Delaware | 1-14204 | 06-0853042 | ||
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||
3 Great Pasture Road, Danbury, Connecticut | 06810 | |||
(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 January 12, 2017. |
FUELCELL ENERGY, INC. | ||||
Date: January 12, 2017 | By: | /s/ Michael S. Bishop | ||
Michael S. Bishop | ||||
Senior Vice President, Chief Financial Officer, Corporate Secretary and Treasurer |
• | Constructing 2.8 megawatt power plant with a repeat customer in California and 3.7 megawatt installation in Connecticut to showcase enhanced electrical efficiency |
• | Closed financing for two recently completed projects structured with power purchase agreements leading to recurring monthly electricity revenue |
• | Advancing fuel cell carbon capture with site announcement at a utility-owned coal/gas-fired power plant and progressing studies for potential Canadian oil sands application |
• | $118 million of cash and restricted cash and $432 million of contracted backlog as of October 31, 2016 |
• | Product sales totaled $8.4 million for the current period compared to $43.8 million for the fourth quarter of 2015. During the fourth quarter of 2016, the Company retained two fuel cell projects totaling 7 megawatts that will generate long term recurring electricity sales rather than quarterly product revenue. This transition to retaining select projects rather than selling the projects at commissioning contributed to the decrease in sales, combined with lower Asian sales in the current quarter as Korean partner, POSCO Energy, is manufacturing locally under license and royalty agreements. |
• | Service agreements and license revenues totaled $11.4 million for the current period compared to $5.5 million for the comparable prior year period, with the increase due to a number of service agreements that commenced in 2016, a greater number of module replacements under service contracts, and electricity sales from power purchase agreements. |
• | Advanced Technologies contract revenues totaled $4.7 million for the current period compared to $2.1 million for the comparable prior year period. |
FuelCell Energy Fourth quarter 2016 Results | Page 2 |
• | Services backlog totaled $347.3 million as of October 31, 2016 compared to $254.1 million as of October 31, 2015. Services backlog includes future contracted revenue from routine maintenance, scheduled module exchanges, and from power purchase agreements. |
• | Product sales backlog totaled $24.9 million as of October 31, 2016 compared to $90.8 million as of October 31, 2015. Product sales backlog reflects firm orders with executed contracts for the sale of product. |
• | Advanced Technologies contracts backlog totaled $60.1 million as of October 31, 2016 compared to $36.5 million as of October 31, 2015. |
• | $84.2 million of cash and cash equivalents, and $34.1 million of restricted cash |
• | $38.2 million of borrowing availability under the NRG Energy revolving project financing facility |
FuelCell Energy Fourth quarter 2016 Results | Page 3 |
• | Continuing development of multiple Connecticut fuel cell parks |
• | Actively pursuing multi-megawatt fuel cell projects in New York State including 40 megawatt fuel cell only RFP for Long Island |
• | Installing 2.8 megawatt power plant with a repeat customer in California |
• | Construction in process for 3.7 megawatt project to showcase an enhanced efficiency fuel cell configuration |
• | Progressing fuel cell carbon capture with a site announcement for a megawatt-class fuel cell plant to demonstrate both coal and gas-fired carbon capture at a power station owned by a subsidiary of Southern Company with support by ExxonMobil and the Department of Energy |
• | Canadian oil sands engineering study progressing for carbon capture at gas-fired bitumen processing plant |
• | Commissioning of 20 megawatt Asian fuel cell park completed by partner, POSCO Energy |
• | Construction completed and commercial operations commenced for 2 installations, both of which were financed by PNC Energy Capital under an existing financing facility. The Company retains the Power Purchase Agreement and recognizes recurring electricity revenue and margin over the term of the power purchase agreement. |
FuelCell Energy Fourth quarter 2016 Results | Page 4 |
Three Months Ended October 31, | |||||||||
(Amounts in thousands) | 2016 | 2015 | |||||||
Net loss attributable to FuelCell Energy, Inc. | $ | (12,862 | ) | $ | (8,860 | ) | |||
Depreciation | 1,366 | 1,101 | |||||||
Provision for income taxes | 117 | 95 | |||||||
Other (income)/expense, net (1) | (732) | 179 | |||||||
Interest expense | 1,758 | 765 | |||||||
Adjusted EBITDA | $ | (10,353 | ) | $ | (6,720 | ) | |||
(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 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 |
Contact: | FuelCell Energy, Inc. Kurt Goddard, Vice President Investor Relations 203-830-7494 ir@fce.com |
FuelCell Energy Fourth quarter 2016 Results | Page 5 |
October 31, 2016 Unaudited | October 31, 2015 | ||||
ASSETS | |||||
Current assets: | |||||
Cash and cash equivalents | $ | 84,187 | $ | 58,852 | |
Restricted cash and cash equivalents - short-term | 9,437 | 6,288 | |||
Accounts receivable, net | 24,593 | 60,790 | |||
Inventories | 73,806 | 65,754 | |||
Project assets | 0 | 5,260 | |||
Other current assets | 10,446 | 6,954 | |||
Total current assets | 202,469 | 203,898 | |||
Restricted cash and cash equivalents - long-term | 24,692 | 20,600 | |||
Long-term project assets | 47,111 | 6,922 | |||
Property, plant and equipment, net | 36,640 | 29,002 | |||
Goodwill | 4,075 | 4,075 | |||
Intangible assets | 9,592 | 9,592 | |||
Other assets, net | 17,558 | 3,142 | |||
Total assets | $ | 342,137 | $ | 277,231 | |
LIABILITIES AND EQUITY | |||||
Current liabilities: | |||||
Current portion of long-term debt | $ | 5,275 | $ | 7,358 | |
Accounts payable | 18,475 | 15,745 | |||
Accrued liabilities | 20,900 | 19,175 | |||
Deferred revenue | 6,811 | 31,787 | |||
Preferred stock obligation of subsidiary | 802 | 823 | |||
Total current liabilities | 52,263 | 74,888 | |||
Long-term deferred revenue | 20,974 | 22,646 | |||
Long-term preferred stock obligation of subsidiary | 12,649 | 12,088 | |||
Long-term debt and other liabilities | 81,998 | 12,998 | |||
Total liabilities | 167,884 | 122,620 | |||
Redeemable preferred stock (liquidation preference of $64,020 at October 31, 2016 and 2015) | 59,857 | 59,857 | |||
Total Equity: | |||||
Shareholders’ equity | |||||
Common stock ($.0001 par value; 75,000,000 and 39,583,333 shares authorized at October 31, 2016 and 2015, respectively; 35,174,424 and 25,964,710 shares issued and outstanding at October 31, 2016 and 2015, respectively) | 4 | 3 | |||
Additional paid-in capital | 1,004,566 | 934,488 | |||
Accumulated deficit | (889,630) | (838,673) | |||
Accumulated other comprehensive loss | (544) | (509) | |||
Treasury stock, Common, at cost (21,527 and 5,845 shares at October 31, 2016 and 2015, respectively) | (179) | (78) | |||
Deferred compensation | 179 | 78 | |||
Total shareholders’ equity | 114,396 | 95,309 | |||
Noncontrolling interest in subsidiaries | 0 | (555) | |||
Total equity | 114,396 | 94,754 | |||
Total liabilities and equity | $ | 342,137 | $ | 277,231 |
FuelCell Energy Fourth quarter 2016 Results | Page 6 |
Three Months Ended October 31, | |||||
2016 | 2015 | ||||
Revenues: | |||||
Product sales | $ | 8,385 | $ | 43,826 | |
Service agreements and license revenues | 11,385 | 5,506 | |||
Advanced technologies contract revenues | 4,703 | 2,119 | |||
Total revenues | 24,473 | 51,451 | |||
Costs of revenues: | |||||
Cost of product sales | 10,227 | 41,222 | |||
Cost of service agreements and license revenues | 11,133 | 4,581 | |||
Cost of advanced technologies contract revenues | 3,581 | 2,504 | |||
Total cost of revenues | 24,941 | 48,307 | |||
Gross (loss) profit | (468) | 3,144 | |||
Operating expenses: | |||||
Administrative and selling expenses | 6,211 | 6,224 | |||
Research and development expenses | 5,126 | 4,786 | |||
Total operating expenses | 11,337 | 11,010 | |||
Loss from operations | (11,805) | (7,866) | |||
Interest expense | (1,758) | (765) | |||
Other income (expense), net | 732 | (179) | |||
Loss before provision for income taxes | (12,831) | (8,810) | |||
Provision for income taxes | (117) | (95) | |||
Net loss | (12,948) | (8,905) | |||
Net loss attributable to noncontrolling interest | 86 | 45 | |||
Net loss attributable to FuelCell Energy, Inc. | (12,862) | (8,860) | |||
Preferred stock dividends | (800) | (800) | |||
Net loss to common shareholders | $ | (13,662) | $ | (9,660) | |
Loss per share basic and diluted | |||||
Basic | $ | (0.41) | $ | (0.38) | |
Diluted | $ | (0.41) | $ | (0.38) | |
Weighted average shares outstanding | |||||
Basic | 33,029,247 | 25,111,368 | |||
Diluted | 33,029,247 | 25,111,368 |
FuelCell Energy Fourth quarter 2016 Results | Page 7 |
Year Ended October 31, | |||||
2016 Unaudited | 2015 | ||||
Revenues: | |||||
Product sales | $ | 62,563 | $ | 128,595 | |
Service agreements and license revenues | 32,758 | 21,012 | |||
Advanced technologies contract revenues | 12,931 | 13,470 | |||
Total revenues | 108,252 | 163,077 | |||
Costs of revenues: | |||||
Cost of product sales | 63,474 | 118,530 | |||
Cost of service agreements and license revenues | 33,256 | 18,301 | |||
Cost of advanced technologies contract revenues | 11,879 | 13,470 | |||
Total cost of revenues | 108,609 | 150,301 | |||
Gross (loss) profit | (357) | 12,776 | |||
Operating expenses: | |||||
Administrative and selling expenses | 25,150 | 24,226 | |||
Research and development expenses | 20,846 | 17,442 | |||
Total operating expenses | 45,996 | 41,668 | |||
Loss from operations | (46,353) | (28,892) | |||
Interest expense | (4,958) | (2,960) | |||
Other income (expense), net | 622 | 2,442 | |||
Loss before provision for income taxes | (50,689) | (29,410) | |||
Provision for income taxes | (519) | (274) | |||
Net loss | (51,208) | (29,684) | |||
Net loss attributable to noncontrolling interest | 251 | 325 | |||
Net loss attributable to FuelCell Energy, Inc. | (50,957) | (29,359) | |||
Preferred stock dividends | (3,200) | (3,200) | |||
Net loss to common shareholders | $ | (54,157) | $ | (32,559) | |
Loss per share basic and diluted | |||||
Basic | $ | (1.82) | $ | (1.33) | |
Diluted | $ | (1.82) | $ | (1.33) | |
Weighted average shares outstanding | |||||
Basic | 29,773,700 | 24,513,731 | |||
Diluted | 29,773,700 | 24,513,731 |
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