DALLAS, 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