HYLN

Hyliion Holdings Corp. (NYSE: HYLN) (“Hyliion”), a leader in electrified powertrain solutions for Class 8 semi-trucks, today reported its fourth-quarter and full-year 2022 financial results.

Key Business Highlights

• Achieved new Hypertruck ERX™ commercialization milestone
• Obtained a 10-unit order for the Hypertruck ERX powertrain from DSV Logistics
• Announcing collaboration with Hyzon Motors to jointly develop a fuel cell powered truck
• Met 2022 revenue guidance
• Ended 2022 with $422 million of available capital on the balance sheet
• 2023 operating expense guidance of $130 - $140 million

Executive Commentary

“We remained on track by hitting all our commercialization milestones for the Hypertruck ERX powertrain in 2022. The year was marked by many impactful accomplishments for Hyliion. We achieved our revenue guidance for Hybrid, including full truck sales, we acquired the KARNO™ generator technology from GE, and we obtained 210 orders for production slots for the Hypertruck ERX powertrain,” said Hyliion’s Founder and CEO, Thomas Healy.

Hypertruck ERX System Development

In the fourth quarter, the Company continued the design-verification phase of its Hypertruck ERX system with additional controlled fleet trials, most recently with Ruan Transportation. The Company also launched winter testing.

Overall, Hyliion remains on schedule to start Hypertruck ERX system production in late 2023, as the Company continues to achieve the previously-announced commercialization milestones. This marks the fifth consecutive quarter that the Company has met the commercialization milestones initially laid out on the third-quarter 2021 earnings call.

Hypertruck ERX System Orders

During the fourth quarter the Company received 10 Hypertruck ERX system orders from DSV Logistics, with an option to buy 10 additional units. DSV is one of the largest third-party logistics companies in the world and is focused on expanding its business in the U.S. As the Company nears completion of its development and testing milestones for the Hypertruck ERX system later in 2023, it expects to see an uptick in additional customer orders for delivery in 2024.

Hyzon Motors Collaboration

The Company is announcing a new agreement with Hyzon Motors to develop a fuel cell powered vehicle. This development is the third step in the Company’s multi-stage product roadmap towards a hydrogen future. The vehicle will use Hyliion’s electric powertrain system and Hyzon’s fuel cell technology as the generator. The powertrain will be integrated into a Peterbilt chassis.

“Today, we are announcing an innovative collaboration with Hyzon Motors to jointly develop a fuel cell powered vehicle. Hyzon is an industry leader in developing and manufacturing fuel cells purpose-built for heavy-duty applications, and Hyliion is an industry leader in electric powertrain solutions. We are excited about having the opportunity for our teams to work together,” said Hyliion’s Founder and CEO, Thomas Healy.

Financial Highlights, Operating Expense and 2023 Guidance

In the fourth quarter, the Company recorded $1.1 million in revenue related to Hybrid sales. The Company’s fourth quarter operating expenses totaled $31.6 million for the quarter, $5 million higher than a year ago, mainly due to higher research and development spending. Hyliion ended the fourth quarter with $422 million of cash, short-term and long-term investments, which is expected to be sufficient to fund current commercialization activities for the Hypertruck ERX powertrain, as well as initial development activities for the KARNO product and the Hyzon Motors collaboration project.

For full-year 2022, Hyliion’s net loss totaled $153.4 million, or $124.6 million excluding $28.8 million of one-time research and development expenses related to the KARNO generator acquisition in the third quarter, up $28.5 million (excluding the KARNO acquisition) compared to a $96.0 million net loss in the prior year.

Looking forward, the Company expects full-year 2023 operating expenses to be in the $130 to $140 million range. This estimate reflects continued focus on delivering the Hypertruck ERX system in late 2023 and efforts to develop the KARNO generator technology, the Hyzon fuel cell collaboration project, and other development projects. The Company is also expecting SG&A spending growth to level off in 2023 as it invests further in in-house engineering and development resources.

Fourth Quarter 2022 Conference Call

Hyliion will host a conference call and accompanying webcast at 11:00 a.m. EST / 10:00 a.m. CST on Wednesday, March 1 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

Full-year 2022 financial results for Hyliion Holdings Corp. will also be filed with the SEC on Form 10-K.

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.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Dollar amounts in thousands, except share and per share data)

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

 

(Unaudited)

 

 

 

 

Revenues

 

 

 

 

 

 

 

Product sales and other

$

1,095

 

 

$

200

 

 

$

2,106

 

 

$

200

 

Total revenues

 

1,095

 

 

 

200

 

 

 

2,106

 

 

 

200

 

Cost of revenues

 

 

 

 

 

 

 

Product sales and other

 

1,618

 

 

 

2,737

 

 

 

8,778

 

 

 

2,737

 

Total cost of revenues

 

1,618

 

 

 

2,737

 

 

 

8,778

 

 

 

2,737

 

Gross loss

 

(523

)

 

 

(2,537

)

 

 

(6,672

)

 

 

(2,537

)

Operating expenses

 

 

 

 

 

 

 

Research and development

 

21,827

 

 

 

17,390

 

 

 

110,370

 

 

 

58,261

 

Selling, general and administrative

 

9,733

 

 

 

9,188

 

 

 

41,988

 

 

 

35,299

 

Total operating expenses

 

31,560

 

 

 

26,578

 

 

 

152,358

 

 

 

93,560

 

Loss from operations

 

(32,083

)

 

 

(29,115

)

 

 

(159,030

)

 

 

(96,097

)

Interest income

 

2,658

 

 

 

218

 

 

 

5,724

 

 

 

779

 

Gain (loss) on impairment and disposal of assets

 

70

 

 

 

(730

)

 

 

(19

)

 

 

(730

)

Other expense, net

 

(32

)

 

 

—

 

 

 

(32

)

 

 

—

 

Net loss

$

(29,387

)

 

$

(29,627

)

 

$

(153,357

)

 

$

(96,048

)

 

 

 

 

 

 

 

 

Net loss per share, basic and diluted

$

(0.16

)

 

$

(0.17

)

 

$

(0.87

)

 

$

(0.56

)

 

 

 

 

 

 

 

 

Weighted-average shares outstanding, basic and diluted

 

179,719,018

 

 

 

173,325,727

 

 

 

175,400,486

 

 

 

172,216,477

 

HYLIION HOLDINGS CORP.

CONSOLIDATED BALANCE SHEETS

(Dollar amounts in thousands, except share data)

 

 

December 31,

 

 

2022

 

 

2021

Assets

 

 

 

Current assets

 

 

 

Cash and cash equivalents

$

119,468

 

$

258,445

Accounts receivable, net

 

1,136

 

 

70

Inventory

 

74

 

 

114

Prepaid expenses and other current assets

 

9,795

 

 

9,068

Short-term investments

 

193,740

 

 

118,787

Total current assets

 

324,213

 

 

386,484

 

 

 

 

Property and equipment, net

 

5,606

 

 

2,235

Operating lease right-of-use assets

 

6,470

 

 

7,734

Intangible assets, net

 

200

 

 

235

Other assets

 

1,686

 

 

1,535

Long-term investments

 

108,568

 

 

180,217

Total assets

$

446,743

 

$

578,440

 

 

 

 

Liabilities and stockholders’ equity

 

 

 

Current liabilities

 

 

 

Accounts payable

$

2,800

 

$

7,455

Current portion of operating lease liabilities

 

347

 

 

21

Accrued expenses and other current liabilities

 

11,535

 

 

7,759

Total current liabilities

 

14,682

 

 

15,235

 

 

 

 

Operating lease liabilities, net of current portion

 

6,972

 

 

8,623

Other liabilities

 

1,515

 

 

667

Total liabilities

 

23,169

 

 

24,525

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

Stockholders’ equity

 

 

 

Common stock, $0.0001 par value; 250,000,000 shares authorized; 179,826,309 and 173,468,979 shares issued and outstanding at December 31, 2022 and 2021, respectively

 

18

 

 

17

Additional paid-in capital

 

397,810

 

 

374,795

Retained earnings

 

25,746

 

 

179,103

Total stockholders’ equity

 

423,574

 

 

553,915

Total liabilities and stockholders’ equity

$

446,743

 

$

578,440

HYLIION HOLDINGS CORP.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollar amounts in thousands)

 

Year Ended December 31,

 

 

2022

 

 

 

2021

 

 

 

2020

 

Cash Flows from Operating Activities

 

 

 

 

 

Net (loss) income

$

(153,357

)

 

$

(96,048

)

 

$

324,117

 

Adjustments to reconcile net (loss) income to net cash used in operating activities:

 

 

 

 

 

Depreciation and amortization

 

1,227

 

 

 

884

 

 

 

850

 

Amortization of investment premiums and discounts

 

1,250

 

 

 

1,816

 

 

 

—

 

Loss on extinguishment of debt

 

—

 

 

 

—

 

 

 

10,170

 

Noncash lease expense

 

1,244

 

 

 

731

 

 

 

928

 

Inventory write-down

 

5,641

 

 

 

2,298

 

 

 

—

 

Loss on impairment and disposal of assets

 

19

 

 

 

730

 

 

 

—

 

Paid-in-kind interest on convertible notes payable

 

—

 

 

 

—

 

 

 

1,085

 

Amortization of debt discount

 

—

 

 

 

—

 

 

 

4,237

 

Share-based compensation

 

6,979

 

 

 

4,922

 

 

 

294

 

Provision for doubtful accounts

 

114

 

 

 

—

 

 

 

—

 

Change in fair value of convertible notes payable derivative liabilities

 

—

 

 

 

—

 

 

 

1,358

 

Change in fair value of warrant liability

 

—

 

 

 

—

 

 

 

(363,299

)

Acquired in-process research and development

 

28,752

 

 

 

—

 

 

 

—

 

Change in operating assets and liabilities, net of effects of business acquisition:

 

 

 

 

 

Accounts receivable

 

(1,180

)

 

 

22

 

 

 

53

 

Inventory

 

(5,601

)

 

 

(2,280

)

 

 

(132

)

Prepaid expenses and other assets

 

(571

)

 

 

(475

)

 

 

(8,150

)

Accounts payable

 

(4,660

)

 

 

5,319

 

 

 

734

 

Accrued expenses and other liabilities

 

4,571

 

 

 

2,155

 

 

 

5,764

 

Operating lease liabilities

 

(1,305

)

 

 

(576

)

 

 

(953

)

Net cash used in operating activities

 

(116,877

)

 

 

(80,502

)

 

 

(22,944

)

 

 

 

 

 

 

Cash Flows from Investing Activities

 

 

 

 

 

Purchase of property and equipment and other

 

(2,885

)

 

 

(2,380

)

 

 

(311

)

Proceeds from sale of property and equipment

 

152

 

 

 

45

 

 

 

22

 

Purchase of in-process research and development

 

(14,428

)

 

 

—

 

 

 

—

 

Payments for security deposit, net

 

—

 

 

 

(29

)

 

 

—

 

Purchase of investments

 

(268,584

)

 

 

(317,807

)

 

 

(237,851

)

Proceeds from sale and maturity of investments

 

263,723

 

 

 

254,180

 

 

 

—

 

Net cash used in investing activities

 

(22,022

)

 

 

(65,991

)

 

 

(238,140

)

 

 

 

 

 

 

Cash Flows from Financing Activities

 

 

 

 

 

Business Combination and PIPE financing, net of issuance costs paid

 

—

 

 

 

—

 

 

 

516,454

 

Proceeds from exercise of stock warrants, net of issuance costs

 

—

 

 

 

16,257

 

 

 

124,536

 

Proceeds from convertible notes payable issuance and derivative liabilities

 

—

 

 

 

—

 

 

 

3,200

 

(Payments for)/proceeds from Paycheck Protection Program loan

 

—

 

 

 

(908

)

 

 

908

 

Payments for deferred financing costs

 

—

 

 

 

—

 

 

 

(468

)

Repayments on finance lease obligations

 

—

 

 

 

(42

)

 

 

(247

)

Proceeds from exercise of common stock options

 

79

 

 

 

591

 

 

 

121

 

Taxes paid related to net share settlement of equity awards

 

(157

)

 

 

—

 

 

 

—

 

Net cash (used in) provided by financing activities

 

(78

)

 

 

15,898

 

 

 

644,504

 

 

 

 

 

 

 

Net (decrease) increase in cash and cash equivalents and restricted cash

 

(138,977

)

 

 

(130,595

)

 

 

383,420

 

Cash and cash equivalents and restricted cash, beginning of period

 

259,110

 

 

 

389,705

 

 

 

6,285

 

Cash and cash equivalents and restricted cash, end of period

$

120,133

 

 

$

259,110

 

 

$

389,705

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20230228006208/en/

Hyliion Holdings Corp. Ryann Malone press@hyliion.com (833) 495-4466 Kellen Ferris ir@hyliion.com (737) 292-8649