Heliogen, Inc. (“Heliogen”) (NYSE: HLGN), a leading provider of
AI-enabled concentrating solar energy technology, today provided
its first quarter 2023 financial and operational results.
Recent Highlights
- Began high-volume automated heliostat production at Heliogen’s
manufacturing facility in Long Beach, CA
First Quarter 2023 Highlights
- Entered into an agreement to provide front-end concept design
and R&D engineering services
- Completed the preliminary design and secured a site for the
“Proxima” green hydrogen project in Lancaster, CA
- Implemented cost reduction program to streamline operations and
extend liquidity runway
- Following the leadership transition of Heliogen’s CEO in
February 2023, announced Strategic Plan and formed Board-level
Corporate Strategy Committee to oversee the implementation of
Heliogen’s long-term strategic plan and specific strategic
initiatives
Executive Commentary
“During the first quarter of 2023, we embraced a new chapter of
growth and resilience at Heliogen. After introducing our strategic
initiatives aimed at delivering significant value to our
shareholders and customers, we devised our cost reduction program
and began to implement it at the end of March,” said Christie
Obiaya, Heliogen’s Chief Executive Officer.
Ms. Obiaya continued, “We are committed to accelerating our
sales and establishing stronger relationships with our commercial
partners, as well as leveraging research and development
opportunities that validate important applications for
decarbonization. Our focus on perfecting our product-market fit,
expediting the deployment of large-scale projects, and ensuring
financial stability will help drive Heliogen’s success in the
coming quarters. In a short time, we have made great progress on
our strategic initiatives, and we will continue to forge ahead with
determination to deliver on the promise of our groundbreaking
technology.”
First Quarter 2023 Financial Results
For the first quarter 2023, Heliogen reported total revenue of
$1.9 million and net loss of $10.5 million. Heliogen’s net loss in
the fourth quarter 2022 was $35.0 million. The change in net loss
for the first quarter 2023 compared to the fourth quarter 2022 was
driven primarily by a non-cash reduction of share-based
compensation expense of $17.5 million and a $6.6 million decrease
of R&D expenses. Heliogen’s Adjusted EBITDA was negative $17.8
million for first quarter 2023.
Conference Call Information
The Heliogen management team will host a conference call to
discuss its first quarter 2023 financial results on Wednesday, May
10, 2023, at 10:00 a.m. EDT. The call can be accessed via a live
webcast accessible on the Events & Presentations page in the
Investor Relations section of Heliogen’s website at
www.heliogen.com. The call can also be accessed live via telephone
by dialing 1-877-300-8521 (1-412-317-6026 for international
callers) and referencing Heliogen.
An archive of the webcast will also be available shortly after
the call on the Investor Relations section of Heliogen’s
website.
Open Conference Call Question Submission
Members of the investor community may submit questions before
the start of the conference call for consideration via email to
louis.baltimore@heliogen.com.
About Heliogen
Heliogen is a renewable energy technology company focused on
decarbonizing industry and empowering a sustainable civilization.
The company’s concentrating solar energy and thermal storage
systems aim to deliver carbon-free heat, steam, power, or green
hydrogen at scale to support round-the-clock industrial operations.
Powered by AI, computer vision and robotics, Heliogen is focused on
providing robust clean energy solutions that accelerate the
transition to renewable energy, without compromising reliability,
availability, or cost. For more information about Heliogen, please
visit heliogen.com.
Use of Non-GAAP Financial Information
Management uses certain financial measures, including EBITDA and
Adjusted EBITDA, to evaluate our financial and operating
performance that are calculated and presented on the basis of
methodologies other than in accordance with generally accepted
accounting principles in the United States of America (“GAAP”). We
believe these non-GAAP financial measures are useful to investors
and analysts to assess our ongoing financial performance because
they provide improved comparability between periods through the
exclusion of certain items that we believe are not indicative of
our core operating performance, enhance the overall understanding
of our past financial performance and future prospects, and remove
items that may obscure our underlying business results and trends.
These measures should not be considered a substitute for, or
superior to, measures of financial performance prepared in
accordance with GAAP, and our calculations thereof may not be
comparable to similarly titled measures reported by other
companies.
EBITDA represents consolidated net loss before (i) interest
(income) expense, net, (ii) income tax expense (benefit) and (iii)
depreciation and amortization expense. We define Adjusted EBITDA as
EBITDA adjusted for certain significant non-cash items and items
that management believes are not attributable to or indicative of
our on-going operations or that may obscure our underlying results
and trends. Please see the accompanying tables for a reconciliation
of net loss to EBITDA and Adjusted EBITDA.
Forward-Looking Statements
This press release contains certain 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. Statements that are not historical in nature, including
the words “anticipate,” “expect,” “suggests,” “plan,” “believe,”
“intend,” “estimates,” “targets,” “projects,” “should,” “could,”
“would,” “may,” “will,” “forecast” and other similar expressions
are intended to identify forward-looking statements. These
forward-looking statements include, but are not limited to,
statements regarding our commitment to accelerating our sales and
establishing stronger relationships with our commercial partners,
our focus on perfecting our product-market fit, our plans to
expedite the deployment of large-scale projects, extend our
liquidity runway, achieving our financial and operational goals and
future growth opportunities. Forward-looking statements are
predictions, projections and other statements about future events
that are based on current expectations and assumptions and, as a
result, are subject to risks and uncertainties. Many factors could
cause actual future events to differ materially from the
forward-looking statements in this press release, including but not
limited to: (i) our financial and business performance, including
risk of uncertainty in our financial projections and business
metrics and any underlying assumptions thereunder; (ii) changes in
our business and strategy, future operations, financial position,
estimated revenues and losses, projected costs, prospects and
plans; (iii) our ability to execute our business model, including
market acceptance of our planned products and services and
achieving sufficient production volumes at acceptable quality
levels and prices; (iv) our ability to maintain listing on the New
York Stock Exchange; (v) our ability to access sources of capital
to finance operations, growth and future capital requirements; (vi)
our ability to maintain and enhance our products and brand, and to
attract and retain customers; (vii) our ability to scale in a cost
effective manner; (viii) changes in applicable laws or regulations;
(ix) developments and projections relating to our competitors and
industry; and (x) our ability to protect our intellectual property.
You should carefully consider the foregoing factors and the other
risks and uncertainties disclosed in the “Risk Factors” section in
Part I, Item 1A in our Annual Report on Form 10-K for the annual
period ended December 31, 2022 and other documents filed by
Heliogen from time to time with the Securities and Exchange
Commission. 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. Forward-looking statements speak only as of the date
they are made. Readers are cautioned not to put undue reliance on
forward-looking statements, and Heliogen assumes no obligation and
does not intend to update or revise these forward-looking
statements, whether as a result of new information, future events,
or otherwise.
Heliogen, Inc. Condensed
Consolidated Statements of Operations ($ in thousands, except
per share and share data) (unaudited)
Three Months Ended
March 31,
2023
2022
Revenue
$
1,937
$
3,539
Cost of revenue
2,382
37,824
Gross loss
(445)
(34,285)
Operating expenses:
Selling, general and administrative
4,165
20,062
Research and development
5,260
9,375
Impairment charges
1,008
—
Total operating expenses
10,433
29,437
Operating loss
(10,878)
(63,722)
Interest income, net
283
194
Gain on warrant remeasurement
304
4,026
Other expense, net
(253)
(76)
Net loss before taxes
(10,544)
(59,578)
Benefit for income taxes
—
610
Net loss
$
(10,544)
$
(58,968)
Loss per share:
Loss per share – Basic and Diluted
$
(0.05)
$
(0.32)
Weighted average number of shares
outstanding – Basic and Diluted
196,899,292
184,031,015
Heliogen, Inc. Condensed
Consolidated Balance Sheets ($ in thousands) (unaudited)
March 31, 2023
December 31, 2022
ASSETS
Cash and cash equivalents
$
39,215
$
45,719
Investments, available-for-sale
80,700
97,504
Other current assets
19,166
15,598
Total current assets
139,081
158,821
Non-current assets
30,889
32,798
Total assets
$
169,970
$
191,619
LIABILITIES AND SHAREHOLDERS’
EQUITY
Trade payables
$
3,285
$
6,921
Contract liabilities
10,966
10,348
Contract loss provisions
28,360
28,418
Other current liabilities
5,945
5,602
Total current liabilities
48,556
51,289
Long-term liabilities
15,386
15,006
Total liabilities
63,942
66,295
Shareholders’ equity
106,028
125,324
Total liabilities and shareholders’
equity
$
169,970
$
191,619
Heliogen, Inc. Reconciliation
of Net Loss to EBITDA and Adjusted EBITDA ($ in thousands)
(unaudited)
Three Months Ended
March 31,
2023
2022
Net loss
$
(10,544)
$
(58,968)
Interest income, net
(283)
(194)
Benefit for income taxes
—
(610)
Depreciation and amortization
601
760
EBITDA
$
(10,226)
$
(59,012)
Impairment charges (1)
1,008
—
Gain on warrant remeasurement (2)
(304)
(4,026)
Share-based compensation (3)
(9,306)
12,982
Provision for contract losses (4)
370
33,737
Contract losses incurred (4)
(447)
29
Change in fair value of contingent
consideration (5)
1,125
14
Adjusted EBITDA
$
(17,780)
$
(16,276)
________________
(1)
Represents the impairment of goodwill
associated with the acquisition of HelioHeat GmbH (the “HelioHeat
Acquisition”).
(2)
Represents the change in fair value on our
outstanding warrant liabilities.
(3)
Share-based compensation for the three
months ended March 31, 2023 includes a net reduction of $12.5
million of expense as a result of stock options forfeited in
connection with the termination of our former Chief Executive
Officer and excludes $0.1 million of expense associated with the
issuance of warrants in April 2022 in connection with a vendor
agreement.
(4)
Represents contract losses with customers
for which estimated costs to satisfy performance obligations
exceeded considerations expected to be realized. Contract loss is
reduced and recognized in cost of revenue as expenditures are
incurred and related revenue is recognized.
(5)
Represents the change in fair value of our
contingent consideration related to the HelioHeat Acquisition.
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version on businesswire.com: https://www.businesswire.com/news/home/20230509006234/en/
Heliogen Investors Contact: Louis Baltimore VP, Investor
Relations Louis.Baltimore@heliogen.com
Heliogen Media Contact: Cory Ziskind ICR, Inc.
HeliogenPR@icrinc.com
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