FUELCELL ENERGY, INC.
FuelCell Energy Reports First Quarter Fiscal 2019 Financial Results and Business Update

FuelCell Energy, Inc. (Nasdaq: FCEL), a global leader in delivering clean, innovative and affordable fuel cell solutions for the supply, recovery and storage of energy, today (3/7) reported financial results for its first fiscal quarter ended January 31, 2019 and key business highlights. 

Financial Results
FuelCell Energy, Inc. (the Company) reported total revenues for the first quarter of fiscal 2019 of $17.8 million, compared to total revenues of $38.6 million for the first quarter of fiscal 2018, including:    

• Service and license revenues totaled $11.8 million for the first quarter of fiscal 2019 compared to $4.1 million for the first quarter of fiscal 2018.  The increase is primarily due to a higher number of scheduled module replacements under the Company's service agreements in the first quarter of fiscal 2019, as well as the benefit of the long-term service agreement with Korea Southern Power Company ("KOSPO") in South Korea entered into during fiscal 2018.    
• Generation revenues totaled $1.5 million for the first quarter of fiscal 2019 compared to $1.9 million for the first quarter of fiscal 2018. Revenue was lower primarily due to the timing of plant maintenance in the first quarter of fiscal 2019 compared with the first quarter of fiscal 2018.
• Advanced technologies contract revenues totaled $4.5 million for the first quarter of fiscal 2019 compared to $3.1 million for the first quarter of fiscal 2018.  Revenue was higher for the first quarter of fiscal 2019 primarily due to the timing and mix of activity under existing contracts. 
• Product revenues decreased $29.5 million for the first quarter of fiscal 2019 compared to the first quarter of fiscal 2018. The decrease is primarily a result of the completion of deliveries in fiscal 2018 under a 20 megawatt (MW) order for a utility project owned by KOSPO.             

The gross loss generated in the first quarter of fiscal 2019 totaled $2.2 million, compared to $4.6 million of gross profit generated in the first quarter of fiscal 2018. 
  
Operating expenses for the first quarter of fiscal 2019 totaled $13.0 million compared to $10.2 million for the first quarter of fiscal 2018.  This increase is related to spending to complete the development and construction of the SureSource 4000 plant located in Danbury, Connecticut as well as higher professional related and sales and marketing expenditures due to business activities in the first quarter of fiscal 2019.

Net loss attributable to common stockholders for the first quarter of fiscal 2019 totaled $33.0 million, or $0.33 per basic and diluted share, compared to $8.4 million, or $0.12 per basic and diluted share, for the first quarter of fiscal 2018. Net loss attributable to common stockholders in the first quarter of fiscal 2019 includes a deemed dividend totaling $0.5 million and redemption value adjustments of $8.6 million on the Company's Series C Convertible Preferred Stock, as well as a deemed dividend of $1.9 million and $3.8 million of redemption accretion on the Company's Series D Convertible Preferred Stock. See the appendix at the end of this release for further details regarding the deemed dividend, redemption value adjustments and redemption accretion. Together, these non-cash items accounted for approximately $0.15 of the loss per share in the quarter.

Adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA, a Non-GAAP measure) in the first quarter of fiscal 2019 totaled ($12.1) million compared to ($2.8) million in the first quarter of fiscal 2018.  Refer to the discussion of Non-GAAP financial measures below regarding the Company's calculation of Adjusted EBITDA. 

Read the full press release.