FCEL - Earnings call transcript Q4 2020

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Operator

Ladies and gentlemen, thank you for standing by. And welcome to the FuelCell Energy Fourth Quarter and Fiscal Year 2020 Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session [Operator Instructions]. I would now like to hand the conference over to your speaker today, Mr. Gelston. Tom ahead. go Please

Tom Gelston

Good our and call Amy. joining you us on today. morning, you, thank everyone for Thank

As a the call fuelcellenergy.com. Web and slide site reminder, our This press and two the we Web the morning, fiscal with to FuelCell investor this ended conclude Consistent practice, the call is recorded a released year of is financial being earnings our our relations addition press results site call. we have available on being available presentation is XX, section this on be at for for October site. in webcast fourth release posted approximately of will the after Energy quarter release, and hours XXXX, recorded. replay on This Web our company’s

statements its statements forward-looking made and liability on performance. this qualify All FuelCell historical financing business statements today our plans. the and discussion are will Before results presentation, its of of X please continuing respect Private press than regarding release and forward-looking comments, on expectations These facts and statements operational by anticipated anticipated established limitation, attention the plans regarding related include included development, financial and the the Safe commercialization statements Act our to Reform direct and statements, the statement disclosure with statements XXXX. the to the company’s of financial in of to intended forward-looking today prepared company’s to we contain The begin forward-looking from are the including Slide technology without for Harbor Securities statements, and regarding disclaimers other the Litigation your call statements.

available call expectations on based are made at made. statements and are represent on current such time statements the information this Forward-looking management’s

to particular, We encourage by and assumed, and the review uncertainties are you our and forward-looking risks, the regarding in file XX-K statements. the fillings. information Risk quarterly any materially SEC our the in that may that cause those our with uncertainties, on known and other reports strongly actual described the involve in we section predicted, on or statements and the implied factors cautionary statements in differ Annual Report numerous statements forward-looking results from Forward-looking unknown Form results these to risks Factors

You statements review press should earnings forward-looking in release. morning’s also entitled the section cautionary concerning this statements

During to measures find you In non-GAAP call, condition. regulations, and financial about in when GAAP Relations company’s SEC accordance of Web our posted use we will morning’s the measures a comparable talking earnings site. of document this can portion the and performance our with measures non-GAAP release reconciliation this these Investor financial on reconciliation

For Financial joined Treasurer. Chief by our and and Executive call Officer Vice I’m Bishop, Officer President Few, Mike FuelCell and President, Executive Jason Chief today, Energy’s

Following to our I available we for now team. and questions leadership your the other be hand take prepared would will call Jason to over remarks, by the to remarks. Jason? opening of joined be members like

Jason Few

which serious Developing company. our us profitable very morning One energy contribute global world, executing for challenges groundwork of long-term COVID-XX today. and as interest the the of team growth. in sustainable the well many are all pandemic, year earnings goals created of a as unrest call by of truly and made year to progress the We social energy Thank as which accomplished us backlog your and in everyone. proud and platforms, our and In our transition. of our success. toward all Thanks has and what Tom advancing I am good I first the long-term faced clean appreciate on we've laying our parts of in the Energy joining you, my today, ago, hosted for FuelCell call CEO we

Powerhouse deployment our our of support prudent year excellence capital second continue the and to growth of value by customers delivering we business to Adhering drive begin will to overall focusing stockholders. strategy, we operational and on to As our capital. cost decreasing

growth differentiated capturing on some proprietary value years markets We will technologies commercializing delivering customers by in the significant develop in deliver that emerging our to today revenue to our of in to opportunities are continue ahead. and are that focused energy the the

an investors we Before have for delving who X to on for may results of story. our into be the overview Slide quarter, included shown company new in our

technologies which revenue we servicing under revenue XXXX, customers. together categories, with generation, represent delivered advanced diversified multi-year contracts in year digit revenue licenses, investment XXst, fiscal and three approximately double ended source million During October $XX largest growth, grade achieving which a our on total recurring across of

of East. power product many we cell, of today, year in are Middle important did using enable we pandemic levels, seven FuelCell the refocusing multiple global include resulting can our that sales power that our carbon-negative the integrate not in These optimistic customers year we life platforms. page fiscal world utilize opportunities timing efforts our leverage microgrids, about installations at product number stack At on with including before a in newest ongoing and the revenue and other Korea, efficiency extreme well energy COVID-XX prospects highlight transition top customers of energy term slide, market combined heat which sales the our as as our and many South from are reentry technology in operations to our as the Like carbon-neutral well biofuels, capabilities Europe growth throughout opportunities largest and the fuel types. fuel our markets, market XXXX, we other us. the impacted entering currently XXXX, have but operate year as and While high in as of the new turn many, the we near

Toyota's And power zero-emission platform to hydrogen capable trucks installing is fuel we production of Long cell cell Beach, first consumer example fuel our directly of currently hydrogen. SureSource this, in are and Our supplying as California commercial platform vehicles.

deliver generation energy such way solutions by support a hydrogen carbon and our at commercialized penetration which later will be store we will to long and to of process produce as electrolysis, and power carbon generation storage carbon platform oxide produce and on to energy REP. renewables hydrogen electrolysis a known based solid hydrogen platform, zero increasing platform a We cell zero through And solid by power the technologies, extend the expect solar demand. with energy hydrogen purification power oxide and our the efficient intermittent have duration, storage technology, off-peak highly generated renewable electrolysis, reforming, with providing fuel and through or as ability to long wind we fuel hydrogen cell duration our date

evolve to broad power. continues grid the meet grid believe clean purpose Moving to world with we is portfolio. on with purpose our this energized begins and electric to life FuelCell Slide company, world X, will challenge a but energy clean always need we reliability by decarbonization of the as FuelCell live by a to work and The the product Energy. our our uniquely do. purpose energy. around the and We believe increasingly around critical, world This remain of powered the is consumers positioned We businesses strategic Energy drives future from and enabling

are convey there some you Next on X, today. key we like Slide would messages to

our to are progress our is Powerhouse towards strategy. in highlight of completion we we making business backlog, projects the first execute The as

million, and expanded grew fiscal which was For projects. revenue XX% portfolio technology generation to in advanced revenues $XX.X primarily to XXXX, due our growth year from

XX.X the While to of portfolio, at we on put generation we of operating year generation joint work the Company, positioning and emphasize operating our To sheet solution. from XX.X capture with managing portfolio megawatts toward carbon continue Growth behind one technologies for and had we in year some agreement Research maintain and ExxonMobil markers megawatts plants, growth. from expenses advanced commercializing our our power and our as end XX% company the ago. mile balance growth representing Engineering stems proprietary development

in our power continue cleanup billion Tulare, most in make one from $X.X technology. proprietary progress in agricultural our San This skid gas utilizes to treatment California, onsite biogas of against contracted clean the of revenue XXX% We completion utilizing including project wastewater in facility the X.X produce backlog, the our productive renewable to Joaquin for the megawatt Valley world. facility California, circa regions

carbon in of be on SureSource wastewater We neutral onsite power. department, at FuelCell platform are will extending portfolio treatment would carbon produce our construction energy platform emissions flared, near Energy’s power the clean, otherwise California and Municipal rich utilizing methane Bernardino our San power. that platform biofuel power next renewable, neutral biofuels completion producing use to to produce biogas wasting

biogas. note certified CARB, by are California fuel operations power that Air Board for power our platform cell only the to proud is Resources platform the on We

work related in ready and base We nearing is the Once will mechanical third-party platform interconnections of at the operation. Submarine also other project for our and safety are microgrid Groton, Connecticut. complete, commissioning commercial be completion Naval

are green States to federal microgrid to critical deliver construction began trigen to Port Managing Derby, will United platform scale of deploy the platform energy New from class water in and neutral Yaphank, York compact government's and support city one competitively challenging megawatts the to stage by recently the through made expected renewable the deployments a have of hydrogen that XX.X objectives. Derby of our Connecticut activity defense and excited a additional early brownfield electrical We remediating in We renewable in Connecticut. infrastructure on credits including projects, X.X opportunity COVID-XX Toyota Long deliver California megawatt our Derby. year. of in is energy in the project a produce carbon electricity, and utility footprint Beach priced repurposing municipal XXXX at The

responders for First, every lost are to world for I you. also at support company and first the and our the the thank families loved around workers, to world ones and the offer prayers front battling show their sacrifice of to work who the those for COVID-XX. want I selfless healthcare want workers for many Thank day. currently our to line around that

XX facility the for took our increased company, during and capable benefits to a made late in members number megawatts distancing XX work annualized community XXXX. unable to We shutting actions and a at down we all job who maintaining safeguard manufacturing annualized employees to our pandemic we of production wages our production production Despite to functions. applicable work our and during were rate increase requiring team temporarily production these while recommencing social in challenges, manufacturing of and production the team implementing expect by from processes an protocols full rate restarting and their to operations June are home we from our after due members to while of an megawatts. As and of improvements home, proud capabilities,

will I we've opportunity an will to liquidity creating provide The our few reduce second foundation, with financial into current is and more cost sheet detail, go want highlight so our our position. capital. toward made balance bolstering progress our message just Mike to I the key of a starting highlights, strengthening

XXXX completed Orion expenses. During an deducting million after our the proceeds Credit the net over demand Enbridge fiscal $XX.X and resulting net rates. obligation. agent in as to to owed to as we year expenses. the subsequent million and us fourth year strong million of $XX.X offering we of offering equity proceeds we paid one in $XXX our and and million retail to series had preferred well an XXXX, under the quarter, equity company In all fiscal lenders early resulting $XX.X share the amounts raised under allowed approximately These million, to additional We of to owed representing subsequent completed Agreement, repay shares year approximately company the institutional for net proceeds cap fiscal in end, $XXX.X

us $XXX opportunity around As upon pro goal cash together, payoff. Orion of that I energy our energy objectives driven a been and clean forward the accelerate restricted which support. the borrowing on cash climate administration, to the the to broad significant $XX.X basis was by to we solutions reliability. and The formerly technologies. significantly million, by in the FuelCell and world. and unrestricted we baseload represents increased an clean forma All backlog Energy transition grid focus our product activities, House energy energy, policy offerings global regulatory have increasingly of our significant the world and project has And some initial the new enables of the our reduced using to these on generation provided provide of To million our clean which is execute debt, corporate going growing the cost a commercialization drive is reduce of further One, be sustainability, challenges deploying result extending approximately and in released of balance for address results distributed these to to decarbonisation highlight Markets on that which our of by want White liquidity looking focused stewardship. across are platform. and third, our environmental leadership platform. of to generation, what us advanced our energy, our with consistent policies solutions Based a US decarbonisation and remains outlined with hydrogen enhance and largest receive SureSource we meet our by support, climate expect markets need are Two, seeing opportunities. the portfolio distributed current for developing transition carbonate

utilization gas. Our is transportation a used blending carbon of while multiple of industrial at and facility in existing our and it for technology or delivering can fuel infrastructure, of as in the solution hydrogen a low its water Long deploy has types, natural feedstock that advantage a then and/or This is decarbonizing gas applications first of for to in fuel the plan repowering delivery carbon capability, clean be down kind the the Beach, US. turbine power time California, intensity we platform generation as

hybrid to needed. generation Three, The produce solid from storage hydrogen are fuels electrolysis REP, also platform. and duration production hydrogen using hydrogen power enable based energy developing not performing We solution, a power of zero on can our and long platform electrolysis coal energy carbonate is carbon oxide our generation platform. to power storage, and electrolysis a

produce reverse system stored hydrogen carbon-free closed that operates and loop to Our can when mode, power. such it it leverage is energy is a hydrogen storage in platform designed

world renewable position from need is carbon, the we applications, FuelCell the and technologies cell intermittent capture energy growing develop Energy carbon to Research capture support power only around to hydrogen FuelCell capture a remain has is differentiated world the development. penetration to industrial producing concentrates reduction meaningful the in chemical coal concentrate that footprint, in of the utilization. capture of to key economic for and believe sequestration fourth, the the captures the We ability hydrogen Company, material single that avoiding solution opportunities Energy’s to place enabling much fuel and fuel to And generation economy gas ability world's while power stack. that Together increased Our carbon with technologies. infrastructure more carbon technology power the forgo making our continue and carbon and of platform. we industrial technology to producing plants, cell ExxonMobil know and Engineering fired COX as that simultaneously and while such to deliver from and processing, across also existing have

XXXX, in also platforms. while for Our we leading such of delivering technology commercially for technologies distributed beverages, solutions our to production, of Energy a to water generation utilization food and dioxide cell [Indiscernible] and electrolysis energy platform projects In focus transition. processing technology, traditional the extract the our from will be platform, to fuel solid ice a on has applications applications, energy purification of in ability new carbonated continuing backlog more. plan position as dry our of to number fiscal FuelCell we including carbon the advancing deliver provider oxide by world's demonstration our our our execute on believe

Now, I our call in Mike over the to to turn more will Mike? detail. financial discuss results

Mike Bishop

Jason. you, Thank

XXXX, XXXX, as development or project revenue totaled a a Farms as $X.X to during mix given $X.XX current result Triangle due loss the quarter to and costs of for compared Net share a XXXX. development the on per share a loss from the increase the to quarter per total higher million $XX.X Company, joint plant with lower The quarter $XX.X upgrades decrease and and of of since compared related due million performed of changes. Street to as project. decisions $X.XX $XX.X advanced in loss of year-over-year of October 'XX in and million we the impairment XX% during year our XXXX period. fourth JDA, project. by Net year in impairment the down the a $X.X offset activities million million million and as reflecting XX, operate to diluted in $XX.X under and project X. generation technology impacted license common ended fourth $XX partially revenue million exchanges and service In begin model EBITDA to the million or due charge share revenues to $X.X performed decrease restructuring Cost of revenues, higher fourth expenses prior development $X.X expenses $XX to $XX.X the executed due results $XX took relating in Fuel service and primarily diluted of the from locations. to million license, the fiscal Loss quarter generation increased Triangle plans. which due with megawatt reduction quarter activities XX% Bolthouse the Results Slide increased regulatory by from in noncash project Generation quarter million and of our driven the connection in was Bridgeport million period or the increased to applications, $XX.X period. Research of of of license by in $X.X million period. agreement year shown the start totaled the of from lower Breaking expenses. improved a company a prior fiscal to net in XX.X $XX.X our for prior recognized quarter three compared Service revenues Street was share in the Triangle issuances module for unfavorable exchanges maintenance administrative loss basic $X.X revenues projections of revenues activities, decreased increases XXXX. revenues Street fourth research the merchant fourth outstanding to to while average to increased offset charge XXXX a with results. plant loss year recognized module downtime, ExxonMobil to Total Let's and fiscal advanced contract primarily Cost fiscal an termination $X.X well Park operations for result from for the on compared The advanced million totaled the to the as fourth compared revenues. further a to the in XXXX. technology at by $X.X million, weighted were in implemented by charge due year impairment prior charges. I'll or XXXX, reviewing and EMRE, early primarily contract year of revenues. was fourth net quarter exchanges fiscal as Operating to of decreased negative highlights prior $XXX,XXX revenues a the stockholders to service our project million included by of quarter Engineering XX, There company's slightly result the $XX to year in for selling period. million $X.X This million to and year million to technology basic the module Advanced negative million three revenue fiscal in our projects. quarter in and to October common company output X% at Cell prior of were decreased the quarter per quarter shares made XXXX as development the is million impairment to to Adjusted attributable platform period. net timing a in use due no

prior included to million increases Fiscal to the X% XX% full million. revenues increased recorded early and fiscal EMRE. of technologies agreement year fiscal joint in recorded million, the million related with a in year. entered $XX.X turning license in Revenues entered into connection generation $XX XXXX a revenue to to revenues was with in agreement advanced Service $X with Now year the with $XX.X compared license and fiscal EMRE to development separate year primarily due XXXX of that revenues. decreased into

$XX.X compared XXXX, projects. resources Park XX, conjunction internal XX, fiscal allocated and totaled this fiscal being Bridgeport contract loss XXXX fiscal in company Park proceeds $XX.X and of the million expenses company's million in and a of loss recognized ended decreased in recorded no expenses and the fiscal year the in ended and recorded prior October initiatives Generation October XXXX, the year subsidiary included and Net XXXX technology company million net $XX.X service for technology revenues year of XXXX, revenues project instead of incurred million loss a conjunction consulting to million service XXXX. which XXXX, $XX.X million XXXX. advanced of fiscal operations being year. development $XX.X May revenue XXXX to compared year a the XX% generated year to to $XX.X totaled the implemented the a the from Tulare discussion in were common the decreased million due fiscal in from $X.X project noncash Adjusted stock $XX.X increased negative addition, of to primarily funded fair to to fiscal Cell compared research allocated a Please result million. million negative XXXX the PPAs, Operating research the includes year million In year by the in to activities the during Cell of our value in $XX.X under reduction in reflecting BioMAT expenses with change May EBITDA to decrease liability costs the XXXX. of in fiscal agreements. to longer XX% from year year selling XXXX. to a under $XX.X loss prior legal in in XX% warrant see revenues fiscal recognized in negative year million, improved relates to offset for The in million the compared compared decrease measures year as increased development Fuel revenue Loss a Revenue XXXX. and agreement of related our $XX.X project, per in purchase restructuring XXXX. in $X.XX and December XX% Net to including to electricity with reflecting impact for settlement to common with XXXX fiscal operations for are JDA in fiscal of as from Bridgeport Advanced the $XX.X was EMRE. restructuring commenced which Administrative expenses the and $X.XX an resources activities basic acquired loss XXXX. Fuel of fiscal share selling adjusted during in stockholders of was release. as to appendix non-GAAP undertaken earnings the diluted and legal by year the EBITDA the financial refinancing and received administrative of Net attributable higher fiscal year of

hand fourth backlog. pleased net The quarter, improvement left are to performance numbers and of operations we the the turn and from when financial quarter adjusted graphically compared detail for on of X loss in to attributable I the with fiscal of the chart additional stockholders, XXXX. loss through the common fourth net and please to EBITDA on Next, side displays walked the Slide slide

primarily backlog lowered side in generation of contracts the increase in technologies the the fiscal future decrease advanced pricing, execution Total decreases generation JDA in backlog, Looking continued $XX advanced an these resulting offsetting in in adjustments of technology and backlog at slide, is has license finished Partially billion. the year the backlog estimated backlog, backlog. decreased the and X.X%, result we with backlog, from consists million right to revenue. $XXX of approximately $X.X EMRE. which reflecting with $X.XX of Backlog hand million primarily fuel the service million and backlog of

our execution like with including to the steps enabling X. provide taken out commercializing Slide technologies. to to projects the liquidity goal the hydrogen Turning of our highlight us of building additional plan, focus backlog and of to our business generation I advanced would on

we proceeds XXXX, exercises. $XXX.X stock of net fiscal sales raised common During and million through warrant

million, equivalents As cash, cash of of restricted bars. gray October XX, restricted and represented million $XX.X cash was XXXX, the $XXX.X by totaled which

all offering, working of $XXX.X from and cash used owed, remaining to obligation pay preferred $XX.X totaling to fiscal series extinguish owed were with amounts million subsidiaries. had million in of our XX, the approximately one the we proceeds be full of cash of We million the $XX.X blue net that credit financing, support the to development, unrestricted to by dark and offering $XX.X is also paying under of as million. the Enbridge facility cash platform end, corporate capital one the bottom and commercialization accelerate at $XXX The development used totaling unrestricted million project senior chart. completed by of After the proceeds to project oxide for is and XXXX, general the may bar Orion solid our purposes. represented an in additional year of secured Energy proceeds our the resulting equity These partners company of partially October

cash. $XXX.X guidance. As October Consistent our the restricted and does spending as We quarterly a have XX, with cash unrestricted or fiscal provide million cash, totaling not pro which EPS million forma XXXX, of or follows. we revenue result periods, of these activities, XXXX company cash did, prior in was as equivalents however, $XXX.X XX-K provide of ranges annual for

factories, and to fiscal forecast financing. this under operating and project As cash hand million capital sources financing, expected for in year $XX $XX development in permanent of expenditures of asset make development expenditures, to out for build become funded such cash fiscal we equity $XX expect to are XXXX. investments of million on operational, million 'XX, and the XXXX, including in To be the increase are tax systems. in construction, $XX expected in which to would projects research flows to expenditures of projects expenditures and million to 'XX had year range to to megawatts under be these seek we business to million range fiscal be obtain fund expected $X activities Once fiscal to our compared Capital and use fiscal as $XX $X.X some 'XX. compared Company expected seek to to unrestricted the to 'XX for business. compared company to debt, which 'XX, XX.X in generate to development in and of will $XX.X we of million 'XX portfolio, million $XXX,XXX of years we fiscal cash return to To approximately the year beginning October fiscal year laboratories XX, are year 'XX. million construction

solutions, of distributed energy technology our under pleased business to long we duration hydrogen In Powerhouse As hydrogen advanced the commercialization power storage we hydrogen, made progress strategy. we that based including are closing, our expect have accelerate with generation. and

to and enhanced turn Our to on our our liquidity platforms plan advanced of and execute will the our the project Jason. Jason? now positions I commercialization applications. company technology backlog, deliver over accelerating business while call on back

Jason Few

Thanks, Mike.

mentioned of we platform made California. completion previously, our our Biogas in executing progress including As backlog XXXX, project in on power Tulare,

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we targeting to XX. growth our energy the Turning I how are in opportunities are Slide four product aligned primary with portfolio. and will summarize clean these

platform. with our core starts it First,

platform hydrogen power, solutions water utilization, core Energy applications. for applications deliver purification, industrial beverages, of for enables water delivers capture, and and transportation, for to our multi industrial Our repowering. carbon processing, dry The platform uses spoke across of for customer other district and and power ice separation number capabilities FuelCell featured cooling, and steam a and combined heat and food hot applications, building heating, heating

delivered of and megawatts is than capabilities adding grid. million the carbonate baseload carbonate XX platform. cell power, the decarbonization of XXX megawatts All are our than electricity Today, deployed delivered reliable and clean of of these fuel to more have more through our platform

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of purchase billion our Our power make approximate long term up $X.X backlog. project distributed generation in agreements all

use and California. the installation Toyota under water distributed need value trigen use letting trigen hydrogen three our construction our Toyota's used naturally expect hydrogen produced platform of currently energy operations; to allow offsetting hydrogen and in zero will electric in as energy resource use produce of which offering, the car water a cell emission to we biofuels fuel the will production the platform avoid clean streams; to port The used, vehicles Long power will Beach hydrogen. deliver Next, operations our to first, platform, be Port the carbon; SureSource generate third, to generated which at commercial the be natural hydrogen in core first through is thermal represents carbon we second, our negative,

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goals targets XX, provided on Next, initially Slide year. to that reiterate want long and we we our and update term last

are achieving XXXX our of long the Our to goals time uncertainty intended for context past our we Key backlog project give deliver to which term through plan is with and each our projects, continued achieving of strategy, those into and service long commercial revenue current and the are targets generation execution agreements. horizon expected are operation recurring power and term our around to economic beyond. fiscal stretching looking and year

offer and also opportunities carbon of focused capture advanced on are We growth technologies commercializing which new our each company. for our hydrogen platforms,

conclude highlights reviewing Energy. will today XX. by FuelCell Slide investment Turning I for key remarks my to

our we strengthened Over while of actions the enhancing have past by our and reducing debt have strategic liquidity our borrowing. balance several executed sheet that together cost repaying year,

on enhanced profile, positioned our we Given well our growth financial strategy. execute to believe we are

achieving our while on organization and delivering our that financial outstanding purpose. an adhering milestones, building have to upon excellence, focused core our serving We is growth projects, operational customers,

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company transform, implement grow our long to and working strengthen are our to the We for Powerhouse business term. strategy

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have Chief our and to Leo, I, we past it I Operating Lisowski, Amy of are EVP the colleagues year turn progress We Amy? Mike Q&A. our the year and of Officer Chief Tom Mike, ahead. over call. a and Officer. made the begin for Technology will couple to by to Tony Q&A and over joined look portion forward and EVP now

Operator

[Operator with Dorsheimer first today Instructions] Canaccord line of Genuity. Your comes question Jed the from

Jed Dorsheimer

I terms kind new just you have or South a to how reengagement the that Korean this the form of curious, guess, don't in that historically is effort? of mind. first, market. going couple, was that regarding be with sales, in of if is the does I'm booked change I product

Jason Few

sale No, for company. that product opportunity to be we a expect that, market will continue the

Jed Dorsheimer

that is did too expectations in And geography? of or any it give time frame around you early that terms still or

Jason Few

No, specific frame. we haven't time given any

As an six on RFPs some for said process. generally time, longer. it's I Those remarks, in my months RFP go prepared can or

any product given not the to about market. hit specific we've the So when time we expect sales see

Jed Dorsheimer

backlog, terms apologize provided generation you And lot like it and XXX maybe kilowatts, a only I you quarter-over-quarter just looks But look in I ticked at Toyota. of backlog so if up in this. detail, with addressed of the if terms, simplistic

and we're not is just I'm that the or why generation down? pull flat wondering that So backlog seeing either the grow

Mike Bishop

on product plan. any So sales this executed add, business did obviously, we is the as revenue on Product We sales. we've obviously, recognized, backlog, year not zero.

to said, Korea product just expect as we US. in is would well big the future the continue Europe as see We a that. Jason there market as activities in As for sales

You did future would advanced today, bit But down increases little over in And backlog we ExxonMobil joint you see sales the the a where to in into prior backlog as technology see we development in convert brought to the year. as increases related expect sit it's pipeline the year-over-year agreement. our we yes, in generation backlog.

Jed Dorsheimer

Clean which order, able President the amendment the seem would would able as guess, signed be the Do executive as that I a hit administration, that the methane Acts an an technology of with Biden -- just if participate value to before then, you it Clean respect ready that that had capture milestone see the Air to component, of to that And that's availability proposition. Air a to advanced you're of the or product, terms technology effort. in one advanced to in this has need Biden Act we

like seems that? it right of fire out product, a in Is that's way irons that guess have but I'm terms to which the a the it also two you back like of there. I different think that that coming or couple year about So to seems in

Jason Few

we're people negative power as absorbing to the talked most that Toyota administration going But the today. production probably In right of be biofuels, have green I through case, use of about, to we all ability the with as now. carbon our on example, things for carbon hydrogen. product are going the Jed, portfolio, new neutral deliver with to So are the delivering

outside at it generation deliver on. of a with new platform, the our So we we around oxide we'll to we that, as our happen that how today see solid ability we'll hydrogen portfolio current efforts. demonstration electrolysis fit have of carbonate our commercialization our things product And what as look plans going announced commercial technology our the our to or that see apply relates terms that administration to to will earlier rules across look execute and we to with of we project But is platform, do. demonstration in then

Jed Dorsheimer

and question which under utility methane am is something? or Or I've technology? PPA my just I've needs got need combined your that imposed to to to just had and if cap think look a your the strategies a I for you sell on I there I peaker, advanced technology? I I So more be want a addressing asked cycle a specifically, or first maybe oxide, and milestone are to now a of guess, hit solid generation wrong, you able achieve that falls or at right that,

Jason Few

Well, I'll give you example. an

you to gas which where today could blend intensity could the a one how apply platform hydrogen leverage you to existing utility. terms add as use technology trigen our of in take example that you're down today address natural our and if you if know carbon So we and Tony, in anything that don't way trigen in an to the generate technology that. could you I else would take and would

Tony Leo

talking up to carbon that's hydrogen you you're caps, can perhaps exactly technology The when caps. say dioxide And right. trigeneration they're decarbonize gas. think running I clean against about produce natural No, methane emission

dioxide can efficient we that to doesn't require the plants modified dioxide, be a less have milestone. today current that that's power carbon so as as produce well from technology platforms their extract And that a carbon emissions, our special

these today So have requirements. decarbonization address we can technologies that do

Operator

line question the Paul of next from with JP Morgan. comes Your Coster

Paul Coster

Jason, quickly. there's and go obviously those into you've competitors Can Korea for that And your you're a to to you've regions? big. regions quite it's into talk includes Europe. a few of lot about And partnerships and going your one on, opportunities pursuing, moving alluded land strategy to the seen those of us you

Jason Few

Paul, a already Europe, there. in So we have presence

to focus. additional that We we’re the the have or and from EON region. work including in to in customers an a channel in doing resources in that standpoint Asia, in team in across existing the exploring continuing various have opportunities we're resources us working Korea, market. standpoint with a for that different additional have where development really market Asia, Europe our we from we're drive there And today. And Korea addition that Asia expand what platforms sales to doing and is market adding existing operate And other partners markets we opportunity and channel development we're that in a adding with to channel partners today help supports

well effort a both direct sales partnership efforts as have channel as markets. we'll So in those

Paul Coster

opportunities, some partnerships important a partner and there pursuing additional where or pace think moment? to in faster a an just big maybe capital these JVs Do way heft the feels opportunity there's into it from seems like you at enter you really to large and get get

Jason Few

and are I good a look also the that's not of opportunity doing not from a strategic in allows in work the really platform for a foreclosed not to determining the point. create our market. company partners. relationship for extend more relationships look partnerships expanded in at way a I mean although, in unique would capital I with But to important, perspective including to the a and or partner, that, to capital new are strategic other partners, things want us a that market on strategic just a create we that's partners way brings I for [effort] differentiation something that opportunities and/or attracting those look from that to toward from relationship Paul, that that that's compelling or only

factor an So is evaluating that we'll in at factor, partnership. important not although it's the a look of terms capital only

Paul Coster

to positioned fuel stop the relates that of play a outside It storage their long in way and intermittent terms fuel how to efficiency. cell Can And for gas. power course those which solar you're solid and talk just particular fuel are but intermittent for oxide about cells as of and storage opportunity, solid seems wind to despite pursuing cells us like to start. wind solutions? seem merits which resources in turning not and duration moment poorly that that is solar, Just duration [net] particularly that oxide long you solid

Jason Few

no mother Tony just platform let yet. in thing and But us more nature jump provide I in is problem how rate, solar control that electrolysis. to I'll the Yes. some gives electrolysis the to biggest implement one's out the ability one that. on has figured or our that general color is And oxide intermittent -- mean technology

or need not is I the not shines you the it or don't shining. right? the So blowing blows, often sun need you power don't wind's it, mean, when need wind When reverse, the or the you sun the

it talk create demand on our in platform, duration But a actually that that to will storage to for just that. in that same the that let which hydrogen So an about platform, electricity generate mode in green terms excess hydrogen power. the will long ability is to is reverse hydrogen in leverage when which all energy it's basis often to Tony closed-loop with use speaking grid then of have a on storage, electrolysis I'll you that

Tony Leo

really, application do what to electrolysis high a mean the solid oxide brings specifically electrolysis way conventional really is to efficient today. here that’s this to I it's compared

one thing. So that's

is thing a can be same fuel that in we cells oxide other be be the the an developed [indiscernible] can The cell then solid and to electrolysis can cell. -- switched cell operation

stack that things, because of it hydrogen, capital create more cost you've then reducing you're So and if both the to got power, send to stack the can the one you application. make back doing hydrogen store

that's unique So the to reversible and efficiency. high about solid what’s ability oxide, very, very be a

Paul Coster

heat, to the sure cell to want down. to otherwise mode -- the immediate and them, -- to up ability because made switch understand fuel sounds breakthrough. a right? and a any just make It's you've do it that like heat that take I from electrolysis without solid that big So cells of and got understand because fuel oxide cool loss I day Have I I

Tony Leo

Well, it's high a temperature system.

are So extremely [wet and up. it probably warm, don't to things to action up. to can take Plus that heat -- into so oxide needed. does some they heat spring it’s they be whenever But all be would solid to easy time light], -- take much the ready stacks keep so it -- our to that they're

Jason Few

bit -- announced with Tony, where you demonstration one could DOE a and… about the And we the of to maybe, project speak little the

Tony Leo

this for been actually making we've I time, breakthrough. leading we're successes technology. and moving And this, for that from working long with demonstration activity R&D the this you mean, a mentioned a of a up core into lot to phase

Energy, demonstration from We just a have National to We announced the Danbury do of Idaho now. kilowatt in that's a Department system here US an Laboratory. running electrolysis award XXX at

have what some to in funding lab in a past. done we've in Danbury in to additional the test reversible DOE concept addition We our this

comfortable So demonstration from a phase this the the going technology and marching steady commercialization. R&D that progression into it's phase, the toward works,

Paul Coster

business. associated yet? a oxide handle you CapEx ramping have up Do solid just the question, Last with cell fuel on that

Mike Bishop

we R&D. funded technology what as year there projects working this is out remarks, really with making far things in our DOE. mentioned, Tony we're there's those the doing advanced and in what of are So CapEx, funded as So on company funded and kind our also is, put is additional right? as investments here, two XX-K company The

year, $XX was So about funded year, of we'll This million. last the to be million. $X.X $XX range company R&D in million our

the across making will less are, to the million million in $X factories, 'XX systems last to capital $XX in addition of for our to range year. $X fiscal laboratories in business expenditures compared million company be than that, that and We

Operator

Alexander Jefferies. line comes of question the next Your with Laurence from

Laurence Alexander

And R&D, you projects, XXXX ones. how a Just three could mean, I grant the bit many managing if talk are you're really quick for you little new bandwidth to range the secondly, a if Can how rate revenue, manage in and from it finally, about is of run time? the same to to projects, expect up the of about or opening this sort that several you keep next rate continue your at any, reasonable opportunities thinking as XXXX? flex, kind up? for And it steady of should years we are to increase run think here, of with over

Jason Few

I want I to got all make sure three.

was didn't it’s revenue. around do The first I around get to something question quite bandwidth know I question. the projects. second with

Laurence Alexander

or [Technical P&L? think How Difficulty] branch revenue other the you from about do DOE through other

Jason Few

that And be will. you do then spending, new the we in kind normal, of if to R&D expect

how on our projects, little we bit against the and resources deploy manage bandwidth management a Mike on efforts. we those speak project how first So maybe and process Lisowski to projects, one I'll ask about those

Mike Lisowski

EPC that projects. the we're many concurrently scale we with partners well on to ongoing firms in-flight really, work execute to So manage leverage and positioned We to qualified projects.

the chain We one time. we can deep direct And become all the firms EPC manage active, leverage supply projects foundational and have of concurrently as effectively for we at that projects very multiple equipment. engage a

would concurrently can on a that of support project straight in away, to and to resources have business. plan be backlog here with I projects manage we our kind really to number we don't that So scale today our the we say, as sit we limit,

Jason Few

grant think forward? how revenues And talk about about then, Mike, R&D the we and maybe you go could

Mike Bishop

You look it. have you in kind sit advanced R&D of, today, when of our of the funded our in which revenues revenue, elements, revenues, an does at government technology come as we here contract right? have three Really element form

energy have you that service that. credits then revenue, license to of through flows generation through there's And grant element revenue. flows there that generation some and an time And have is In revenue time, that. We from renewable revenues.

backlog kind grant from contract brought would we year-over-year So of increase advanced as the additional well contract. projects, seen what I technology in for as these DOE revenue that perspective, as But nominal. ExxonMobil a it's revenue, say, you've

of, $XX million to if this high past revenue, you'll you see So the back fiscal year, range, range. we million XXXX, kind were in continue in technology contract go advanced the $XX

backlog. strong with So a and growing

sales and electricity energy EBITDA we drives the that bring addition, into In as operating credit benefit bring increase positive. renewable get and our you we company come of what will an projects these see as revenue portfolio, generation online for we our and to sales targets continued to to continue the fiscal as 'XX that's

you mentioned As our see increase commercialization far year as we that will our as to as including the R&D distributed advanced spending, answer plans last technologies, I execute an around be fiscal duration question, based storage. $XX targets long we million that this between put out about And $X.X in energy hydrogen to that to the spending will is $XX million hydrogen, million that compared XXXX.

Operator

next Oppenheimer. question Rusch Your the Instructions] Colin with line of from [Operator comes

Colin Rusch

It goods a of go over be through the a balance sounds bunch carrying us how to so. next got year basis? understand or going to on I inventory the levels of you're a Can what sheet forward sense you've you give that finished love flows inventory. like

Mike Bishop

-- June, to shutdown. we in and July up inventory, remarks, had operating some So brought the And about came the time we're fiscal megawatts. said obviously frame we now to into when online at COVID back during factory Jason obviously, back now factory have We we've you XX as year, ramping fiscal transition zero actually think in came where factory during around his the the we're the down megawatts. the XXXX XX

XXXX. up see you'll to fiscal megawatts -- position inventory from what So during an year XX

in additional position, [Technical we bring inventory start from in Difficulty] that little portfolio. work as you'll see really bit So grow inventory from ramp an function it’s into what assets activity you'll a a raw generation see process materials, our of to deploying

finished, So balance generation deploy portfolio. become we'll will are the They those assets as project assets into on the sheet.

say than be down. see sit we materials replaced probably work you'll as get in and the we're consistent by I raw inventory or and production goods will would process, come and projects higher be that to construction, COD in But as where more likely today closer given finished ramp. from So

Operator

comes line Stine Your the question Eric Craig-Hallum. next with of from

Eric Stine

And some when would sale give given I know headwinds But anticipating objectives, just those -- brief. it I could keep you've 'XX I'll reach me, for baking mean, objectives? you to but objective, you been little mean, that an a there. guess just the I or of to that's on product know, contribution love had more color I think about I what into are fiscal your you kind opportunities,

Jason Few

all is on that focused effectively those the model and markets projections set projects, given effort activity is a up to we business of because integrated strong number where we've you continue And decision as will we're say, we like of think those have opportunities EON, a sheet company. to developing And example, have integrated as PPAs. to if to look will made company, level. the corporately significant balance we as to we projects engineering, opposed product pipeline, drive seeing Eric, largely opportunities our not an at What with and and in our expect winning Europe, a that project is sales on that some sales we’ve that relationship type about marketing core had as pretty manufacturing, traditionally of model. I be though, business relationship for

to us lot the point a for product will product the we've that get where get that a through terms backlog XXXX. we'll whether a about in it’d set now or of built sale. be we positive to company so a a of more opportunity, adjusted And EBITDA think how and gives us opportunities to It PPA a flexibility development

forward. move become expect as And so to bigger we of that a mix we part our

Operator

of Noel today And Brothers. from Tuohy the with line question comes Parks for your last

Noel Parks

into have timing Just time. far exchanges? the for modeling for projects module module wondering, exchanges, likely expected of visibility more as or any as the recognized as expenses you that Do you have of over you implemented sort

Mike Bishop

is parties for maintenance is have bit the assets the of service how is essentially that recognized little revenue agreements. a two year major is cost activity over and term the exchange. by year of Routine our modules our provide owners XX background Today, projects, to life service the just is we operates bifurcated service typically agreements revenue are portfolio essentially where module And third on these are life. the agreement and amortized company long our maintenance streams. seven of but and for assets portfolio, into The owned the a

until cost So deployed the those recognition the are into platform. revenue defers modules company and recognition actually

would half When thinking service you're the piece is revenue going maintenance half. major maintenance out, routine essentially model agreements, is look you seven about a the to our you if So there's about modeling at these years, generally, major the and element. be every other

you that's think how modeling this So would about out.

Operator

back And I'll Few closing for to the Jason turn now remarks. call

Jason Few

Amy, thank us you. for you, joining Thank again, today.

live our about execute empowered and strengthen our in energy. returns. excited organization optimizing have We Powerhouse opportunity am purpose I And and and our continue to the on goal see with FuelCell to Energy of teamwork we profitable life strategy, in growth work the deliver on to business encouraged I'm on to display delivering working by a day our world the day out. by the clean to enable I

I Joe Thank United to term great President, In healthy. States. Blessing interest and value Please closing, Energy. appreciate committed Haris and the delivering your a shareholder for in President, want FuelCell to Vice and and on day. continued joining, Biden; have stay safe are wish Kamala God's We you long

Operator

you conference today's call. concludes this And participation. Thank your for

may disconnect. You now

FuelCell Energy (FCEL) 21 Jan 212020 Q4 Earnings call transcript