HCCC - H/Cell Energy Reports FY2019 Third Quarter Financial Results
DALLAS, Nov. 12, 2019 (GLOBE NEWSWIRE) -- H/Cell Energy Corporation (OTCQB-HCCC) (“HCCC”), a company that designs and implements clean energy solutions featuring hydrogen and fuel cell technology, has announced financial results for its third quarter ended September 30, 2019.
For the three months ended September 30, 2019, HCCC generated revenue of $1,701,365 and a net loss of $189,403 which included $86,217 of non-cash charges that do not affect the cash flow performance or working capital of HCCC. This amounts to a $(0.03) per share loss. For the nine months ended September 30, 2019, HCCC generated revenue of $5,333,559 and a net loss of $438,264 which included $285,251 of non-cash charges that again, do not affect the cash flow performance or working capital of HCCC. This amounts to a $(0.06) per share loss.
Andrew Hidalgo, CEO of HCCC, commented, "HCCC has been building momentum over the last few months. Recently, in several releases, we announced over $3.8 million in new contracts that we expect to be primarily completed in the fourth quarter, with some of those projects being pushed out to the first quarter of 2020. Even after being awarded several new projects, the bid list remains strong with close to $30 million of activity. Our two subsidiaries are operationally profitable year to date and have each established renewable energy efforts that have resulted in significant opportunities going forward. Corporate expenses have been more than originally budgeted this year due primarily to capital raising efforts. However, we have been successful in raising growth capital which should help us expand in 2020. Although non-cash charges have no bearing on our cash flow or working capital, we are planning to minimize non-cash charges in the future so that we can produce positive net income results overall. We are looking forward to building our business in this high growth renewable energy sector and establishing HCCC as a premier advanced clean energy company.”
About H/Cell Energy Corporation:
H/Cell Energy Corporation is an integrator that focuses on the design and implementation of clean energy solutions including solar, battery, fuel cell and hydrogen generation systems. In addition, through its subsidiaries, HCCC also provides environmental systems and security systems integration. HCCC serves the residential, commercial and government sectors. Please visit our website at www.hcellenergy.com for more information.
Forward Looking Statements:
Certain statements in this press release are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may be identified by the use of forward-looking words such as “anticipate,” “believe,” “forecast,” “estimate,” “expect,” and “intend,” among others. These forward-looking statements are based on current expectations and actual results could differ materially. H/Cell Energy Corporation does not undertake an obligation to update or revise any forward-looking statement. The information set forth herein speaks only as of the date hereof.
Contact:
H/Cell Energy Corporation
Investor Relations
3010 LBJ Freeway, Suite 1200
Dallas, Texas 75234
972-888-6009 USA
| H/CELL ENERGY CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS |
| September 30, 2019 |
| December 31, 2018 |
| (Unaudited) |
| ASSETS |
| Current assets |
| Cash and cash equivalents |
| $ |
| 242,389 |
| $ |
| 359,134 |
| Accounts receivable |
| 1,019,524 |
| 1,087,381 |
| Prepaid expenses |
| 19,763 |
| 16,282 |
| Current right of use asset |
| 85,807 |
| - |
| Costs and earnings in excess of billings |
| 3,709 |
| 45,478 |
| Total current assets |
| 1,371,192 |
| 1,508,275 |
| Property and equipment, net |
| 464,075 |
| 476,436 |
| Security deposits and other non-current assets |
| 31,109 |
| 32,530 |
| Deferred tax asset |
| 50,000 |
| 50,000 |
| Customer lists, net |
| 68,282 |
| 83,645 |
| Deferred offering cost |
| 133,797 |
| - |
| Right of use asset |
| 139,607 |
| - |
| Goodwill |
| 1,373,621 |
| 1,373,621 |
| Total assets |
| $ |
| 3,631,683 |
| $ |
| 3,524,507 |
| LIABILITIES AND STOCKHOLDERS’ EQUITY |
| Current liabilities |
| Accounts payable and accrued expenses |
| $ |
| 746,081 |
| $ |
| 891,354 |
| Current line of credit |
| 303,526 |
| - |
| Billings in excess of costs and earnings |
| 44,301 |
| 195,331 |
| Sales and withholding tax payable |
| 50,072 |
| 59,857 |
| Current equipment notes payable |
| 41,358 |
| 38,991 |
| Current operating lease liability |
| 85,807 |
| - |
| Current finance lease payable |
| 73,842 |
| 65,265 |
| Current convertible notes payable – related party, net of discounts |
| 257,659 |
| - |
| Income tax payable |
| 33,134 |
| 48,643 |
| Total current liabilities |
| 1,635,780 |
| 1,299,441 |
| Noncurrent liabilities |
| Line of credit |
| - |
| 28,359 |
| Lease operating liability |
| 141,171 |
| - |
| Earn out payable |
| 204,383 |
| 190,736 |
| Finance leases |
| 268,269 |
| 232,876 |
| Equipment notes payable |
| 76,159 |
| 121,038 |
| Convertible notes payable – related party, net of discounts |
| 155,442 |
| 29,122 |
| Total noncurrent liabilities |
| 845,424 |
| 602,131 |
| Total liabilities |
| 2,481,204 |
| 1,901,572 |
| Commitments and contingencies |
| Stockholders’ equity |
| Preferred stock - $0.0001 par value; 5,000,000 shares authorized; 0 shares issued and outstanding |
| - |
| - |
| Common stock - $0.0001 par value; 25,000,000 shares authorized; 7,694,024 and 7,586,024 shares issued and outstanding as of September 30, 2019 and December 31, 2018, respectively |
| 769 |
| 758 |
| Additional paid-in capital |
| 2,950,136 |
| 2,983,476 |
| Accumulated deficit |
| (1,724,028 |
| ) |
| (1,285,764 |
| ) |
| Accumulated other comprehensive loss |
| (76,398 |
| ) |
| (75,535 |
| ) |
| Total stockholders’ equity |
| 1,150,479 |
| 1,622,935 |
| TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY |
| $ |
| 3,631,683 |
| $ |
| 3,524,507 |
| H/CELL ENERGY CORPORATION CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS – OTHER COMPREHENSIVE INCOME (UNAUDITED) |
| For the Three Months Ended September 30, |
| For the Nine Months Ended September 30, |
| 2019 |
| 2018 |
| 2019 |
| 2018 |
| Revenue |
| Construction income |
| $ |
| 1,701,365 |
| $ |
| 1,830,992 |
| $ |
| 5,333,559 |
| $ |
| 5,535,352 |
| Related party |
| - |
| 8,499 |
| - |
| 40,288 |
| Total revenue |
| 1,701,365 |
| 1,839,491 |
| 5,333,559 |
| 5,575,640 |
| Cost of goods sold |
| Direct costs |
| 1,241,630 |
| 1,438,669 |
| 3,747,390 |
| 3,901,125 |
| Direct costs – related party |
| - |
| 9,019 |
| - |
| 40,636 |
| Total cost of goods sold |
| 1,241,630 |
| 1,447,688 |
| 3,747,390 |
| 3,941,761 |
| Gross profit |
| 459,735 |
| 391,803 |
| 1,586,169 |
| 1,633,879 |
| Operating expenses |
| General and administrative expenses |
| 555,682 |
| 607,125 |
| 1,794,191 |
| 1,850,140 |
| Management fees – related party |
| 21,500 |
| 19,500 |
| 60,500 |
| 58,500 |
| Total operating expenses |
| 577,182 |
| 626,625 |
| 1,854,691 |
| 1,908,640 |
| Loss from operations |
| (117,447 |
| ) |
| (234,822 |
| ) |
| (268,522 |
| ) |
| (274,761 |
| ) |
| Other expenses |
| Interest expense |
| 11,801 |
| 7,544 |
| 23,892 |
| 21,636 |
| Interest expense – related party |
| 64,065 |
| 19,877 |
| 158,220 |
| 52,768 |
| Change in fair value earn-out |
| 4,704 |
| 4,290 |
| 13,647 |
| 11,028 |
| (Gain) loss on fixed asset disposal |
| (8,614 |
| ) |
| 795 |
| (26,017 |
| ) |
| 4,149 |
| Total other expenses |
| 71,956 |
| 32,506 |
| 169,742 |
| 78,553 |
| Net loss |
| $ |
| (189,403 |
| ) |
| $ |
| (267,328 |
| ) |
| $ |
| (438,264 |
| ) |
| $ |
| (364,342 |
| ) |
| Other comprehensive income (loss), net |
| Foreign currency translation adjustment |
| (15,236 |
| ) |
| (7,828 |
| ) |
| (863 |
| ) |
| (40,657 |
| ) |
| Comprehensive loss |
| $ |
| (204,639 |
| ) |
| $ |
| (275,126 |
| ) |
| $ |
| (439,127 |
| ) |
| $ |
| (404,999 |
| ) |
| Earnings (loss) per share |
| Basic |
| $ |
| (0.03 |
| ) |
| $ |
| (0.04 |
| ) |
| $ |
| (0.06 |
| ) |
| $ |
| (0.05 |
| ) |
| Diluted |
| $ |
| (0.03 |
| ) |
| $ |
| (0.04 |
| ) |
| $ |
| (0.06 |
| ) |
| $ |
| (0.05 |
| ) |
| Weighted average common shares outstanding |
| Basic |
| 7,574,247 |
| 7,586,024 |
| 7,596,286 |
| 7,469,307 |
| Diluted |
| 7,574,247 |
| 7,586,024 |
| 7,596,286 |
| 7,469,307 |