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TheStreet Open House

FuelCell Energy Reports Fourth Quarter Results And Business Highlights

Stock quotes in this article: FCEL

About FuelCell Energy

Direct FuelCell® power plants are generating ultra-clean, efficient and reliable power at more than 50 locations worldwide.  With approximately 300 megawatts of power generation capacity installed 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 one 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 more information please visit our website at www.fuelcellenergy.com

See us on YouTube at www.youtube.com/user/FuelCellEnergyInc?feature=watch

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.

The FuelCell Energy, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3284

Conference Call Information

FuelCell Energy management will host a conference call with investors beginning at 10:00 a.m. Eastern Time on December 21, 2012 to discuss the fourth quarter and fiscal year 2012 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 the webcast'
  • Alternatively, participants in the U.S. or Canada can dial 877-303-7005
  • Outside the U.S. and Canada, please call 678-809-1045
  • The passcode is 'FuelCell Energy'

The webcast of the conference call will be available on the Company's Investors' page at www.fuelcellenergy.com . Alternatively, the replay of the conference call will be available approximately two hours after the conclusion of the call until midnight Eastern Time on December 27, 2012:

  • From the U.S. and Canada please dial 855-859-2056
  • Outside the U.S. or Canada please call 404-537-3406
  • Enter confirmation code 75752647
FUELCELL ENERGY, INC.
Consolidated Balance Sheets
(Unaudited)
 (Amounts in thousands, except share and per share amounts)
     
  October 31,  October 31, 
  2012 2011
ASSETS    
Current assets:    
 Cash and cash equivalents  $ 57,514  $ 51,415
 Investments — U.S. treasury securities -- 12,016
 License fee receivable 10,000 --
 Accounts receivable, net 25,984 21,950
 Inventories, net 47,701 40,101
 Other current assets 4,727 7,466
Total current assets 145,926 132,948
     
Property, plant and equipment, net 23,258 23,925
Investment in and loans to affiliate 6,115 10,466
Other assets, net 16,186 16,291
Total assets  $ 191,485  $ 183,630
     
LIABILITIES AND EQUITY    
Current liabilities:    
 Current portion of long-term debt   $ 5,161  $ 5,056
 Accounts payable 12,254 14,143
 Accounts payable due to affiliate  203 104
 Accrued liabilities 20,265 26,894
Deferred revenue 45,939 64,114
 Preferred stock obligation of subsidiary 1,075 3,854
Total current liabilities 84,897 114,165
     
Long-term deferred revenue 15,533 7,000
Long-term preferred stock obligation of subsidiary 13,095 12,878
Long-term debt and other liabilities 3,975 4,105
Total liabilities 117,500 138,148
Redeemable preferred stock (liquidation preference of $64,020 at October 31, 2012 and October 31, 2011) 59,857 59,857
Total Equity (Deficit):    
Shareholders' equity (deficit)    
Common stock ($.0001 par value; 275,000,000 shares authorized; 185,856,123 and 138,400,497 shares issued and outstanding at October 31, 2012 and October 31, 2011, respectively) 18 13
Additional paid-in capital 751,256 687,857
Accumulated deficit  (736,831)  (701,336)
Accumulated other comprehensive income 66 15
Treasury stock, Common, at cost (5,679 shares at October 31, 2012 and October 31, 2011) (53) (53)
Deferred compensation 53 53
Total shareholders' equity (deficit)  14,509  (13,451)
Noncontrolling interest in subsidiaries  (381)  (924)
Total equity (deficit) 14,128  (14,375)
Total liabilities and equity (deficit)   $ 191,485  $ 183,630
     
 
FUELCELL ENERGY, INC.
Consolidated Statements of Operations
(unaudited)
(Amounts in thousands, except share and per share amounts)
     
  Three Months Ended
  October 31,
  2012 2011
Revenues:    
 Product sales and revenues  $ 33,853  $ 33,289
 Research and development contracts 1,567 1,434
 Total revenues 35,420 34,723
     
Costs of revenues:    
 Cost of product sales and revenues 32,859 32,698
 Cost of research and development contracts  1,683 1,586
 Total cost of revenues 34,542 34,284
     
Gross profit 878 439
     
Operating expenses:    
 Administrative and selling expenses 5,874 4,217
 Research and development expenses 3,422 4,106
Total operating expenses 9,296 8,323
     
Loss from operations  (8,418)  (7,884)
     
 Interest expense  (555)  (749)
 Income (loss) from equity investment  (91) 207
 License fee and royalty income 341 431
 Impairment of equity investment  (3,602) --
 Other income (expense), net 806 874
     
Loss before provision for income taxes  (11,519)  (7,121)
     
Benefit for income taxes --  (8)
     
Net loss   (11,519)  (7,129)
     
Net loss attributable to noncontrolling interest 181 64
     
Net loss attributable to FuelCell Energy, Inc.  (11,338)  (7,065)
     
 Preferred stock dividends  (800)  (800)
     
Net loss to common shareholders  $ (12,138)  $ (7,865)
     
Loss per share basic and diluted    
Basic  $ (0.07)  $ (0.06)
Diluted  $ (0.07)  $ (0.06)
     
Weighted average shares outstanding    
Basic 185,905,702 131,000,920
Diluted 185,905,702 131,000,920
 
FUELCELL ENERGY, INC.
Consolidated Statements of Operations
(unaudited)
(Amounts in thousands, except share and per share amounts)
     
  Twelve Months Ended
  October 31,
  2012 2011
Revenues:    
 Product sales and revenues  $ 113,133  $ 115,104
 Research and development contracts 7,470 7,466
 Total revenues 120,603 122,570
     
Costs of revenues:    
 Cost of product sales and revenues 112,921 127,350
 Cost of research and development contracts  7,237 7,830
 Total cost of revenues 120,158 135,180
     
Gross profit/(loss) 445  (12,610)
     
Operating expenses:    
 Administrative and selling expenses 18,220 16,299
 Research and development expenses 14,354 16,768
Total operating expenses 32,574 33,067
     
Loss from operations  (32,129)  (45,677)
     
 Interest expense  (2,304)  (2,578)
 Income (loss) from equity investment  (645) 58
 License fee and royalty income 1,599 1,718
 Impairment of equity investment  (3,602) --
 Other income (expense), net 1,244 1,047
     
Loss before redeemable preferred stock of subsidiary  (35,837)  (45,432)
     
 Accretion of redeemable preferred stock of subsidiary  -- (525)
     
Loss before provision for income taxes (35,837) (45,957)
     
Provision for income taxes  (69)  (17)
     
Net loss   (35,906)  (45,974)
     
Net loss attributable to noncontrolling interest 411 261
     
Net loss attributable to FuelCell Energy, Inc.  (35,495)  (45,713)
     
 Adjustment for modification of redeemable preferred stock of subsidiary  --  (8,987)
 Preferred stock dividends  (3,201)  (3,200)
     
Net loss to common shareholders  $ (38,696)  $ (57,900)
     
Net loss per share to common shareholders    
Basic  $ (0.23)  $ (0.47)
Diluted  $ (0.23)  $ (0.47)
     
Weighted average shares outstanding    
Basic 165,471,261 124,498,073
Diluted 165,471,261 124,498,073
 
FUELCELL ENERGY, INC.
Reconciliation of GAAP to Non-GAAP Consolidated Statements of Operations
(Unaudited)
(Amounts in thousands, except share and per share amounts)
                 
  Three Months Ended October 31,
  2012 2011
  GAAP Non-GAAP    Non-GAAP As  GAAP Non-GAAP     Non-GAAP As 
   As Reported  Adjustments   Adjusted As Reported Adjustments   Adjusted
Cost of product sales and revenues  $ 32,859  $ (462) (2)  $ 32,397  $ 32,698  $ 471 (2)  $ 33,169
Gross profit/(loss)  $ 878  $ 462    $ 1,340  $ 439  $ (471)    $ (32)
Loss from operations  $ (8,418)  $ 462    $ (7,956)  $ (7,884)  $ (471)    $ (8,355)
Net loss   $ (11,519)  $ 4,064 (1)(2)   $ (7,455)  $ (7,129)  $ (471)    $ (7,600)
Net loss to common shareholders  $ (12,138)  $ 4,064    $ (8,074)  $ (7,865)  $ (471)    $ (8,336)
                 
Net loss per share to common shareholders                
Basic  $ (0.07)  $ 0.02    $ (0.05)  $ (0.06) $ —    $ (0.06)
Diluted  $ (0.07)  $ 0.02    $ (0.05)  $ (0.06) $ —    $ (0.06)
                 
  Twelve Months Ended October 31,
  2012 2011
  GAAP Non-GAAP    Non-GAAP As  GAAP Non-GAAP     Non-GAAP As 
   As Reported Adjustments   Adjusted As Reported Adjustments   Adjusted
Cost of product sales and revenues  $ 112,921  $ (462) (2)  $ 112,459  $ 127,350  $ (8,281) (2)  $ 119,069
Gross profit/(loss)  $ 445 $ 462    $ 907  $ (12,610)  $ 8,281    $ (4,329)
Loss from operations  $ (32,129) $ 462    $ (31,667)  $ (45,677)  $ 8,281    $ (37,396)
Loss before redeemable preferred stock of subsidiary  $ (35,837) $ 4,064  (1)(2)  $ (31,773)  $ (45,432)  $ 8,281   $ (37,151)
                 
Net loss   $ (35,906) $ 4,064    $ (31,842)  $ (45,974)  $ 8,281    $ (37,693)
Adjustment for modification of redeemable preferred stock of subsidiary $ — $ —   $ —  $ (8,987)  $ 8,987 (2)(3) $ —
                 
Net loss to common shareholders  $ (38,696) $ 4,064    $ (34,632)  $ (57,900)  $ 17,268    $ (40,632)
                 
Net loss per share to common shareholders                
Basic  $ (0.23)  $ 0.02    $ (0.21)  $ (0.47)  $ 0.14    $ (0.33)
Diluted  $ (0.23)  $ 0.02    $ (0.21)  $ (0.47)  $ 0.14    $ (0.33)

Notes to Reconciliation of GAAP to Non-GAAP Consolidated Statements of Operations

For the Three and Twelve Months Ended October 31, 2012 and 2011

Results of Operations are presented in accordance with accounting principles generally accepted in the United States ("GAAP") and as adjusted for certain items referenced below which relate to fiscal year 2011 only.  Management also uses non-GAAP measures which exclude non-recurring items in order to measure operating periodic performance. We have added this information because we believe it helps in understanding the results of our operations on a comparative basis.  This adjusted information supplements and is not intended to replace performance measures required by U.S. GAAP disclosure.

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