FuelCell Energy Reports Third Quarter of Fiscal 2024 Results
FuelCell Energy (NASDAQ: FCEL) reported its Q3 fiscal 2024 results, with revenue decreasing by 7% to $23.7 million compared to $25.5 million in the prior year. The company posted a gross loss of $6.2 million, an improvement from $8.2 million. Operating loss decreased to $33.6 million from $41.4 million. However, the net loss per share increased to $0.07 from $0.06, which included a $0.04 one-time debt extinguishment benefit in the prior year.
Revenue from service agreements fell sharply to $1.4 million from $9.8 million, while generation revenue rose by 22% to $13.4 million, driven by Toyota and Derby projects. Advanced Technologies revenue increased to $8.6 million from $4.7 million, bolstered by projects with ExxonMobil.
Operating expenses decreased to $27.4 million from $33.2 million, attributed to reduced legal, consulting, and compensation expenses. The backlog increased by 12.6% to $1.20 billion, primarily due to a new long-term service agreement with Gyeonggi Green Energy. Cash and short-term investments totaled $326.0 million as of July 31, 2024, compared to $403.3 million as of October 31, 2023.
FuelCell Energy (NASDAQ: FCEL) ha riportato i risultati del terzo trimestre fiscale 2024, con un fatturato in diminuzione del 7% a 23,7 milioni di dollari rispetto ai 25,5 milioni dell'anno precedente. L'azienda ha registrato una perdita lorda di 6,2 milioni di dollari, un miglioramento rispetto agli 8,2 milioni precedenti. La perdita operativa è diminuita a 33,6 milioni di dollari da 41,4 milioni. Tuttavia, la perdita netta per azione è aumentata a 0,07 dollari rispetto a 0,06 dollari, includendo un beneficio di estinzione debitoria una tantum di 0,04 dollari registrato nell'anno precedente.
Le entrate da contratti di servizio sono scese drasticamente a 1,4 milioni di dollari, rispetto ai 9,8 milioni, mentre le entrate per generazione sono aumentate del 22% a 13,4 milioni di dollari, grazie ai progetti con Toyota e Derby. Le entrate da tecnologie avanzate sono aumentate a 8,6 milioni di dollari, rispetto ai 4,7 milioni, grazie ai progetti con ExxonMobil.
Le spese operative sono diminuite a 27,4 milioni di dollari da 33,2 milioni, attribuibile alla riduzione delle spese legali, di consulenza e di compenso. L'ordini in sospeso sono aumentati del 12,6% a 1,20 miliardi di dollari, principalmente grazie a un nuovo contratto di servizio a lungo termine con Gyeonggi Green Energy. Le disponibilità liquide e gli investimenti a breve termine ammontavano a 326,0 milioni di dollari al 31 luglio 2024, rispetto ai 403,3 milioni al 31 ottobre 2023.
FuelCell Energy (NASDAQ: FCEL) reportó sus resultados del tercer trimestre fiscal 2024, con ingresos que disminuyeron un 7% a 23,7 millones de dólares en comparación con 25,5 millones del año anterior. La compañía registró una pérdida bruta de 6,2 millones de dólares, una mejora respecto a los 8,2 millones anteriores. La pérdida operativa se redujo a 33,6 millones de dólares desde 41,4 millones. Sin embargo, la pérdida neta por acción aumentó a 0,07 dólares desde 0,06 dólares, lo que incluyó un beneficio por extinguimiento de deuda único de 0,04 dólares en el año anterior.
Los ingresos por acuerdos de servicio cayeron drásticamente a 1,4 millones de dólares desde 9,8 millones, mientras que los ingresos por generación aumentaron un 22% a 13,4 millones de dólares, impulsados por los proyectos de Toyota y Derby. Los ingresos por tecnologías avanzadas aumentaron a 8,6 millones de dólares desde 4,7 millones, respaldados por proyectos con ExxonMobil.
Los gastos operativos disminuyeron a 27,4 millones de dólares desde 33,2 millones, atribuible a la reducción de gastos legales, de consultoría y de compensación. La cartera de pedidos aumentó un 12,6% a 1,20 mil millones de dólares, principalmente debido a un nuevo acuerdo de servicio a largo plazo con Gyeonggi Green Energy. El efectivo y las inversiones a corto plazo totalizaron 326,0 millones de dólares al 31 de julio de 2024, en comparación con 403,3 millones al 31 de octubre de 2023.
퓨얼셀 에너지 (NASDAQ: FCEL)는 2024 회계연도 3분기 실적을 발표했으며, 매출이 25.5백만 달러에서 23.7백만 달러로 7% 감소했습니다. 회사는 8.2백만 달러에서 6.2백만 달러의 총 손실을 기록했으며, 운영 손실은 41.4백만 달러에서 33.6백만 달러로 감소했습니다. 그러나 주당 순손실은 0.06달러에서 0.07달러로 증가했으며, 이는 전년도에 발생한 0.04달러의 일회성 채무 소멸 이익이 포함되어 있습니다.
서비스 계약에서의 매출은 9.8백만 달러에서 1.4백만 달러로 급격히 감소했지만, 생성 매출은 토요타와 더비 프로젝트의 영향을 받아 13.4백만 달러로 22% 증가했습니다. 고급 기술에 대한 수익도 4.7백만 달러에서 8.6백만 달러로 증가했으며, 엑손모빌과의 프로젝트가 이를 뒷받침했습니다.
운영 비용은 33.2백만 달러에서 27.4백만 달러로 감소했으며, 이는 법률, 컨설팅 및 보상 비용 절감에 기인합니다. 미결 주문량은 12.6% 증가하여 12억 달러에 달하며, 이는 경기도 청정 에너지와의 새로운 장기 서비스 계약 덕분입니다. 2024년 7월 31일 기준 현금 및 단기 투자액은 3억 2600만 달러로, 2023년 10월 31일 기준 4억 3300만 달러에서 감소했습니다.
FuelCell Energy (NASDAQ: FCEL) a publié ses résultats du troisième trimestre fiscal 2024, avec des revenus en baisse de 7 % à 23,7 millions de dollars par rapport à 25,5 millions l'année précédente. L'entreprise a enregistré une perte brute de 6,2 millions de dollars, s'améliorant par rapport aux 8,2 millions précédents. La perte d'exploitation a diminué à 33,6 millions de dollars contre 41,4 millions. Cependant, la perte nette par action a augmenté à 0,07 dollar contre 0,06 dollar, ce qui incluait un avantage unique d'extinction de dette de 0,04 dollar de l'année précédente.
Les revenus issus des contrats de service ont chuté de manière significative à 1,4 million de dollars contre 9,8 millions, tandis que les revenus de génération ont augmenté de 22 % à 13,4 millions de dollars, soutenus par les projets avec Toyota et Derby. Les revenus des technologies avancées ont augmenté à 8,6 millions de dollars contre 4,7 millions, renforcés par des projets avec ExxonMobil.
Les dépenses opérationnelles ont diminué à 27,4 millions de dollars contre 33,2 millions, en raison de la réduction des dépenses juridiques, de conseil et de rémunération. Le carnet de commandes a augmenté de 12,6 % à 1,20 milliard de dollars, principalement grâce à un nouvel accord de service à long terme avec Gyeonggi Green Energy. Les liquidités et investissements à court terme s'élevaient à 326,0 millions de dollars au 31 juillet 2024, par rapport à 403,3 millions de dollars au 31 octobre 2023.
FuelCell Energy (NASDAQ: FCEL) hat die Ergebnisse für das dritte Quartal des Geschäftsjahres 2024 veröffentlicht, wobei der Umsatz um 7% auf 23,7 Millionen Dollar gesunken ist, verglichen mit 25,5 Millionen Dollar im Vorjahr. Das Unternehmen verzeichnete einen Bruttoverlust von 6,2 Millionen Dollar, eine Verbesserung gegenüber 8,2 Millionen Dollar. Der operative Verlust verringerte sich von 41,4 Millionen Dollar auf 33,6 Millionen Dollar. Allerdings stieg der Nettoverlust pro Aktie auf 0,07 Dollar von 0,06 Dollar, was einen einmaligen Vorteil durch Schuldentilgung in Höhe von 0,04 Dollar im Vorjahr beinhaltete.
Der Umsatz aus Serviceverträgen fiel drastisch auf 1,4 Millionen Dollar von 9,8 Millionen Dollar, während die Einnahmen aus der Stromerzeugung um 22% auf 13,4 Millionen Dollar stiegen, unterstützt durch Projekte mit Toyota und Derby. Der Umsatz aus fortschrittlichen Technologien stieg auf 8,6 Millionen Dollar von 4,7 Millionen Dollar, gestützt durch Projekte mit ExxonMobil.
Die Betriebskosten sanken auf 27,4 Millionen Dollar von 33,2 Millionen Dollar, was auf reduzierte rechtliche, beratende und Entschädigungskosten zurückzuführen ist. Der Auftragsbestand stieg um 12,6% auf 1,20 Milliarden Dollar, hauptsächlich aufgrund eines neuen langfristigen Servicevertrags mit Gyeonggi Green Energy. Zum 31. Juli 2024 beliefen sich die liquiden Mittel und kurzfristigen Investitionen auf insgesamt 326,0 Millionen Dollar, im Vergleich zu 403,3 Millionen Dollar zum 31. Oktober 2023.
- Gross loss improved to $6.2 million from $8.2 million.
- Operating loss decreased to $33.6 million from $41.4 million.
- Generation revenue increased by 22% to $13.4 million.
- Advanced Technologies revenue increased to $8.6 million.
- Operating expenses decreased to $27.4 million from $33.2 million.
- Backlog increased by 12.6% to $1.20 billion.
- Revenue decreased by 7% to $23.7 million.
- Net loss per share increased to $0.07 from $0.06.
- Service agreements revenue fell to $1.4 million from $9.8 million.
- Net loss increased to $35.1 million from $23.6 million.
- Cash and short-term investments decreased to $326.0 million from $403.3 million.
Insights
FuelCell Energy's Q3 FY2024 results show mixed signals. Revenue declined
Positively, generation revenues increased
While FuelCell Energy is making progress on cost management and expanding its customer base, the company remains unprofitable and faces challenges in achieving consistent revenue growth. Investors should closely monitor the company's ability to convert its growing backlog into sustainable revenue and profitability.
FuelCell Energy's Q3 results reflect the ongoing challenges and opportunities in the clean energy sector. The company's focus on solid oxide fuel cell and electrolysis platforms aligns with the growing demand for distributed power generation and hydrogen solutions. The increased backlog, particularly from projects like the Gyeonggi Green Energy agreement in Korea, demonstrates market interest in FuelCell's technologies.
However, the company's financial performance remains a concern. The
The energy transition and growing power demands from AI data centers present opportunities for FuelCell Energy. Yet, the company must navigate a competitive landscape and prove the commercial viability of its technologies at scale. Investors should watch for improvements in gross margins and the company's ability to capitalize on its growing backlog in the coming quarters.
(All comparisons are year-over-year unless otherwise noted)
- Revenue of
$23.7 million compared to$25.5 million - Gross loss of
$(6.2) million compared to$(8.2) million - Loss from operations of
$(33.6) million compared with$(41.4) million - Net loss per share was
$(0.07) compared with$(0.06) which included a$0.04 one-time debt extinguishment benefit in the third quarter of 2023
DANBURY, Conn., Sept. 05, 2024 (GLOBE NEWSWIRE) -- FuelCell Energy, Inc. (NASDAQ: FCEL) today reported financial results for its third quarter ended July 31, 2024.
“In the third quarter, our team achieved solid performance and continued cost management, while advancing our Powerhouse strategy,” said Mr. Jason Few, President and Chief Executive Officer. “We continue to build upon and expand our prospective customer relationships at home and around the world, ranging from interest in our new solid oxide fuel cell and electrolysis platforms, to repowering projects in Korea, such as with Gyeonggi Green Energy Co., Ltd.’s Hwaseong Balan Industrial Complex where we are supplying 42 upgraded fuel cell modules over the next couple of years. With our recent wins, backlog grew meaningfully in the quarter. We also see meaningful potential to capture the rapidly increasing time-to-power opportunity as grids are challenged by AI data center growth.”
“While we execute on our current opportunity set, we are also focused on building our sales pipeline,” added Mr. Few. “We believe we are positioned to capitalize on market opportunities, ranging from built-in fuel diversity which supports biogas applications and hydrogen blending, similar to our work with Ameresco in Sacramento, CA, to the growing power and absorption or electrical cooling needs of edge data centers. Our goal is to generate steady, predictable results now while keeping our focus on future growth.”
Consolidated Financial Metrics
| Three Months Ended July 31, | |||||||||||||
| (Amounts in thousands) | 2024 | 2023 | Change | ||||||||||
| Total revenues | (7 | %) | |||||||||||
| Gross loss | (6,202 | ) | (8,215 | ) | (25 | %) | |||||||
| Loss from operations | (33,617 | ) | (41,395 | ) | (19 | %) | |||||||
| Net loss | (35,123 | ) | (23,601 | ) | 49 | % | |||||||
| Net loss attributable to common stockholders | (33,460 | ) | (25,079 | ) | 33 | % | |||||||
| Net loss per basic and diluted share | (0.07 | ) | (0.06 | ) | 17 | % | |||||||
| EBITDA * | (24,379 | ) | (34,772 | ) | (30 | %) | |||||||
| Adjusted EBITDA * | ( | ) | ( | ) | (36 | %) | |||||||
| * A reconciliation of EBITDA, Adjusted EBITDA and any other non-GAAP measures is contained in the appendix to this press release. | |||||||||||||
Third Quarter of Fiscal 2024 Results
(All comparisons are between third quarter of fiscal 2024 and third quarter of fiscal 2023 unless otherwise noted)
Third quarter revenue of
- Product revenues were
$0.3 million during the three months ended July 31, 2024, and there were no product revenues in the comparable prior year period. The product revenues during the three months ended July 31, 2024 were recognized under the Company’s new sales contract with Ameresco, Inc., which was entered into during the second quarter of fiscal 2024. - Service agreements revenues decreased to
$1.4 million from$9.8 million . The decrease in service agreements revenues during the three months ended July 31, 2024 was primarily driven by the fact that there were no module exchanges during the quarter. Service agreements revenues recognized during the third quarter of fiscal 2023 were primarily driven by module exchanges at the plants owned by Korea Southern Power Company in Korea. - Generation revenues increased
22% to$13.4 million from$11.0 million , primarily driven by revenue generated by the Toyota and Derby projects, all of which began operations in the first quarter of fiscal 2024. - Advanced Technologies contract revenues increased to
$8.6 million from$4.7 million . Advanced Technologies contract revenues recognized under our Joint Development Agreement with ExxonMobil Technology and Engineering Company (“EMTEC”) were approximately$1.8 million , revenues arising from the purchase order received from Esso Nederland B.V. (“Esso”), an affiliate of EMTEC and Exxon Mobil Corporation, related to the Rotterdam project were approximately$3.5 million and revenue recognized under government contracts and other contracts were approximately$3.3 million for the three months ended July 31, 2024. This compares to Advanced Technologies contract revenues recognized under our Joint Development Agreement with EMTEC of approximately$2.8 million and revenue recognized under government contracts and other contracts of approximately$1.9 million the three months ended July 31, 2023.
Gross loss for the third quarter of fiscal 2024 totaled
Operating expenses for the third quarter of fiscal 2024 decreased to
Net loss was
Adjusted EBITDA totaled
The net loss per share attributable to common stockholders in the third quarter of fiscal 2024 was
Cash, Restricted Cash and Short-Term Investments
Cash and cash equivalents, restricted cash and cash equivalents, and short-term investments totaled
“We are taking proactive steps to help preserve balance sheet strength while continuing to execute on our growth objectives and position our platforms to capitalize on the energy transition and the growing distributed power generation opportunity,” said Mr. Michael Bishop, Executive Vice President, Chief Financial Officer and Treasurer. “We remain focused on lowering our quarterly spending and cash burn, while also pursuing financing to support commercial opportunities including our Korea repowering activities.”
During the three months ended July 31, 2024, approximately 95.2 million shares of the Company’s common stock were sold under the Company’s Amended Open Market Sale Agreement at an average sale price of
Backlog
| As of July 31, | |||||||||
| (Amounts in thousands) | 2024 | 2023 | Change | ||||||
| Product | $ | 26 | |||||||
| Service | 178,387 | 136,621 | 41,766 | ||||||
| Generation | 839,532 | 915,062 | (75,530 | ) | |||||
| Advanced Technologies | 42,480 | 11,552 | 30,928 | ||||||
| Total Backlog | $ | 1,063,261 | |||||||
As of July 31, 2024, backlog increased by approximately
Backlog represents definitive agreements executed by the Company and our customers. Projects for which we have an executed power purchase agreement (“PPA”) or hydrogen power purchase agreement (“HPPA”) are included in generation backlog, which represents future revenue under long-term PPAs and HPPAs. The Company’s ability to recognize revenue in the future under a PPA or HPPA is subject to the Company’s completion of construction of the project covered by such PPA or HPPA. Should the Company not complete the construction of the project covered by a PPA or HPPA, it will forgo future revenues with respect to the project and may incur penalties and/or impairment charges related to the project. Projects sold to customers (and not retained by the Company) are included in product sales and service agreements backlog, and the related generation backlog is removed upon sale. Together, the service and generation portion of backlog had a weighted average term of approximately 17 years as of July 31, 2024, with weighting based on the dollar amount of backlog and utility service contracts of up to 20 years in duration at inception.
Conference Call Information
FuelCell Energy will host a conference call today beginning at 10:00 a.m. ET to discuss third quarter results for fiscal year 2024 as well as key business highlights. Participants can access the live call via webcast on the Company website or by telephone as follows:
- The live webcast of the call and supporting slide presentation will be available at www.fuelcellenergy.com. To listen to the call, select “Investors” on the home page located under the “Our Company” pull-down menu, proceed to the “Events & Presentations” page and then click on the “Webcast” link listed under the September 5th earnings call event, or click here.
- Alternatively, participants can dial 888-330-3181 and state FuelCell Energy or the conference ID number 1099808.
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.
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 regarding future events or our future financial performance that involve certain contingencies and uncertainties, including those discussed in our Annual Report on Form 10-K for the fiscal year ended October 31, 2023 in the section entitled "Management's Discussion and Analysis of Financial Condition and Results of Operations”. The forward-looking statements include, 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 current and future fuel cell technologies, the expected timing of completion of the Company’s ongoing projects, the Company’s business plans and strategies, the Company’s capacity expansion, the capabilities of the Company’s products, the sales pipeline for the Company’s products, and the markets in which the Company expects to operate. Projected and estimated numbers contained herein are not forecasts and may not reflect actual results. These forward-looking statements are not guarantees of future performance, and 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: general risks associated with product development and manufacturing; general economic conditions; changes in interest rates, which may impact project financing; supply chain disruptions; changes in the utility regulatory environment; changes in the utility industry and the markets for distributed generation, distributed hydrogen, and fuel cell power plants configured for carbon capture or carbon separation; potential volatility of commodity prices that may adversely affect our projects; availability of government subsidies and economic incentives for alternative energy technologies; our ability to remain in compliance with U.S. federal and state and foreign government laws and regulations; our ability to regain and maintain compliance with the listing rules of The Nasdaq Stock Market; our ability to implement a reverse stock split and the impacts of a reverse stock split, if implemented; rapid technological change; competition; the risk that our bid awards will not convert to contracts or that our contracts will not convert to revenue; market acceptance of our products; changes in accounting policies or practices adopted voluntarily or as required by accounting principles generally accepted in the United States; factors affecting our liquidity position and financial condition; government appropriations; the ability of the government and third parties to terminate their development contracts at any time; the ability of the government to exercise “march-in” rights with respect to certain of our patents; our ability to successfully market and sell our products internationally; our ability to develop new products to achieve our long-term revenue targets; our ability to implement our strategy; our ability to reduce our levelized cost of energy and deliver on our cost reduction strategy generally; our ability to protect our intellectual property; litigation and other proceedings; the risk that commercialization of our new products will not occur when anticipated or, if it does, that we will not have adequate capacity to satisfy demand; our need for and the availability of additional financing; our ability to generate positive cash flow from operations; our ability to service our long-term debt; our ability to increase the output and longevity of our platforms and to meet the performance requirements of our contracts; our ability to expand our customer base and maintain relationships with our largest customers and strategic business allies; and concerns with, threats of, or the consequences of, pandemics, contagious diseases or health epidemics, including the novel coronavirus, and resulting supply chain disruptions, shifts in clean energy demand, impacts to our customers’ capital budgets and investment plans, and impacts on the demand for our products, as well as other risks set forth in the Company’s filings with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K for the fiscal year ended October 31, 2023 and the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended July 31, 2024. 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 contained herein to reflect any change in the Company’s expectations or any change in events, conditions or circumstances on which any such statement is based.
About FuelCell Energy
FuelCell Energy, Inc. (NASDAQ: FCEL): FuelCell Energy is a global leader in delivering environmentally responsible distributed baseload energy platform solutions through our proprietary fuel cell technology. FuelCell Energy is focused on advancing sustainable clean energy technologies that address some of the world’s most critical challenges around energy access, security, resilience, reliability, affordability, safety and environmental stewardship. As a leading global manufacturer of proprietary fuel cell technology platforms, FuelCell Energy is uniquely positioned to serve customers worldwide with sustainable products and solutions for industrial and commercial businesses, utilities, governments, municipalities, and communities.
SureSource, SureSource 1500, SureSource 3000, SureSource 4000, SureSource Recovery, SureSource Capture, SureSource Hydrogen, SureSource Storage, SureSource Service, SureSource Capital, FuelCell Energy, and FuelCell Energy logo are all trademarks of FuelCell Energy, Inc.
Contact:
FuelCell Energy, Inc.
ir@fce.com
203.205.2491
| FUELCELL ENERGY, INC. Consolidated Balance Sheets (Unaudited) (Amounts in thousands, except share and per share amounts) | ||||||||
| July 31, 2024 | October 31, 2023 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents, unrestricted | $ | 159,347 | $ | 249,952 | ||||
| Restricted cash and cash equivalents – short-term | 9,686 | 5,159 | ||||||
| Investments – short-term | 107,817 | 103,760 | ||||||
| Accounts receivable, net | 11,161 | 3,809 | ||||||
| Unbilled receivables | 30,169 | 16,296 | ||||||
| Inventories | 129,349 | 84,456 | ||||||
| Other current assets | 12,439 | 12,881 | ||||||
| Total current assets | 459,968 | 476,313 | ||||||
| Restricted cash and cash equivalents – long-term | 49,148 | 44,465 | ||||||
| Inventories – long-term | 2,743 | 7,329 | ||||||
| Project assets, net | 248,790 | 258,066 | ||||||
| Property, plant and equipment, net | 121,382 | 89,668 | ||||||
| Operating lease right-of-use assets, net | 7,884 | 8,352 | ||||||
| Goodwill | 4,075 | 4,075 | ||||||
| Intangible assets, net | 15,104 | 16,076 | ||||||
| Other assets | 39,816 | 51,176 | ||||||
| Total assets (1) | $ | 948,910 | $ | 955,520 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Current portion of long-term debt | $ | 12,232 | $ | 10,067 | ||||
| Current portion of operating lease liabilities | 760 | 599 | ||||||
| Accounts payable | 16,928 | 26,518 | ||||||
| Accrued liabilities | 25,970 | 26,313 | ||||||
| Deferred revenue | 10,649 | 2,406 | ||||||
| Total current liabilities | 66,539 | 65,903 | ||||||
| Long-term deferred revenue | 1,979 | 732 | ||||||
| Long-term operating lease liabilities | 8,708 | 8,992 | ||||||
| Long-term debt and other liabilities | 126,720 | 119,588 | ||||||
| Total liabilities (1) | 203,946 | 195,215 | ||||||
| Redeemable Series B preferred stock (liquidation preference of | 59,857 | 59,857 | ||||||
| Total equity: | ||||||||
| Stockholders’ equity: Common stock ( | 55 | 45 | ||||||
| Additional paid-in capital | 2,277,417 | 2,199,661 | ||||||
| Accumulated deficit | (1,600,134 | ) | (1,515,541 | ) | ||||
| Accumulated other comprehensive loss | (1,576 | ) | (1,672 | ) | ||||
| Treasury stock, Common, at cost (376,340 and 246,468 shares as of July 31, 2024 and October 31, 2023, respectively) | (1,198 | ) | (1,078 | ) | ||||
| Deferred compensation | 1,198 | 1,078 | ||||||
| Total stockholders’ equity | 675,762 | 682,493 | ||||||
| Noncontrolling interests | 9,345 | 17,955 | ||||||
| Total equity | 685,107 | 700,448 | ||||||
| Total liabilities, redeemable Series B preferred stock and total equity | $ | 948,910 | $ | 955,520 | ||||
| (1) As of July 31, 2024 and October 31, 2023, the combined assets of the variable interest entities (“VIEs”) were | ||||||||
| FUELCELL ENERGY, INC. Consolidated Statements of Operations and Comprehensive Loss (Unaudited) (Amounts in thousands, except share and per share amounts) | ||||||||||
| Three Months Ended July 31, | ||||||||||
| 2024 | 2023 | |||||||||
| Revenues: | ||||||||||
| Product | $ | 250 | $ | - | ||||||
| Service | 1,411 | 9,841 | ||||||||
| Generation | 13,402 | 10,982 | ||||||||
| Advanced Technologies | 8,632 | 4,687 | ||||||||
| Total revenues | 23,695 | 25,510 | ||||||||
Costs of revenues: | ||||||||||
| Product | 4,181 | 2,910 | ||||||||
| Service | 1,146 | 9,575 | ||||||||
| Generation | 18,761 | 17,483 | ||||||||
| Advanced Technologies | 5,809 | 3,757 | ||||||||
| Total costs of revenues | 29,897 | 33,725 | ||||||||
Gross loss | (6,202 | ) | (8,215 | ) | ||||||
Operating expenses: | ||||||||||
| Administrative and selling expenses | 14,599 | 17,560 | ||||||||
| Research and development expenses | 12,816 | 15,620 | ||||||||
| Total costs and expenses | 27,415 | 33,180 | ||||||||
Loss from operations | (33,617 | ) | (41,395 | ) | ||||||
Interest expense | (2,555 | ) | (1,912 | ) | ||||||
| Interest income | 3,269 | 3,966 | ||||||||
| Gain on early extinguishment of finance obligations and debt, net | - | 15,337 | ||||||||
| Other (expense) income, net | (2,218 | ) | 403 | |||||||
Loss before provision for income taxes | (35,121 | ) | (23,601 | ) | ||||||
| Provision for income taxes | (2 | ) | - | |||||||
Net loss | (35,123 | ) | (23,601 | ) | ||||||
| Net (loss) income attributable to noncontrolling interest | (2,463 | ) | 678 | |||||||
Net loss attributable to FuelCell Energy, Inc. | (32,660 | ) | (24,279 | ) | ||||||
| Series B preferred stock dividends | (800 | ) | (800 | ) | ||||||
Net loss attributable to common stockholders | $ | (33,460 | ) | $ | (25,079 | ) | ||||
Loss per share basic and diluted: | ||||||||||
| Net loss per share attributable to common stockholders | $ | (0.07 | ) | $ | (0.06 | ) | ||||
| Basic and diluted weighted average shares outstanding | 503,183,725 | 415,867,594 | ||||||||
| FUELCELL ENERGY, INC. Consolidated Statements of Operations and Comprehensive Loss (Unaudited) (Amounts in thousands, except share and per share amounts) | |||||||||
| Nine Months Ended July 31, | |||||||||
| 2024 | 2023 | ||||||||
| Revenues: | |||||||||
| Product | $ | 250 | $ | 9,095 | |||||
| Service | 4,397 | 49,913 | |||||||
| Generation | 38,013 | 28,979 | |||||||
| Advanced Technologies | 20,146 | 12,945 | |||||||
| Total revenues | 62,806 | 100,932 | |||||||
| Costs of revenues: | |||||||||
| Product | 9,510 | 7,425 | |||||||
| Service | 4,301 | 40,633 | |||||||
| Generation | 61,079 | 51,166 | |||||||
| Advanced Technologies | 12,917 | 10,779 | |||||||
| Total costs of revenues | 87,807 | 110,003 | |||||||
| Gross loss | (25,001 | ) | (9,071 | ) | |||||
| Operating expenses: | |||||||||
| Administrative and selling expenses | 48,659 | 47,637 | |||||||
| Research and development expenses | 43,796 | 43,000 | |||||||
| Total costs and expenses | 92,455 | 90,637 | |||||||
| Loss from operations | (117,456 | ) | (99,708 | ) | |||||
| Interest expense | (7,168 | ) | (4,926 | ) | |||||
| Interest income | 10,726 | 11,064 | |||||||
| Gain on early extinguishment of finance obligations and debt, net | - | 15,337 | |||||||
| Other (expense) income, net | (3,278 | ) | 216 | ||||||
| Loss before provision for income taxes | (117,176 | ) | (78,017 | ) | |||||
| Provision for income taxes | (2 | ) | (581 | ) | |||||
| Net loss | (117,178 | ) | (78,598 | ) | |||||
| Net loss attributable to noncontrolling interest | (32,585 | ) | (1,394 | ) | |||||
| Net loss attributable to FuelCell Energy, Inc. | (84,593 | ) | (77,204 | ) | |||||
| Series B preferred stock dividends | (2,400 | ) | (2,400 | ) | |||||
| Net loss attributable to common stockholders | $ | (86,993 | ) | $ | (79,604 | ) | |||
| Loss per share basic and diluted: | |||||||||
| Net loss per share attributable to common stockholders | $ | (0.19 | ) | $ | (0.19 | ) | |||
| Basic and diluted weighted average shares outstanding | 469,387,264 | 409,361,826 | |||||||
Appendix
Non-GAAP Financial Measures
Financial results are presented in accordance with accounting principles generally accepted in the United States (“GAAP”). Management also uses non-GAAP measures to analyze and make operating decisions on the business. Earnings before interest, taxes, depreciation and amortization (“EBITDA”) and Adjusted EBITDA are non-GAAP measures of operations and operating performance by the Company.
These supplemental non-GAAP measures are provided to assist readers in assessing operating performance. Management believes EBITDA and Adjusted EBITDA are useful in assessing performance and highlighting trends on an overall basis. Management also believes these measures are used by companies in the fuel cell sector and by securities analysts and investors when comparing the results of the Company with those of other companies. EBITDA differs from the most comparable GAAP measure, net loss attributable to the Company, primarily because it does not include finance expense, income taxes and depreciation of property, plant and equipment and project assets. Adjusted EBITDA adjusts EBITDA for stock-based compensation, restructuring charges, non-cash (gain) loss on derivative instruments and other unusual items, which are considered either non-cash or non-recurring.
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 July 31, | Nine Months Ended July 31, | |||||||||||||||
| (Amounts in thousands) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net loss | $ | (35,123 | ) | $ | (23,601 | ) | (117,178 | ) | $ | (78,598 | ) | |||||
| Depreciation and amortization (1) | 9,238 | 6,623 | 27,389 | 18,659 | ||||||||||||
| Provision for income taxes | 2 | - | 2 | 581 | ||||||||||||
| Other (income) expense, net (2) | 2,218 | (403 | ) | 3,278 | (216 | ) | ||||||||||
| Gain on extinguishment of finance obligations and debt, net (4) | - | (15,337 | ) | - | (15,337 | ) | ||||||||||
| Interest income | (3,269 | ) | (3,966 | ) | (10,726 | ) | (11,064 | ) | ||||||||
| Interest expense | 2,555 | 1,912 | 7,168 | 4,926 | ||||||||||||
| EBITDA | $ | (24,379 | ) | $ | (34,772 | ) | $ | (90,067 | ) | $ | (81,049 | ) | ||||
| Stock-based compensation expense | 3,350 | 3,166 | 9,227 | 8,997 | ||||||||||||
| Unrealized loss on natural gas contract derivative assets (3) | 895 | - | 5,072 | - | ||||||||||||
| Adjusted EBITDA | $ | (20,134 | ) | $ | (31,606 | ) | $ | (75,768 | ) | $ | (72,052 | ) | ||||
| (1) Includes depreciation and amortization on our Generation portfolio of (2) Other (income) expense, net includes gains and losses from transactions denominated in foreign currencies, interest rate swap income earned from investments and other items incurred periodically, which are not the result of the Company’s normal business operations. (3) The Company recorded a mark-to-market net loss of (4) The gain on extinguishment of finance obligations and debt, net was | ||||||||||||||||
FAQ
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