Delaware | 1-14204 | 06-0853042 | ||
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||
3 Great Pasture Road, Danbury, Connecticut | 06813 | |||
(Address of Principal Executive Offices) | (Zip Code) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 | Results of Operations and Financial Condition. |
Item 9.01 | Financial Statements and Exhibits. |
(d) | Exhibits. |
Exhibit No. | Description | |
99.1 | FuelCell Energy, Inc., Press Release, issued December 14, 2015. |
FUELCELL ENERGY, INC. | ||||
Date: December 15, 2015 | By: | /s/ Michael S. Bishop | ||
Michael S. Bishop | ||||
Senior Vice President, Chief Financial Officer, Corporate Secretary and Treasurer |
Exhibit No. | Description | |
99.1 | FuelCell Energy, Inc., Press Release, issued December 14, 2015. |
• | Utility owned fuel cell micro-grid announced with repeat customer United Illuminating |
• | Correctional facility megawatt-class project announced with repeat municipal customer |
• | North American manufacturing facility expansion has started |
• | Backlog increased $43 million sequentially - second quarterly sequential increase |
• | Product sales of $43.9 million for the current period compared to $42.4 million for the comparable prior year period |
• | Service agreements and license revenues of $5.5 million for the current period compared to $6.7 million for the comparable prior year period |
• | Advanced Technologies contract revenues of $2.1 million for the current period compared to $5.3 million for the comparable prior year period |
• | Product sales backlog totaled $90.8 million as of October 31, 2015 compared to $113.1 million as of October 31, 2014. |
• | Service backlog totaled $254.1 million as of October 31, 2015 compared to $196.8 million as of October 31, 2014. |
• | Advanced Technologies contracts backlog totaled $36.5 million as of October 31, 2015 compared to $24.0 million as of October 31, 2014. |
• | $58.9 million of cash and cash equivalents, and $26.9 million of restricted cash. Cash balance includes $9.6 million of cash advanced by POSCO Energy for raw material purchases made on its behalf by FuelCell Energy under an inventory procurement agreement that ensures coordinated purchasing from the shared global supply chain. |
• | $36.2 million of borrowing availability under the NRG Energy revolving project financing facility. |
• | Subsequent to October 31, 2015, the State of Connecticut Department of Economic and Community Development disbursed $10.0 million to the Company under an Assistance Agreement for funding of the first phase of manufacturing capacity expansion. The interest rate for this loan is fixed at 2.0 percent per annum and principal payments are deferred for four years. |
• | United Illuminating purchased its fourth megawatt class fuel cell power plant for a town-wide micro-grid project. FuelCell Energy possesses the expertise and capabilities to model, build and operate this micro-grid, a differentiator in the distributed power generation industry. |
• | Alameda County, California entered into a power purchase agreement (PPA) for a new 1.4 megawatt fuel cell plant at a correctional facility. This PPA structure is well suited for municipalities to avoid the capital investment in clean on-site power generation. |
• | Commercial operations began in November 2015 for the grid-support application in Bridgeport, Connecticut purchased by United Illuminating and service revenue from the multi-year service agreement will begin to be recognized. |
• | Recent progress in the development of multi-megawatt fuel cell parks, includes another development step for the 63 megawatt project in Connecticut with the November site visit and public hearing by the Connecticut Siting Council and the permitting body for siting power generation facilities in the State of Connecticut. The draft decision from the Council is expected in January 2016. |
• | Advanced Technology backlog at fiscal year-end 2015 included four contracts executed with the U.S. Department of Energy and totaling $39.0 million, including cost-share: (1) $23.7 million project to site a DFC3000® power plant adjacent to an existing coal-fired power plant for both carbon capture and ultra-clean power generation, (2) $10.9 million project to install and operate a 400 kilowatt solid oxide fuel cell power plant, (3) $3.1 million project for automated manufacturing of SOFC, and (4) $1.3 million project adapting existing SOFC stack technology for hydrogen production utilizing a solid oxide electrolyzer cell (SOEC) at very high efficiency. |
Three Months Ended October 31, | |||||||||
(Amounts in thousands) | 2015 | 2014 | |||||||
Net loss attributable to FuelCell Energy, Inc. | $ | (8,860 | ) | $ | (4,700 | ) | |||
Depreciation | 1,101 | 1,086 | |||||||
Provision for income taxes | 95 | 219 | |||||||
Other (income)/expense, net (1) | 179 | (957) | |||||||
Interest expense | 765 | 660 | |||||||
EBITDA | $ | (6,720 | ) | $ | (3,692 | ) | |||
(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. |
• | 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 can dial 678-809-1045 |
Contact: | FuelCell Energy, Inc. Kurt Goddard, Vice President Investor Relations 203-830-7494 ir@fce.com |
October 31, 2015 Unaudited | October 31, 2014 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 58,852 | $ | 83,710 | |||
Restricted cash and cash equivalents - short-term | 6,288 | 5,523 | |||||
Accounts receivable, net | 60,790 | 64,375 | |||||
Inventories | 65,754 | 55,895 | |||||
Project assets | 5,260 | 784 | |||||
Other current assets | 6,954 | 7,528 | |||||
Total current assets | 203,898 | 217,815 | |||||
Restricted cash and cash equivalents - long-term | 20,600 | 19,600 | |||||
Long-term project assets | 6,922 | — | |||||
Property, plant and equipment, net | 29,002 | 25,825 | |||||
Goodwill | 4,075 | 4,075 | |||||
Intangible assets | 9,592 | 9,592 | |||||
Other assets, net | 3,142 | 3,729 | |||||
Total assets | $ | 277,231 | $ | 280,636 | |||
LIABILITIES AND EQUITY | |||||||
Current liabilities: | |||||||
Current portion of long-term debt | $ | 7,358 | $ | 1,439 | |||
Accounts payable | 15,745 | 22,969 | |||||
Accrued liabilities | 19,175 | 12,066 | |||||
Deferred revenue | 31,787 | 37,626 | |||||
Preferred stock obligation of subsidiary | 823 | 961 | |||||
Total current liabilities | 74,888 | 75,061 | |||||
Long-term deferred revenue | 22,646 | 20,705 | |||||
Long-term preferred stock obligation of subsidiary | 12,088 | 13,197 | |||||
Long-term debt and other liabilities | 12,998 | 13,367 | |||||
Total liabilities | 122,620 | 122,330 | |||||
Redeemable preferred stock (liquidation preference of $64,020 at October 31, 2015 and 2014) | 59,857 | 59,857 | |||||
Total Equity: | |||||||
Shareholders’ equity | |||||||
Common stock ($.0001 par value; 39,583,333 and 33,333,333 shares authorized at October 31, 2015 and 2014, respectively; 25,964,710 and 23,930,000 shares issued and outstanding at October 31, 2015 and 2014, respectively) | 3 | 2 | |||||
Additional paid-in capital | 934,488 | 909,458 | |||||
Accumulated deficit | (838,673 | ) | (809,314 | ) | |||
Accumulated other comprehensive loss | (509 | ) | (159 | ) | |||
Treasury stock, Common, at cost (5,845 and 3,796 shares at October 31, 2015 and October 31, 2014, respectively) | (78 | ) | (95 | ) | |||
Deferred compensation | 78 | 95 | |||||
Total shareholders’ equity | 95,309 | 99,987 | |||||
Noncontrolling interest in subsidiaries | (555 | ) | (1,538 | ) | |||
Total equity | 94,754 | 98,449 | |||||
Total liabilities and equity | $ | 277,231 | $ | 280,636 |
Three Months Ended October 31, | |||||||
2015 | 2014 | ||||||
Revenues: | |||||||
Product sales | $ | 43,826 | $ | 42,360 | |||
Service agreements and license revenues | 5,506 | 6,741 | |||||
Advanced technologies contract revenues | 2,119 | 5,308 | |||||
Total revenues | 51,451 | 54,409 | |||||
Costs of revenues: | |||||||
Cost of product sales | 41,222 | 37,922 | |||||
Cost of service agreements and license revenues | 4,581 | 5,491 | |||||
Cost of advanced technologies contract revenues | 2,504 | 5,041 | |||||
Total cost of revenues | 48,307 | 48,454 | |||||
Gross profit | 3,144 | 5,955 | |||||
Operating expenses: | |||||||
Administrative and selling expenses | 6,224 | 6,628 | |||||
Research and development expenses | 4,786 | 4,295 | |||||
Total operating expenses | 11,010 | 10,923 | |||||
Loss from operations | (7,866 | ) | (4,968 | ) | |||
Interest expense | (765 | ) | (660 | ) | |||
Other income (expense), net | (179 | ) | 957 | ||||
Loss before provision for income taxes | (8,810 | ) | (4,671 | ) | |||
Provision for income taxes | (95 | ) | (219 | ) | |||
Net loss | (8,905 | ) | (4,890 | ) | |||
Net loss attributable to noncontrolling interest | 45 | 190 | |||||
Net loss attributable to FuelCell Energy, Inc. | (8,860 | ) | (4,700 | ) | |||
Preferred stock dividends | (800 | ) | (800 | ) | |||
Net loss to common shareholders | $ | (9,660 | ) | $ | (5,500 | ) | |
Loss per share basic and diluted | |||||||
Basic | $ | (0.38 | ) | $ | (0.24 | ) | |
Diluted | $ | (0.38 | ) | $ | (0.24 | ) | |
Weighted average shares outstanding | |||||||
Basic | 25,111,368 | 23,380,314 | |||||
Diluted | 25,111,368 | 23,380,314 |
Year Ended October 31, | |||||||
2015 Unaudited | 2014 | ||||||
Revenues: | |||||||
Product sales | $ | 128,595 | $ | 136,842 | |||
Service agreements and license revenues | 21,012 | 25,956 | |||||
Advanced technologies contract revenues | 13,470 | 17,495 | |||||
Total revenues | 163,077 | 180,293 | |||||
Costs of revenues: | |||||||
Cost of product sales | 118,530 | 126,866 | |||||
Cost of service agreements and license revenues | 18,301 | 23,037 | |||||
Cost of advanced technologies contract revenues | 13,470 | 16,664 | |||||
Total cost of revenues | 150,301 | 166,567 | |||||
Gross profit | 12,776 | 13,726 | |||||
Operating expenses: | |||||||
Administrative and selling expenses | 24,226 | 22,797 | |||||
Research and development expenses | 17,442 | 18,240 | |||||
Total operating expenses | 41,668 | 41,037 | |||||
Loss from operations | (28,892 | ) | (27,311 | ) | |||
Interest expense | (2,960 | ) | (3,561 | ) | |||
Other income (expense), net | 2,442 | (7,523 | ) | ||||
Loss before provision for income taxes | (29,410 | ) | (38,395 | ) | |||
Provision for income taxes | (274 | ) | (488 | ) | |||
Net loss | (29,684 | ) | (38,883 | ) | |||
Net loss attributable to noncontrolling interest | 325 | 758 | |||||
Net loss attributable to FuelCell Energy, Inc. | (29,359 | ) | (38,125 | ) | |||
Preferred stock dividends | (3,200 | ) | (3,200 | ) | |||
Net loss to common shareholders | $ | (32,559 | ) | $ | (41,325 | ) | |
Loss per share basic and diluted | |||||||
Basic | $ | (1.33 | ) | $ | (2.02 | ) | |
Diluted | $ | (1.33 | ) | $ | (2.02 | ) | |
Weighted average shares outstanding | |||||||
Basic | 24,513,731 | 20,473,915 | |||||
Diluted | 24,513,731 | 20,473,915 |
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