Third Quarter Fiscal 2018 Earnings Call September 6, 2018

Transcription

1 Third Quarter Fiscal 2018 Earnings Call September 6, 2018

2 Third Quarter Fiscal 2018 Earnings Today s presenters: Chip Bottone President and Chief Executive Officer Mike Bishop Senior Vice President and Chief Financial Officer Tom Gelston Vice President, Investor Relations NASDAQ: FCEL 2

3 Safe Harbor Statement This presentation 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 (SEC). The forward-looking statements contained herein speak only as of the date of this presentation. 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. The Company may refer to non-gaap financial measures in this presentation. The Company believes that this information is useful to understanding its operating results and assessing performance and highlighting trends on an overall basis. Please refer to the Company s earnings release for further disclosure and reconciliation of non-gaap financial measures. (As used herein, the term GAAP refers to generally accepted accounting principles in the U.S.) The information set forth in this presentation is qualified by reference to, and should be read in conjunction with, our Annual Report on Form 10-K for the fiscal year ended October 31, 2017, filed with the SEC on January 11, 2018, our Quarterly Report on Form 10-Q filed with the SEC on September 6, 2018, and our earnings release for the third quarter ended July 31, 2018, filed as an exhibit to our Current Report on Form 8-K filed with the SEC on September 6,

4 Highlights Backlog and Project Awards increased to a total of $1.9 billion in Q3-18 CT DEEP Award of Fuel Cell Projects Totaling 22.2 Megawatts ( MW ) 20 Yr. Long Term Service Agreement with KOSPO KOSPO Ribbon-Cutting Ceremony Projects making progress: LIPA (39.8 MW) Tulare (2.8 MW) CMEEC / Groton Sub base (7.4 MW) TOYOTA Long Beach (2.2 MW) Significant/diversified interest in project financing Sale of Trinity Project to American Electric Power (AEP) Annual production rate increase Goal of increasing from 25 to 55 MW run-rate by April 2019 Torrington, CT 4

5 Financial Overview Q3-18 revenue of $12.1 million vs $10.4 million in Q3-17 Backlog & project awards total $1.9 billion Total cash and cash equivalents of $87.3 million Unrestricted cash and equivalents of $48.7 million Project Assets total $89.7 million vs. $67.2 in Q3-17 Financing activity includes: Fourth quarter capital raise of ~$25.4 million Sale of 1.4 MW Trinity College project to AEP Focused on project and construction financing Building Towards Sustainable Profitability 5

6 Business Execution LIPA projects on schedule PPA execution expected Q4-18 CMEEC (Groton Sub Base) construction commencing (2) SureSource MW high electrical efficiency fuel cell plants with 60%+ electrical efficiency (Expected Spring 2019 COD) Connecticut DEEP Awards A 14.8 MW project located in Derby, CT A 7.4 MW project located in Hartford, CT RPS target increased to 40% by 2030 driving future awards Execution / development of carbon capture installations with ExxonMobil Toyota Long Beach hydrogen project moves forward 6

7 Summary Backlog and project awards increased to a record $1.9 billion 120% production rate increase at Torrington, CT factory Strong visibility for project financing, pipeline conversion Substantive momentum moving into fiscal