FuelCell Energy, Inc. (Nasdaq:FCEL), a global leader in the design,
manufacture, operation and service of ultra-clean, efficient and
reliable fuel cell power plants, today reported financial results
for its second quarter ended April 30, 2016 and key business
highlights.
Financial Results FuelCell Energy (the Company)
reported total revenues for the second quarter of 2016 of $28.6
million, which is comparable to the prior year period.
Revenue components include:
- Product sales of $15.4 million for the current period compared
to $20.2 million for the second quarter of 2015, as the comparable
prior year period included module sales to Asia and higher
equipment, procurement and construction (EPC) activity.
- Service agreements and license revenues of $10.6 million for
the current period compared to $4.6 million for the comparable
prior year period, increasing year-over-year, primarily due to
revenue recognized from module replacements.
- Advanced Technologies contract revenues of $2.6 million for the
current period compared to $3.8 million for the comparable prior
year period. Revenue was lower year-over-year pending
commencement of new projects in backlog.
A gross loss of ($0.2) million was incurred in the second
quarter of 2016, compared to a gross profit of $2.0 million
generated for the comparable prior year period. Product
revenue mix oriented towards fuel cell kit sales to Asia in the
current period compared to complete power plant sales in North
America for the prior year period resulted in a year-over-year
decrease in product gross profit. Service margins were
negatively impacted by non-recurring charges from the termination
of a legacy sub-megawatt service contract and changes to a
different legacy service contract reflecting continued initiatives
to optimize the service business, exit sub megawatt sites and
expand future margin potential.
Operating expenses for the current period totaled $12.6 million
compared to $10.8 million for the prior year period. The
increase reflects greater project bid activity and timing of
increased research and development related to product enhancements
and new near-term product introductions, such as completion of
European Union (EU) certification for MW-class plants, developing a
renewable biogas clean-up skid as the Company seeks to capture more
of the overall project value chain, further enhancing the
micro-grid offering, and advancing different power plant
configurations for specific target markets.
Net loss attributable to common shareholders for the second
quarter of 2016 totaled $16.2 million, or $0.56 per basic and
diluted share, compared to $10.7 million or $0.44 per basic and
diluted share for the second quarter of 2015.
Adjusted earnings before interest, taxes, depreciation and
amortization (EBITDA) in the second quarter of 2016 totaled ($11.5)
million. Refer to the discussion of Non-GAAP financial measures
below regarding the Company’s calculation of Adjusted EBITDA.
Capital spending was $1.0 million and depreciation expense was $1.2
million.
Revenue BacklogTotal backlog was $410.7 million
as of April 30, 2016 compared to $312.2 million as of April 30,
2015 and sequentially, total backlog was $403.9 million as of
January 31, 2016.
- Services backlog totaled $294.8 million as of April 30, 2016
compared to $203.7 million as of April 30, 2015. Services backlog
includes future contracted revenue from routine maintenance,
scheduled module exchanges, and from power purchase
agreements.
- Product sales backlog totaled $51.0 million as of April 30,
2016 compared to $91.6 million as of April 30, 2015. Product
sales backlog reflects firm orders with executed contracts.
Notices of awards, outstanding bids, and project pipeline is not
included in product backlog.
- Advanced Technologies contracts backlog totaled $64.9 million
as of April 30, 2016 compared to $16.9 million as of April 30,
2015. Carbon capture contracts account for the majority of
the increase year-over-year.
Cash, restricted cash and financing
availabilityCash, restricted cash and financing
availability totaled $168.8 million as of April 30, 2016,
including:
- $82.0 million of cash and cash equivalents, and $34.7 million
of restricted cash
- $29.0 million of borrowing availability under the NRG Energy
revolving project financing facility
- $23.1 million of unused availability under the PNC Energy
Capital tax equity project finance commitment
Future potential availability under the Hercules Capital debt
facility totals $10.0 million upon reaching certain pre-defined
milestones. This amount is not included in the above
financing availability calculation.
Business Highlights
- ExxonMobil agreement supports affordable fuel cell carbon
capture solution and expands global market potential for both gas
and coal-fired power generation.
- Robust project development activity with 125+ megawatts of fuel
cell project submittals in 2016 and additional submittals expected
based on a recent utility announcement.
- Attracting growth capital with the announcement of a debt
facility of up to $25.0 million extended by Hercules Capital for
working capital and general corporate purposes.
- Over 16 MW of installations in process in the U.S. and Europe
as of April 30, 2016. Commercial operations attained and customer
acceptance of utility-owned multi-megawatt gas pipeline application
achieved in May 2016. This project, with peak electrical efficiency
of 60 percent, will be an important reference site for a sizable
market opportunity.
- Progressing with the first of a two phase North American
capacity expansion, including the extension of the property lease
for the manufacturing facility.
“Our project development team has been advancing numerous
multi-megawatt projects and there are currently more than 125
megawatts of projects submitted to clean power RFP’s using our fuel
cell products, with additional multi-megawatt projects expected to
be bid this summer,” said Chip Bottone, President and Chief
Executive Officer, FuelCell Energy, Inc. “We continue to
focus on strengthening the Company in key areas and our offerings
to support these larger project sizes, and as a preferred resource,
our clean and easy-to-site solutions provide affordable power to
ratepayers as well as economic development advantages to both local
and state governments.”
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 business plans. 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, unanticipated manufacturing issues that impact
power plant performance, changes in critical accounting policies,
potential volatility of energy prices, rapid technological change,
competition, and the Company’s ability to achieve its sales plans
and cost reduction targets, 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.
Non-GAAP Financial MeasuresFinancial Results
are presented in accordance with accounting principles generally
accepted in the United States (“GAAP”). Management also uses
non-GAAP measures to analyze the business.
Earnings before interest, taxes, depreciation and amortization
(EBITDA) is an alternate measure of cash utilization. The
table below calculates Adjusted EBITDA and reconciles these figures
to the GAAP financial statement measure Net loss attributable to
FuelCell Energy, Inc.
|
|
|
Three Months Ended April 30, |
(Amounts in
thousands) |
|
2016 |
|
|
2015 |
|
Net loss attributable to FuelCell
Energy, Inc. |
|
$ |
(15,373 |
) |
|
$ |
(9,894 |
) |
Depreciation |
|
1,191 |
|
|
981 |
|
Provision for income taxes |
|
177 |
|
|
55 |
|
Other (income)/expense, net
(1) |
|
1,547 |
|
|
523 |
|
Interest expense |
|
982 |
|
|
626 |
|
Adjusted EBITDA |
|
$ |
(11,476 |
) |
|
$ |
(7,709 |
) |
|
|
|
|
|
|
|
(1) 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.
Adjusted EBITDA is a non-GAAP measure of financial performance
and should not be considered as an alternative to net income or any
other performance measure derived in accordance with GAAP, or as an
alternative to cash flows from operating activities. This
information is included to assist investors with understanding the
results of operations on a comparative basis.
About FuelCell EnergyDirect FuelCell® power
plants are generating ultra-clean, efficient and reliable power at
more than 50 locations worldwide. With more than 300
megawatts of power generation capacity installed, ready for
installation, or in backlog, FuelCell Energy is a global leader in
providing ultra-clean baseload distributed generation to utilities,
industrial operations, universities, municipal water treatment
facilities, government installations and other customers around the
world. The Company’s power plants have generated more than
four billion kilowatt hours of ultra-clean power using a variety of
fuels including renewable biogas from wastewater treatment and food
processing, as well as clean natural gas. For
additional information, please visit www.fuelcellenergy.com, follow
us on Twitter and view our videos on YouTube.
Direct FuelCell, DFC, DFC/T, DFC-H2 and FuelCell Energy, Inc.
are all registered trademarks of FuelCell Energy, Inc.
DFC-ERG is a registered trademark jointly owned by Enbridge,
Inc. and FuelCell Energy, Inc.
Conference Call InformationFuelCell Energy
management will host a conference call with investors beginning at
10:00 a.m. Eastern Time on June 9, 2016 to discuss the second
quarter 2016 results. An accompanying slide presentation for
the earnings call will be available at
http://fcel.client.shareholder.com/events.cfm immediately
prior to the
call.
Participants can access the live call via webcast on the Company
website or by telephone as follows:
- The live webcast of this call will be available on the Company
website at www.fuelcellenergy.com. To listen to the call,
select ‘Investors’ on the home page, then click on ‘Events &
presentations’ and then click on ‘Listen to webcast’
- Alternatively, participants can dial 678-809-1045
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.
|
FUELCELL ENERGY, INC. |
Consolidated Balance Sheets |
(Unaudited) |
(Amounts in thousands, except share and per
share amounts) |
|
|
|
April 30, 2016 |
|
|
October 31, 2015 |
ASSETS |
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents |
$ |
|
81,982 |
|
|
$ |
|
58,852 |
|
Restricted cash and cash
equivalents – short-term |
|
|
9,029 |
|
|
|
|
6,288 |
|
Accounts receivable, net |
|
|
43,689 |
|
|
|
|
60,790 |
|
Inventories |
|
|
66,222 |
|
|
|
|
65,754 |
|
Project assets |
|
|
13,380 |
|
|
|
|
5,260 |
|
Other current assets |
|
|
8,466 |
|
|
|
|
6,954 |
|
Total current assets |
|
|
222,768 |
|
|
|
|
203,898 |
|
|
|
|
|
|
|
Restricted cash and
cash equivalents – long-term |
|
|
25,655 |
|
|
|
|
20,600 |
|
Long-term project
assets |
|
|
16,671 |
|
|
|
|
6,922 |
|
Property, plant and
equipment, net |
|
|
29,135 |
|
|
|
|
29,002 |
|
Goodwill |
|
|
4,075 |
|
|
|
|
4,075 |
|
Intangible assets |
|
|
9,592 |
|
|
|
|
9,592 |
|
Other assets, net |
|
|
2,016 |
|
|
|
|
3,142 |
|
Total assets |
$ |
|
309,912 |
|
|
$ |
|
277,231 |
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
Current portion of long-term
debt |
$ |
|
11,619 |
|
|
$ |
|
7,358 |
|
Accounts payable |
|
|
14,622 |
|
|
|
|
15,745 |
|
Accrued liabilities |
|
|
25,836 |
|
|
|
|
19,175 |
|
Deferred revenue |
|
|
23,506 |
|
|
|
|
31,787 |
|
Preferred stock obligation of
subsidiary |
|
|
856 |
|
|
|
|
823 |
|
Total current liabilities |
|
|
76,439 |
|
|
|
|
74,888 |
|
|
|
|
|
|
|
Long-term deferred
revenue |
|
|
21,616 |
|
|
|
|
22,646 |
|
Long-term preferred
stock obligation of subsidiary |
|
|
13,027 |
|
|
|
|
12,088 |
|
Long-term debt and
other liabilities |
|
|
44,807 |
|
|
|
|
12,998 |
|
Total liabilities |
|
|
155,889 |
|
|
|
|
122,620 |
|
Redeemable preferred
stock (liquidation preference of $64,020 at April 30, 2016 and
October 31, 2015) |
|
|
59,857 |
|
|
|
|
59,857 |
|
Total Equity: |
|
|
|
|
|
Shareholders’ equity |
|
|
|
|
|
Common stock ($.0001 par value;
75,000,000 and 39,583,333 shares authorized at April 30, 2016 and
October 31, 2015, respectively; 30,804,069 and 25,964,710 shares
issued and outstanding at April 30, 2016 and October 31, 2015,
respectively) |
|
|
3 |
|
|
|
|
3 |
|
Additional paid-in capital |
|
|
960,891 |
|
|
|
|
934,488 |
|
Accumulated deficit |
|
|
(865,758 |
) |
|
|
|
(838,673 |
) |
Accumulated other comprehensive
loss |
|
|
(307 |
) |
|
|
|
(509 |
) |
Treasury stock, Common, at cost
(21,527 and 5,845 shares at April 30, 2016 and October 31, 2015,
respectively) |
|
|
(179 |
) |
|
|
|
(78 |
) |
Deferred compensation |
|
|
179 |
|
|
|
|
78 |
|
Total shareholders’ equity |
|
|
94,829 |
|
|
|
|
95,309 |
|
Noncontrolling interest in
subsidiaries |
|
|
(663 |
) |
|
|
|
(555 |
) |
Total equity |
|
|
94,166 |
|
|
|
|
94,754 |
|
Total liabilities and
equity |
$ |
|
309,912 |
|
|
$ |
|
277,231 |
|
|
|
FUELCELL ENERGY, INC. |
Consolidated Statements of
Operations |
Unaudited |
(Amounts in thousands, except share and per
share amounts) |
|
|
|
Three Months EndedApril
30, |
|
|
2016 |
|
2015 |
Revenues: |
|
|
|
|
|
|
Product sales |
|
$ |
|
15,424 |
|
|
$ |
|
20,221 |
|
Service agreements and license
revenues |
|
|
|
10,573 |
|
|
|
|
4,618 |
|
Advanced technologies contract
revenues |
|
|
|
2,584 |
|
|
|
|
3,761 |
|
Total revenues |
|
|
|
28,581 |
|
|
|
|
28,600 |
|
|
|
|
|
|
|
|
Costs of revenues: |
|
|
|
|
|
|
Cost of product sales |
|
|
|
15,118 |
|
|
|
|
18,111 |
|
Cost of service agreements and
license revenues |
|
|
|
10,988 |
|
|
|
|
4,433 |
|
Cost of advanced technologies
contract revenues |
|
|
|
2,632 |
|
|
|
|
4,033 |
|
Total cost of revenues |
|
|
|
28,738 |
|
|
|
|
26,577 |
|
|
|
|
|
|
|
|
Gross (loss)
profit |
|
|
|
(157 |
) |
|
|
|
2,023 |
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
Administrative and selling
expenses |
|
|
|
7,441 |
|
|
|
|
6,261 |
|
Research and development
expenses |
|
|
|
5,110 |
|
|
|
|
4,555 |
|
Total operating expenses |
|
|
|
12,551 |
|
|
|
|
10,816 |
|
|
|
|
|
|
|
|
Loss from
operations |
|
|
|
(12,708 |
) |
|
|
|
(8,793 |
) |
|
|
|
|
|
|
|
Interest expense |
|
|
|
(982 |
) |
|
|
|
(626 |
) |
Other income (expense), net |
|
|
|
(1,547 |
) |
|
|
|
(523 |
) |
|
|
|
|
|
|
|
Loss before provision
for income taxes |
|
|
|
(15,237 |
) |
|
|
|
(9,942 |
) |
|
|
|
|
|
|
|
Provision for income taxes |
|
|
|
(177 |
) |
|
|
|
(55 |
) |
|
|
|
|
|
|
|
Net loss |
|
|
|
(15,414 |
) |
|
|
|
(9,997 |
) |
|
|
|
|
|
|
|
Net loss attributable to
noncontrolling interest |
|
|
|
41 |
|
|
|
|
103 |
|
|
|
|
|
|
|
|
Net loss attributable
to FuelCell Energy, Inc. |
|
|
|
(15,373 |
) |
|
|
|
(9,894 |
) |
|
|
|
|
|
|
|
Preferred stock dividends |
|
|
|
(800 |
) |
|
|
|
(800 |
) |
|
|
|
|
|
|
|
Net loss to common
shareholders |
|
$ |
|
(16,173 |
) |
|
$ |
|
(10,694 |
) |
|
|
|
|
|
|
|
Loss per share basic
and diluted |
|
|
|
|
|
|
Basic |
|
$ |
|
(0.56 |
) |
|
$ |
|
(0.44 |
) |
Diluted |
|
$ |
|
(0.56 |
) |
|
$ |
|
(0.44 |
) |
|
|
|
|
|
|
|
Weighted average shares
outstanding |
|
|
|
|
|
|
Basic |
|
|
|
28,782,066 |
|
|
|
|
24,252,182 |
|
Diluted |
|
|
|
28,782,066 |
|
|
|
|
24,252,182 |
|
|
|
|
|
|
|
|
|
|
|
|
|
FUELCELL ENERGY, INC. |
Consolidated Statements of
Operations |
Unaudited |
(Amounts in thousands, except share and per
share amounts) |
|
|
|
Six Months EndedApril
30, |
|
|
2016 |
|
2015 |
Revenues: |
|
|
|
|
|
|
Product sales |
|
$ |
|
40,497 |
|
|
$ |
|
53,639 |
|
Service agreements and license
revenues |
|
|
|
16,893 |
|
|
|
|
8,489 |
|
Advanced technologies contract
revenues |
|
|
|
4,673 |
|
|
|
|
8,142 |
|
Total revenues |
|
|
|
62,063 |
|
|
|
|
70,270 |
|
|
|
|
|
|
|
|
Costs of revenues: |
|
|
|
|
|
|
Cost of product sales |
|
|
|
39,507 |
|
|
|
|
48,459 |
|
Cost of service agreements and
license revenues |
|
|
|
17,839 |
|
|
|
|
8,001 |
|
Cost of advanced technologies
contract revenues |
|
|
|
5,040 |
|
|
|
|
7,773 |
|
Total cost of revenues |
|
|
|
62,386 |
|
|
|
|
64,233 |
|
|
|
|
|
|
|
|
Gross (loss)
profit |
|
|
|
(323 |
) |
|
|
|
6,037 |
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
Administrative and selling
expenses |
|
|
|
13,481 |
|
|
|
|
11,901 |
|
Research and development
expenses |
|
|
|
10,421 |
|
|
|
|
8,059 |
|
Total operating expenses |
|
|
|
23,902 |
|
|
|
|
19,960 |
|
|
|
|
|
|
|
|
Loss from
operations |
|
|
|
(24,225 |
) |
|
|
|
(13,923 |
) |
|
|
|
|
|
|
|
Interest expense |
|
|
|
(1,827 |
) |
|
|
|
(1,290 |
) |
Other income (expense), net |
|
|
|
(859 |
) |
|
|
|
1,157 |
|
|
|
|
|
|
|
|
Loss before provision
for income taxes |
|
|
|
(26,911 |
) |
|
|
|
(14,056 |
) |
|
|
|
|
|
|
|
Provision for income taxes |
|
|
|
(282 |
) |
|
|
|
(95 |
) |
|
|
|
|
|
|
|
Net loss |
|
|
|
(27,193 |
) |
|
|
|
(14,151 |
) |
|
|
|
|
|
|
|
Net loss attributable to
noncontrolling interest |
|
|
|
108 |
|
|
|
|
191 |
|
|
|
|
|
|
|
|
Net loss attributable
to FuelCell Energy, Inc. |
|
|
|
(27,085 |
) |
|
|
|
(13,960 |
) |
|
|
|
|
|
|
|
Preferred stock dividends |
|
|
|
(1,600 |
) |
|
|
|
(1,600 |
) |
|
|
|
|
|
|
|
Net loss to common
shareholders |
|
$ |
|
(28,685 |
) |
|
$ |
|
(15,560 |
) |
|
|
|
|
|
|
|
Loss per share basic
and diluted |
|
|
|
|
|
|
Basic |
|
$ |
|
(1.04 |
) |
|
$ |
|
(0.65 |
) |
Diluted |
|
$ |
|
(1.04 |
) |
|
$ |
|
(0.65 |
) |
|
|
|
|
|
|
|
Weighted average shares
outstanding |
|
|
|
|
|
|
Basic |
|
|
|
27,500,236 |
|
|
|
|
24,021,705 |
|
Diluted |
|
|
|
27,500,236 |
|
|
|
|
24,021,705 |
|
|
|
|
|
|
|
|
|
|
|
|
Contact: FuelCell Energy, Inc.
Kurt Goddard, Vice President Investor Relations
203-830-7494
ir@fce.com
FuelCell Energy (NASDAQ:FCEL)
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FuelCell Energy (NASDAQ:FCEL)
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From Sep 2023 to Sep 2024