H/Cell Energy Reports FY2019 First Quarter Financial Results
DALLAS, May 16, 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 first quarter ended March 31, 2019.
For the three months ended March 31, 2019, HCCC generated revenue of $1,704,273 and a net loss of $143,638 which includes $111,153 of non-cash charges that do not affect the cash flow performance or working capital of HCCC. This amounts to a $(0.02) per share loss. Comparatively, for the first quarter ended March 31, 2018, HCCC generated $1,726,324 and a net loss of $110,969 which included $53,001 of non-cash charges. This also amounted to a $(0.02) per share loss.
Andrew Hidalgo, CEO of HCCC, commented, “The first quarter is typically our slowest quarter of the year; however, the subsidiaries were profitable and performed well. Excluding non-cash charges that do not affect the cash flow performance or working capital of HCCC, the company posted a small operational loss for the quarter due to among other corporate expenses, the cost of the year-end audit. The balance of the year projections are strong and we have increased our overall bid list from $27 million in the previous quarter to $33 million this quarter, which indicates that activity is rising. We believe our goal of maintaining consistent operational profitability, exclusive of non-cash charges, is within reach and we also believe that the market for advanced clean energy solutions continues to expand in opportunity due to lower cost and more efficient technology. Lastly, we feel our financial condition remains solid with $328,439 in cash and $3,659,042 in assets as of March 31, 2019. We look forward to delivering improved results in the quarters ahead.”
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
March 31, 2019
December 31, 2018
(Unaudited)
(Audited)
ASSETS
Current assets
Cash and cash equivalents
$
328,439
$
359,134
Accounts receivable
937,897
1,087,381
Prepaid expenses
18,772
16,282
Current right-of-use (ROU) asset
92,269
-
Costs and earnings in excess of billings
48,052
45,478
Total current assets
1,425,429
1,508,275
Property and equipment, net
494,491
476,436
Security deposits and other non-current assets
38,992
32,530
Deferred tax asset
50,000
50,000
Customer lists, net
78,524
83,645
ROU asset
167,985
-
Other long term asset
30,000
-
Goodwill
1,373,621
1,373,621
Total assets
$
3,659,042
$
3,524,507
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable and accrued expenses
$
695,997
$
891,354
Earn-out payable
195,132
190,736
Billings in excess of costs and earnings
41,881
195,331
Sales and withholding tax payable
54,071
59,857
Current equipment notes payable
32,052
38,991
Current operating lease liability
92,269
-
Current finance lease payable
72,510
65,265
Current convertible notes payable – related party, net of discounts
257,659
-
Income tax payable
32,259
48,643
Total current liabilities
1,473,830
1,490,177
Noncurrent liabilities
Line of credit
172,715
28,359
Lease operating liability
167,985
-
Finance leases
306,163
232,876
Equipment notes payable
65,779
121,038
Convertible notes payable – related party, net of discounts
61,609
29,122
Total noncurrent liabilities
774,251
411,395
Total liabilities
2,248,081
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; 7,621,024 and 7,586,024 shares issued and outstanding as of March 31, 2019 and December 31, 2018, respectively
762
758
Additional paid-in capital
2,896,524
2,983,476
Accumulated deficit
(1,429,402
)
(1,285,764
)
Accumulated other comprehensive loss
(56,923
)
(75,535
)
Total stockholders’ equity
1,410,961
1,622,935
TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY
$
3,659,042
$
3,524,507
H/CELL ENERGY CORPORATION CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS - AND OTHER COMPREHENSIVE INCOME (UNAUDITED)
For the Three Months Ended March 31,
2019
2018
Revenue
Construction income
$
1,704,273
$
1,694,535
Related party
-
31,789
Total revenue
1,704,273
1,726,324
Cost of goods sold
Direct costs
1,196,438
1,209,413
Direct costs – related party
-
31,617
Total cost of goods sold
1,196,438
1,241,030
Gross profit
507,835
485,294
Operating expenses
General and administrative expenses
607,052
555,184
Management fees – related party
19,500
19,500
Total operating expenses
626,552
574,684
Loss from operations
(118,717
)
(89,390
)
Other expenses
Interest expense
1,833
3,946
Interest expense – related party
36,095
14,215
Change in fair value earn-out
4,396
-
(Gain) loss on fixed asset disposal
(17,403
)
3,418
Total other expenses
24,921
21,579
Income tax provision
-
-
Net loss
$
(143,638
)
$
(110,969
)
Other comprehensive income (loss), net
Foreign currency translation adjustment
18,612
(10,259
)
Comprehensive loss
$
(125,026
)
$
(121,228
)
Loss per share
Basic
$
(0.02
)
$
(0.02
)
Diluted
$
(0.02
)
$
(0.02
)
Weighted average common shares outstanding
Basic
7,593,413
7,486,024
Diluted
7,593,413
7,486,024
Source: GlobeNewswire
(May 16, 2019 - 8:11 AM EDT)
