H/Cell Energy Reports FY2017 Second Quarter Results

FLEMINGTON, N.J., Aug. 15, 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 second fiscal quarter ended June 30, 2017.

For the three months ended June 30, 2017, HCCC generated revenue of $1,930,658 and net income of $207,482 or $0.03 earnings per share, fully diluted. For the six months ended June 30, 2017, HCCC generated revenue of $3,797,503 and net income of $151,358 or $0.02 earnings per shares, fully diluted.

Andrew Hidalgo, CEO of HCCC, commented, "We are pleased to announce a very successful quarter, which included record revenue and earnings. In addition, our balance sheet net tangible asset value increased 38% from $492,278 on December 31, 2016 to $681,509 on June 30, 2017. As of June 30, 2017, HCCC had a backlog of project work to be completed of approximately $827,000 and an active bid list of potential projects of approximately $5.2 million. As we build shareholder value, HCCC will continue to focus on organic growth as well as seeking strategic acquisition candidates that can expand our geographic scope, add technical resources and increase the size of our customer base.”

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, the company also provides security systems integration. The company 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
CONDENSED CONSOLIDATED BALANCE SHEETS
		June 30, 2017				December 31, 2016
		(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents		$	293,769			$	537,867
Accounts receivable (net retention)			1,634,929				650,886
Prepaid expenses			7,043				14,168
Costs and earnings in excess of billings			27,166				91,904
Total current assets			1,962,907				1,294,825
Property and equipment, net			102,076				99,816
Security deposits and other non-current assets			8,599				8,497
Total assets		$	2,073,582			$	1,403,138
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses		$	1,062,732			$	661,237
Management fees payable – related party			46,000				52,000
Billings in excess of costs and earnings			168,919				83,538
Sales tax payable			114,422				114,085
Total current liabilities			1,392,073				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 June 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			1,302,487				1,283,422
Accumulated deficit			(589,293	)			(740,651	)
Accumulated other comprehensive loss			(32,389	)			(50,806	)
Total stockholders' equity			681,509				492,278
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY		$	2,073,582			$	1,403,138

 

 

H/CELL ENERGY CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS – OTHER COMPREHENSIVE INCOME
		For the Three Months Ended June 30,							For the Six Months Ended June 30,
			2017			2016				2017			2016
Revenue
Construction income		$	1,906,495		$	1,531,479			$	3,757,250		$	2,747,483
Related party			24,163			1,500				40,253			1,500
Total revenue			1,930,658			1,532,979				3,797,503			2,748,983
Cost of goods sold
Direct costs			1,147,909			990,723				2,561,729			1,904,985
Direct costs – related party			34,440			1,500				50,345			1,500
Total cost of goods sold			1,182,349			992,223				2,612,074			1,906,485
Gross profit			748,309			540,756				1,185,429			842,498
Operating expenses
Research and development			-			-				-			2,000
General and administrative expenses			498,124			527,778				945,369			1,442,177
Management fees – related party			45,000			38,000				91,000			77,000
Total operating expenses			543,124			565,778				1,036,369			1,521,177
Income (Loss) from operations			205,185			(25,022	)			149,060			678,679
Other income			2,297			7,767				2,298			7,671
Net income (loss)		$	207,482		$	(17,255	)		$	151,358		$	(671,008	)
Other comprehensive income (loss), net
Change in foreign currency translation adjustment			7,048			43,108				18,417			54,376
Comprehensive income (loss)		$	214,530		$	25,853			$	169,775		$	(616,632	)
Earnings (Loss) per share
Basic		$	0.03		$	(0.01	)		$	0.02		$	(0.26	)
Diluted		$	0.03		$	(0.01	)		$	0.02		$	(0.26	)
Weighted average common shares outstanding
Basic			7,039,357			2,709,357				6,355,468			2,571,387
Diluted			7,948,091			2,709,357				7,259,155			2,571,387

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