H/Cell Energy Reports FY2017 Third Quarter Results

Print
| Source: H/Cell Energy Corporation

FLEMINGTON, N.J., Nov. 09, 2017 (GLOBE NEWSWIRE) -- H/Cell Energy Corporation (OTCQB:HCCC) (“HCCC”), a company that designs and implements clean energy solutions featuring hydrogen energy systems, has announced financial results for its third fiscal quarter ended September 30, 2017.

For the three months ended September 30, 2017, HCCC generated revenue of $1,338,571 and a net loss of $52,446 or ($0.01) in earnings per share. For the nine months ended September 30, 2017, HCCC generated revenue of $5,136,074 and net income of $98,912 or $0.01 in earnings per share, fully diluted.

Andrew Hidalgo, CEO of HCCC, commented, "We are pleased to be profitable year-to-date through nine months. We experienced some project completion delays in the third quarter, however, our Australian operation was profitable and they are positioned nicely for the fourth quarter with approximately $962,000 of backlog yet to be invoiced. In addition, we have $5.9 million in active bids. From a balance sheet perspective, HCCC is healthy with over $400,000 in cash and assets of approximately $1.4 million. We look forward to a strong finish for FY2017.”

About H/Cell Energy Corporation:
H/Cell Energy Corporation is a systems integrator that focuses on the design and implementation of clean energy solutions including solar, battery technology and hydrogen energy systems. In addition, through its Pride Group subsidiary based in Australia, HCCC also provides 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.

H/Cell Energy Corporation
Investor Relations
908-837-9097 x-2

 
H/CELL ENERGY CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
     
  September 30,
2017
 December 31,
2016
  (Unaudited)  
ASSETS    
Current assets:    
Cash and cash equivalents $421,071  $537,867 
Accounts receivable (net retention)  817,657   650,886 
Prepaid expenses  13,675   14,168 
Costs and earnings in excess of billings  15,641   91,904 
Total current assets  1,268,044   1,294,825 
     
Property and equipment, net  104,764   99,816 
Security deposits and other non-current assets  8,583   8,497 
     
Total assets $1,381,391  $1,403,138 
     
LIABILITIES AND STOCKHOLDERS' EQUITY    
     
Current liabilities:    
Accounts payable and accrued expenses $536,340  $661,237 
Management fees payable – related party  47,000   52,000 
Billings in excess of costs and earnings  87,736   83,538 
Sales tax payable  58,739   114,085 
Total current liabilities  729,815   910,860 
     
Commitments and contingencies    
     
Stockholders' equity    
Common Stock - $0.0001 par value; 25,000,000 shares authorized; 7,041,579 and 3,131,579 shares issued and outstanding as of September 30, 2017 and December 31, 2016, respectively  704   313 
Preferred Stock - $0.0001 par value; 5,000,000 shares authorized; 0 shares issued and outstanding  -   - 
Additional paid-in capital  1,319,072   1,283,422 
Accumulated deficit  (641,739)  (740,651)
Accumulated other comprehensive loss  (26,461)  (50,806)
Total stockholders' equity  651,576   492,278 
     
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $1,381,391  $1,403,138 
     

 

 
H/CELL ENERGY CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS – OTHER COMPREHENSIVE INCOME
     
  For the Three Months Ended
September 30,
 For the Nine Months Ended
September 30,
   2017   2016  2017  2016 
    (As restated)   (As restated)
Revenue        
Construction income $1,292,905  $1,284,362 $5,050,155 $4,031,845 
Related party  45,666   -  85,919  1,500 
         
Total revenue  1,338,571   1,284,362  5,136,074  4,033,345 
         
Cost of goods sold        
Direct costs  870,369   891,876  3,432,098  2,796,861 
Direct costs – related party  37,304   -  87,649  1,500 
         
Total cost of goods sold  907,673   891,876  3,519,747  2,798,361 
         
Gross profit  430,898   392,486  1,616,327  1,234,984 
         
Operating expenses        
Research and development  -   -  -  2,000 
General and administrative expenses  437,344   347,194  1,379,415  1,790,700 
Management fees – related party  46,000   34,000  138,000  102,000 
         
Total operating expenses  483,344   381,194  1,517,415  1,894,700 
         
Income (Loss) from operations  (52,446)  11,292  98,912  (659,716)
         
Net income (loss) $(52,446) $11,292 $98,912 $(659,716)
         
Other comprehensive income (loss), net        
         
Foreign currency translation adjustment  5,928   127,487  24,345  181,863 
         
Comprehensive income (loss) $(46,518) $138,779 $123,257 $(477,853)
         
Earnings (Loss) per share        
Basic $(0.01) $0.00 $0.02 $(0.24)
Diluted $(0.01) $0.00 $0.01 $(0.24)
Weighted average common shares outstanding        
Basic  7,084,436   3,131,579  6,601,873  2,760,170 
Diluted  7,962,049   4,108,772  7,472,520  2,760,170