FuelCell Energy(US:FCEL)2024-06-10 11:40Financial Performance - Total revenues for the three months ended April 30, 2024, were $22.4 million, a decrease of $15.9 million (42%) from $38.3 million in the same period of the prior year[144]. - Cost of revenues for the three months ended April 30, 2024, was $29.5 million, down $14.9 million (34%) from $44.4 million for the same period in the prior year[144]. - The gross loss for the three months ended April 30, 2024, was $7.1 million, compared to a gross loss of $6.1 million in the same period of the prior year, reflecting an increase of $981,000 (16%) in losses[144]. - Loss from operations for the three months ended April 30, 2024 was $41.4 million, an increase from $35.9 million in the prior year, driven by higher operating expenses[169]. - Net loss attributable to common stockholders was $32.9 million for the three months ended April 30, 2024, compared to $35.1 million in the prior year, with a net loss per common share of $0.07[178]. - Total revenues for the six months ended April 30, 2024, were $39.1 million, a decrease of $36.3 million (48%) from $75.4 million in the same period last year[180]. - Product revenues were $0 for the six months ended April 30, 2024, compared to $9.1 million for the same period in 2023, reflecting a 100% decrease[182]. - Service agreements revenues decreased by $37.1 million (93%) to $3.0 million for the six months ended April 30, 2024, down from $40.1 million in the prior year[185]. - Generation revenues increased by $6.6 million (37%) to $24.6 million for the six months ended April 30, 2024, compared to $18.0 million for the same period in 2023[189]. - Advanced Technologies contract revenues rose to $11.5 million for the six months ended April 30, 2024, an increase of $3.3 million (39%) from $8.3 million in the prior year[197]. - Loss from operations for the six months ended April 30, 2024, was $83.8 million, an increase of $25.5 million from a loss of $58.3 million in the same period last year[200]. - For the six months ended April 30, 2024, net loss attributable to common stockholders was $53.5 million, a slight decrease from $54.5 million in the same period of 2023, with net loss per common share improving from $0.13 to $0.12[208]. Revenue Breakdown - Service agreements revenues for the three months ended April 30, 2024 decreased by $24.8 million (95%) to $1.4 million from $26.2 million for the same period in 2023, primarily due to no module exchanges during the quarter[152]. - Cost of service agreements revenues decreased by $18.8 million (94%) to $1.3 million for the three months ended April 30, 2024, reflecting lower costs as there were no module exchanges[153]. - Gross profit from service agreements revenues was $0.1 million for the three months ended April 30, 2024, down from $6.1 million in the prior year, resulting in a gross margin of 7.5% compared to 23.2%[154]. - Generation revenues increased by $5.7 million (67%) to $14.1 million for the three months ended April 30, 2024, driven by new projects including the Toyota Project and Derby Projects[157]. - Cost of generation revenues rose by $4.3 million (25%) to $21.4 million for the three months ended April 30, 2024, due to the increased size of the installed fleet[158]. Expenses - Administrative and selling expenses increased to $17.7 million for the three months ended April 30, 2024, up from $15.1 million in the prior year, primarily due to increased compensation expenses[167]. - Research and development expenses rose to $16.6 million for the three months ended April 30, 2024, compared to $14.7 million in the prior year, reflecting increased spending on commercial development efforts[168]. - Administrative and selling expenses increased to $34.1 million for the six months ended April 30, 2024, up from $30.1 million in the prior year, primarily due to increased compensation expenses[196]. - Research and development expenses increased to $31.0 million for the six months ended April 30, 2024, compared to $27.4 million in the same period last year, driven by higher spending on ongoing development efforts[199]. Cash and Financing - As of April 30, 2024, unrestricted cash and cash equivalents totaled $158.8 million, down from $250.0 million as of October 31, 2023[210]. - The company raised approximately $6.3 million in gross proceeds from the sale of 6.5 million shares of common stock at an average price of $0.98 per share between April 10, 2024, and April 30, 2024[213]. - The company completed a tax equity financing transaction with Franklin Park totaling $30.2 million for two fuel cell power plant installations, with $21.1 million received during the six months ended April 30, 2024[215]. - Net cash used in operating activities was $95.4 million for the six months ended April 30, 2024, compared to $88.7 million for the same period in 2023[272]. - Net cash used in investing activities was $27.4 million for the six months ended April 30, 2024, a significant decrease from $111.6 million in the same period in 2023[274]. - Net cash provided by financing activities was $35.2 million during the six months ended April 30, 2024, compared to a net cash outflow of $4.0 million in the same period in 2023[275]. Backlog and Future Projects - Service agreements backlog increased to $145.1 million as of April 30, 2024, up from $73.7 million a year earlier, driven by a 14-year service agreement with Noeul Green Energy valued at approximately $75.6 million[234]. - Generation backlog decreased to $852.9 million as of April 30, 2024, compared to $926.0 million as of April 30, 2023[234]. - Overall backlog increased by approximately 3.8% to $1.06 billion as of April 30, 2024, compared to $1.02 billion a year earlier[236]. - The company is continually assessing various means to accelerate growth, including potential acquisitions and partnerships for geographic or manufacturing expansion[221]. - The company is focused on advancing sustainable clean energy technologies to address critical challenges in energy access and environmental stewardship[135]. Manufacturing and Production - The annualized production rate at the Torrington, CT manufacturing facility increased to approximately 30.9 MW for the three months ended April 30, 2024, compared to 28.7 MW for the same period in the prior year[150]. - Annualized production rate at the Torrington manufacturing facility was approximately 31.8 MW for the six months ended April 30, 2024, down from 33.4 MW for the same period in 2023[242]. - The solid oxide production capacity expansion in Calgary is expected to increase from 4 MW to 40 MW per year of SOEC production by the end of calendar year 2025[253]. - The maximum annualized capacity of the carbonate platform at the Torrington facility is currently 100 MW, with potential expansion to 200 MW with additional investment[253]. - The company plans to add an additional 400 MW of solid oxide manufacturing capacity in the U.S., contingent on market demand[262]. Financial Obligations - The company has a total of $314,130,000 in various financial obligations, including purchase commitments and lease payments[280]. - Total purchase commitments amount to $80,371,000, with $70,751,000 due within one year[280]. - The company has secured term loans totaling $147,143,000, with $17,786,000 due within one year[280]. - Operating lease commitments total $18,530,000, with $1,346,000 due within one year[280]. - The company is required to maintain a debt service coverage ratio of not less than 1.20:1.00, tested every six months[308].