chief Financial Officer
and Treasurer. “We remain focused on lowering our quarterly
spending and cash burn, while also pursuing financing to support
commercial opportunities including our Korea repowering
activities.”
During the three months ended July 31, 2024, approximately 95.2
million shares of the Company’s common stock were sold under the
Company’s Amended Open Market Sale Agreement at an average sale
price of $0.71 per share, resulting in gross proceeds of
approximately $67.3 million before deducting sales commissions and
fees, and net proceeds to the Company of approximately $65.9
million after deducting sales commissions and fees totaling
approximately $1.4 million.
Backlog
|
|
As of July 31, |
|
|
|
(Amounts in thousands) |
|
2024 |
|
|
2023 |
|
Change |
|
Product |
$136,708 |
|
$ |
26 |
|
$136,682 |
|
|
Service |
|
178,387 |
|
|
136,621 |
|
|
41,766 |
|
|
Generation |
|
839,532 |
|
|
915,062 |
|
|
(75,530 |
) |
|
Advanced Technologies |
|
42,480 |
|
|
11,552 |
|
|
30,928 |
|
|
Total Backlog |
$1,197,107 |
|
$ |
1,063,261 |
|
$133,846 |
|
|
|
As of July 31, 2024, backlog increased by approximately 12.6% to
$1.20 billion, compared to $1.06 billion as of July 31, 2023,
primarily as a result of the long-term service agreement with
Gyeonggi Green Energy Co., Ltd. (the “GGE Agreement”) entered into
during the third quarter of fiscal 2024. Backlog for the GGE
Agreement was allocated between Product backlog of $126.0 million
and service backlog of $33.6 million. Product backlog will be
recognized as revenue over time as the Company completes
commissioning of the replacement modules. Commissioning of the
first six 1.4-MW replacement fuel cell modules is expected to be
completed in the fall of calendar year 2024, with an additional 30
1.4-MW replacement fuel cell modules expected to be commissioned
throughout the course of calendar year 2025, and the remaining six
1.4-MW replacement fuel cell modules expected to be commissioned in
the first half of calendar year 2026. Service backlog will be
recognized as revenue as the Company performs service at the GGE
site over the term of the GGE Agreement.
Backlog represents definitive agreements executed by the Company
and our customers. Projects for which we have an executed power
purchase agreement (“PPA”) or hydrogen power purchase agreement
(“HPPA”) are included in generation backlog, which represents
future revenue under long-term PPAs and HPPAs. The Company’s
ability to recognize revenue in the future under a PPA or HPPA is
subject to the Company’s completion of construction of the project
covered by such PPA or HPPA. Should the Company not complete the
construction of the project covered by a PPA or HPPA, it will forgo
future revenues with respect to the project and may incur penalties
and/or impairment charges related to the project. Projects sold to
customers (and not retained by the Company) are included in product
sales and service agreements backlog, and the related generation
backlog is removed upon sale. Together, the service and generation
portion of backlog had a weighted average term of approximately 17
years as of July 31, 2024, with weighting based on the dollar
amount of backlog and utility service contracts of up to 20 years
in duration at inception.
Conference Call Information
FuelCell Energy will host a conference call today beginning at
10:00 a.m. ET to discuss third quarter results for fiscal year 2024
as well as key business highlights. Participants can access the
live call via webcast on the Company website or by telephone as
follows:
- The live webcast of the call and supporting slide presentation
will be available at www.fuelcellenergy.com. To listen to the call,
select “Investors” on the home page located under the “Our Company”
pull-down menu, proceed to the “Events & Presentations” page
and then click on the “Webcast” link listed under the September 5th
earnings call event, or click here.
- Alternatively, participants can dial 888-330-3181 and state
FuelCell Energy or the conference ID number 1099808.
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 Annual Report on
Form 10-K for the fiscal year ended October 31, 2023 in the section
entitled "Management's Discussion and Analysis of Financial
Condition and Results of Operations”. The 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
current and future fuel cell technologies, the expected timing of
completion of the Company’s ongoing projects, the Company’s
business plans and strategies, the Company’s capacity expansion,
the capabilities of the Company’s products, the sales pipeline for
the Company’s products, and the markets in which the Company
expects to operate. Projected and estimated numbers contained
herein are not forecasts and may not reflect actual results. These
forward-looking 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 interest rates, which may impact project
financing; supply chain disruptions; changes in the utility
regulatory environment; changes in the utility industry and the
markets for distributed generation, distributed hydrogen, and fuel
cell power plants configured for carbon capture or carbon
separation; potential volatility of commodity prices that may
adversely affect our projects; 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; our ability to regain and
maintain compliance with the listing rules of The Nasdaq Stock
Market; our ability to implement a reverse stock split and the
impacts of a reverse stock split, if implemented; 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; our ability to successfully
market and sell our products internationally; our ability to
develop new products to achieve our long-term revenue targets; our
ability to implement our strategy; our ability to reduce our
levelized cost of energy and deliver on our cost reduction strategy
generally; our ability to protect our intellectual property;
litigation and other proceedings; the risk that commercialization
of our new products will not occur when anticipated or, if it does,
that we will not have adequate capacity to satisfy demand; 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 platforms 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; 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, 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, including the
Company’s Annual Report on Form 10-K for the fiscal year ended
October 31, 2023 and the Company’s Quarterly Report on Form 10-Q
for the fiscal quarter ended July 31, 2024. 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 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): FuelCell Energy is a
global leader in delivering environmentally responsible distributed
baseload energy platform solutions through our proprietary fuel
cell technology. FuelCell Energy is focused on advancing
sustainable clean energy technologies that address some of the
world’s most critical challenges around energy access, security,
resilience, reliability, affordability, safety and environmental
stewardship. 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 industrial and commercial businesses, utilities,
governments, municipalities, and communities.
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
|
FUELCELL ENERGY, INC.Consolidated Balance
Sheets(Unaudited)(Amounts in thousands, except
share and per share amounts) |
| |
|
|
|
|
|
|
|
|
July 31,2024 |
|
|
October 31,2023 |
|
ASSETS |
|
|
|
|
|
| Current assets: |
|
|
|
|
|
|
Cash and cash equivalents, unrestricted |
$ |
159,347 |
|
|
$ |
|
249,952 |
|
|
Restricted cash and cash equivalents – short-term |
|
9,686 |
|
|
|
|
5,159 |
|
|
Investments – short-term |
|
107,817 |
|
|
|
|
103,760 |
|
|
Accounts receivable, net |
|
11,161 |
|
|
|
|
3,809 |
|
|
Unbilled receivables |
|
30,169 |
|
|
|
|
16,296 |
|
|
Inventories |
|
129,349 |
|
|
|
|
84,456 |
|
|
Other current assets |
|
12,439 |
|
|
|
|
12,881 |
|
|
Total current assets |
|
459,968 |
|
|
|
|
476,313 |
|
| |
|
|
|
|
|
| Restricted cash and cash
equivalents – long-term |
|
49,148 |
|
|
|
|
44,465 |
|
| Inventories – long-term |
|
2,743 |
|
|
|
|
7,329 |
|
| Project assets, net |
|
248,790 |
|
|
|
|
258,066 |
|
| Property, plant and equipment,
net |
|
121,382 |
|
|
|
|
89,668 |
|
| Operating lease right-of-use
assets, net |
|
7,884 |
|
|
|
|
8,352 |
|
| Goodwill |
|
4,075 |
|
|
|
|
4,075 |
|
| Intangible assets, net |
|
15,104 |
|
|
|
|
16,076 |
|
| Other assets |
|
39,816 |
|
|
|
|
51,176 |
|
|
Total assets (1) |
$ |
948,910 |
|
|
$ |
|
955,520 |
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
| Current liabilities: |
|
|
|
|
|
|
Current portion of long-term debt |
$ |
12,232 |
|
|
$ |
|
10,067 |
|
|
Current portion of operating lease liabilities |
|
760 |
|
|
|
|
599 |
|
|
Accounts payable |
|
16,928 |
|
|
|
|
26,518 |
|
|
Accrued liabilities |
|
25,970 |
|
|
|
|
26,313 |
|
|
Deferred revenue |
|
10,649 |
|
|
|
|
2,406 |
|
|
Total current liabilities |
|
66,539 |
|
|
|
|
65,903 |
|
| |
|
|
|
|
|
| Long-term deferred
revenue |
|
1,979 |
|
|
|
|
732 |
|
| Long-term operating lease
liabilities |
|
8,708 |
|
|
|
|
8,992 |
|
| Long-term debt and other
liabilities |
|
126,720 |
|
|
|
|
119,588 |
|
|
Total liabilities (1) |
|
203,946 |
|
|
|
|
195,215 |
|
|
|
|
|
|
|
|
| Redeemable Series B preferred
stock (liquidation preference of $64,020 as of July 31, 2024 and
October 31, 2023) |
|
59,857 |
|
|
|
|
59,857 |
|
| Total equity: |
|
|
|
|
|
|
Stockholders’ equity:Common stock ($0.0001 par value);
1,000,000,000 shares authorized as of July 31, 2024 and October 31,
2023; 553,840,943 and 450,626,862 shares issued and outstanding as
of July 31, 2024 and October 31, 2023, respectively |
|
55 |
|
|
|
|
45 |
|
|
Additional paid-in capital |
|
2,277,417 |
|
|
|
|
2,199,661 |
|
|
Accumulated deficit |
|
(1,600,134 |
) |
|
|
|
(1,515,541 |
) |
|
Accumulated other comprehensive loss |
|
(1,576 |
) |
|
|
|
(1,672 |
) |
|
Treasury stock, Common, at cost (376,340 and 246,468 shares as of
July 31, 2024 and October 31, 2023, respectively) |
|
(1,198 |
) |
|
|
|
(1,078 |
) |
|
Deferred compensation |
|
1,198 |
|
|
|
|
1,078 |
|
|
Total stockholders’ equity |
|
675,762 |
|
|
|
|
682,493 |
|
|
Noncontrolling interests |
|
9,345 |
|
|
|
|
17,955 |
|
|
Total equity |
|
685,107 |
|
|
|
|
700,448 |
|
| Total liabilities, redeemable
Series B preferred stock and total equity |
$ |
948,910 |
|
|
$ |
|
955,520 |
|
| |
|
(1) As of July 31, 2024 and October 31, 2023, the combined
assets of the variable interest entities (“VIEs”) were $318,698 and
$235,290, respectively, that can only be used to settle obligations
of the VIEs. These assets include cash of $4,239, accounts
receivable of $726, unbilled accounts receivable of $8,403,
operating lease right of use assets of $1,667, other current assets
of $137,326, restricted cash and cash equivalents of $625, project
assets of $161,964 and other assets of $3,749 as of July 31, 2024,
and cash of $4,797, unbilled accounts receivable of $1,876,
operating lease right of use assets of $1,680, other current assets
of $50,713, restricted cash and cash equivalents of $526, project
assets of $170,444, derivative asset of $4,127 and other assets of
$1,125 as of October 31, 2023. The combined liabilities of the VIEs
as of July 31, 2024 include short-term operating lease liabilities
of $203, accounts payable of $184,900, accrued liabilities of $497,
deferred revenue of $132, long-term operating lease liability of
$2,146, and other non-current liabilities of $2,725 and, as of
October 31, 2023, include short-term operating lease liabilities of
$203, accounts payable of $165,824, long-term operating lease
liability of $2,159 and other non-current liabilities of $187. |
| |
|
FUELCELL ENERGY, INC.Consolidated
Statements of Operations and Comprehensive
Loss(Unaudited)(Amounts in thousands, except share
and per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended July 31, |
|
|
|
2024 |
|
|
|
2023 |
|
|
Revenues: |
|
|
|
|
|
|
|
|
Product |
|
$ |
250 |
|
|
|
$ |
- |
|
|
Service |
|
|
1,411 |
|
|
|
|
9,841 |
|
|
Generation |
|
|
13,402 |
|
|
|
|
10,982 |
|
|
Advanced Technologies |
|
|
8,632 |
|
|
|
|
4,687 |
|
|
Total revenues |
|
|
23,695 |
|
|
|
|
25,510 |
|
| Costs of
revenues: |
|
|
|
|
|
|
|
|
Product |
|
|
4,181 |
|
|
|
|
2,910 |
|
|
Service |
|
|
1,146 |
|
|
|
|
9,575 |
|
|
Generation |
|
|
18,761 |
|
|
|
|
17,483 |
|
|
Advanced Technologies |
|
|
5,809 |
|
|
|
|
3,757 |
|
|
Total costs of revenues |
|
|
29,897 |
|
|
|
|
33,725 |
|
| Gross
loss |
|
|
(6,202 |
) |
|
|
|
(8,215 |
) |
|
Operating expenses: |
|
|
|
|
|
|
|
|
Administrative and selling expenses |
|
|
14,599 |
|
|
|
|
17,560 |
|
|
Research and development expenses |
|
|
12,816 |
|
|
|
|
15,620 |
|
|
Total costs and expenses |
|
|
27,415 |
|
|
|
|
33,180 |
|
| Loss
from operations |
|
|
(33,617 |
) |
|
|
|
(41,395 |
) |
|
Interest expense |
|
|
(2,555 |
) |
|
|
|
(1,912 |
) |
|
Interest income |
|
|
3,269 |
|
|
|
|
3,966 |
|
|
Gain on early extinguishment of finance obligations and debt,
net |
|
|
- |
|
|
|
|
15,337 |
|
|
Other (expense) income, net |
|
|
(2,218 |
) |
|
|
|
403 |
|
| Loss
before provision for income taxes |
|
|
(35,121 |
) |
|
|
|
(23,601 |
) |
|
Provision for income taxes |
|
|
(2 |
) |
|
|
|
- |
|
| Net
loss |
|
|
(35,123 |
) |
|
|
|
(23,601 |
) |
|
Net (loss) income attributable to noncontrolling interest |
|
|
(2,463 |
) |
|
|
|
678 |
|
| Net loss attributable to
FuelCell Energy, Inc. |
|
|
(32,660 |
) |
|
|
|
(24,279 |
) |
|
Series B preferred stock dividends |
|
|
(800 |
) |
|
|
|
(800 |
) |
| Net loss
attributable to common stockholders |
|
$ |
(33,460 |
) |
|
|
$ |
(25,079 |
) |
| Loss per
share basic and diluted: |
|
|
|
|
|
|
|
|
Net loss per share attributable to common stockholders |
|
$ |
(0.07 |
) |
|
|
$ |
(0.06 |
) |
|
Basic and diluted weighted average shares outstanding |
|
|
503,183,725 |
|
|
|
|
415,867,594 |
|
|
|
|
|
|
|
|
|
|
|
|
|
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, |
|
|
|
2024 |
|
|
|
2023 |
|
|
Revenues: |
|
|
|
|
|
|
|
|
Product |
|
$ |
250 |
|
|
|
$ |
9,095 |
|
|
Service |
|
|
4,397 |
|
|
|
|
49,913 |
|
|
Generation |
|
|
38,013 |
|
|
|
|
28,979 |
|
|
Advanced Technologies |
|
|
20,146 |
|
|
|
|
12,945 |
|
|
Total revenues |
|
|
62,806 |
|
|
|
|
100,932 |
|
|
|
| Costs of
revenues: |
|
|
|
|
|
|
|
|
Product |
|
|
9,510 |
|
|
|
|
7,425 |
|
|
Service |
|
|
4,301 |
|
|
|
|
40,633 |
|
|
Generation |
|
|
61,079 |
|
|
|
|
51,166 |
|
|
Advanced Technologies |
|
|
12,917 |
|
|
|
|
10,779 |
|
|
Total costs of revenues |
|
|
87,807 |
|
|
|
|
110,003 |
|
|
|
|
|
|
|
|
|
|
|
|
| Gross
loss |
|
|
(25,001 |
) |
|
|
|
(9,071 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
Administrative and selling expenses |
|
|
48,659 |
|
|
|
|
47,637 |
|
|
Research and development expenses |
|
|
43,796 |
|
|
|
|
43,000 |
|
|
Total costs and expenses |
|
|
92,455 |
|
|
|
|
90,637 |
|
|
|
|
|
|
|
|
|
|
|
|
| Loss
from operations |
|
|
(117,456 |
) |
|
|
|
(99,708 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
(7,168 |
) |
|
|
|
(4,926 |
) |
|
Interest income |
|
|
10,726 |
|
|
|
|
11,064 |
|
|
Gain on early extinguishment of finance obligations and debt,
net |
|
|
- |
|
|
|
|
15,337 |
|
|
Other (expense) income, net |
|
|
(3,278 |
) |
|
|
|
216 |
|
|
|
|
|
|
|
|
|
|
|
|
| Loss
before provision for income taxes |
|
|
(117,176 |
) |
|
|
|
(78,017 |
) |
|
Provision for income taxes |
|
|
(2 |
) |
|
|
|
(581 |
) |
|
|
|
|
|
|
|
|
|
|
|
| Net
loss |
|
|
(117,178 |
) |
|
|
|
(78,598 |
) |
|
Net loss attributable to noncontrolling interest |
|
|
(32,585 |
) |
|
|
|
(1,394 |
) |
|
|
|
|
|
|
|
|
|
|
|
| Net loss attributable to
FuelCell Energy, Inc. |
|
|
(84,593 |
) |
|
|
|
(77,204 |
) |
|
Series B preferred stock dividends |
|
|
(2,400 |
) |
|
|
|
(2,400 |
) |
|
|
|
|
|
|
|
|
|
|
|
| Net loss
attributable to common stockholders |
|
$ |
(86,993 |
) |
|
|
$ |
(79,604 |
) |
|
|
|
|
|
|
|
|
|
|
|
| Loss per
share basic and diluted: |
|
|
|
|
|
|
|
|
Net loss per share attributable to common stockholders |
|
$ |
(0.19 |
) |
|
|
$ |
(0.19 |
) |
|
Basic and diluted weighted average shares outstanding |
|
|
469,387,264 |
|
|
|
|
409,361,826 |
|
|
|
|
|
|
|
|
|
|
|
|
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 non-GAAP measures of operations and operating
performance by the Company.
These supplemental non-GAAP measures are
provided to assist readers in assessing 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, non-cash
(gain) loss on derivative instruments and other unusual items,
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) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
2023 |
|
|
Net loss |
$ |
(35,123 |
) |
|
$ |
(23,601 |
) |
|
|
(117,178 |
) |
|
$ |
(78,598 |
) |
|
Depreciation and amortization (1) |
|
9,238 |
|
|
|
6,623 |
|
|
|
27,389 |
|
|
|
18,659 |
|
|
Provision for income taxes |
|
2 |
|
|
|
- |
|
|
|
2 |
|
|
|
581 |
|
| Other
(income) expense, net (2) |
|
2,218 |
|
|
|
(403 |
) |
|
|
3,278 |
|
|
|
(216 |
) |
| Gain on
extinguishment of finance obligations and debt, net (4) |
|
- |
|
|
|
(15,337 |
) |
|
|
- |
|
|
|
(15,337 |
) |
| Interest
income |
|
(3,269 |
) |
|
|
(3,966 |
) |
|
|
(10,726 |
) |
|
|
(11,064 |
) |
| Interest
expense |
|
2,555 |
|
|
|
1,912 |
|
|
|
7,168 |
|
|
|
4,926 |
|
|
EBITDA |
$ |
(24,379 |
) |
|
$ |
(34,772 |
) |
|
$ |
(90,067 |
) |
|
$ |
(81,049 |
) |
|
Stock-based compensation expense |
|
3,350 |
|
|
|
3,166 |
|
|
|
9,227 |
|
|
|
8,997 |
|
|
Unrealized loss on natural gas contract derivative assets (3) |
|
895 |
|
|
|
- |
|
|
|
5,072 |
|
|
|
- |
|
|
Adjusted EBITDA |
$ |
(20,134 |
) |
|
$ |
(31,606 |
) |
|
$ |
(75,768 |
) |
|
$ |
(72,052 |
) |
| |
| (1) Includes
depreciation and amortization on our Generation portfolio of $7.3
million and $21.3 million for the three and nine months ended July
31, 2024, respectively, and $5.4 million and $14.9 million for the
three and nine months ended July 31, 2023, respectively.(2) Other
(income) expense, net includes gains and losses from transactions
denominated in foreign currencies, interest rate swap income earned
from investments and other items incurred periodically, which are
not the result of the Company’s normal business operations.(3) The
Company recorded a mark-to-market net loss of $0.9 million and $5.1
million for the three and nine months ended July 31, 2024,
respectively, related to natural gas purchase contracts. There was
no comparable loss in the prior year as the Company changed its
designation in the fourth quarter of fiscal year 2023 and in the
second quarter of fiscal year 2024, as a result of net settling
certain natural gas purchases under previous normal purchase normal
sale contract designations, which resulted in a change to
mark-to-market accounting. There were no mark-to-market gains or
losses for the three and nine months ended July 31, 2023. These
losses are classified as Generation cost of sales.(4) The gain on
extinguishment of finance obligations and debt, net was $15.3
million for the three and nine months ended July 31, 2023 and
represents a one-time gain on the payoff of certain finance
obligations of the Company to PNC Energy Capital, LLC, which payoff
occurred in conjunction with a new project financing facility
entered into in May 2023. |
| |
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