Hyliion Holdings Corp. (NYSE: HYLN) (“Hyliion”), a leader in
electrified powertrain solutions for Class 8 semi-trucks, today
reported its third quarter 2021 financial results.
Key Business Highlights
- Announced the addition of Secretary Elaine Chao and Mary
Gustanski to the Hyliion Board of Directors
- Secured a 40-unit reservation from Mone Transport and partnered
with GreenPath Logistics for the initial controlled fleet trials of
the Hypertruck ERX
- Unveiled new Hypertruck ERX showcase unit at ACT Expo,
generating strong fleet, industry and regulatory interest
- Launched improved Hybrid powertrain solution called “Hybrid eX”
and expect to begin recognizing revenue on these units in the
fourth quarter of 2021
- Initiating the Hypertruck ERX Roadshow, beginning at Wegmans
headquarters on November 10th, to allow fleets to experience the
flagship product firsthand
- Supply chain shortages and long lead times for components,
coupled with the required development, testing and validation of
the Hypertruck ERX, are impacting the commercialization
timeline
Executive Commentary
Thomas Healy, Hyliion’s Founder and Chief Executive Officer,
said, “After a first half of the year filled with rapid progress
and growth for Hyliion, our team continues to build on this
momentum as evidenced by the commercial launch of our Hybrid eX
powertrain and accomplishment of some major milestones in our
Hypertruck ERX Multi-Phase Development Program.”
"Today we begin our Hypertruck ERX Roadshow at the headquarters
of Wegmans Food Markets, one of our Hypertruck Innovation Council
Members, with a two-day showcase event focused on demonstrating the
features and benefits of the powertrain firsthand. As we continue
providing these showcases to our Hypertruck Innovation Council
Members and other interested fleets, we expect to see a continued
increase in the customer interest that we have already been
receiving.”
Board of Directors Expansion
Hyliion elected to expand the size of its board of directors
from seven to nine members, adding Secretary Elaine Chao and Mary
Gustanski.
Secretary Elaine Chao is a highly experienced leader of large
public, private and non-profit organizations. Secretary Chao brings
an invaluable perspective on global competitiveness, workforce
development, trends in governmental policies, and corporate
governance. While Secretary of Transportation, she advanced an
agenda of American innovation in building the transportation system
of the future. During her time at the Department of Labor, she
focused on increasing the competitiveness of America’s workforce in
the global economy.
Mary Gustanski has spent her nearly 40-year career bringing new
technology to market in the ever-evolving automotive industry, with
an emphasis on the development and commercialization of innovative
solutions. As Senior Vice President and Chief Technology Officer of
Delphi Technologies—formerly Delphi Automotive—she was responsible
for the company’s global technology production, including advanced
propulsion systems for future vehicle electrification.
Hypertruck ERX Fleet Update
Hyliion has secured a 40-unit reservation for the Hypertruck ERX
from Mone Transport, a Texas-based carrier company, who is also an
early adopter of the Hyliion Hybrid solution. Mone Transport
believes the future of trucking is sustainable, but as part of
their business model, their trucks need to travel hundreds of miles
every day, which is where the Hypertruck ERX can offer a low-cost,
low-emission and long-range electric solution. The purchase and
sale of the 40 Hypertruck ERX units is subject to the execution of
a final agreement between Hyliion and Mone Transport.
The unveiling of the Hypertruck ERX showcase unit at the ACT
Expo on August 31, 2021, marked the start of a robust marketing
program for this flagship product. Hyliion received overwhelmingly
positive feedback from fleets and suppliers that were able to see
this solution up close for the first time. Shortly after the
tradeshow, Hyliion showcased the vehicle with the oil and gas
industry at the Daniel Energy Partners’ event in Odessa, Texas.
In October, Hyliion executed on a select number of ‘ride along’
events with the Hypertruck ERX at its headquarters in Austin,
Texas. One participant was the CEO of GreenPath Logistics, a member
of the Hypertruck Innovation Council. After a very positive
experience of riding in the Hypertruck ERX, GreenPath Logistics
requested to further collaborate with Hyliion and begin initial
deployments of controlled fleet trials in their operations. With
GreenPath located in Dallas, Texas, Hyliion’s team will be able to
closely monitor these trucks to ensure strong vehicle performance
as fleet trials begin.
Today, Hyliion is embarking on another critical milestone with
the kickoff of its Hypertruck ERX Roadshow. This program begins
with the first stop at the Wegmans Food Markets headquarters in
Rochester, NY. These events will consist of ride-alongs and
in-depth product education. Hyliion plans to host another larger
showcase event at its Austin, Texas headquarters in early December
along with other future events to allow more Hypertruck Innovation
Council members and additional interested fleets to experience the
Hypertruck ERX firsthand.
Hypertruck ERX Timing Update
While Hyliion recently achieved critical product milestones,
supply chain challenges and enhancements to the Multi-Phase
Development Program have led to an extension in the go-forward
development timeline. Similar to others in the automotive industry,
the shortage of semiconductors, as well as several other key
components, is extending the Company’s timelines longer than
expected. These supply chain challenges have been especially
prominent in the trucking industry, and one of the impacts has been
significantly extended lead times for ordering new trucks. Fleets
are experiencing lead times on new truck purchases that extend out
for delivery into 2023. Hyliion has already placed orders for all
vehicles needed in 2022 and is working to secure build slots for
the 2023 calendar year in an effort to mitigate further supply
chain impacts to Hyliion’s updated Hypertruck ERX development
schedule. In addition, the Multi-Phase Development Program timeline
has been extended to allow for design verification and additional
testing inclusive of critical summer and winter seasons, as well as
the accumulation of up to one million miles prior to
production.
Hyliion expects to complete design verification and initial
controlled fleet trials, as mentioned above, by the end of 2022.
This will then be followed by additional key milestones including
additional fleet trials, incorporating any of the learnings from
validation into the finalized design, and obtaining final
regulatory approvals prior to the start of production. Hyliion
continues to work closely with its current supply base to improve
delivery of components for the quarters ahead and is diligently
seeking alternative sources of supply for components that meet its
technical specifications with shorter lead times.
Commercial Hybrid eX Launch and Sales Update
Hyliion officially launched its commercial Hybrid eX powertrain
solution on August 31, 2021, at the ACT Expo in Long Beach, CA.
Compared to previous Hyliion Hybrid systems, the Hybrid eX offers
fleets a lighter solution that is easier to install, service and
operate. The Hybrid eX draws upon the real-world feedback Hyliion
has received from customers and the millions of miles logged with
the previous system.
Hyliion recently delivered its first Hybrid eX system to Werner
Enterprises, a Hypertruck Innovation Council member and new Hybrid
eX customer. As previously announced, due to shortages of various
components caused by global supply chain disruptions, Hyliion is
experiencing longer delivery times to customers which is causing
some of Hyliion’s deliveries to be delayed into early 2022. In
addition, the Company is assessing the potential demand impact for
its Hybrid eX product offering in light of recent changes within
the competitive landscape.
Financial Highlights and Operating Expense Guidance
Hyliion ended the third quarter 2021 with over $588 million
available to fund its current commercialization plans for its
Hybrid eX and Hypertruck ERX powertrains. This is divided into
$289.5 million in cash and cash equivalents on its balance sheet,
short-term investments of $144.5 million and long-term investments
of $155.0 million.
Hyliion expects to begin recognizing revenue on its Hybrid eX
deliveries in the fourth quarter of 2021, achieving the target
outlined on the second quarter 2021 earnings call.
For the first three quarters of 2021, Hyliion’s operating
expenses totaled $67.0 million, and Hyliion now expects full year
2021 operating expenses to range between $110 million and $120
million, a reduction compared to previously disclosed guidance
range of $130 million to $140 million, due primarily to timing
delays of truck chassis purchases for development purposes.
Third Quarter 2021 Conference Call
Hyliion will host a conference call and webcast for investors
and other interested parties to review its third quarter 2021
financial results on Wednesday, Nov. 10, 2021 at 11:00 a.m. Eastern
Time. A 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:
http://www.directeventreg.com/registration/event/2279822
Webcast:
https://investors.hyliion.com/events-and-presentations/default.aspx
Third quarter 2021 financial results for Hyliion Holdings Corp.
(f/k/a Tortoise Acquisition Corp.) on a consolidated basis 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 commercial trucks by
being a leading provider of electrified powertrain solutions.
Leveraging advanced software algorithms and data analytics
capabilities, Hyliion offers fleets an easy, efficient system 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 are designed to be installed on most major Class 8
commercial trucks, with the goal of transforming 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, Hyliion’s ability to disrupt
the powertrain market, Hyliion’s focus in 2021 and beyond, the
effects of Hyliion’s dynamic and proprietary solutions on its
commercial truck customers, accelerated commercialization of the
Hypertruck ERX, the ability to meet 2021 and future product
milestones, the impact of COVID-19 on long-term objectives, the
ability to reduce carbon intensity and greenhouse gas emissions and
the other risks and uncertainties set forth in “Risk Factors”
section of Hyliion’s annual report on Form 10-K/A filed with the
Securities and Exchange Commission (the “SEC”) on May 17, 2021 for
the year ended December 31, 2020. 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 September
30,
Nine Months Ended September
30,
2021
2020
2021
2020
Operating expenses:
Research and development
$
(18,150)
$
(2,909)
$
(40,871)
$
(8,134)
Selling, general and administrative
(8,660)
(2,140)
(26,111)
(3,705)
Loss from operations
(26,810)
(5,049)
(66,982)
(11,839)
Other income (expense):
Interest expense
—
(2,230)
—
(5,458)
Interest income
195
—
561
—
Change in fair value of convertible notes
payable derivative liabilities
—
(1,813)
—
(1,358)
Other expense
—
(12)
—
(12)
Total other income (expense)
195
(4,055)
561
(6,828)
Net loss
$
(26,615)
$
(9,104)
$
(66,421)
$
(18,667)
Weighted-average shares outstanding, basic
and diluted
172,987,672
87,398,704
171,842,664
86,981,200
Net loss per share, basic and diluted
$
(0.15)
$
(0.10)
$
(0.39)
$
(0.21)
HYLIION HOLDINGS CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS (Dollar amounts in thousands,
except share and per share data)
September 30,
2021
December 31,
2020
(Unaudited)
Assets
Current assets:
Cash and cash equivalents
$
289,486
$
389,705
Accounts receivable
359
92
Prepaid expenses and other current
assets
5,516
20,690
Short-term investments
144,465
201,881
Total current assets
439,826
612,368
Property and equipment, net
2,820
1,171
Operating lease right-of-use assets
8,474
5,055
Intangible assets, net
259
332
Other assets
920
193
Long-term investments
154,981
35,970
Total assets
$
607,280
$
655,089
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable
$
7,527
$
1,890
Current portion of operating lease
liabilities
827
734
Accrued expenses and other current
liabilities
7,623
6,313
Total current liabilities
15,977
8,937
Operating lease liabilities, net of
current portion
8,749
5,076
Debt, net of current portion
—
908
Total liabilities
24,726
14,921
Stockholders’ Equity:
Common stock, $0.0001 par value;
250,000,000 shares authorized; 173,120,988 and 169,316,421 shares
issued and outstanding at September 30, 2021 and December 31, 2020,
respectively
20
19
Additional paid-in capital
373,804
364,998
Retained earnings
208,730
275,151
Total stockholders’ equity
582,554
640,168
Total liabilities and stockholders’
equity
$
607,280
$
655,089
HYLIION HOLDINGS CORP.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollar
amounts in thousands)
For the Nine Months Ended
September 30,
2021
2020
Cash Flows from Operating Activities:
Net loss
$
(66,421)
$
(18,667)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
657
665
Amortization of investment premiums and
discounts
1,318
—
Noncash lease expense
720
722
Paid-in-kind interest on convertible notes
payable
—
1,081
Amortization of debt discount
—
4,237
Share-based compensation
3,972
165
Change in fair value of convertible notes
payable derivative liabilities
—
1,358
Changes in operating assets and
liabilities:
Accounts receivable
(267)
130
Prepaid expenses and other assets
3,646
(668)
Accounts payable
5,617
353
Accrued expenses and other current
liabilities
1,309
391
Operating lease liabilities
(373)
(752)
Net cash used in operating activities
(49,822)
(10,985)
Cash Flows from Investing Activities:
Purchase of property and equipment
(2,213)
(105)
Proceeds from sale of property and
equipment
—
22
Payments for security deposit, net
(29)
—
Purchase of investments
(268,714)
—
Proceeds from sale and maturity of
investments
205,355
—
Net cash used in investing activities
(65,601)
(83)
Cash Flows from Financing Activities:
Proceeds from exercise of stock warrants,
net of issuance costs
16,257
—
Proceeds from term loan
—
10,100
(Payments for)/proceeds from Paycheck
Protection Program loan
(908)
908
Proceeds from exercise of common stock
options
553
119
Proceeds from convertible notes payable
issuance and derivative liabilities
—
3,200
Payments for deferred transaction
costs
—
(1,316)
Payments for deferred financing costs
—
(468)
Repayments on finance lease
obligations
—
(195)
Net cash provided by financing
activities
15,902
12,348
Net (decrease) increase in cash and cash
equivalents and restricted cash
(99,521)
1,280
Cash and cash equivalents - beginning of
the period
389,705
6,285
Cash and cash equivalents and restricted
cash - end of the period
$
290,184
$
7,565
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211109006654/en/
Hyliion Holdings Corp. Investor Contact Louis
Baltimore ir@hyliion.com Press Contact Ryann Malone
press@hyliion.com (833) 495-4466
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