FCEL - Earnings call transcript Q4 2018

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning. My name is Adam and I will be your conference operator today. At this time, I would like to welcome everyone to the FuelCell Energy Fourth Quarter Fiscal 2018 Financial Results Conference Call. All lines have been placed on mute to prevent any background noise. And after the speakers' remarks, there will be a question-and-answer session. Instructions]. [Operator you. Thank now Mr. would turn call the And like to over I to Tom Gelston. go Please ahead.

Tom Gelston

and Welcome call release for good quarter Adam, of financial you, Thank morning. fourth the as year morning, Energy quarter earnings the results This for and The to XXXX conference well Energy. earnings the call presentation that replay earnings will section on of FuelCell company's XXXX. FuelCell the released as hours conclusion at fiscal available available fourth the after of will be website. on be this call, referenced two approximately the Investor are during A website this www.fuelcellenergy.com. its Relations company's

financing contain I plans. direct respect technology development, statements this risk cell Exchange of factors proceeding being expectations the and commercialization fuel regarding the anticipated recorded other the read the to call, remind will in the listeners would regarding I without and to statements forward-looking that company's and the call statements, company's statements limitation, would information filings Securities the forward-looking and Before to financial including with and continued US is the on its that everybody results and plans with today Commission. with company's cautionary business like like our its and to discussion

call Now, to I'd Chief Chip to Chip? turn over Executive like the Bottone, Officer. President and

Chip Bottone

and everyone, transition sustainable and company on policy Please year initiatives to turn quite profitability. set successful welcome. Slide win up morning, have drive XXXX towards to strategy and Energy for FuelCell important the well Tom. marked as highlights. projects our to execution Good an Thank tireless drive you, X, work through and develop

clean, be and billion we’ve like reliable revenue record built. megawatts as to Generation year our over on to our megawatts fuel existing highlight operating our with portfolio position generated global to and leadership $X First, awards service fiscal plants. we a new and with exited on operations continue projects XX I from in revenue stream would owned that growing XXXX over expand backlog cell

entered we Environmental the with three the Connecticut PPAs, first the Island quarter, PSEG LIPA. In of and fuel fuel two competitive solicitation selection Energy PPA energy. York projects Long of Department by June competitive with as fuel Energy or the power in of for megawatt PPAs in XX based megawatts a executed X.X Connecticut resources. of XX.X from DEEP, awards cell new under Class the megawatts in in Protection power into awarded agreements of comprised all The for plant purchase X of by December, process. XX Yaphank, part the stands During This cell cell project of we a FuelCell a New located for solicitation megawatts contract clean winning

X.X of projects. to working million our XXXX. to complete megawatt Generate leader because facility a with XX.X construction demonstrates into investing. and with awards This reviews, the to megawatts been studies, limited be top capital and million, PPA financing previous potentially backlog has XX on environmental current team $XX $XXX approximately phase construction, backlog. the in is facility Capital. contracted the our on will It out our is of projects which awards. construction under landmark Our shifted from new three the are limitation quality terms engineering construction entered with that over project record in financers these We The $XXX clean strong pathway to finance is facility a us commence FuelCell development design permitting from projects the facility activities new awards combined installation provides diligently and electrical The establishes megawatts for new finance interconnection Capital eager into and in access up of to relationship all PPAs execution a finance point enthusiastic Development New expandable million our build energy to backlog place execute up Connecticut to We used future our of Generate tier this classification SEQRA commissioning and a during to The project to advantages revenue of process, early included of York very offtakers. Energy’s sustainable and flows infrastructure plan energy planning. projects. activities have about construction. predictable cash streams, profiles, size

the fuel delivering park and also clean we will purchase have margins a a EBITDA in entered of Connecticut, deliver revenue to on excess since margins in over for EBITDA facility, and is the cell stockholders. inception. backlog will years with Based showpiece Bridgeport, significant our $XXX a XX%. the in grid to and strong on We with into plant its PPA, energy million our be an the added reliable the recurring to and operated Dominion remaining located current XX XX.X that constructed Energy agreement revenue megawatt This designed,

and permanent final from received We’re financing Connecticut Bank Green towards the of this closing acquisition the support stages diligence documentation tremendous we as on on for transaction. have for this the move and

initiatives Financial of generation new Lastly, for of and Chief capture commercialization on solutions distributed our existing Mike? I'll meaningful our our of power business Mike discuss carbon Officer, we SureSource storage. our have reviews deployment long-duration made of Bishop, financials. execution progress after more oxide hydrogen, our for solid the and

Mike Bishop

$XX.X to fourth end $XX.X fourth equivalents. approximately cash million for by the million has cash Partners. XXXX. This fourth of quarter for GAAP the Operating and or the in the the the now the the year. common $XX.X an quarter included megawatt million fiscal XXXX increase primarily equivalents stockholders quarter sold of $XX.X assets located and we having commercial you in basis. XXXX. operation the in and compared Please of total compared another AEP At for in C business million. earnings rate grow is example share totaled million production basic million our for which This fourth revenue been and of plant approximately quarter. fourth you, of to to we sales Product its South and diluted or of in for XXXX just compared deliver began $XX.X achieving most million XX of to to cash last of of of $XX.X months XXXX in to million or a Net X.X% to expenses and to was was approximately the fourth EBITDA today. per compared have portfolio. thank included compared gross $X This margin we due compared million $X.XX the Onsite the for XX, and XXXX operating manage professional-related before the power million attributable our the million as includes XX, megawatts XXXX. October margin fourth loss under measure total prior completed costs $X.X million run XXXX quarter fourth megawatts, of and the non-cash of compared or $XX.X of the Thank attributable million quarter August six restricted Energy Net the construction per plant reconciliation profit for three generation quarter was to product The XX for the to are periods prior related to fiscal XXXX. year, strategy was a sale for fuel negative annualized business product were expenditures Trinity producing everyone, either million for to $XX.X fiscal totaled quarter company as of portfolio. quality our X.X% amortization is totaled in $XX the depreciation cash of totaled overhead Manufacturing $X.X to project quarter equivalents strategy and $XX.X today, XXXX Financial Slide negative activities company's annualized of fourth of fiscal megawatt and call of at that totaled taxes, gross and stock interest, turn X.X loss associated stockholders assets profit generated Good the the D to million diluted XXXX to XX gross cell the related $X.X $X.X fiscal quarter Both the quarter quarter and revenue fourth for highlights $X.XX with joining XXXX in for XXXX. and million cash due fixed increase retain Series XXXX. see our $X.X absorption $X.X a the million which fourth sales ended from of basic to sell Please of totaled adjusted of timing our million plant unrestricted of Adjusted earnings the charges XXXX includes the share fiscal underleveraged variances transaction to over of XXXX at gross This Chip. sale on optionality of of the reported of to also to the the College fourth impacted for titled adjusted fiscal restricted in X, fiscal fourth FuelCell KOSPO common cash production year. rate the fiscal $X.X and quarter morning, to fiscal preferred a revenues measure. on XXXX Cash, non-cash release our October in volumes. comparable EBITDA of to Korea, months. Overview.

subsidiary quarter, of Generate Backlog fourth the also million. of of Capital. today, Advanced As record facility the the mentioned, end totaled we Lending, backlog a of under level Chip backlog a approximately the of million new $XXX and the totaled million $X.X availability construction XXXX. billion financing contract backlog $XXX at $XX borrowing Generation Generate reached totaled $XX with of services million, end Technology quarter At fiscal approximately have

in the on which project The first the the the middle billion totals fourth by backlog to of PPA executed end of shows now we at in on the bottom project the illustrated as XX, backlog. the asset New $X chart the X.X the Yaphank, our awards the project totaled and combined megawatt included the three in York Project left to is LIPA balance end Subsequent is in of awards quarter. approximately were of the slide, of As quarter not LIPA the slide chart XXXX projects. backlog sheet. related October

As totaled megawatts operating approximately and XX, fully financed. the portfolio XX.X of XXXX, October was

The million backlog. milestone new a with construction development. into as number provides facility project we In facility construction initial key million which in of maybe various for provides $XXX backlog. time, up manufacturing financing we entered December path provides over and solution period for our a to megawatts company our provides lending A significant of of in projects the and in advantages of a have such facility capital-intensive us a addition, stages is that expandable for This for that project development an $XXX XX.X cycle. against cost early finance our

happy with Generate are working We to the team. very be Capital

facility to expect is $XX a we will and borrowed NRG in first our spring. additional that well early Dominion enter re-acquisition park the to Bridgeport the the The Generation our Bank Generate finance an Groton, Danbury, of in megawatt support project to construction Energy of was to last drawn million NRG XX.X to Energy was to cell projects in X.X US plant Connecticut continues with Green also approximately we as the pipeline. Bridgeport quarter, project company base of Connecticut XXXX. credit Tulare X.X related of construction here under Triangle in project projects, on anticipated Municipal megawatts in the This other the project work LIPA Subsequent submarine portfolio to the draw incremental as draws the Cooperative operation be to once and Energy. megawatt to closes. the under well expected Connecticut as from or acquisition make The line end located the close Connecticut Navy on for Bolthouse commercial financing the Street as the existing our million project Farms Separately, These Electric fuel to the CMEEC the are financings for facility. source for the the $X.X

the also cash current portfolio. on will expect of $XX.X with our million build-out is at bottom and illustrates financing the appendix, and tied would million to fund term the on $XX right the closing. be is We unrestricted that released debt The project the schedule which the purchase in the chart balance of Generation of on close slide, hand to of

with and through will stockholders. inter-ownership while We recurring our be the corporate benefits financing minimizing for and profitability driving equity debt projects construction

XXXX, throughout expenses is expenses enter to in and As expected XXXX. tightly Management on comment to the capital levels we like operating committed be I operating business or to spending. remain expectations for and would are below managing spending current

capital we and our On Danbury transition module our expenditure have the lowers manufacturing side, expansion almost costs. from of our cell the Connecticut which the activities in conditioning complete completed facility is fuel points

be see result, a As $X invest capital assets build-out will of to Generation $XX largely offset range project to company by $X we for level for as million portfolio, make expect in a we which XXXX our The call debt. our turn the million of announcements. recent project Chip? to compared in and million areas continue back cornerstone to our spending continue fiscal to the like Growing expect in by XXXX. to we profitable sustainably will I highlighted dive who to deeper our to would the is the Generation With into progress to focus. Chip operational business plan our meaningful portfolio building that, and

Chip Bottone

Slide Activity. X, Mike. Please turn you, Thank to

others In be it performance our helpful never overall been we broader, the best. greater, our the solutions. products of support have never in states US, and has Starting our existing opportunities benefits fuel quantity felt would of fleet to the and from we in the the strong been advantage cell the fuel discuss taking of never to general, interest First, exposure cell breadth to of and have power and been with from stationary of the solutions continue marketplace. see interested

energy returns and from Other development. provide offerings benefit savings projects Our and customers. security, should sustainability operating our benefits in economic to financing stakeholders our

Customers Our non-wires value through the expertise. broad including derive sustainable and to us for focus range execution micro-grids. solutions segments then alternatives is on can applying identifying our maximum the market utility-scale of that and look

we policy on fuel Over discussion long-term the states undertake a wind. stationary at alongside seen gaining now suit past table, energy the have comprehensive the cell months number of is The policy reviews. primary and solar in

As an for we Arasimowicz Transition Connecticut serve the Korea, With reputation recognition for of leading our to asked the policy. industry, the was to Governor-Elect continue presence, to energy on our Team Jennifer in regard solution example and have market. South the

stationary most supportive one in markets world fuel cell remains Korea technology. the the for South of

power, to utility-scale preferred a over technological Our is carbon for With plants fuel of cell especially our power for solutions respective solution needs. technology operating, technology XXX utility-scale for its have combining currently projects. with that meet ability our megawatts deliver their customers expressed strong preference and

During XXXX, performing timeline their plant meeting delivery the and the with well and expedited KOSPO on extremely is facility XX we operation, commission. since megawatt delivered for

have backlog over and to operate strategy continued for to from hydrogen. the Services benefit maintenance to continue we distributed will our and Designed This in operation XXXX. maintain facility. forward platforms, as this core for we added relationship and agreement well We carbon years technology our million come around to $XXX make

power supply to demand hydrogen. growing We to for the have renewable satisfy and add our focused strategy

California. appeal and Our has in global started It activity. deployment plan has

for is commence Toyota construction fuel project plant produce We innovative application about port and extensively is hydrogen California. renewable X,XXX produce efforts technology sector. renewable District design and Long per cell providing step we have landfill announced to is cell of this the development On to systems its up after finalized biogas, which operating that element fuel hydrogen. to California’s install Air in by the that permitting More the the hydrogen, $X.X into we multi-megawatt important spoken tri-generation at our provide site finalize and unique will strategy heat major on and Energy completed we've scheduled hydrogen plant County, and million a being from site is Canyon to Beach renewable towards simultaneously support XXXX On The decarbonize both forward transportation be site electricity largest cell Coast landfill Wednesday, in will economy hydrogen of power FuelCell to is with agricultural power market targeted sourced Tuesday, fuel of We Quality in rights the carbon certain awarded hydrogen. late environmental on would late Coyote Los site. and our distributed agreement project. power, project of by This hydrogen day for overall in for specific as kilograms XXXX. with announced supply advancing agreements. an expects step is South growth. entered cell exclusive project project represents in its with a This Angeles a development renewable development renewable output we Management information fuel and Orange plant Toyota. The will fueled also cell California our the an another fuel Toyota released California's on to XXX% waste key directly and

capture. XXXX, power clear decarbonizing now turn interest Let’s from a carbon we solution increase market. in our in to generation the saw In

the getting saw Taking market produce of world’s emission. has development been two carbon markets also and industrial which limited decarbonization. the these for together, solution interest of had two-thirds We segment, little the

expand. expect on pace has agreement collaboration with ExxonMobil to joint accelerated Our and progressed we an this

sectors. company configured of have issued by respective making construction collaboration the capture ExxonMobil. fuel This engineering next The power is includes cell and great phase very design commercial move well strides at subsidiary by in phase collaboration to secure power coal/gas this Department SureSource to the first Our the by to funding funded first solution the a company supported project, together generation ExxonMobil. through plant, owned decarbonizing recent this are completed of Company. the the which teams the XXXX and capture and a worked The by to plant. partially industrial tweets carbon of carbon was is planned project of working and station power located be fired mixed of The Southern to US and Energy a

long-duration have energy scale developed density discussed, provides answer flexible solution. has technology at sub-megawatt power fuel solid cell solution specific that with reported often high hard smaller will allow a generation core that oxide being power design, a one solid needs market we Operated Technology and XXX I’ve been its to our segment, unit Advanced business platform. kilowatt through two oxide and with us While stack work developing our team common

operating unit Energy first our pictured, the As been Pennsylvania. in Clearway Pittsburgh, at building has installed

exciting commissioning and duration of Why storage to powers seamlessly resources help on to long More with and generating I important? this the Slide begin sub-megawatt superior ability for expect this to Please the exact for into to design. profile. more will the complete would developed class to to this cost like segment and with performance turn a Energy follow need the be key market have shortly remarks. the our answer unit solution core solid FuelCell intermittent development. from of power integrate We takeaways stack that in We reiterate position the to Summary. compete X, site. to is same the oxide grid Add energy a couple

a facility early company but are we is Generation verifiable a the not operation sit the financing Advanced results production, Our firmly of hydrogen positive price. today FuelCell provides and and and plan backlog and new to FuelCell forward awards, backlog. think gives us X EBITDA carbon ability and and only Adding not stock the much backlog fuel provides to get business storage, going over and and to company This our improvements and unfortunately portfolio, fund and all partners, forward With leverage, the the financing capture manage the in market $X stages much Technologies increase has recognized in a Tier also strides record through We in we cell funds value our $X by stockholder-friendly business offtakers in market. operational the to enhance to on financing cooperative XXXX current that framework awards. construction interest. here address needed construction no recognize sight the the of of solution billion construction quite debt needs the certainly our to of understand plan and facility on manner. and will in capital that We how strategic the its a focused at that up of Management Energy's Energy believe goals. the legislative This and products company the is development long-term projects with Make stockholders’ success. deliver the with form underappreciated were of margins, reflected delivering had those which our offers. revenue our EBITDA will streams, XX% and and need solutions and mistakes. much line success we drive with need commercial busy things We execute to operational the results we billion

a We will company XXth March of be on XX celebrating XXXX. our as year

will are As significant on on time. take to towards a take momentum tomorrow. this team the happy next to driver we steps a be focused this we building Operator, at questions

Operator

Colin, Instructions]. [Operator our Oppenheimer. Colin of line's question And from Rusch does open. come first your

Colin Rusch

in terms potentially Thanks to going so decision-making the about you the the just NTP sheet, then company potentially process projects much, on rights for your little talk on the assets balance projects liquidating sheet, a at a keeping forward? balance guys. selling forecast of and bit some Could

Mike Bishop

is take This Colin. Mike. that I'll question. morning, Good Sure

quarter, future. sold revenue project, and that margin that relationship to AEP, we and related X.X saw recognized look So was in as sold project the to the AEP megawatt College with great to an relationship and asset the in further a you project, Trinity to continue

past flow that least in deck targeting sheet given to lead was said the the of XX the we As it included building megawatts cash is at EBITDA profiles those on in projects our positive. company projects and of really will the company out balance

that have build-out you'll the see and that getting at in the in look range appendix next to we’re we that deck that, year. megawatt the you as So XX

right Bridgeport XX than but at look right to now the we -- project also that so and then under XXX close bringing have there. megawatts construction we the with fold, we back more that, have a As megawatts we're into

the project sheet. deployed as development of balance So the new corporate capital manage amount company managing well to as into the being wants

recycle So, But we bring lead to AEP will here sustainable and partner the to to that sheet. cash overall XX stated I like there on level goal flows. folks with is reasons and get cash for cash to the balance strategic megawatt to as back

Colin Rusch

and it’s you That's up So sheet the are opportunistically balance guys about to. fantastic. what just maintaining flexibility of

Mike Bishop

right. That's

Colin Rusch

to can And kind some give of update there in what's then of seems you like opportunities see you what would some that Certainly on you've to us relationships into you're go expecting terms an terms place as a product love there's of the the being of those in calendar in Asia sales. some for robust but 'XX it on in -- able here while? monetize going

Chip Bottone

I Chip, is take question. will This that

done. connected said we deliver your in plans be got it work potential, I marketplace is being consistently I a proper and certain have through And we're with my that As the activities that's to approach has which continue perform the the good to that customers. a remarks and lot able we to and of have doing marketplace given true, think

would Beyond that and kind for to do at we more what us more is that I options things of table follow-on to the our with are deal are to of all going say specific on there. that that this point

Operator

from line Driscoll Carter, open. question Riley FBR. is of Carter B. next Our your

Carter Driscoll

am so project province to execution, understand the revenue aspect on because of poor as a provide timeframe one is of and nature obviously Chip you So do capabilities the then sales time. Is other? over strategically, a to the the and sheet economics I do portfolio upfront? you many sales? bringing the the deemphasizing a or reach while and of and still EBITDA really bit although monetization simply mean, fair is Are the the of breakeven -- have that the to economical strategy balance it net equipment to the overemphasizing so settled versus that get Or I lumpy conversion, characterization profitability I you

Chip Bottone

can and as fill in here mean, I So well. I'll start Mike

of needed putting looking there. I kind a little that's mean I model, But for or deep think it's customer the do And really end day what transaction answer that a a the the is if there it sale bit our right? a our real we doesn’t for difference. there frankly -- in there portfolio it, build that world as utility We then If companies make don’t well. it, it utility put and we is out us these what at interest what where and investment after. refinance really our sell makes own really also do if sell you we're dive of changing the really lot is we're of business portfolio, we level at is assets -- product a we’re that whether to a is Generation the certain where the sense, whether of in on them,

So we kind this. but to we're whatever, circumstances, utilize But frankly secure thing that we best is again the way a what an to execute we about do as have operating we best the some as goes look things do, value our kind on do those mean there's deal of it's actually in different sheet said of potential that The pretty varies awards are model one and in do then going at people filling how based opportunity way. or the what's trying wouldn’t that. in the sustainability we're real whether a -- on saving, with are we're going people there if real the are these I market Mike at balance thoughtful if we to looking look model you approach I margins can and all the put when at we after our business which you thoughtful we

decision. is with we different we're marketplace. of So dealing we inputs lot no, are But an aggressively a here think in optimal and -- making the

remarks. as been, being big ever it’s It's all on you repeat is what customers say. in as and as to Our pipeline I mentioned my deliver able about

after. So going really we that's what are

Carter Driscoll

if advantages you One Generate? the and to thing just about Could detail that return contrast for could Generate they talk the with upfront. be two partial Could a is and tradeoff you with helpful? kind note NRG have the flexibility you and gotten then instrument size little have compare little earlier guaranteed specificity, and had the -- aspect a cited you maybe Maybe was more with will Generate? a a you you more with of that that highlight the from do

Mike Bishop

This is Mike, I'll take that one.

and roots Generate. company had Obviously, financing very are partnerships Generate be we First has with strategically really great aligned renewable Capital. the foremost, that they the sector. have, with in to working Generate deep excited is

So the important very with how -- see They do. to was quite them for ability to similarly similar us. work we things

the build-out facility the facility, certainly was to at look as far of out the size our of portfolio. the As you as important us

up We able we need then the of the to on more when projects. our depending use will timing capital for to million and certainly be potentially $XXX

having sizing of what past. flexibility compared the days the Carter, in off completely we and is lending is important the what the vertically projects. where the to manufacturer, Obviously us. point projects time. really EPC participate in during and your of for timing the flexibility And want into of important developer are the in integrated was So these period and access to to long project Generate to then a had capital still to -- the FuelCell is we There

of can return there a facility fixed which a is our of part a in and projects. participation interest for in optionality construction the they is period participate and our earn guaranteed there as earns projects long where So then XX% Generate rate a through time

permanent important aligns financing capital tax cost their marketplace debt as well. the equity our again, for are low bringing leverage we sourcing So want but relationships projects, as out in we our as projects. It thought for financing to as interest and well was that

looking their are forward interests with completely think aligned we in this team. and So facility working to

Carter Driscoll

it So very sounds positive.

their project I me any level, construction XX% some up for to which understand, option have I of is the that their the guess…? just at provide financing predetermined in participate So optionality they let so mean --

Mike Bishop

It’s a really option. FuelCell

option equity will have at the And persistence We of a period a -- the for have financing COD long sheet sell they in on or in bring project project. to sponsor with for interest to keep permanent balance time. Generate that project a

Carter Driscoll

COD actually that from an investor financing beyond, …? So is provide somewhat could anchor that of

Mike Bishop

yes. absolutely, Absolutely,

Carter Driscoll

an for not health facility finance operating But maybe would and this Alright, acquisition, ones correct? couple of me. just like used facility quick for and be Bridgeport

Mike Bishop

we’re itself towards Generate. facility construction say geared with I we grow to This want of and again relationship would financing. the -- in is

Bank the specifically project to As financing sourcing project expect here far XXXX. we’re and and near Green and for the term early Bridgeport with close Connecticut term as debt in that that working the

Carter Driscoll

level Could Okay. of could talk early a high curve you’re seeing shifting just bracket of whole type Maybe lot. at yield term obviously at for what seeing you around the kind least you’re you that -- structure rates about moving the the facility? with

Mike Bishop

Yes.

projects development the certainly of for for assets, a construction the obviously So exactly. and quote what not I’m we’re to level you kind in come going bid will But mid-single, financing. good operating facilities, down see to seeing we’re getting rates compared

Carter Driscoll

been the NRG facility Has officially terminated?

Mike Bishop

No, NRG had a so maturity in always the XXXX. facility was

maturity of debt date we in have the the the now lent We spring high COD they’ve is to March. in have, that into project that which

essentially loan expires. then and that once project This financing, that bring course payoff relationship the facility NRG. we with of that works So is facility good over Again, the COD, relationship. in permanent at will

of Given with the we sense place. make projects put to doing in the Generate, relationship now that this new size and it are facility the

Carter Driscoll

how Best year calendar many end, would scenario, year by you have case end? operating assets

Chip Bottone

Generation the on operating portfolio? or finance construction In

Carter Driscoll

Generating electricity actual revenue?

Mike Bishop

Yes.

in Bridgeport you balance so on closes we in that is stages XX Carter, have another we and bring megawatts And development today, sheet. on of at various that the certainly of are as operating If could chart the XX construction that deck, have XX. there top another that or on look will then project included XX.X you’ve and the so be that

in plus by the calendar end the you’re XX range the of year. So

Carter Driscoll

more think what plan a amount relationship? getting Correct you actually time to And you then shares. is such expect time maybe you last you on constructed that bit by data full this operational option call ExxonMobil. there? mean of just wrong, one the a the into on potentially would I be period turn a from it there time. at demo big but detail Chip, if would just to And the us again least thought I I timeframe of would too little I’m aggressively me, have have have that first the me just remind get bigger maybe realize is could frame commercial

Chip Bottone

has, not to this that what believe to running on not make mean COX have, all, you say reduction I And affordably expectation want it so right? deliver which that the the people we take skills the And reliably But no, necessarily they trying anything I still seeing is COX. that the these we're reason in with what is here. Yes, of that's with what really that we're that have but a give of would decisions building can consistent that somebody and business is something changed. do a first not the plant they what so, with has and or that's teaming up is or what that quarter capital-intensive and is showcase by do plants, Exxon bandwidth are

all that forms, at not in in been sizes. data testing Carter it's doing we So different diminished and different have we’ve all and

revenue for So no, we not that all us even diminished at those really, studies good. is under opportunity. it's projects things and frankly the the from those really And get

been think that right is the And not my I'm I to the wanted of just interest of order. people very right with in real. we're and a immense in back and work in the of the tremendous there doing their with So think all I and enthusiasm size there about is things opportunity amount is what they've the pull to at public we're marketplace doing right the pretty -- Exxon opportunity and kind I out the and --

Operator

Jeff next Cowen question from now comes your Osborne your & Jeff And line is of open. Company.

Jeff Osborne

you itself, what get pieces are and dollars way on to could the a Was for guys. OpEx expense LIPA end. relative on the commercial and repeat the costs past the of a there a you’ve and that and think additional my projects we capacity months? couple to over that million you year that couple the success you morning, we trying due what were doing? moving XXXX staffing wondering the of execute Is that the to as to on saw of I'm I profile XX Excellent. XX reflect that to of would just mentioned A sense potentially professional to historical litany were DEEP be wouldn’t about that was had flat questions down. ramp costs Good up development your production

Mike Bishop

I XXXX below is at Hi I'll fiscal And Jeff, my as this we'll that. that. in said Mike, push or and expect levels to certainly towards those take yes remarks, operate we fully in

of seeing whereby SG&A I states that around initiatives for. on and was that structural you now working There correct. on certain way in at different policy side internationally to the some benefits activity the put characterize spending as programs that think and is was you're the the place well

side the So I’d in as characterize in XXXX And and year. R&D the fruition finalizing of activity came of stack year the one-time. design a seven our amount to additionally on some that fair SureSource that

So as we tail would some expect to of off that well.

Jeff Osborne

from delays it, seen Got by supposed But the I XXXX that be It might to And Street have first the know helpful. one project got. now? speaking books operational and like there the as in think you was been now. my that be I there? that's here. running Triangle Is cite the would some of was you’ve sounds up that memory, that

Chip Bottone

This Hey, is Yes. Jeff. Chip.

built a, we can Triangle and and Street on one assets, the frankly finance hard so as actually these both so we project so as the well first So them -- was forth.

adjustments in running the But and currently yes. shortly, this, system than make backyard and heat to and expected. after efficiency we we ran under the it everything overall and to the since to -- some those took of we is unit improvements/adjusted then the made should opportunity, But we we can. this unit It's it our here. up it's right and else some the took here So the everything we produced be else opportunity

Jeff Osborne

Two other to questions. hear. Good

one I maybe just replacement one, just next chunk have on saw in service to that over I you of really and replacements broad to The would think would say revenue flat get of the you that we more level its that up detailed this this stream ago 'XX asset. down several sense with been a folks to own years Bridgeport profile Mike strokes or I'm is are in in particular now activity service trying it, and you that. up, safe a four that in to relative of a you 'XX, be the won't about be it for quarters? bit what know that revenue talk see installed about should for quicker probably units? year But quick 'XX or big a replacement what one can for versus

Mike Bishop

correct, about of say generation that the That Bridgeport gets revenues replaced recognize. essentially the balance bringing sheet. that Yes, Generation we $X are Bridgeport by question, module quarter balance service end January, cost of million to you really assuming with good by on revenues a you see and that's a closes will Jeff. now And asset capital our to And generated insightful alone. see not on related will replacements we sheet, revenue at could being

the we've service that's there's obviously depending because we as will service see out fair. of But see is revenue module online, line, increases the Generation variability modules you replacements have and with of driver. projects come now year revenues line as the do some So compared coming project said will the you and on I always timing increase this in think KOSPO to in a flattish

Jeff Osborne

in simplify a like And a million then my can strokes but if it your question similar last to and $X the to broad hopefully units your look this cost at sell you megawatt, between looks you million in million business you is $X megawatt. $X million $X

example? will my more utilize for with how we the kind you and any as on guidance And facility course expense illustrative the Is of to should months for sense financing to projects? XX that my to $X a it? the associated there is it that can would income in then XX give in model million over Generate, interest you timeframe. numbers $X of million You've are LIPA that say we use XX how get safe interest should XX I'm for to to XX% call got statement the if how trying the to months of expense right model construction importantly it the of construction the relates you DEEP it

Mike Bishop

the is agreement rate the in So fixed.

total flows we individual we the percentage on be But the will the project From is are in cash of we as I to underlying invested one. What construction. perspective, that projects. borrowed? that a have significantly And all So based said of you question remarks, that are as capital building as cash overall are for an past asking between we during that’s value good expect construction the already borrow my XX% XX% the corporate in is in projects to these. into mentioned

So you to we already have capital financing. construction XXXX started will as recycling we and tapped see in

you somewhere I Jeff XX% to fair that estimate. is mentioned answer XX% a quick the the think in So

Jeff Osborne

that? start you you use first timing XX%, when are just -- there is And the I'm wouldn’t the of you does that not the Generate in it bar in last use of appendix at XX% you the and do bars where look then XX%, get it leverage come middle in sense trying you going your would on the to when of a facility call to the

Mike Bishop

of Again for fair. the well. financing first Street, the essentially cash down leveraged four I mean construction to have here be think balance invested Triangle and we that’s pulling I Tulare, obviously here Groton on Bolthouse are project, trying as chart. ahead projects the overly we corporate not and manage

would project value. you So borrow forward going expect XX% are as recycling of we then borrow the against those, XX% to see we us capital. to And

Jeff Osborne

the And would a of bar to as COD I'm other follow a those have Is trying that comes the last then when and/or of up, at in fixed the timing at tax sense in? equity question potentially events. end equity just tax would when come I -- get the of or investor earlier? that

Mike Bishop

and COD obviously equity are optionality project under AEP, the permanent sight again and to Generate as would to letters Carter’s contract, COD. and but takeout doing to financing in some in And the projects is follow We’ve with of at company have a COD. the retain obviously have you we obviously then questions, line of essentially to get project and financing what selling partnered tax the commitment always and tax assets on we solicit demonstrated come which will we these And the now at at sheets of essentially Tulare XXXX various debt -- Yes, that company development Trinity are of Clearway. our of the will selling process COD kind stages And in construction. running get to which equity to during at does term advance COD. with your close sell would to

So at is but would there that that optionality also happen operations. commercial

these assets. So course of of takeout the during proposals and financing again soliciting the permanent build-out

Operator

was the that the to And final And question. that, for comments. with call I'll Chip any Bottone turn last over back

Chip Bottone

you, questions thoughtful this for Thank certainly Well. everybody, following questions. and your good for the answering the folks

of reasonable kind we both these things that, construction that. commented, our to and in to lot and of job Just answered terms think, at and as XXXX in financing summary nice in very the Mike like obviously relative compete, questions ability takeout the long-term I financing we’ve expect a a in projects think get done the to I we’ve

of amount answered. and work tremendous So questions

the things lot this on have I world and have to securing of in more from model world. is commitments hydrogen, a And of business gives do hydrogen the with executing everything we broader California think then or lastly, customer a throughout optionality, capture of people also some the lot securing sustainable or that validates model on things our working which we and new good it on we’ll and those execution contracts us in front, changing pipeline of on a carbon thing. but do deploy a dialogue profitability business that

think accomplished a difficult, but So lot. I it is

and and a great the people company. following in interest on day. everybody to to Have talking I QX to So you look questions Year the later And forward XXXX. Happy wish our and call us want a all the the the appreciate in we New

Operator

call. conference And this does conclude today's

now disconnect. may You

FuelCell Energy (FCEL) 10 Jan 192018 Q4 Earnings call transcript