11.3.2003: Meldung: FuelCell Energy Reports First Quarter Results
FuelCell Energy reported an increase in revenues of 47 percent in the first quarter of 2003 to $10.3 million compared to $7.0 million in the same quarter of the previous year. Net loss for the first quarter of 2003 was $16.0 million, or $0.41 per basic and diluted share, compared with a net loss of $6.0 million, or $0.15 per basic and diluted share, during the same quarter of the previous year.
Cash, cash equivalents and investments (U.S. Treasuries) on hand as of January 31, 2003 totaled $200 million. Cash used was $20.1 million in the first quarter, including $2.0 million for capital expenditures and $3.5 million for working capital. Depreciation expense for the three-month periods ended January 31, 2003 and 2002 was $1,253,000 and $615,000, respectively.
Revenues in the current quarter were attributable to the production of DFC power plants, shipment of fuel cell components and progress on the Company"s research and development contracts.
The net loss for the current quarter reflects the Company"s investment in the standardization of DFC power plants, development of its distribution network and increases in operating costs including employee expenses, depreciation related to plant expansion, information systems and infrastructure.
DFC Technology Generating Power Today
"Our DFC power plants are generating clean, efficient and reliable power for our customers today," said Jerry D. Leitman, Chairman and CEO of FuelCell Energy, Inc. "In fact, our DFC power plants have produced over 7 million kilowatt hours of electricity at customer sites and more than 10 million kilowatt hours including units at our facilities. And because our products generate hydrogen internally within the fuel cell from readily available fuels such as natural gas and digester gas, we are ready today and do not need to wait for the creation of a hydrogen infrastructure."
Deliveries and Performance Drive Commercialization Effort
Key accomplishments with our partners and customers during the early part of fiscal year 2003 include the initiation of our field follow program for the Company"s newly-designed, advanced DFC300A power plants.
* Marubeni. -- FuelCell Energy delivered its first DFC300A to a Kirin Brewery near Tokyo, Japan in December 2002. After completing installation, the unit has passed initial acceptance testing and is operating on dual fuels, anaerobic digester gas and propane. Additional DFC300A units are scheduled to ship to Japan beginning later this month, April and May.
* PPL. The Company delivered a DFC300A to the Coast Guard in February 2003 and final site preparations are being completed by PPL and the customer at the Bourne, MA facility. Additional DFC300A units are scheduled for delivery to PPL customers in April.
* MTU. MTU, a DaimlerChrysler company, has six combined heat-and-power sub-megawatt units operating in Europe in a variety of applications, including:
* EnBW-Michelin, Germany -- a tire manufacturing plant;
* Deutsche Telecom, Germany -- DC power for a telecommunications center;
* IPF Magdeburg, Germany -- a university medical clinic;
* IZAR, Spain -- a shipbuilding facility;
* Rhon-Klinikum, Germany -- a hospital; and,
* RWE, Germany -- an energy park.
The next unit to be commissioned is a unit for Gruenstadt Clinic in Germany through Pfalzwerke in May 2003.
In January, the fuel cell activities of MTU were consolidated in a new subsidiary, MTU CFC Solutions Gmbh, focused on advancing fuel cell commercialization in Europe.
* Los Angeles Department of Water and Power. With the successful completion of this site"s field trial program, the Company delivered and installed a DFC300A power plant at the LADWP headquarters. This unit replaces the DFC300 field trial unit that completed successful operation and will be redeployed at another customer site.
* Caterpillar. American Municipal Power -- Ohio (AMP-Ohio) was awarded funding from the Ohio Fuel Cell Initiative for a DFC300A, that will be sited at a substation in Westerville, to grid-support the municipality"s local electric distribution system. Holt Power Systems, Inc., a Caterpillar dealer, and the City of Westerville expect to sign a contract shortly with delivery of the unit by the end of calendar 2003. This will represent Caterpillar"s first order under the alliance agreement. Additionally, Caterpillar continues to make excellent progress on the development of a Caterpillar-branded DFC1500 power plant.
* Cost Reductions Implemented. The Company has identified and initiated cost reductions in the production and procurement of fuel cell modules as well as balance of plant components for its sub-megawatt DFC power plants. Enhancements in production coupled with purchased material
cost improvements have resulted in a reduction in the overall fuel cell module cost by 25 to 30 percent. As a result of value engineering and the selection of qualified equipment vendors, balance of plant costs have been reduced by 30 to 35 percent. These cost reductions also apply to the megawatt DFC power plants and similar cost reductions are expected with subsequent multi-unit orders.
* California Rule 21 Certification. FuelCell Energy recently received Rule 21 Certification in California, which is intended to streamline the permitting process for distributed generation equipment while ensuring safe interconnection with the electrical grid. This certification will significantly reduce the time, cost and complexity for future interconnection with the state"s grid system, avoiding costly external equipment procurement requirements and extensive site-by-site as well as utility-by-utility analyses.
* Megawatt Field Trial Program. The Company"s first one-megawatt DFC1500 power plant is undergoing testing in preparation for operation next month on natural gas, grid-connected, in Torrington prior to delivery to the customer site. The unit will be delivered to the King County,
Washington municipal wastewater treatment facility to operate on anaerobic digester gas after site preparation is completed, expected in early summer 2003. Production continues on the first two-megawatt DFC3000 power plant, which will be delivered to the Wabash, Indiana
coal gasification site to operate on coal-derived synthetic gas in the summer of 2003.
* Direct FuelCell/Turbine® (DFC/T®). The Company is undergoing initial testing of the combined 250-kilowatt DFC power plant and 60-kilowatt Capstone microturbine to continue proof-of-concept testing of this high efficiency hybrid power plant. In the larger 10 to 50 megawatt combined-cycle design, the DFC/T is expected to approach the 75 percent electrical efficiency target as specified by the Department of Energy"s Vision 21 program while retaining the ultra-low emissions of the Company"s DFC power plants.
* DFC Units Exceed 10 Million Kilowatt Hours. The Company"s DFC power plants have generated over 10 million kilowatt hours of electricity, including 7 million kilowatt hours at customer sites in Japan, Europe and the U.S. The Company expects to double its output to over 15 million kilowatt hours at customer sites by the end of fiscal 2003 at which time its DFC power plants, only from the current backlog, will
be generating over 15 million kilowatt hours per quarter.
2003 Focus Continues FuelCell Energy continues to focus on its key objectives for this year including:
* Delivering and commissioning the DFC300A power plants in backlog.
* Generating orders for DFC products through the distribution network by focusing on targeted commercial and industrial markets -- universities, hospitals, hotels, industrial, critical reliability, wastewater treatment and grid-support applications -- and offering competitive terms and conditions.
* Implementing the field follow program for the DFC300A to monitor fleet performance (with additional instrumentation, field service and data
* Initiating the field trial program for the megawatt-class DFC1500 and DFC3000 power plants, operating on natural gas, grid connected, in Torrington before delivery to customer sites.
* Reducing product cost, focusing on value engineering, performance
improvements, manufacturing cost efficiencies and supplier development.
* Managing cash consistent with market demand following completion of the near-term product strategy, including standardizing products, increasing production capacity, developing distribution and delivering DFC power plants in backlog.
Conference Call Information
A conference call is scheduled for 10:00 A.M. on March 11, 2003, EST to review results and discuss the company outlook. Listeners can gain access to the call live over the Internet by clicking on the web cast link on the Company"s homepage at http://www.fce.com . A playback version will be available for seven days after the call by calling 800-642-1687, confirmation number 8905206.
About Direct FuelCells
Direct FuelCells efficiently generate clean electricity at distributed locations near the customer, including hospitals, schools, universities, hotels and other commercial and industrial facilities, as well as grid support for utility applications. In essence, Direct FuelCells are like large, continuously operating batteries that generate electricity as long as fuel, such as natural gas, is supplied. Since the fuel is not burned, there is no pollution commonly associated with the combustion of fossil fuels. This high-efficiency technology generates more electric power from less fuel and with less carbon dioxide emissions than traditional methods. Operating on biomass fuels, such as wastewater treatment digester gas, Direct FuelCells are a renewable technology.
About FuelCell Energy, Inc.
FuelCell Energy, Inc., based in Danbury, Connecticut, is a world leader in the development and manufacture of highly efficient hydrogen fuel cells for clean electric power generation, currently offering DFC power plant products ranging in size from 250 kilowatts to 2 megawatts for applications up to 50 megawatts.
The Company has developed commercial distribution alliances with MTU CFC Solutions Gmbh, a company of DaimlerChrysler AG, in Europe; Marubeni Corporation in Asia; and Caterpillar, PPL Energy Plus, Chevron Energy Solutions, CMS Viron Energy Services and MWH Global in the U.S. FuelCell Energy is developing Direct FuelCell technology for stationary power plants with the U.S. Department of Energy through their Office of Fossil Energy"s National Energy Technology Laboratory. Because hydrogen is generated directly within the fuel cell module from readily available fuels such as natural gas and wastewater treatment gas, DFC power plants are ready today and do not require the creation of a hydrogen infrastructure. More information is available at http://www.fuelcellenergy.com .
This press release contains forward-looking statements, including statements regarding the Company"s plans and expectations regarding the development and commercialization of its fuel cell technology. 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, the risk that commercial field trials of the Company"s products will not occur when anticipated, general risks associated with product development, manufacturing, changes in the utility regulatory environment, potential volatility of energy prices, rapid technological change, and competition, 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.
FUELCELL ENERGY, INC.
Statements of Loss
(Dollars in thousands, except per share amounts)
Three months ended
January 31, January 31,
Research and development contracts $ 5,459 $ 6,271
Product sales and revenue 4,834 730
Total revenues 10,293 7,001
Costs and expenses:
Cost of research and development contracts 7,110 6,754
Cost of product sales and revenues 14,948 3,939
Administrative and selling expenses 3,130 2,597
Research and development expenses 2,081 1,304
Total costs and expenses 27,269 14,594
Loss from operations (16,976) (7,593)
License fee income, net 68 68
Interest expense (37) (33)
Interest and other income, net 919 1,531
Loss before provision for income taxes (16,026) (6,027)
Provision for income taxes -- --
Net loss $ (16,026) $ (6,027)
Basic and diluted loss per share $ (0.41) $ (0.15)
Basic and diluted shares outstanding 39,306,991 39,027,697
FUELCELL ENERGY, INC.
Condensed Balance Sheets
(Dollars in thousands, except per share amounts)
2003 October 31,
Cash and cash equivalents $ 83,060 $ 102,495
Investments (U.S. Treasuries) 97,475 103,501
Accounts receivable, net 9,187 10,438
Inventories 17,754 13,981
Other current assets 2,644 4,324
Total current assets 210,120 234,739
Property, plant and equipment, net 39,501 38,710
Investments (U.S. Treasuries) 19,945 14,587
Other assets, net 1,731 1,767
Total assets $ 271,297 $ 289,803
LIABILITIES AND SHAREHOLDERS" EQUITY
Current portion of long-term debt $ 285 $ 285
Accounts payable 5,589 4,712
Accrued liabilities 6,508 7,904
Deferred license fee income 262 38
Customer advances 1,169 3,466
Total current liabilities 13,813 16,405
Long-term debt 1,626 1,696
Total liabilities 15,439 18,101
Common stock 4 4
Additional paid-in capital 339,944 339,762
Accumulated deficit (84,090) (68,064)
Total shareholders" equity 255,858 271,702
Total liabilities and shareholders" equity $ 271,297 $ 289,803
Investors - Steven P. Eschbach of FuelCell Energy, Inc.,
Media - Bill Baker of Baker Communications
Group, LLC, +1-860-350-9100, firstname.lastname@example.org,
for FuelCell Energy, Inc.