Hyliion Holdings Corp. (NYSE: HYLN) (“Hyliion”), a leader in
electrified powertrain solutions for Class 8 semi-trucks, today
reported its first-quarter 2023 financial results.
Key Business Highlights
- Hypertruck ERX powertrain production timeline pulled forward
and will begin in the third quarter
- Making strategic shifts to maintain strong balance sheet
position
- Restructuring Founders Program agreements and scaling back
ramp-up of production
- Hypertruck ERX system to qualify for 100% of ZEV credits under
CARB's Advanced Clean Fleet ruling
- Unveiled the KARNO generator in a 200 kW format at ACT
Expo
- Plan to establish KARNO stationary power generation
demonstrations in 2024
- Hydrogen fuel cell demonstration truck on track, in partnership
with Hyzon
- Received ISO 14001 and 9001 Certification
- Ended the quarter with $385 million of total capital
- Investor Day scheduled at Austin, TX headquarters on June 27th,
2023
Executive Commentary
“I am pleased to report that we are pulling ahead our plans to
begin production of our Hypertruck ERX powertrain system to the
third quarter which will be followed by sales to customers later
this year. While we are pleased with this progress, we also
recognize the importance in today’s market of conserving cash and
focusing our capital resources on the most critical activities. We
are therefore making strategic changes that include reducing
spending, slowing the ramp-up of truck production, and
restructuring agreements with initial Founders program customers,”
said Hyliion’s Founder and CEO, Thomas Healy. “We will continue to
scale and grow the company, encouraged by the opportunities for our
range-extender powertrain and KARNO generator technology in the
market, and will do so in a manner that maximizes shareholder
value.”
Hypertruck ERX System Development
Hyliion remains on schedule with Hypertruck ERX system
development and commercialization work, including kick-off of
extended fleet trials later in the second quarter. Assembly of the
first production trucks with the Hypertruck ERX powertrain is now
expected to begin in the third quarter of this year, versus late
2023 previously. Hyliion has also received ISO 9001 and 14001
certification which demonstrates our ability to deliver operational
excellence.
Hyliion is also announcing strategic improvements that will help
preserve cash capital as the Hypertruck ERX powertrain system is
commercialized and as work continues on the KARNO generator
technology. The company is reducing expenses, capital spending and
changing the ramp-up of powertrain system production to reduce cash
spending on working capital. Agreements with initial Founders
Program customers, who will be receiving the first trucks with the
Hypertruck ERX powertrain system, are being modified to simplify
terms and pass through recent inflation-driven cost increases. The
company expects changes to the mix of Founders Program customers
and Hyliion will place initial units with more fleets so that a
greater number of customers have the opportunity to experience the
powertrain. Hyliion expects to deliver the first 30 trucks by
year-end 2023.
KARNO Update
Progress also continues with development and testing of
Hyliion’s KARNO™ generator. Assembly of the first production-scale
KARNO generator has been completed and was exhibited in a prototype
truck during the recent Advanced Clean Transportation (ACT) Expo in
Anaheim, CA last week. The vehicle is capable of being fueled with
both hydrogen and renewable natural gas, offering a truly fuel
agnostic solution. The company plans to showcase the KARNO truck at
its investor conference in Austin on June 27th, where attendees
will have a chance to participate in a Ride and Drive event as well
as learn more about stationary power applications for the KARNO
generator.
Hyzon Collaboration
As reported last quarter, Hyliion and Hyzon Motors are working
together to develop a fuel-cell-powered vehicle using Hyliion’s
electric powertrain system and Hyzon’s fuel cell technology as the
generator. The project remains on track for completion by the end
of this year.
Financial Highlights, Operating Expense and 2023
Guidance
In the first quarter, the Company recorded $310 thousand in
revenue related to Hybrid sales. The Company’s first quarter
operating expenses totaled $31.9 million, $6.3 million higher than
a year ago, mainly due to higher research and development spending.
Hyliion ended the first quarter with $385 million of cash,
short-term and long-term investments, and currently has no plans to
raise additional capital.
Updated forward guidance includes total operating expense of
approximately $130 million and total cash consumed in operating
losses, capital spending and working capital of approximately $150
million for the year, compared to the prior estimate of
approximately $200 million.
First Quarter 2023 Conference Call
Hyliion will host a conference call and accompanying webcast at
11:00 a.m. ET / 10:00 a.m. CT on Wednesday, May 10 to discuss its
financial and business results, and outlook. The live webcast of
the call, as well as an archived replay following, will be
available online on the Investor Relations section of Hyliion’s
website. Those wishing to participate can access the call using the
links below:
Conference Call Online Registration:
https://conferencingportals.com/event/vjUOPPlo Access the Webcast:
https://events.q4inc.com/attendee/357822431
First quarter 2023 financial results for Hyliion Holdings Corp.
will also be filed with the SEC on Form 10-Q.
About Hyliion
Hyliion’s mission is to reduce the carbon intensity and
greenhouse gas (GHG) emissions of Class 8 semi-trucks by being a
leading provider of electrified powertrain solutions. Hyliion
offers fleets efficient and practical systems to decrease fuel and
operating expenses while seamlessly integrating with their existing
fleet operations. Headquartered in Austin, Texas, Hyliion designs,
develops, and sells electrified powertrain solutions that can be
installed on most major Class 8 semi-trucks, and leverages advanced
software algorithms and data analytics to improve overall
efficiencies. Hyliion’s goal is to transform the commercial
transportation industry’s environmental impact at scale. For more
information, visit www.hyliion.com.
Forward Looking Statements
The information in this press release includes “forward-looking
statements” within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. All statements, other than statements of
present or historical fact included in this press release,
regarding Hyliion and its future financial and operational
performance, as well as its strategy, future operations, estimated
financial position, estimated revenues, and losses, projected
costs, prospects, plans and objectives of management are forward
looking statements. When used in this press release, including any
oral statements made in connection therewith, the words “could,”
“should,” “will,” “may,” “believe,” “anticipate,” “intend,”
“estimate,” “expect,” “project,” the negative of such terms and
other similar expressions are intended to identify forward-looking
statements, although not all forward-looking statements contain
such identifying words. These forward-looking statements are based
on management’s current expectations and assumptions about future
events and are based on currently available information as to the
outcome and timing of future events. Except as otherwise required
by applicable law, Hyliion expressly disclaims any duty to update
any forward-looking statements, all of which are expressly
qualified by the statements herein, to reflect events or
circumstances after the date of this press release. Hyliion
cautions you that these forward-looking statements are subject to
numerous risks and uncertainties, most of which are difficult to
predict and many of which are beyond the control of Hyliion. These
risks include, but are not limited to, our status as an early stage
the Company with a history of losses, and our expectation of
incurring significant expenses and continuing losses for the
foreseeable future; our ability to develop to develop key
commercial relationships with suppliers and customers; our ability
to retain the services of Thomas Healy, our Chief Executive
Officer; our ability to disrupt the powertrain market; the effects
of our dynamic and proprietary solutions on commercial truck
customers; the ability to accelerate the commercialization of the
Hypertruck ERX; our ability to meet 2023 and future product
milestones; the impact of COVID-19 on long-term objectives; the
ability of our solutions to reduce carbon intensity and greenhouse
gas emissions, the expected performance and integration of the
KARNO generator and system, and the other risks and uncertainties
described under the heading “Risk Factors” in our other SEC filings
including in our Annual Report (See item 1A. Risk Factors) on Form
10-K filed with the Securities and Exchange Commission (the “SEC”)
on February 28, 2023 for the year ended December 31, 2022. Given
these risks and uncertainties, readers are cautioned not to place
undue reliance on such forward-looking statements. Should one or
more of the risks or uncertainties described in this press release
occur, or should underlying assumptions prove incorrect, actual
results and plans could different materially from those expressed
in any forward-looking statements. Additional information
concerning these and other factors that may impact Hyliion’s
operations and projections can be found in its filings with the
SEC. Hyliion’s SEC Filings are available publicly on the SEC’s
website at www.sec.gov, and readers
are urged to carefully review and consider the various disclosures
made in such filings.
HYLIION HOLDINGS CORP. UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Dollar
amounts in thousands, except share and per share data)
Three Months Ended March
31,
2023
2022
Revenues
Product sales and other
$310
$340
Total revenues
310
340
Cost of revenues
Product sales and other
691
2,099
Total cost of revenues
691
2,099
Gross loss
(381)
(1,759)
Operating expenses
Research and development
20,918
15,808
Selling, general and administrative
10,981
9,824
Total operating expenses
31,899
25,632
Loss from operations
(32,280)
(27,391)
Interest income
3,462
285
Gain (loss) on disposal of assets
2
(2)
Other expense, net
(15)
—
Net loss
$(28,831)
$(27,108)
Net loss per share, basic and diluted
$(0.16)
$(0.16)
Weighted-average shares outstanding, basic
and diluted
180,118,044
173,584,573
HYLIION HOLDINGS CORP. CONDENSED
CONSOLIDATED BALANCE SHEETS (Dollar amounts in thousands,
except share data)
March 31, 2023
December 31,
2022
(Unaudited)
Assets
Current assets
Cash and cash equivalents
$
85,206
$
119,468
Accounts receivable
837
1,136
Inventory
869
74
Prepaid expenses and other current
assets
15,282
9,795
Short-term investments
196,768
193,740
Total current assets
298,962
324,213
Property and equipment, net
8,303
5,606
Operating lease right-of-use assets
6,168
6,470
Intangible assets, net
222
200
Other assets
1,674
1,686
Long-term investments
103,433
108,568
Total assets
$
418,762
$
446,743
Liabilities and stockholders’
equity
Current liabilities
Accounts payable
$
3,028
$
2,800
Current portion of operating lease
liabilities
454
347
Accrued expenses and other current
liabilities
10,567
11,535
Total current liabilities
14,049
14,682
Operating lease liabilities, net of
current portion
6,525
6,972
Other liabilities
1,581
1,515
Total liabilities
22,155
23,169
Commitments and contingencies
Stockholders’ equity
Common stock, $0.0001 par value;
250,000,000 shares authorized; 180,695,572 and 179,826,309 shares
issued and outstanding at March 31, 2023 and December 31, 2022,
respectively
18
18
Additional paid-in capital
399,674
397,810
(Accumulated deficit) retained
earnings
(3,085
)
25,746
Total stockholders’ equity
396,607
423,574
Total liabilities and stockholders’
equity
$
418,762
$
446,743
HYLIION HOLDINGS CORP. UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollar
amounts in thousands)
Three Months Ended March
31,
2023
2022
Cash flows from operating
activities
Net loss
$
(28,831
)
$
(27,108
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
524
270
Amortization and accretion of investments,
net
(194
)
578
Noncash lease expense
302
303
Inventory write-down
231
1,325
(Gain) loss on disposal of assets
(2
)
2
Share-based compensation
2,040
1,563
Changes in operating assets and
liabilities:
Accounts receivable
299
(695
)
Inventory
(1,026
)
(1,397
)
Prepaid expenses and other assets
(5,313
)
98
Accounts payable
215
(4,249
)
Accrued expenses and other liabilities
(1,144
)
219
Operating lease liabilities
(340
)
(212
)
Net cash used in operating activities
(33,239
)
(29,303
)
Cash flows from investing
activities
Purchase of property and equipment and
other
(2,988
)
(209
)
Proceeds from sale of property and
equipment
2
—
Purchase of investments
(31,394
)
(59,234
)
Proceeds from sale and maturity of
investments
33,533
57,500
Net cash used in investing activities
(847
)
(1,943
)
Cash flows from financing
activities
Proceeds from exercise of common stock
options
19
28
Taxes paid related to net share settlement
of equity awards
(195
)
(120
)
Net cash used in financing activities
(176
)
(92
)
Net decrease in cash and cash equivalents
and restricted cash
(34,262
)
(31,338
)
Cash and cash equivalents and restricted
cash, beginning of period
120,133
259,110
Cash and cash equivalents and restricted
cash, end of period
$
85,871
$
227,772
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230509006266/en/
Hyliion Holdings Corp. Ryann Malone press@hyliion.com (833)
495-4466
Kellen Ferris ir@hyliion.com (737) 292-8649
Hyliion (NYSE:HYLN)
Historical Stock Chart
From Aug 2024 to Sep 2024
Hyliion (NYSE:HYLN)
Historical Stock Chart
From Sep 2023 to Sep 2024