Recent Business Highlights
- Increased backlog1,2 to $287M up 246% from our last update in
July 2021
- Membrane Electrode Assembly ("MEA") production line in
Illinois being commissioned
- "Made in USA" heavy-duty truck fuel cell production on track
for the second half of 2022
- First North America trial with
Total Transportation Services ("TTSI") kicked off at the Port of
Long Beach
- Received an order to supply 18 Hyzon trucks in Europe, to a leading global logistics group as
the anticipated end user
- Established Hyzon's Australian headquarters in partnership with
Royal Automobile Club of Victoria
("RACV") to develop a purpose-built facility expected to generate
over 100 localized engineering and manufacturing jobs by 2025
2021 Highlights
- Exceeded vehicle delivery guidance with 87 Hyzon fuel cell
electric vehicles ("FCEVs") delivered; total contract value for
these deliveries was $19.6 million3
- Total headcount across global operations increased to
approximately 200 employees
- Established U.S operations, laying the foundation for leading
manufacturing capability of high-powered Proton-Exchange Membrane
("PEM") fuel cells, with full vertical integration on local MEA
production
- Expanded our global footprint with facilities in four
continents, providing access to markets and vital international
talent and technological developments
- Advanced our vehicle deployment and hydrogen infrastructure
strategy globally through investments in Raven SR and partnerships
with Mpreis, Ark Energy, Superior Pak, Coregas, Geesinknorba,
Woodside Energy, TC Energy, ITOCHU, ReCarbon, TotalEnergies and
MiTAC Synnex
- Deployed Hyzon vehicles in four continents for internal
validation, use in real-world demonstrations, trials, and
commercial operations
- Reported a cash balance of $445.1
million as of December 31,
2021, which includes proceeds from the Business Combination
with Decarbonization Plus Acquisition Corporation that was
completed in July 2021
1Backlog is defined as orders and non-binding MoUs
through 2025 and are subject to cancellation. Backlog as of
3/22/2022 consists of $224M non-binding MoUs and $63M firm orders; includes $92M MoU and $9M
firm order with Shanghai HongYun and $115M MoU from Geesink
2MoUs in which number of units and commercial terms have
not yet been agreed upon are excluded from our backlog
3Includes $13.6 million of
contract value to be collected over 5 years
ROCHESTER, N.Y., March 23, 2022 /PRNewswire/ -- Hyzon Motors, Inc.
(NASDAQ: HYZN) ("Hyzon" or the "Company"), a leading global
supplier of zero-emission fuel cell electric heavy-duty vehicles,
today announced fourth quarter and full year 2021 financial and
operational results.
"2021 was a transformative year for Hyzon. We successfully
completed our business combination in July and worked steadfastly
to position Hyzon to be a key player in the energy transition, as
the world increasingly turns to hydrogen to address climate and
energy challenges. In spite of widely recognized disruptions
throughout the global supply chain, we delivered 87 fuel cell
electric vehicles, with heavy and medium duty trucks now being
validated in real world operations. Furthermore, our
state-of-the-art fuel cell assembly facility in the United States is on track and will include
fully integrated production capabilities of our advanced
proprietary MEA - this is where the magic really happens in fuel
cells and is a major determinant of cost structure in fuel cell
trucks," said Hyzon Chief Executive Officer Craig Knight.
"We continued to build and foster a clean hydrogen supply
ecosystem with strategic partnerships. Our team demonstrated
agility and commitment to exceed previously announced delivery
targets. Hyzon is at the forefront of the Hydrogen Economy
with our leading proprietary fuel cell technology, first mover
position in heavy vehicles in real world settings, and our
low-cost, sustainable clean hydrogen supply strategy. Hyzon
is well positioned to be 'The Key to the Hydrogen Economy',"
concluded Mr. Knight.
2022 Business Outlook
- Expect to deliver 300-400 vehicles with deliveries heavily
weighted towards the back half of the year as the industry
navigates supply chain challenges and global uncertainties
- Expect to commence assembling vehicles using our flagship, made
in the USA, high power-density
fuel cells during the second half of 2022
- In North America, we expect to
have 10-15 Hyzon fuel cell demonstration trucks deployed to
multiple trial customers by year end
- In Europe, Australia, and China, expect to ramp up deliveries and
streamline assembly processes to meet increasing demand
- Anticipate a Hyzon / Raven gas-to-hydrogen hub and
waste-to-hydrogen hub online by year end
Fourth Quarter and Full Year 2021 Financial and
Operational Results
For the fourth quarter ending December
31, 2021, the Company reported revenue of $5.1 million. Total operating expenses of
$43.8 million and net loss
attributable to Hyzon of $28.6
million, resulting in basic and diluted loss per share of
$0.12. Net income included non-cash
gain from the change in fair value of earnout liability of
$11.0 million and non-cash loss from
the change in fair value of private placement warrant liability of
$3.4 million. Fourth quarter
operating expenses were comprised of $7.5
million in research and development and $16.1 million in selling, general and
administrative expenses. For the prior year fourth quarter
ending December 31, 2020, the Company
reported a net loss attributable to Hyzon of $13.4 million, resulting in loss per share of
$0.08.
For the twelve months ended December 31,
2021, the Company reported total revenue of $6.0 million. The Company also reported
total operating expenses of $107.4
million and net loss attributable to Hyzon of $13.8 million resulting in basic and diluted loss
per share of $0.07. Net income
included non-cash gains from the change in fair value of earnout
liability of $84.6 million and
private placement warrant liability of $4.2
million. Full year operating expenses were comprised of
$16.4 million in research and
development and $69.8 million in
selling, general and administrative expenses. For the prior
year period from January 21, 2020
(inception) through December 31,
2020, the Company reported a net loss attributable to Hyzon
of $14.3 million, resulting in loss
per share of $0.09.
As of December 31, 2021, the
Company had $445.1 million in cash
and had approximately 247.8 million shares of Class A common stock
outstanding.
Non-GAAP Financial Measures
The Company reported EBITDA of $(31.8)
million and $(12.9) million
for the three and twelve months ended December 31, 2021, respectively. The Company
reported Adjusted EBITDA of $(36.7)
million and $(63.8) million
for the three and twelve months ended December 31, 2021, respectively. For the year
ended December 31, 2021, Adjusted
EBITDA adjustments are primarily driven by (a) non-cash items from
change in fair value of earnout liability of $84.6 million and private placement warrant
liability of $4.2 million, for a
total of $88.8 million; (b) charges
from an executive transition arrangement of $13.9 million and Business Combination
transaction expenses of $6.5 million,
(c) non-cash items from stock-based compensation of $15.8 million and (d) regulatory and legal
expense of $1.1 million. For the
three months ended December 31, 2021,
Adjusted EBITDA adjustments are primarily driven by (a) non-cash
items from change in fair value of earnout liability of
$11.0 million and private placement
warrant liability of $3.4 million,
for a net total of $7.6 million; (b)
non-cash items from stock-based compensation of $1.1 million and (c) regulatory and legal expense
of $1.0 million. These non-GAAP financial measures have been
reconciled to the nearest GAAP measure in the tables under
"Non-GAAP Financial Measures" within this press release.
Conference Call Information
The Hyzon management team will host a conference call to discuss
its fourth quarter and full year 2021 financial results on
Wednesday, March 23, 2022, at
8:30 a.m. Eastern Time. The call can
be accessed via a live webcast accessible on the Events &
Presentations page in the Investor Relations section of Hyzon's
website at www.hyzonmotors.com. An archive of the webcast will be
available for a period of time shortly after the call on the
Investor Relations section of Hyzon's website as well.
About Hyzon Motors Inc.
Hyzon is a global leader in fuel cell electric mobility, with US
operations in the Rochester,
Chicago and Detroit areas, and international operations in
the Netherlands, China, Singapore, Australia, and Germany. Hyzon is an energy transition
accelerator and technology innovator, providing end-to-end
solutions primarily for the commercial mobility sector with a focus
on the commercial vehicle market and hydrogen supply
infrastructure. Utilizing its proven and proprietary hydrogen fuel
cell technology, Hyzon aims to supply zero-emission heavy duty
trucks and buses to customers in North
America, Europe and around
the world to mitigate emissions from diesel transportation, which
is one of the single largest sources of carbon emissions globally.
The Company is contributing to the escalating adoption of fuel cell
electric vehicles through its demonstrated technology advantage,
leading fuel cell performance and history of rapid innovation.
Visit www.hyzonmotors.com.
Use of Non-GAAP Financial Information
To supplement its consolidated balance sheet and statement of
operations and comprehensive loss, which are prepared and presented
in accordance with U.S. generally accepted accounting principles
("GAAP"), Hyzon Motors Inc. reports EBITDA and Adjusted EBITDA
which are non-GAAP financial measures. EBITDA is determined by
taking net loss and adding interest, depreciation and amortization.
Adjusted EBITDA is determined by taking EBITDA and adding non-cash
stock-based compensation expense, change in fair value of private
placement warrant liability, change in fair value of earnout
liability and other special items determined by management. We
believe that these non-GAAP measures, viewed in addition to and not
in lieu of our reported GAAP results, provides useful information
to investors by providing a more focused measure of operating
results, enhances the overall understanding of past financial
performance and future prospects, and allows for greater
transparency with respect to key metrics used by management in its
financial and operational decision making. The non-GAAP measures
presented herein may not be comparable to similarly titled measures
presented by other companies. EBITDA and Adjusted EBITDA are
non-GAAP financial measures, see "Use of Non-GAAP Financial
Information" below for important information regarding these
non-GAAP financial measures.
Forward-Looking Statements
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, are forward-looking
statements. When used in this press release, 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, including
statements about our business outlook, expected production and
deliveries of vehicles, anticipated future contracts and
performance under existing contracts, and development of new
facilities and partnerships, 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,
Hyzon disclaims any duty to update any forward -looking statements,
all of which are expressly qualified by the statements in this
section, to reflect events or circumstances after the date of this
press release. Hyzon 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 Hyzon, including risks and uncertainties described in
the "Risk Factors" section of Hyzon's definitive proxy
statement on Schedule 14A filed with the U.S. Securities and
Exchange Commission (the "SEC") on June 21,
2021, our Registration Statement on Form S-1 filed with the
SEC on July 30, 2021, and other
documents filed by Hyzon from time to time with the SEC. These
filings identify and address other important risks and
uncertainties that could cause actual events and results to differ
materially from those contained in the forward-looking statements,
such as risks related to the ability to convert non-binding
memoranda of understanding into binding orders or sales (including
because of the current or prospective financial resources of the
counterparties to Hyzon's non-binding memoranda of understanding
and letters of intent), the ability to identify additional
potential customers and convert them to paying customers, or the
ability to manufacture new vehicles, including as a result of
disruptions to the supply chain. Hyzon gives no assurance that
Hyzon will achieve its expectations.
HYZON MOTORS INC.
AND SUBSIDIARIES
CONSOLIDATED BALANCE
SHEETS
|
(in thousands,
except share and per share amounts)
|
|
December 31,
2021
|
|
December 31,
2020
|
ASSETS
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$ 445,146
|
|
$ 17,139
|
Accounts
receivable
|
2,598
|
|
-
|
Related party
receivable
|
264
|
|
-
|
Inventory
|
19,245
|
|
-
|
Prepaid expenses and
other current assets
|
27,970
|
|
848
|
Total current
assets
|
495,223
|
|
17,987
|
Property, plant, and
equipment, net
|
14,311
|
|
418
|
Right-of-use
assets
|
10,265
|
|
1,656
|
Investment in equity
securities
|
4,948
|
|
122
|
Other assets
|
5,430
|
|
822
|
Total
Assets
|
$
530,177
|
|
$
21,005
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Accounts
payable
|
$8,430
|
|
$215
|
Accrued
liabilities
|
6,026
|
|
1,062
|
Related party
payables
|
3,633
|
|
560
|
Contract
liabilities
|
11,230
|
|
2,608
|
Current portion of
lease liabilities
|
1,886
|
|
618
|
Total current
liabilities
|
31,205
|
|
5,063
|
Long term
liabilities
|
|
|
|
Lease
liabilities
|
8,830
|
|
1,181
|
Private placement
warrant liability
|
15,228
|
|
-
|
Earnout
liability
|
103,761
|
|
-
|
Other
liabilities
|
1,296
|
|
-
|
Total
liabilities
|
$
160,320
|
|
$
6,244
|
Commitments and
contingencies
|
|
|
|
Stockholders'
Equity
|
|
|
|
Common stock, $0.0001
par value; 400,000,000 shares authorized, 247,758,412 and
166,125,000 shares issued and outstanding as of December 31,
2021 and December 31, 2020, respectively.
|
25
|
|
17
|
Additional paid-in
capital
|
403,016
|
|
29,122
|
Accumulated
deficit
|
(28,117)
|
|
(14,271)
|
Accumulated other
comprehensive income (loss)
|
373
|
|
(16)
|
Total Hyzon Motors Inc.
stockholders' equity
|
375,297
|
|
14,852
|
Noncontrolling
interest
|
(5,440)
|
|
(91)
|
Total Stockholders'
Equity
|
369,857
|
|
14,761
|
Total Liabilities
and Stockholders' Equity
|
$
530,177
|
|
$
21,005
|
|
|
|
HYZON MOTORS INC.
AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(in thousands,
except per share amounts)
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
2021
|
|
For the period
January 21, 2020
(Inception) –
December 31,
2020
|
|
2021
|
2020
|
|
|
|
|
Revenue
|
$
5,087
|
$ -
|
|
$
6,049
|
|
$
-
|
Operating
expense:
|
|
|
|
|
|
|
Cost of
revenue
|
20,223
|
-
|
|
21,191
|
|
-
|
Research and
development
|
7,522
|
1,283
|
|
16,443
|
|
1,446
|
Selling, general and
administrative
|
16,062
|
12,115
|
|
69,792
|
|
12,785
|
Total operating
expenses
|
43,807
|
13,398
|
|
107,426
|
|
14,231
|
Loss from
operations
|
(38,720)
|
(13,398)
|
|
(101,377)
|
|
(14,231)
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
Change in fair value of
private placement warrant liability
|
(3,447)
|
-
|
|
4,167
|
|
-
|
Change in fair value of
earnout liability
|
10,997
|
-
|
|
84,612
|
|
-
|
Foreign currency
exchange loss and other expense
|
(1,283)
|
(107)
|
|
(1,452)
|
|
(108)
|
Interest income
(expense), net
|
14
|
(17)
|
|
(5,235)
|
|
(37)
|
Total other income
(expense)
|
6,281
|
(124)
|
|
82,092
|
|
(145)
|
Net
loss
|
$
(32,439)
|
$
(13,522)
|
|
$
(19,285)
|
|
$
(14,376)
|
Less: Net loss
attributable to noncontrolling interest
|
(3,807)
|
(105)
|
|
(5,439)
|
|
(105)
|
Net loss
attributable to Hyzon
|
$
(28,632)
|
$
(13,417)
|
|
$
(13,846)
|
|
$
(14,271)
|
|
|
|
|
|
|
|
Comprehensive
loss:
|
|
|
|
|
|
|
Net
loss
|
$
(32,439)
|
$
(13,522)
|
|
$
(19,285)
|
|
$
(14,376)
|
Foreign currency
translation adjustment
|
772
|
(20)
|
|
479
|
|
(20)
|
Comprehensive
loss
|
$
(31,667)
|
$
(13,542)
|
|
$
(18,806)
|
|
$
(14,396)
|
Less: Comprehensive
loss attributable to noncontrolling interest
|
(3,755)
|
(109)
|
|
(5,349)
|
|
(109)
|
Comprehensive loss
attributable to Hyzon
|
$
(27,912)
|
$
(13,433)
|
|
$
(13,457)
|
|
$
(14,287)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
attributable to Hyzon per share:
|
|
|
|
|
|
|
Basic
|
$ (0.12)
|
$ (0.08)
|
|
$ (0.07)
|
|
$
(0.09)
|
Diluted
|
$ (0.12)
|
$ (0.08)
|
|
$ (0.07)
|
|
$
(0.09)
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
Basic
|
247,818
|
164,459
|
|
203,897
|
|
152,650
|
Diluted
|
247,818
|
164,459
|
|
203,897
|
|
152,650
|
|
|
|
Non-GAAP Financial
Measures
|
The following table
reconciles net loss to EBITDA and Adjusted EBITDA (in
thousands):
|
|
|
Three Months Ended
December 31,
|
|
2021
|
2020
|
Net loss
|
$ (32,439)
|
$ (13,522)
|
Plus
(Less):
|
|
|
Interest (income)
expense, net
|
(14)
|
17
|
Income tax expense
(benefit)
|
-
|
-
|
Depreciation and
amortization
|
622
|
86
|
EBITDA
|
$
(31,831)
|
$
(13,419)
|
|
|
|
Adjusted
for:
|
|
|
Change in fair value of
private placement warrant liability
|
3,447
|
-
|
Change in fair value of
earnout liability
|
(10,997)
|
-
|
Stock-based
compensation
|
1,064
|
9,983
|
Regulatory and legal
matters (1)
|
1,036
|
-
|
Acquisition-related
expenses (2)
|
591
|
-
|
Adjusted EBITDA
|
$
(36,690)
|
$
(3,436)
|
|
|
(1)
|
Regulatory and legal
matters include legal, advisory, and other professional service
fees incurred in connection with the short-seller analyst article
from September 2021, and investigations and litigation related
thereto.
|
(2)
|
Acquisition-related
expenses incurred for potential and actual acquisitions that are
unrelated to the current operations and neither are comparable to
the prior period nor predictive of future results.
|
|
|
|
|
|
|
|
Year Ended
December 31, 2021
|
For the period
January 21, 2020
(Inception) –
December 31, 2020
|
|
Net loss
|
$ (19,285)
|
$ (14,376)
|
Plus:
|
|
|
Interest expense,
net
|
5,235
|
37
|
Income tax expense
(benefit)
|
-
|
-
|
Depreciation and
amortization
|
1,140
|
185
|
EBITDA
|
$
(12,910)
|
$
(14,154)
|
|
|
|
Adjusted
for:
|
|
|
Change in fair value of
private placement warrant liability
|
(4,167)
|
-
|
Change in fair value of
earnout liability
|
(84,612)
|
-
|
Stock-based
compensation
|
15,768
|
9,983
|
Executive transition
charges (1)
|
13,860
|
-
|
Business combination
transaction expenses (2)
|
6,533
|
-
|
Regulatory and legal
matters (3)
|
1,147
|
-
|
Acquisition-related
expenses (4)
|
591
|
-
|
Adjusted EBITDA
|
$
(63,790)
|
$
(4,171)
|
|
|
(1)
|
Executive transition
charges include stock-based compensation costs of $13.4 million and
salary expense of $0.5 million related to former Chief Technology
Officer's (CTO) retirement.
|
(2)
|
Transaction costs of
$6.4 million attributable to the liability classified earnout
shares and $0.1 million of write-off of debt issuance
costs.
|
(3)
|
Regulatory and legal
matters include legal, advisory, and other professional service
fees incurred in connection with the short-seller analyst article
from September 2021, and investigations and litigation related
thereto.
|
(4)
|
Acquisition-related
expenses incurred for potential and actual acquisitions that are
unrelated to the current operations and neither are comparable to
the prior period nor predictive of future results.
|
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