EX-99.01 2 ex99-01.htm

 

Exhibit 99.01

 

H/Cell Energy Reports FY2018 Year End Financial Results

 

Dallas, TX, March 26, 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 fiscal year ended December 31, 2018.

 

Fiscal Year 2018 Highlights:

 

  ● Increased year-over-year revenue by 19%
  ● Acquired and assimilated PVBJ, Inc. (www.pvbjinc.com)
  ● Secured a growth lending facility with Thermo Communications Funding
  ● Achieved an operating profit in both wholly-owned HCCC subsidiaries
  ● Established a revenue producing renewable energy division in Australia
  ● Selected as a panel member for The Queensland Department of Natural Resources, Mines and Energy
  ● Increased bid list to approximately $27 million

 

For the twelve months ended December 31, 2018, HCCC generated revenue of $7,546,437 and a net loss of $554,010, which includes $292,439 of non-cash charges that do not affect the cash flow performance or working capital of HCCC. This amounts to $(0.07) in loss per share. The results compare to revenue of $6,352,886 and net income of $8,897 or $0.00 in earnings per share, fully diluted, for the prior year ended December 31, 2017.

 

Andrew Hidalgo, CEO of HCCC, commented, “Fiscal year 2018 was a significant year for the company. We invested in the growth of the organization and achieved many milestones. Our subsidiaries are performing well and generating many projects while focusing on the market development of our advanced clean energy solutions. We feel that our financial condition is solid, with $359,134 in cash and $3,524,507 in assets. We also believe our advanced clean energy solutions featuring hydrogen and fuel cell technology will become a primary energy source for off-grid electric power in the residential, commercial and government sectors. HCCC is growing at a fast pace and the market for clean energy is abundant with opportunities.”

 

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

CONSOLIDATED BALANCE SHEETS

 

   December 31, 2018   December 31, 2017 
         
ASSETS          
Current assets          
Cash and cash equivalents  $359,134   $455,700 
Accounts receivable (net retention)   1,087,381    808,050 
Prepaid expenses   16,282    14,669 
Costs and earnings in excess of billings   45,478    51,531 
Total current assets   1,508,275    1,329,950 
           
Property and equipment, net   476,436    102,573 
Security deposits and other non-current assets   32,530    8,416 
Deferred tax asset   50,000    44,257 
Customer lists, net   83,645    - 
Goodwill   1,373,621    - 
           
Total assets  $3,524,507   $1,485,196 
           
LIABILITIES AND STOCKHOLDERS’ EQUITY          
           
Current liabilities          
Accounts payable and accrued expenses  $891,354   $631,385 
Management fees payable – related party   -    31,257 
Earn-out payable   190,736    - 
Billings in excess of costs and earnings   195,331    87,206 
Sales and withholding tax payable   59,857    61,239 
Current equipment notes payable   38,991    - 
Current capital lease payable   65,265    - 
Income tax payable   48,643    98,313 
Total current liabilities   1,490,177    909,400 
           
Noncurrent liabilities          
Line of credit   28,359    - 
Equipment note payable   121,038    - 
Capital leases   232,876    - 
Convertible note payable – related party, net of discount   29,122    - 
Total noncurrent liabilities   411,395    - 
           
Total liabilities   1,901,572    909,400 
           
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; 7,586,024 and 7,041,579 shares issued and outstanding as of December 31, 2018 and December 31, 2017, respectively   758    704 
Additional paid-in capital   2,983,476    1,335,656 
Accumulated deficit   (1,285,764)   (731,754)
Accumulated other comprehensive loss   (75,535)   (28,810)
Total stockholders’ equity   1,622,935    575,796 
           
TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY  $3,524,507   $1,485,196 

 

   

 

 

H/CELL ENERGY CORPORATION

CONSOLIDATED STATEMENT OF OPERATIONS – OTHER COMPREHENSIVE INCOME

 

   For the Years Ended December 31, 
   2018   2017 
         
Revenue          
Construction income  $7,505,889   $6,266,967 
Related party   40,548    85,919 
Total revenue   7,546,437    6,352,886 
           
Cost of goods sold          
Direct costs   5,492,607    4,241,421 
Direct costs – related party   40,376    87,649 
Total cost of goods sold   5,532,983    4,329,070 
           
Gross profit   2,013,454    2,023,816 
           
Operating expenses          
General and administrative expenses   2,368,860    1,776,859 
Management fees – related party   78,000    184,004 
Total operating expenses   2,446,860    1,960,863 
           
Income (loss) from operations   (433,406)   62,953 
           
Other expenses          
Interest expense   26,584    - 
Interest expense – related party   79,622    - 
Change in fair value earn-out   15,418    - 
Gain on fixed asset disposal   (17,277)   - 
Total other expenses   104,347    - 
           
Income tax provision   16,257    54,056 
           
Net income (loss) before income taxes  $(554,010)  $8,897 
           
Other comprehensive income (loss), net          
           
Foreign currency translation adjustment   (46,725)   21,996 
           
Comprehensive income (loss)  $(600,735)  $30,893 
           
Earnings (loss) per share          
Basic  $(0.07)  $0.00 
Diluted  $(0.07)  $0.00 
Weighted average common shares outstanding          
Basic   7,586,024    6,703,223 
Diluted   7,586,024    7,699,743