- Revenue of $38.6 million in Q1 2018 vs. $17.0 million in Q1 2017
- Backlog and project awards totaled $1.6 billion
- Cash, restricted cash and cash equivalents totaled $115.4 million
- Continued execution of 20 MW contract with Korea Southern Power Company
- Product sales totaled $29.5 million for the first quarter of 2018 compared to $1.8 million for the first quarter of 2017. The increase is primarily a result of the completion of deliveries under a 20 megawatt order for a utility project to be owned by Korea Southern Power Company.
- Service and license revenue totaled $4.1 million for the first quarter of 2018 compared to $6.9 million for the first quarter of 2017. The difference between the periods is primarily due to the lower number of scheduled module replacements under the Company's service agreements in the first quarter of 2018.
- Generation revenue totaled $1.9 million for the first quarter of 2018 compared to $2.1 million for the first quarter of 2017.
- Advanced technologies contract revenue totaled $3.1 million for the first quarter of 2018 compared to $6.2 million for the first quarter of 2017. Revenue was lower for the first quarter of 2018 primarily due to the timing of project milestones under existing contracts.
The Company recorded an income tax benefit totaling $3.0 million for the three months ended January 31, 2018 compared to income tax expense of $0.1 million for the three months ended January 31, 2017. The income tax benefit for the three months ended January 31, 2018 related to the Tax Cuts and Jobs Act (the "Act") that was enacted on December 22, 2017. The Act reduced the U.S. federal tax rate from 34% to 21% effective January 1, 2018 which resulted in a deferred tax benefit of $1.0 million related to a reduction of the Company's deferred tax liability for in process research and development ("IPR&D"). The Act also established an unlimited carryforward period for the net operating loss ("NOL") the Company anticipates generating in fiscal year 2018. This provision of the Act resulted in a reduction of the valuation allowance attributable to deferred tax assets at the enactment date by $2.0 million based on the indefinite life of the resulting NOL as well as the deferred tax liability for IPR&D.Adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA, a Non-GAAP measure) in the first quarter of 2018 totaled ($2.8) million compared to ($6.5) million in the first quarter of 2017. Refer to the discussion of Non-GAAP financial measures below regarding the Company's calculation of Adjusted EBITDA. Backlog and Project Awards The Company had a contract backlog totaling approximately $638.5 million as of January 31, 2018 compared to $437.3 million as of January 31, 2017.
- Services backlog totaled $178.7 million as of January 31, 2018 compared to $199.8 million as of January 31, 2017. Services backlog includes future contracted revenue from routine maintenance and scheduled module exchanges for power plants under service agreements.
- Generation backlog totaled $414.5 million as of January 31, 2018 compared to $169.9 million as of January 31, 2017. Generation backlog represents future contracted energy sales under contracted power purchase agreements between the Company and the end-user of the power. The previously announced Toyota Hydrogen / BioMAT project was added to Generation backlog during the first quarter of 2018.
- Product sales backlog totaled $2.2 million as of January 31, 2018 compared to $13.5 million as of January 31, 2017. Product sales backlog primarily consists of the remaining scope of work on the 20 megawatt Korean utility order.
- Advanced technologies contracts backlog totaled $43.1 million as of January 31, 2018 compared to $54.1 million as of January 31, 2017.
Cash, restricted cash and borrowing ability Cash, cash equivalents, restricted cash and borrowing ability under the NRG Energy revolving project financing facility totaled $155.4 million as of January 31, 2018, including:
- Total cash of $115.4 million, including $76.8 million of unrestricted cash and cash equivalents and $38.6 million of restricted cash.
- $40.0 million of borrowing ability under the NRG Energy revolving project financing facility.
- Shipments were completed in the first quarter of 2018 for the 20 megawatt Korean utility project to be owned by Korea Southern Power Company. Installation of this project is now in process. The Company expects to begin commissioning activities in the spring of 2018 and the plant is expected to be operational in late summer 2018.
- In February, Congress passed, and the President signed into law, key tax credit measures creating financial incentives for the purchase and use of fuel cell technology. These are expected to aid market expansion and product deployment by enhancing the economic profile of FuelCell Energy's projects.
- The Investment Tax Credit ("ITC") added fuel cells to the list of eligible clean energy investments. The ITC provides for a tax credit equal to 30% of qualified expenditures for fuel cell projects placed in service through 2019, 26% for projects which commence construction in 2020, and 22% for projects which commence construction in 2021.
- The Carbon Dioxide Sequestration Credit expanded and extended the financial incentives for CO 2 capture. It was extended for 12 years, removed the limit on the metric tons eligible for credit, and increased the credit up to $50 per ton from the previous $10 per ton.
- In February, we executed a PPA for a 5 megawatt project with Wm. Bolthouse Farms, Inc. for the long-term supply of power to their Bakersfield, CA plant. Bolthouse Farms is a subsidiary of existing FuelCell customer Campbell Soup Company. Upon completion of this project, Campbell Soup Company subsidiaries will generate a total of 7.6 megawatts of energy using FuelCell power plants.
Conference Call InformationFuelCell Energy management will host a conference call with investors beginning at 10:00 a.m. Eastern Time on Thursday, March 8, 2018 to discuss the first quarter results for 2018. Participants can access the live call via webcast on the Company website or by telephone as follows:
- The live webcast of this call and supporting slide presentation will be available at www.fuelcellenergy.com. To listen to the call, select "Investors" on the home page, proceed to the "Events & Presentations" page and then click on the "Webcast" link listed under the March 8 th earnings call event listed, or click here.
- Alternatively, participants can dial 647-689-4106 and state FuelCell Energy or the conference ID number 2987939.
|Contact:||FuelCell Energy, Inc. firstname.lastname@example.org Source: FuelCell Energy|
|FUELCELL ENERGY, INC. Consolidated Balance Sheets (Unaudited) (Amounts in thousands, except share and per share amounts)|
|January 31, 2018||October 31, 2017|
|Cash and cash equivalents, unrestricted||$||76,776||$||49,294|
|Restricted cash and cash equivalents - short-term||5,230||4,628|
|Accounts receivable, net||44,081||68,521|
|Other current assets||7,567||6,571|
|Total current assets||193,522||203,510|
|Restricted cash and cash equivalents - long-term||33,425||33,526|
|Property, plant and equipment, net||44,093||43,565|
|LIABILITIES AND EQUITY|
|Current portion of long-term debt||$||23,513||$||28,281|
|Preferred stock obligation of subsidiary||865||836|
|Total current liabilities||94,149||98,078|
|Long-term deferred revenue||18,364||18,915|
|Long-term preferred stock obligation of subsidiary||15,012||14,221|
|Long-term debt and other liabilities||60,297||63,759|
|Redeemable Series B preferred stock (liquidation preference of $64,020 atJanuary 31, 2018 and October 31, 2017, respectively)||59,857||59,857|
|Redeemable Series C preferred stock (liquidation preference of $24,201 and$33,300 as of January 31, 2018 and October 31, 2017, respectively)||20,131||27,700|
|Common stock ($0.0001 par value; 225,000,000 and 125,000,000 sharesauthorized at January 31, 2018 and October 31, 2017, respectively;77,602,110 and 69,492,816 shares issued and outstanding at January 31,2018 and October 31, 2017, respectively)||8||7|
|Additional paid-in capital||1,055,154||1,045,197|
|Accumulated other comprehensive loss||(382||)||(415||)|
|Treasury stock, Common, at cost (88,861 at January 31, 2018 and October 31, 2017, respectively)||(280||)||(280||)|
|Total stockholders' equity||107,064||101,256|
|Total liabilities and stockholders' equity||$||374,874||$||383,786|
|FUELCELL ENERGY, INC. Consolidated Statements of Operations (Unaudited) (Amounts in thousands, except share and per share amounts)|
|Three Months Ended January 31,|
|Service and license||4,104||6,936|
|Costs of revenues:|
|Service and license||3,406||6,266|
|Total cost of revenues||33,978||15,189|
|Administrative and selling expenses||6,142||6,004|
|Research and development expense||4,046||5,392|
|Total operating expenses||10,188||12,741|
|Loss from operations||(5,553||)||(10,928||)|
|Other income (expense), net||476||(409||)|
|Loss before benefit (provision) for income taxes||(7,218||)||(13,604||)|
|Benefit (provision) for income taxes||3,035||(81||)|
|Series C preferred stock deemed dividend||(3,463||)||---|
|Series B preferred stock dividends||(800||)||(800||)|
|Net loss attributable to common stockholders||$||(8,446||)||$||(14,485||)|
|Loss per share basic and diluted:|
|Net loss per share attributable to common stockholders||$||(0.12||)||$||(0.39||)|
|Basic and diluted weighted average shares outstanding||72,024,811||37,613,216|
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 January 31,|
|(Amounts in thousands)||2018||2017|
|(Benefit)/Provision for income taxes, net||(3,035||)||81|
|Other (income)/expense, net (1)||(476||)||409|
|Stock-based compensation expense||617||1,013|
- 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.