Reaffirms 2022 Guidance
Heliogen, Inc. (“Heliogen”) (NYSE: HLGN), a leading provider of
AI-enabled concentrated solar energy technology, today provided its
first quarter 2022 financial and operational results and reaffirmed
its previously announced guidance for 2022.
First Quarter 2022 Highlights
- Signed full project agreement with Woodside Energy (USA) Inc.
(“Woodside”) for the commercial-scale demonstration and deployment
of Heliogen’s AI-enabled concentrated solar energy technology
- Entered into a collaboration agreement with Woodside to jointly
market Heliogen’s technology in Australia
- Began site preparation and setup for its first full-scale
manufacturing facility in Long Beach, California
Recent Highlights
- Finalized and executed a lease for Brenda Solar Energy Zone
with U.S. Bureau of Land Management
- Announced partnership with Hanwha Power Systems for the
production of a 5 megawatt electric (MWe) next-generation
supercritical CO2 power block integrated with high-temperature
solid media thermal energy storage designed by Heliogen and to be
deployed with the Woodside project
- Reported significant progress in the operationalization of the
Long Beach manufacturing facility
Executive Commentary
“Heliogen’s progress in deploying our groundbreaking solar
energy technology with world class partners continued at a rapid
pace during the first quarter of this year,” said Bill Gross,
Founder and Chief Executive Officer of Heliogen. “The momentum we
built during 2021 has put us in a great position to maintain our
trajectory in 2022 and continue meeting milestones on our path to
deployment of solar energy systems for heavy industry. We remain on
track to achieve our financial and operational goals this year,
which will serve as the foundation for our continued growth in 2023
and beyond.
“During the first quarter, we finalized and signed the full
project agreement with Woodside for our first commercial-scale,
single-module 5 MWe facility,” continued Gross. “We continue to
make great progress with several other potential customers
including global metals and mining company Rio Tinto. I’m also
pleased with the discussions taking place with Woodside as we kick
off our collaboration effort to jointly market Heliogen’s
technology in Australia.
“On the manufacturing and development side, we have made rapid
progress on the build-out of our facility in Long Beach,
California. Multiple fully-automated pilot production lines are now
operational along with the vast majority of our reliability and
testing lab. We remain on track for the main production lines to be
operational in the second half of this year. The impressive
progress our production team has made on this facility is a
testament to their ingenuity and efficiency, which we expect to
apply across all manufacturing, installation and operational
efforts,” concluded Gross.
2022 Guidance Reaffirmed
Heliogen today also reaffirmed its previously announced 2022
guidance of between two and three modules contracted and $20 - $25
million of revenue. Heliogen believes the number of modules
contracted is the most useful indicator of demand for its products
and technology at this stage in its lifecycle. Over time, Heliogen
expects these contracts to be converted to revenue as the projects
are installed, although there is no assurance as to the time period
for such conversion.
First Quarter 2022 Financial Results
For the first quarter 2022, Heliogen reported total revenue of
$3.5 million, total operating expenses of $30.0 million and net
loss of $59.0 million. Heliogen’s net loss was driven primarily by
a non-cash provision for contract losses of $33.8 million related
to its first commercial-scale facility and non-cash share-based
compensation expense of $13.0 million. Heliogen’s Adjusted EBITDA,
which excludes these and other impacts, was negative $16.3 million
for the first quarter 2022.
Conference Call Information
The Heliogen management team will host a conference call to
discuss its first quarter 2022 financial results today, Monday, May
23, 2022, 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 1-877-407-0789 (1-201-689-8562 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.
About Heliogen
Heliogen is a renewable energy technology company focused on
eliminating the need for fossil fuels in heavy industry and
powering a sustainable future. Heliogen’s AI-enabled, modular
concentrated solar technology aims to cost-effectively deliver near
24/7 carbon-free energy in the form of heat, power, or green
hydrogen fuel at scale – for the first time in history. Heliogen
was created at Idealab, the leading technology incubator founded by
Bill Gross in 1996. 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 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. Please see the
accompanying tables for reconciliations of the following non-GAAP
financial measures for Heliogen’s current and historical results:
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 guidance for full-year 2022, the
development of our manufacturing and production facilities,
maintaining our trajectory in 2022, achieving our financial and
operational goals, progress with potential customers 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) 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; (iii) our ability to
access sources of capital to finance operations, growth and future
capital requirements; (iv) our ability to maintain and enhance our
products and brand, and to attract and retain customers; (v) our
ability to scale in a cost effective manner; (vi) changes in
applicable laws or regulations; (vii) the ongoing impacts of the
COVID-19 pandemic and the potential impacts of Russia’s invasion of
Ukraine on our business; (viii) developments and projections
relating to our competitors and industry; (ix) our ability to
access sources of capital to finance operations, growth and future
capital requirements; 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/A for the annual period ended December 31, 2021 and other
documents filed by Heliogen 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.
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.
($ in thousands, except share
data)
Condensed Consolidated Balance
Sheets
(unaudited)
March 31,
December 31,
2022
2021
ASSETS
Cash and cash equivalents
$
63,615
$
190,081
Investments, available-for-sale
128,269
32,332
Other current assets
20,973
4,770
Total current assets
212,857
227,183
Non-current assets
43,310
30,265
Total assets
$
256,167
$
257,448
LIABILITIES AND SHAREHOLDERS’
EQUITY
Trade payables
$
2,294
$
4,645
Contract liabilities
7,866
513
Contract loss provisions
34,188
397
Other current liabilities
6,266
6,974
Total current liabilities
50,614
12,529
Long-term liabilities
28,250
30,861
Total liabilities
78,864
43,390
Shareholders’ equity
177,303
214,058
Total liabilities, convertible
preferred stock, and shareholders’ equity
$
256,167
$
257,448
Heliogen, Inc.
Condensed Consolidated
Statements of Operations and Comprehensive Loss
($ in thousands, except per
share and share data)
(unaudited)
Three Months Ended March
31,
2022
2021
Revenue
$
3,539
$
516
Cost of revenue
37,261
516
Gross loss
(33,722
)
—
Operating expenses:
Selling, general, and administrative
20,395
2,152
Research and development
9,605
1,608
Total operating expenses
30,000
3,760
Operating loss
(63,722
)
(3,760
)
Interest income, net
194
40
Gain (loss) on warrant remeasurement
4,026
(303
)
Other expense, net
(76
)
(33
)
Net loss before taxes
(59,578
)
(4,056
)
Income tax benefit
610
—
Net loss
(58,968
)
(4,056
)
Other comprehensive loss, net of
taxes
Unrealized losses on available-for-sale
securities
(379
)
(12
)
Cumulative translation adjustment
(1
)
—
Total comprehensive loss
$
(59,348
)
$
(4,068
)
Loss per share
Loss per share – Basic and Diluted
$
(0.32
)
$
(0.42
)
Weighted average number of shares
outstanding – Diluted
184,031,015
9,763,675
Non-GAAP Financial Measures
EBITDA represents condensed consolidated net loss before (i)
interest (income) expense, net, (ii) income tax expense (benefit)
and (iii) depreciation and amortization expense.
Adjusted EBITDA represents 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.
The following reconciles net loss to EBITDA and Adjusted EBITDA
for the periods as shown:
Three Months Ended March
31,
$ in
thousands
2022
2021
Net loss
$
(58,968
)
$
(4,056
)
Adjustments
Interest income, net
(194
)
(40
)
Income tax benefit
(610
)
—
Depreciation and amortization
760
54
EBITDA
$
(59,012
)
$
(4,042
)
Adjustments
(Gain) loss on warrant
remeasurement(1)
(4,026
)
303
Share-based compensation
12,982
211
Provision for contract losses, net(2)
33,766
—
Adjusted EBITDA
$
(16,290
)
$
(3,528
)
__________________
(1) Represents the change in fair value on
our warrant liabilities for the outstanding warrants that we
assumed in our business combination with Athena Technology
Acquisition Corp.
(2) Represents contract losses related to
three contracts with customers for which estimated costs to satisfy
performance obligations exceeded considerations expected to be
realized.
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version on businesswire.com: https://www.businesswire.com/news/home/20220523005394/en/
Heliogen Investor Contact Louis Baltimore Investor
Relations Louis.Baltimore@Heliogen.com
Heliogen Media Contact: Cory Ziskind ICR, Inc.
HeliogenPR@icrinc.com
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