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FuelCell Energy Reports Second Quarter Results and Business Highlights

FuelCell Energy Reports Second Quarter Results and Business Highlights

  *Record quarterly revenue of $42 million
  *Annual production run-rate increased by 25 percent to 70 megawatts
    annually
  *Sale of 1.4 megawatt power plant for hospital application
  *Construction of multi-megawatt fuel cell parks on track in Connecticut and
    South Korea

DANBURY, Conn., June 5, 2013 (GLOBE NEWSWIRE) -- FuelCell Energy, Inc.
(Nasdaq:FCEL), a global leader in the design, manufacture, operation and
service of ultra-clean, efficient and reliable fuel cell power plants, today
reported results for its second quarter ended April 30, 2013 along with an
update on key business highlights.

Financial Results

FuelCell Energy (the Company) reported total revenues for the second quarter
of 2013 of $42.4 million, an increase of 75 percent when compared to total
revenues of $24.2 million for the second quarter of 2012.

Product sales for the second quarter of 2013 totaled $34.4 million including
$29.3 million of fuel cell kits and power plants, and $5.1 million of power
plant component sales and installation services.For the comparable prior year
period, product sales totaled $18.7 million including $14.3 million of fuel
cell kits and power plants and $4.4 million of power plant component sales and
installation services.The increase year-over-year reflects higher fuel cell
kit sales combined with revenue from the Bridgeport fuel cell park project of
approximately $8.9 million. The Company increased its production rate during
the second quarter of 2013 at the Torrington, Connecticut manufacturing
facility, reaching an annual run-rate of 70 megawatts (MW) effective May 1,
2013.

Service and license revenues for the second quarter of 2013 totaled $4.1
million compared to $3.5 million for the comparable prior year period.

Advanced technologies contract revenue was $4.0 million for the second quarter
of 2013 compared to $2.0 million for the second quarter of 2012 with the
increase primarily due to solid oxide fuel cell development programs,
particularly the unmanned aerial program with Boeing resulting from the
acquisition of Versa Power Systems in the first quarter of 2013. 

Backlog totaled $410.0 million at April 30, 2013 compared to $181.4 million at
April 30, 2012.

  *Product sales backlog was $238.1 million at April 30, 2013 compared to
    $89.3 million at April 30, 2012.The 122 MW fuel cell kit order by POSCO
    Energy in October 2012 and the 14.9 MW Bridgeport fuel cell park project
    account for the increase in product sales backlog year-over-year.Product
    backlog in megawatts totaled 139.5 MW at April 30, 2013 compared to 52.4
    MW at April 30, 2012.
  *Service backlog was $157.8 million at April 30, 2013 compared to $78.4
    million at April 30, 2012 with the addition of the Bridgeport fuel cell
    park service contract accounting for a significant portion of the growth
    year-over-year.
  *Advanced technologies contracts backlog was $14.1 million at April 30,
    2013 compared to $13.8 million at April 30, 2012. 

The gross profit generated in the second quarter of 2013 totaled $2.3 million
compared to a gross profit of $0.2 million generated in the second quarter of
2012. The second quarter 2013 gross margin of 5.5 percent benefitted from a
sales mix that included complete power plants and installation services along
with fuel cell kits.

Loss from operations for the second quarter of 2013 was $7.2 million compared
to $7.8 million for the second quarter of 2012.Administrative and selling
expenses increased in the second quarter of 2013 compared to the second
quarter of 2012, due to increased business development activity in the
European market and fully consolidating Versa Power Systems. 

Net loss to common shareholders for the second quarter of 2013 totaled $8.2
million, or $0.04 per basic and diluted share, compared to $9.1 million or
$0.06 per basic and diluted share in the second quarter of 2012.

Year-to-Date 2013

For the six months ended April 30, 2013, the Company reported revenue of $78.8
million compared to $55.5 million for the prior year period.Product sales
were $63.4 million compared to $44.8 million for the prior year
period.Service agreement and license revenues were $9.1 million compared to
$6.9 million for the prior year period.Advanced technologies contract
revenues totaled $6.3 million, compared to $3.8 million for the prior year
period.

For the six months ended April 30, 2013, the Company's gross profit was
approximately breakeven compared to a gross profit of $2.3 million for the six
months ended April 30, 2012.A charge of approximately $2.1 million was
incurred in the first quarter of 2013 related to a select number of fuel cell
stacks requiring repair, which negatively impacted financial results for the
six months ended April 30, 2013 compared to the prior year period.

Loss from operations for the six months ended April 30, 2013 was $18.3
million, compared to $13.2 million for the six months ended April 30,
2012.The change year-over-year includes the impact of increased business
development activity in the USA and European markets and fully consolidating
Versa Power Systems. 

Net loss to common shareholders for the six months ended April 30, 2013 was
$20.6 million or $0.11 per basic and diluted share, or $15.8 million or $0.11
per basic and diluted share for the prior year period.

Cash and cash equivalents

Total cash and cash equivalents and restricted cash was $71.7 million at April
30, 2013.Net cash used in the quarter of $14.6 million consisted primarily
of a use of working capital tied to the growth of the business and power plant
construction activities.

During the quarter, the Company closed on a new long-term loan agreement with
the Connecticut Clean Energy andFinance Investment Authority (CEFIA)
totaling$5.9 millionin support of the Bridgeport project. Advances under
the loan agreement during the second quarter totaled $2.6 million partially
off-setting working capital usage.Capital spending for the second quarter of
2013 was $1.2 million and depreciation expense was $1.0 million.

Business Highlights and Strategy Execution

Operations update

The annual production run-rate at the Torrington, Connecticut production
facility was increased to 70 MW as of May 1, 2013 to meet backlog.The change
in production levels represented an increase of 25 percent from the production
levels of 56 MW annually maintained during the second quarter of 2013.

Engineering and assembly of fuel cell power plants commenced at the FuelCell
Energy Solutions manufacturing facility in Germany during the second quarter
of 2013.

Installations Update

"In conjunction with our customer, Dominion, we co-hosted a groundbreaking
ceremony at the Bridgeport fuel cell park last month to showcase our clean and
efficient product solutions to government officials and the local community
and to say that the project is on schedule and on budget," said Chip Bottone,
President and Chief Executive Officer, FuelCell Energy, Inc.

The first two fuel cell modules have been delivered to the Bridgeport fuel
cell park with subsequent deliveries scheduled during the summer and early
fall.The inter-connection work to connect the fuel cell park to the electric
grid via three substations is more than 90 percent complete.Module
manufacturing and conditioning is on schedule and the fuel cell park is
expected to deliver full power by the end of calendar year 2013.

Construction of the 59 MW fuel cell park in Hwasung City, South Korea by POSCO
Energy continues to progress with twelve of the 2.8 MW DFC3000 power plants on
site and the remaining nine plants to be delivered during the summer and early
fall.Commissioning has begun for the initial power plant installations.The
fuel cell park will be brought to full power by the end of 2013 or early 2014.

In Europe, the fuel cell power plant purchased by The Crown Estate and
installed inside the Regent Street mixed-use office/residential/retail complex
in central London, England is undergoing commissioning.Construction of both
the 20 Fenchurch office tower in London and the Federal Ministry of Education
and Research government complex in Berlin, Germany is progressing.The fuel
cell power plant for the Berlin installation is being assembled at the
FuelCell Energy Solutions manufacturing facility in Germany.

Market Update

"I am very encouraged about the order outlook for our power plants based on
customer discussions including utilities and on-site power users," said Mr.
Bottone,"Near-term order volume exists in California, Connecticut and New
Jersey as well as Germany and potentially a few other European countries."

A 1.4 MW DFC1500^® power plant was sold during the second quarter of 2013 for
installation at a hospital in Hartford, Connecticut.The power plant will be
configured for combined heat and power with the heat being supplied to both
the hospital and a nearby school.Clean, quiet and modest space requirements
enable placement of FuelCell Energy power plants in urban locations such as
next to hospitals.The project is part of the State of Connecticut
Low-emission Renewable Energy Credit (LREC) program.

The Company has approximately 18 megawatts of approved projects under the
Connecticut Project 150 program.Legislation was recently approved that
extended the required start-date of these projects by 24 months.The required
start dates now range from May 2015 to September 2015.Construction of the
Bridgeport fuel cell park, a CT150 project, and the associated job creation
supported the extension request.The Company is seeking project investors to
purchase and own the power plants.Similar to the Bridgeport fuel cell park,
the Company is developing the projects, will provide the fuel cell power
plants, and expects to provide installation/Engineering, Procurement and
Construction (EPC) services, and then operate and maintain the plants over the
term of the power purchase agreement.

Cautionary Language

This news release contains forward-looking statements within the meaning of
the safe harbor provisions of the Private Securities Litigation Reform Act of
1995, including, without limitation, statements with respect to the Company's
anticipated financial results and statements regarding the Company's plans and
expectations regarding the continuing development, commercialization and
financing of its fuel cell technology and business plans. All forward-looking
statements are subject to risks and uncertainties that could cause actual
results to differ materially from those projected. Factors that could cause
such a difference include, without limitation, changes to projected deliveries
and order flow, changes to production rate and product costs, general risks
associated with product development, manufacturing, changes in the regulatory
environment, customer strategies, unanticipated manufacturing issues that
impact power plant performance, changes in critical accounting
policies,potential volatility of energy prices, rapid technological change,
competition, and the Company's ability to achieve its sales plans and cost
reduction targets, as well as other risks set forth in the Company's filings
with the Securities and Exchange Commission. The forward-looking statements
contained herein speak only as of the date of this press release. The Company
expressly disclaims any obligation or undertaking to release publicly any
updates or revisions to any such statement to reflect any change in the
Company's expectations or any change in events, conditions or circumstances on
which any such statement is based.

About FuelCell Energy

Direct FuelCell® power plants are generating ultra-clean, efficient and
reliable power at more than 50 locations worldwide. With more than 300
megawatts of power generation capacity installed or in backlog, FuelCell
Energy is a global leader in providing ultra-clean baseload distributed
generation to utilities, industrial operations, universities, municipal water
treatment facilities, government installations and other customers around the
world. The Company's power plants have generated more than 1.6 billion
kilowatt hours of ultra-clean power using a variety of fuels including
renewable biogas from wastewater treatment and food processing, as well as
clean natural gas.For more information, please visit www.fuelcellenergy.com
See us on YouTube

Direct FuelCell, DFC, DFC/T, DFC-H2 and FuelCell Energy, Inc. are all
registered trademarks of FuelCell Energy, Inc. DFC-ERG is a registered
trademark jointly owned by Enbridge, Inc. and FuelCell Energy, Inc.

Conference Call Information

FuelCell Energy management will host a conference call with investors
beginning at 10:00 a.m. Eastern Time on June 6, 2013 to discuss the second
quarter 2013 results. An accompanying slide presentation for the earnings
call will be available athttp://fcel.client.shareholder.com/events.cfm
immediately prior to the call.

Participants can access the live call via webcast on the Company website or by
telephone as follows:

  *The live webcast of this call will be available on the Company website at
    www.fuelcellenergy.com.To listen to the call, select 'Investors' on the
    home page, then click on 'events & presentations' and then click on
    'Listen to the webcast'
  *Alternatively, participants in the U.S. or Canada can dial 877-303-7005
  *Outside the U.S. and Canada, please call 678-809-1045
  *The passcode is 'FuelCell Energy'

The webcast of the conference call will be available on the Company's
Investors' page at www.fuelcellenergy.com.Alternatively, the replay of the
conference call will be available approximately two hours after the conclusion
of the call until midnight Eastern Time on June 9, 2013:

  *From the U.S. and Canada please dial 855-859-2056
  *Outside the U.S. or Canada please call 404-537-3406
  *Enter confirmation code75510477


FUELCELL ENERGY, INC.
Consolidated Balance Sheets
(Unaudited)
(Amounts in thousands, except share and per share amounts)

                                                        April 30, October 31,
                                                         2013      2012
ASSETS                                                            
Current assets:                                                   
Cash and cash equivalents                                $ 56,039  $ 46,879
Restricted cash and cash equivalents                     10,689    5,335
License fee receivable                                   --        10,000
Accounts receivable, net                                 29,393    25,984
Inventories, net                                         49,871    47,701
Other current assets                                     7,828     4,727
Total current assets                                     153,820   140,626
                                                                 
Restricted cash and cash equivalents                     4,950     5,300
Property, plant and equipment, net                       21,911    23,258
Goodwill                                                 4,245     --
Intangible assets                                        9,592     --
Investment in and loans to affiliate                     --        6,115
Other assets, net                                        12,968    16,186
Total assets                                             $ 207,486 $ 191,485
                                                                 
LIABILITIES AND EQUITY                                            
Current liabilities:                                              
Current portion of long-term debt                        $ 4,410   $ 5,161
Accounts payable                                         19,563    12,254
Accounts payable due to affiliate                        --        203
Accrued liabilities                                      19,706    20,265
Deferred revenue                                         60,207    45,939
Preferred stock obligation of subsidiary                 1,060     1,075
Total current liabilities                                104,946   84,897
                                                                 
Long-term deferred revenue                               20,980    15,533
Long-term preferred stock obligation of subsidiary       13,292    13,095
Long-term debt and other liabilities                     10,985    3,975
Total liabilities                                        150,203   117,500
Redeemable preferred stock (liquidation preference of    59,857    59,857
$64,020 at April 30, 2013 and October 31, 2012)
Total equity:                                                     
Shareholders' (deficit) equity                                   
Common stock ($.0001 par value; 275,000,000 shares
authorized;
191,936,178 and 185,856,123 shares issued and            19        18
outstanding at April 30, 2013and October 31, 2012,
respectively)
Additional paid-in capital                               753,477   751,256
Accumulated deficit                                      (755,876) (736,831)
Accumulated other comprehensiveincome                   87        66
Treasury stock, Common, at cost (5,679 shares at April   (53)      (53)
30, 2013 and October 31, 2012)
Deferred compensation                                    53       53
Total shareholders' (deficit) equity                     (2,293)   14,509
Noncontrolling interest in subsidiaries                  (281)     (381)
                                                                 
Total (deficit) equity                                   (2,574)   14,128
Total liabilities and equity                             $ 207,486 $ 191,485



FUELCELL ENERGY, INC.
Consolidated Statements of Operations
(unaudited)
(Amounts in thousands, except share and per share amounts)

                                                Three Months Ended
                                                 April 30,
                                                2013        2012
Revenues:                                                   
Product sales                                    $ 34,375    $ 18,657
Service agreement and license revenues           4,108       3,454
Advanced technologies contract revenues          3,953       2,042
Total revenues                                   42,436      24,153
                                                           
Costs of revenues:                                          
Cost of product sales                            32,483      18,139
Cost of service agreement revenues               3,904       3,942
Cost of advanced technologies contract revenues  3,735       1,871
Total cost of revenues                           40,122      23,952
                                                           
Gross profit                                     2,314       201
                                                           
Operating expenses:                                         
Administrative and selling expenses              5,436       4,002
Research and development expenses                4,075       3,956
Total operating expenses                         9,511       7,958
                                                           
Loss from operations                             (7,197)     (7,757)
                                                           
Interest expense                                 (574)       (575)
Loss from equity investment                      --          (150)
License fee and royalty income                   --          412
Other income (expense), net                      177         (414)
                                                           
Loss before (provision) benefit for income taxes (7,594)     (8,484)
                                                           
(Provision) benefit for income taxes             (35)        121
                                                           
Net loss                                         (7,629)     (8,363)
                                                           
Net loss attributable to noncontrolling interest 264         71
                                                           
Net loss attributable to FuelCell Energy, Inc.   (7,365)     (8,292)
                                                           
Preferred stock dividends                        (800)       (801)
                                                           
Net loss to common shareholders                  $ (8,165)   $ (9,093)
                                                           
Loss per share basic and diluted                            
Basic                                            $ (0.04)    $ (0.06)
Diluted                                          $ (0.04)    $ (0.06)
                                                           
Weighted average shares outstanding                         
Basic                                            190,431,554 150,013,074
Diluted                                          190,431,554 150,013,074



FUELCELL ENERGY, INC.
Consolidated Statements of Operations
(unaudited)
(Amounts in thousands, except share and per share amounts)

                                                Six Months Ended
                                                 April 30,
                                                2013        2012
Revenues:                                                   
Product sales                                    $ 63,440    $ 44,859
Service agreement and license revenues           9,077       6,852
Advanced technologies contract revenues          6,277       3,779
Total revenues                                   78,794      55,490
                                                           
Costs of revenues:                                          
Cost of product sales                            62,427      41,499
Cost of service agreement revenues               10,389      8,242
Cost of advanced technologies contract revenues  5,975       3,444
Total cost of revenues                           78,791      53,185
                                                           
Gross profit                                     3           2,305
                                                           
Operating expenses:                                         
Administrative and selling expenses              10,868      7,766
Research and development expenses                7,402       7,739
Total operating expenses                         18,270      15,505
                                                           
Loss from operations                             (18,267)    (13,200)
                                                           
Interest expense                                 (1,140)     (1,205)
Income (loss) from equity investment             46          (512)
License fee and royalty income                   --          836
Other income (expense), net                      (105)       (218)
                                                           
Loss before provision for income taxes           (19,466)    (14,299)
                                                           
Provision for income taxes                       (42)       (78)
                                                           
Net loss                                         (19,508)    (14,377)
                                                           
Net loss attributable to noncontrolling interest 462         142
                                                           
Net loss attributable to FuelCell Energy, Inc.   (19,046)    (14,235)
                                                           
Preferred stock dividends                        (1,600)     (1,601)
                                                           
Net loss to common shareholders                  $ (20,646)  $ (15,836)
                                                           
Loss per share basic and diluted                            
Basic                                            $ (0.11)    $ (0.11)
Diluted                                          $ (0.11)    $ (0.11)
                                                           
Weighted average shares outstanding                         
Basic                                            188,968,577 144,830,437
Diluted                                          188,968,577 144,830,437

CONTACT: FuelCell Energy, Inc.
         Kurt Goddard, Vice President Investor Relations
         203-830-7494
         ir@fce.com

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