Fuelcell Energy Earnings 2020-04-30

Balance Sheet	Income Statement	Cash Flow
Assets, Equity	Rev, G Profit, Net Income	Ops, Inv, Fin

fcel-10q_20200430.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended April 30, 2020

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number: 1-14204

FUELCELL ENERGY, INC.

(Exact name of registrant as specified in its charter)

Delaware		06-0853042
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

3 Great Pasture Road Danbury, Connecticut		06810
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (203) 825-6000

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common stock, par value $0.0001 per share

FCEL

The Nasdaq Stock Market LLC

(Nasdaq Global Market)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Number of shares of common stock, par value $0.0001 per share, outstanding as of June 5, 2020: 211,058,085

FUELCELL ENERGY, INC.

FORM 10-Q

Table of Contents

		Page

PART I - FINANCIAL INFORMATION

Item 1.	Financial Statements.	3

	Consolidated Balance Sheets as of April 30, 2020 and October 31, 2019.	3

	Consolidated Statements of Operations and Comprehensive Loss for the three months ended April 30, 2020 and 2019.	4

	Consolidated Statements of Operations and Comprehensive Loss for the six months ended April 30, 2020 and 2019.	5

	Consolidated Statements of Changes in Equity for the three and six months ended April 30, 2020.	6

	Consolidated Statements of Changes in Equity for the three and six months ended April 30, 2019.	7

	Consolidated Statements of Cash Flows for the six months ended April 30, 2020 and 2019.	8

	Notes to Consolidated Financial Statements.	9

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations.	31

Item 3.	Quantitative and Qualitative Disclosures about Market Risk.	54

Item 4.	Controls and Procedures.	54

PART II - OTHER INFORMATION

Item 1.	Legal Proceedings.	56

Item 1A.	Risk Factors.	56

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.	71

Item 3.	Defaults Upon Senior Securities.	72

Item 4.	Mine Safety Disclosures.	72

Item 5.	Other Information.	72

Item 6.	Exhibits.	74

Signatures		76

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

FUELCELL ENERGY, INC.

Consolidated Balance Sheets

(Unaudited)

(Amounts in thousands, except share and per share amounts)

	April 30,			October 31,
	2020			2019
ASSETS
Current assets:
Cash and cash equivalents, unrestricted	$	29,087		$	9,434
Restricted cash and cash equivalents - short-term		8,082			3,473
Accounts receivable, net		6,117			3,292
Unbilled receivables		7,475			7,684
Inventories		54,945			54,515
Other current assets		5,672			5,921
Total current assets		111,378			84,319
Restricted cash and cash equivalents - long-term		36,250			26,871
Inventories - long-term		9,018			2,179
Project assets		153,874			144,115
Property, plant and equipment		38,530			41,134
Operating lease right-of-use assets, net		10,051			-
Goodwill		4,075			4,075
Intangible assets		20,615			21,264
Other assets		10,850			9,489
Total assets	$	394,641		$	333,446
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt	$	13,834		$	21,916
Current portion of operating lease liabilities		770			-
Accounts payable		13,567			16,943
Accrued liabilities		10,905			11,452
Deferred revenue		12,629			11,471
Preferred stock obligation of subsidiary		899			950
Total current liabilities		52,604			62,732
Long-term deferred revenue		29,907			28,705
Long-term preferred stock obligation of subsidiary		16,420			16,275
Long-term operating lease liabilities		9,716			-
Long-term debt and other liabilities		176,821			90,140
Total liabilities		285,468			197,852
Redeemable Series B preferred stock (liquidation preference of $64,020 as of April 30, 2020 and October 31, 2019)		59,857			59,857
Total equity:
Stockholders’ equity:
Common stock ($0.0001 par value); 225,000,000 shares authorized as of April 30, 2020 and October 31, 2019; 211,052,401 and 193,608,684 shares issued and outstanding as of April 30, 2020 and October 31, 2019, respectively		21			19
Additional paid-in capital		1,180,042			1,151,454
Accumulated deficit		(1,130,009	)		(1,075,089	)
Accumulated other comprehensive loss		(738	)		(647	)
Treasury stock, Common, at cost (34,194 and 42,496 shares as of April 30, 2020 and October 31, 2019, respectively)		(437	)		(466	)
Deferred compensation		437			466
Total stockholders’ equity		49,316			75,737
Total liabilities and stockholders' equity	$	394,641		$	333,446

See accompanying notes to consolidated financial statements

FUELCELL ENERGY, INC.

Consolidated Statements of Operations and Comprehensive Loss

(Unaudited)

(Amounts in thousands, except share and per share amounts)

	Three Months Ended April 30,
	2020			2019
Revenues:
Product	$	—		$	—
Service and license		6,972			2,598
Generation		4,631			1,633
Advanced Technologies		7,277			4,985
Total revenues		18,880			9,216
Costs of revenues:
Product		2,838			6,393
Service and license		5,967			1,745
Generation		5,692			1,685
Advanced Technologies		4,216			3,033
Total costs of revenues		18,713			12,856
Gross profit (loss)		167			(3,640	)
Operating expenses:
Administrative and selling expenses		7,168			9,805
Research and development expenses		1,141			4,178
Total costs and expenses		8,309			13,983
Loss from operations		(8,142	)		(17,623	)
Interest expense		(3,584	)		(1,807	)
Change in fair value of common stock warrant liability		(3,372	)		—
Other income (expense), net		340			(31	)
Loss before provision for income taxes		(14,758	)		(19,461	)
Provision for income taxes		(11	)		(69	)
Net loss		(14,769	)		(19,530	)
Series A warrant exchange		—			(3,169	)
Series B preferred stock dividends		(800	)		(800	)
Series C preferred stock deemed contributions		—			1,599
Series D preferred stock deemed dividends		—			(976	)
Net loss attributable to common stockholders	$	(15,569	)	$	(22,876	)
Loss per share basic and diluted:
Net loss per share attributable to common stockholders	$	(0.07	)	$	(2.06	)
Basic and diluted weighted average shares outstanding		211,000,091			11,090,698

	Three Months Ended April 30,
	2020			2019
Net loss	$	(14,769	)	$	(19,530	)
Other comprehensive loss:
Foreign currency translation adjustments		(42	)		(140	)
Total comprehensive loss	$	(14,811	)	$	(19,670	)

See accompanying notes to consolidated financial statements.

FUELCELL ENERGY, INC.

Consolidated Statements of Operations and Comprehensive Loss

(Unaudited)

(Amounts in thousands, except share and per share amounts)

	Six Months Ended April 30,
	2020			2019
Revenues:
Product	$	—		$	—
Service and license		12,584			14,370
Generation		10,073			3,112
Advanced Technologies		12,487			9,517
Total revenues		35,144			26,999
Costs of revenues:
Product		4,854			9,815
Service and license		7,585			14,064
Generation		11,249			3,321
Advanced Technologies		8,008			5,644
Total costs of revenues		31,696			32,844
Gross profit (loss)		3,448			(5,845	)
Operating expenses:
Administrative and selling expenses		12,434			16,564
Research and development expenses		2,296			10,458
Total costs and expenses		14,730			27,022
Loss from operations		(11,282	)		(32,867	)
Interest expense		(6,861	)		(4,271	)
Change in fair value of common stock warrant liability		(37,617	)		—
Other income, net		871			129
Loss before provision for income taxes		(54,889	)		(37,009	)
Provision benefit for income taxes		(31	)		(69	)
Net loss		(54,920	)		(37,078	)
Series A warrant exchange		—			(3,169	)
Series B preferred stock dividends		(1,731	)		(1,600	)
Series C preferred stock deemed contributions and redemption value adjustment, net		—			(7,406	)
Series D preferred stock deemed dividends and redemption accretion		—			(6,661	)
Net loss attributable to common stockholders	$	(56,651	)	$	(55,914	)
Loss per share basic and diluted:
Net loss per share attributable to common stockholders	$	(0.27	)	$	(5.77	)
Basic and diluted weighted average shares outstanding		206,560,031			9,683,253

	Six Months Ended April 30,
	2020			2019
Net loss	$	(54,920	)	$	(37,078	)
Other comprehensive loss:
Foreign currency translation adjustments		(91	)		(133	)
Total comprehensive loss	$	(55,011	)	$	(37,211	)

FUELCELL ENERGY, INC.

Consolidated Statements of Changes in Equity

(Unaudited)

(Amounts in thousands, except share amounts)

	Common Stock
	Shares		Amount		Additional Paid-in Capital		Accumulated Deficit			Accumulated Other Comprehensive Income (Loss)			Treasury Stock			Deferred Compensation		Total Equity
Balance, October 31, 2019		193,608,684	$	19	$	1,151,454	$	(1,075,089	)	$	(647	)	$	(466	)	$	466	$	75,737
Share based compensation		—		—		488		—			—			—			—		488
Orion warrant exercises		9,396,320		1		25,993		—			—			—			—		25,994
Sale of common stock, net of fees		7,938,228

Price	0.40	EPS	-0
Shares	118	P/E	-1
MCap	47	P/FCF	-3
Net Debt	75	EBIT	-49
TEV	123	TEV/EBIT	-3
TTM 2019-07-31, in MM, except price, ratios

10-Q	2020-04-30	Filed 2020-06-12
10-Q	2020-01-31	Filed 2020-03-16
10-K	2019-10-31	Filed 2020-01-22
10-Q	2019-07-31	Filed 2019-09-09
10-Q	2019-04-30	Filed 2019-06-17
10-Q	2019-01-31	Filed 2019-03-07
10-K	2018-10-31	Filed 2019-01-10
10-Q	2018-07-31	Filed 2018-09-06
10-Q	2018-04-30	Filed 2018-06-07
10-Q	2018-01-31	Filed 2018-03-08
10-K	2017-10-31	Filed 2018-01-11
10-Q	2017-07-31	Filed 2017-09-08
10-Q	2017-04-30	Filed 2017-06-08
10-Q	2017-01-31	Filed 2017-03-09
10-K	2016-10-31	Filed 2017-01-12
10-Q	2016-07-31	Filed 2016-09-08
10-Q	2016-04-30	Filed 2016-06-09
10-Q	2016-01-31	Filed 2016-03-10
10-K	2015-10-31	Filed 2016-01-08
10-Q	2015-07-31	Filed 2015-09-09
10-Q	2015-04-30	Filed 2015-06-09
10-Q	2015-01-31	Filed 2015-03-11
10-K	2014-10-31	Filed 2015-01-09
10-Q	2014-07-31	Filed 2014-09-09
10-Q	2014-04-30	Filed 2014-06-05
10-Q	2014-01-31	Filed 2014-03-12
10-K	2013-10-31	Filed 2014-01-06
10-Q	2013-07-31	Filed 2013-09-06
10-Q	2013-04-30	Filed 2013-06-07
10-Q	2013-01-31	Filed 2013-03-12
10-K	2012-10-31	Filed 2013-01-14
10-Q	2012-07-31	Filed 2012-09-07
10-Q	2012-04-30	Filed 2012-06-08
10-Q	2012-01-31	Filed 2012-03-12
10-K	2011-10-31	Filed 2012-01-17
10-Q	2011-07-31	Filed 2011-09-09
10-Q	2011-04-30	Filed 2011-06-09
10-Q	2011-01-31	Filed 2011-03-14
10-K	2010-10-31	Filed 2011-01-14
10-Q	2010-07-31	Filed 2010-09-09
10-Q	2010-04-30	Filed 2010-06-09
10-Q	2010-01-31	Filed 2010-03-12
10-K	2009-10-31	Filed 2010-01-14

8-K	2020-06-23
8-K	2020-06-22
8-K	2020-06-16
8-K	2020-06-12
8-K	2020-06-05
8-K	2020-05-11
8-K	2020-05-08
8-K	2020-04-30
8-K	2020-04-20
8-K	2020-04-09
8-K	2020-04-07
8-K	2020-03-30
8-K	2020-03-18
8-K	2020-03-16
8-K	2020-02-19
8-K	2020-02-11
8-K	2020-01-22
8-K	2020-01-13
8-K	2019-12-19
8-K	2019-12-11
8-K	2019-11-20
8-K	2019-10-31
8-K	2019-10-21
8-K	2019-10-04
8-K	2019-09-27
8-K	2019-09-12
8-K	2019-09-09
8-K	2019-08-19
8-K	2019-08-08
8-K	2019-07-30
8-K	2019-07-24
8-K	2019-07-19
8-K	2019-07-18
8-K	2019-07-15
8-K	2019-07-11
8-K	2019-07-11
8-K	2019-07-03
8-K	2019-06-28
8-K	2019-06-11
8-K	2019-06-07
8-K	2019-06-05
8-K	2019-06-02
8-K	2019-05-28
8-K	2019-05-16
8-K	2019-05-08
8-K	2019-05-08
8-K	2019-04-12
8-K	2019-04-04
8-K	2019-03-29
8-K	2019-03-19
8-K	2019-03-07
8-K	2019-02-28
8-K	2019-02-21
8-K	2019-01-28
8-K	2019-01-28
8-K	2019-01-10
8-K	2018-12-19
8-K	2018-12-13
8-K	2018-11-28
8-K	2018-11-08
8-K	2018-10-31
8-K	2018-09-06
8-K	2018-08-27
8-K	2018-06-15
8-K	2018-06-13
8-K	2018-06-07
8-K	2018-04-05
8-K	2018-03-28
8-K	2018-03-08
8-K	2018-01-11

EX-4.15	fcel-ex415_354.htm
EX-10.13	fcel-ex1013_355.htm
EX-31.1	fcel-ex311_9.htm
EX-31.2	fcel-ex312_7.htm
EX-32.1	fcel-ex321_8.htm
EX-32.2	fcel-ex322_6.htm

FCEL 10Q Quarterly Report

Fuelcell Energy Earnings 2020-04-30