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United States : FuelCell Energy Reports Second Quarter 2017 Financial Results and Business Update.

FuelCell Energy, a global leader in delivering clean, innovative and affordable fuel cell solutions for the supply, recovery and storage of energy, today reported financial results for its second quarter ended April 30, 2017 and key business highlights.

Financial Results

FuelCell Energy (the Company) reported total revenues for the second quarter of 2017 of $20.4 million, compared to $28.6 million for the comparable prior year period. Revenue components include:

Service and license totaled $12.6 million for the current period compared to $10.4 million for the second quarter of 2016, with the increase reflecting module exchanges in the current period.

Generation totaled $1.6 million for the current period compared to $0.2 million for the second quarter of 2016. The increase reflects the growth in the operating portfolio. As of April 30, 2017 the Companys operating portfolio totaled 11.2 megawatts under long-term power purchase agreements with five customers and 7.9 megawatts under construction at three locations. A 1.4 megawatt project and a 7.4 megawatt letter of intent were announced subsequent to quarter end and may be added to the Generation portfolio in future quarters.

Product totaled $0.7 million for the current period compared to $15.4 million for the second quarter of 2016. There were no Asian sales in the current quarter unlike the prior year period as South Korean partner, POSCO Energy, is now manufacturing locally under license and royalty agreements.

Advanced Technologies totaled $5.4 million for the current period compared to $2.6 million for the comparable prior year period as new contracts were added.

The gross profit generated in the second quarter of 2017 totaled $0.4 million and the gross margin for the period was 1.9 percent, compared to a gross loss of ($0.2) million incurred for the second quarter of 2016. Margins from the Generation portfolio, Advanced Technology and Service contracts were partially offset by Product gross loss from under-absorption of fixed overhead costs reflecting the low factory production rate.

Operating expenses for the current period totaled $11.9 million compared to $12.6 million for the prior year period. The decrease in Administrative and selling expenses was due to lower professional fees. Research and development expenses increased nominally, reflecting initiatives supporting new product introductions.

Net loss attributable to common shareholders for the second quarter of 2017 totaled $14.0 million, or $0.33 per basic and diluted share, compared to $16.2 million or $0.56 per basic and diluted share for the second quarter of 2016.

Adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA, a Non-GAAP measure) in the second quarter of 2017 totaled ($8.0) million. Refer to the discussion of Non-GAAP financial measures below regarding the Companys calculation of Adjusted EBITDA. Capital spending was $1.9 million in the second quarter of 2017 and depreciation expense was $2.2 million, including depreciation of property, plant and equipment as well as Long term project assets.

Revenue Backlog

Total backlog was $434.5 million as of April 30, 2017 compared to $410.7 million as of April 30, 2016.

Services backlog totaled $188.3 million as of April 30, 2017 compared to $210.3 million as of April 30, 2016. Services backlog includes future contracted revenue from routine maintenance and scheduled module exchanges for power plants under service agreements.

Generation backlog totaled $184.4 million as of April 30, 2017 representing future contracted energy sales under contracted power purchase agreements between the Company and the end-user of the power. Generation backlog for the comparable prior year period totaled $84.5 million.

Product sales backlog totaled $12.9 million as of April 30, 2017 compared to $51.0 million as of April 30, 2016.

Advanced Technologies contracts backlog totaled $48.9 million as of April 30, 2017 compared to $64.9 million as of April 30, 2016.

In conjunction with adding the Generation classification to revenues, the Company has reclassified prior backlog amounts to be consistent with future revenue recognition.

Cash, restricted cash and financing availability

Cash, cash equivalents, restricted cash and financing availability totaled $124.1 million as of April 30, 2017, including:

Total cash of $84.1 million, including $46.4 million of unrestricted cash and cash equivalents, and $37.7 million of restricted cash

$40.0 million of borrowing availability under the NRG Energy revolving project financing facility

Subsequent to the end of the second quarter of 2017, the Company raised net proceeds of $13.8 million from a public offering of common stock and warrants. The offering was designed to provide additional capital to the Company if warrants are exercised.

Project Assets

Long term project assets consists of projects developed by the Company that are structured with power purchase agreements (PPA), which generate recurring monthly Generation revenue, as well as projects the Company is developing and expects to retain and operate. Long term project assets totaled $56.3 million as of April 30, 2017, consisting of five projects totaling 11.2 megawatts plus costs incurred to date for three previously announced projects under construction that total 7.9 megawatts.

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Publication:Mena Report
Article Type:Financial report
Date:Jun 12, 2017
Words:866
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