DANBURY, Conn., Sept. 07, 2017 (GLOBE NEWSWIRE) -- FuelCell Energy (Nasdaq:FCEL), 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 third quarter ended July 31, 2017 and key business highlights.

Financial Results
FuelCell Energy (the Company) reported total revenues for the third quarter of 2017 of $10.4 million, compared to $21.7 million for the comparable prior year period. The change in revenue reflects the transition to retaining projects in the Generation portfolio. Revenue components include:

• Service and license totaled $4.8 million for the current period compared to $4.3 million for the third quarter of 2016.
• Generation totaled $1.7 million for the current period compared to $0.2 million for the third quarter of 2016. The increase reflects the growth in the operating portfolio. A number of project awards were announced subsequent to July 31, 2017 so the Generation portfolio is expected to continue to grow as projects become operational.
• Product totaled $0.6 million for the current period compared to $13.7 million for the third quarter of 2016.
• Advanced Technologies totaled $3.2 million for the current period compared to $3.6 million for the third quarter of 2016.

A gross loss of ($2.6) million was incurred in the third quarter of 2017, compared to a gross profit of $0.4 million for the comparable prior year period. Production levels were adjusted in the third quarter to meet backlog requirements. This led to the under-absorption of fixed overhead costs compared to the prior year period that had a higher level of production. The gross loss in Products was only partially offset by the positive contribution from the Generation portfolio, Advanced Technology and Service contracts.

Operating expenses for the current period totaled $11.7 million compared to $10.8 million for the prior year period. The increase in Administrative and selling expenses reflected higher professional fees, particularly in relation to awarded contracts and new proposals, such as the recently announced 40 megawatt award from Long Island Power Authority (LIPA) and the 20 megawatt South Korean project. Research and development expenses are supporting new product introductions.

Net loss attributable to common shareholders for the third quarter of 2017 totaled $17.8 million, or $0.31 per basic and diluted share, compared to $11.8 million or $0.38 per basic and diluted share for the third quarter of 2016.

Adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA, a Non-GAAP measure) in the third quarter of 2017 totaled ($10.9) million. Refer to the discussion of Non-GAAP financial measures below regarding the Company’s calculation of Adjusted EBITDA. Capital spending was $2.2 million in the third quarter of 2017 and depreciation expense was $2.2 million, including depreciation of property, plant and equipment as well as Project assets.

Revenue Backlog
Total backlog was $437.0 million as of July 31, 2017 compared to $392.1 million as of July 31, 2016.

• Services backlog totaled $184.3 million as of July 31, 2017 compared to $214.7 million as of July 31, 2016. Services backlog includes future contracted revenue from routine maintenance and scheduled module exchanges for power plants under service agreements.
• Generation backlog totaled $202.3 million as of July 31, 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 $84.3 million.
• Product sales backlog totaled $1.6 million as of July 31, 2017 compared to $35.0 million as of July 31, 2016.
• Advanced Technologies contracts backlog totaled $48.8 million as of July 31, 2017 compared to $58.1 million as of July 31, 2016.

During the third quarter of 2017, the previously announced 1.4 megawatt Trinity University project was added to backlog.

Project awards referenced by the Company are notifications that the Company has been selected, through a competitive bidding process, to enter into definitive agreements. These awards have been publicly disclosed. Negotiations are in process and when complete, project awards will become backlog. Project awards that were not included in backlog as of July 31, 2017 include the 39.8 megawatt LIPA selections, the 20 megawatt Korea Product Sale and Service Agreements, the 2.8 megawatt Tulare BioMAT project and the 7.4 megawatt CMEEC letter of intent.

Cash, restricted cash and financing availability
Cash, cash equivalents, restricted cash and financing availability totaled $113.8 million as of July 31, 2017, including:

• Total cash of $73.8 million, including $35.7 million of unrestricted cash and cash equivalents, and $38.1 million of restricted cash
• $40.0 million of borrowing availability under the NRG Energy revolving project financing facility

Subsequent to the end of the third quarter of 2017, the Company priced an underwritten offering of convertible preferred stock which will raise net proceeds of approximately $28 million upon closing, which is expected on September 8, 2017.

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 $67.2 million as of July 31, 2017, consisting of five projects totaling 11.2 megawatts plus costs incurred to date for an additional five previously announced projects that are under construction.

Business Highlights

• Awarded three fuel cell projects totaling 39.8 megawatts by LIPA that represents up to $800 million of future contracted revenue depending on whether the projects are sold or retained
• Announced sale of 20 megawatts for South Korean utility project and expected 20 year service agreement
• Announced renewable power project with electricity to be sold to the local utility under California Biogas Market Adjustment Tariff (BioMAT)
• Announced letter of intent for 7.4 megawatt project with utility CMEEC to serve the strategic submarine base of their U.S. Navy customer
• More than 100 megawatts of fuel cell parks under development in Connecticut with multiple contractual paths enabled by State legislation enacted for utility ownership as well as the mandate for a State RFP that values resiliency, in-State economic development, ratepayer costs and low emissions
• Advancing solid oxide fuel cell commercialization with an installation at the NRG Energy Center Pittsburgh with the support of the U.S. Department of Energy, utilizing the same platform as the Company’s reversible fuel cell storage application

“Recent project awards combined with existing backlog now total about $1.5 billion, which is transformational for the Company by providing the sales volume needed to reach profitability,” said Chip Bottone, President and Chief Executive Officer, FuelCell Energy. “We have a global platform and demonstrated a sizeable win in South Korea in a relatively short period of time since re-assuming Asian marketing rights as we pursue a number of multi-megawatt opportunities in the region.”

About FuelCell Energy

FuelCell Energy (NASDAQ:FCEL) delivers efficient, affordable and clean solutions for the supply, recovery and storage of energy. We design, manufacture, undertake project development, install, operate and maintain megawatt-scale fuel cell systems, serving utilities, industrial and large municipal power users with solutions that include both utility-scale and on-site power generation, carbon capture, local hydrogen production for transportation and industry, and long duration energy storage. With installations on three continents and millions of megawatt hours of ultra-clean power produced, FuelCell Energy is a global leader with environmentally responsible power solutions. Visit us online at www.fuelcellenergy.com and follow us on Twitter @FuelCell_Energy