- Revenues of $25.5 million compared to $43.1 million
- Gross loss of $(8.2) million compared to $(4.2) million
- Loss from operations of $(41.4) million compared to $(28.0) million
- Net loss per share was $(0.06) compared to $(0.08)
DANBURY, Conn– FuelCell Energy, Inc. — a global leader in decarbonizing power and producing hydrogen through its proprietary, state-of-the-art fuel cell platforms to enable a world empowered by clean energy — today reported financial results for its third quarter ended July 31, 2023.
“For the third quarter of fiscal year 2023, reported revenues were down versus the comparable prior year quarter. This was primarily a result of lower product revenues due to the lack of module sales compared to sales in the comparable prior year quarter of replacement modules to Korea Fuel Cell Co., Ltd. (“KFC”)” said Mr. Jason Few, President and Chief Executive Officer. “Excluding the revenues generated by the sale of modules to KFC in the prior year quarter, overall revenues in the third quarter were up slightly compared to the prior year quarter.”
“We were extremely pleased to announce that we have completed the commissioning of the Toyota Long Beach project, and that our Tri-gen platform is producing power, water and hydrogen that meets the stringent purity specifications required for mobility applications,” added Mr. Few. “At this time, we are only waiting on the receipt of the final fire department and related building permits required to fully declare achievement of commercial operations. This marks a significant accomplishment in our technology development in partnership with Toyota. We believe that our innovative Tri-gen system will help Toyota achieve its decarbonization goals by producing emissions-free hydrogen, electricity, and water every day. We are excited to explore opportunities to apply our Tri-gen technology to additional projects in the future.”
Mr. Few continued, “We extended the term of our Joint Development Agreement with ExxonMobil Technology and Engineering Company (“EMTEC”) through March 2024 to allow us to continue to derisk our Generation 2 Technology fuel cell module demonstration prototype and continue our joint marketing and sales efforts to inform development of a new business framework between the parties beyond the current joint development agreement structure. We look forward to the expected future commercialization of this important technology, which we believe will demonstrate the ability of our technology to help address one of the world’s largest environmental challenges. And, on the project construction front, both projects in Derby, Connecticut being constructed are advancing on schedule, and we are on track to achieve commercial operations on the combined 16.8-megawatt (“MW”) installations in the fourth quarter of calendar year 2023.”
Mr. Few added, “Also during the third quarter, we were very pleased to expand our presence in the Korean market with domestic clean energy electric utilities that had previously installed FuelCell Energy power platforms. We executed a long-term service agreement with Noeul Green Energy Co., Ltd. (“Noeul Green”) and a memorandum of understanding with Gyeonggi Green Energy Co., Ltd., and are delighted to have the opportunity to help support stable fuel cell operations and advance eco-friendly power generation in Korea. The 14-year long-term service agreement with Noeul Green has added expected significant long-term recurring revenue to our reported backlog, with a contract value of approximately $73 million.”
“We ended the quarter on July 31, 2023 with a total cash and short-term investment position of approximately $414 million,” added Mr. Few. “During the quarter, we added liquidity to our balance sheet by entering into an $80.5 million non-recourse project financing facility through a multi-bank financing agreement with Investec Bank plc, Bank of Montreal (Chicago Branch), Connecticut Green Bank, Liberty Bank and Amalgamated Bank. The net proceeds from this transaction added approximately $46.1 million to the Company’s unrestricted cash position after repayment of existing project debt obligations and partial repayments of corporate debt obligations, and the related release of certain reserves in connection with such repayments. In addition, we were able to further support our liquidity through sales of shares under our at-the-market offering program, which raised net proceeds of approximately $83.3 million during the quarter.”
Mr. Few concluded, “We continue to execute on our strategy, proving our technologies in critical applications and supporting decarbonization across the globe. We believe that strong and growing demand for clean energy technologies combined with government policy support has generated significant potential in our markets.”
Consolidated Financial Metrics
In this press release, FuelCell Energy refers to various GAAP (U.S. generally accepted accounting principles) and non-GAAP financial measures. The non-GAAP financial measures may not be comparable to similarly titled measures being used and disclosed by other companies. FuelCell Energy believes that this non-GAAP information is useful to an understanding of its operating results and the ongoing performance of its business. A reconciliation of EBITDA, Adjusted EBITDA and any other non-GAAP measures is contained in the appendix to this press release.
| Three Months Ended July 31, | ||||||||||
| (Amounts in thousands) | 2023 | 2022 | Change | |||||||
| Total revenues | $ | 25,510 | $ | 43,104 | (41 | )% | ||||
| Gross loss | (8,215 | ) | (4,180 | ) | (97 | )% | ||||
| Loss from operations | (41,395 | ) | (27,997 | ) | (48 | )% | ||||
| Net loss | (23,601 | ) | (28,977 | ) | 19 | % | ||||
| Net loss attributable to common stockholders | (25,079 | ) | (30,214 | ) | 17 | % | ||||
| Net loss per basic and diluted share | $ | (0.06 | ) | $ | (0.08 | ) | 25 | % | ||
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