Hyliion Holdings Corp. (NYSE: HYLN) (“Hyliion”), a leader in
electrified powertrain solutions for Class 8 semi-trucks, reported
its fourth quarter and full year 2021 financial results.
Key Business Highlights
- Received orders from multiple fleets totaling 100 units backed
by deposits to secure Hypertruck ERX production slots
- Received reservations for an additional 325 units of the
Hypertruck ERX
- Began recognizing revenue on the Company’s Hybrid eX powertrain
solution
- Launched “Ride and Drive” customer experience event series for
the Hypertruck ERX
- Added Jeffrey A. Craig, a recognized leader in the commercial
vehicle industry and the former Chairman and CEO of Meritor, Inc.,
to Hyliion’s board of directors
- Hired Cheri Lantz as Chief Strategy Officer
- Expects full year 2022 revenue of $2 million to $3 million from
Hybrid eX sales; total operating expenses of $135 million to $145
million to support commercialization efforts of both Hybrid eX and
Hypertruck ERX
Executive Commentary
“This month, we received orders for 100 units backed by deposits
to secure Hypertruck ERX production slots. These early adopters of
our technology recognize our potential to change the landscape of
the trucking industry together,” said Thomas Healy, Hyliion’s
Founder and Chief Executive Officer. “In the fourth quarter, with
the initiation of revenue recognition on our Hybrid eX powertrain
solution, Hyliion achieved another important milestone in pursuit
of our vision of being the leading provider of electrified
solutions for the commercial vehicle industry and capped off what
was a transformational year for the Company.”
“In addition, we have expanded our sales force with four
trucking industry veterans. Looking ahead, we will move forward
aggressively with our commercialization and business development
plans, building on the momentum we have established and the
positive feedback from customers and stakeholders at our ongoing
Ride and Drive events. We expect that 2022 will be an exciting year
for Hyliion in terms of R&D and product development milestones
as we broaden our technology solutions to address the
transportation sector’s environmental impact.”
"We have received overwhelmingly positive feedback from fleets
regarding the Hypertruck ERX’s performance and drivability," said
Dennis Gallagher, Hyliion’s Chief Operating Officer. "Fleets have
also shared examples of how the Hypertruck ERX technology addresses
infrastructure hurdles and range anxiety associated with plug-in
electric trucks. Additionally, fleets believe the Hypertruck ERX
powertrain will be an effective tool for recruiting and retaining
drivers who want to be on the cutting edge of the industry."
Hypertruck ERX Fleet Update
In February, the Company secured orders from multiple fleets
totaling 100 units of the Hypertruck ERX for production slots,
accompanied with deposits. The Company also received incremental
reservations for 325 units of the Hypertruck ERX. These orders and
reservations are to secure the early Hypertruck ERX production
slots and are subject to the finalization of commercial terms.
The orders followed the formal November launch of the Company’s
Ride and Drive customer experience event series, consisting of
ride-along opportunities and in-depth product education, including
events at the Company’s headquarters in Austin.
Hypertruck ERX Development Timing
Hyliion is on track with its previously communicated timeline to
complete design verification and initial controlled fleet trials by
the end of this year. These will be followed by the continuation of
fleet trials and final regulatory approvals prior to the start of
production, which the Company expects to commence by late 2023.
Hyliion continues to work closely with its current and potential
suppliers to secure delivery of components necessary to complete
its development and commercial milestones.
The use case of the Hypertruck ERX is focused on linehaul
applications, meaning hundreds of miles per day, up to 1,000 miles
before needing to refuel. That compares with current plug-in EV
solutions that satisfy a use case of only 100 to 200 miles.
Hyliion’s Multi-Phase Development Program timeline includes robust
design verification and product validation testing, including for
summer and winter seasons, and the accumulation of up to one
million test miles prior to production.
Hybrid eX Launch Update
In the fourth quarter, Hyliion delivered its initial Hybrid eX
powertrain systems and began recognizing revenue. As noted above,
due to global shortages of various components, the Company is
experiencing longer delivery times and previously forecasted that
the revenue from the fourth quarter of 2021 would be a non-material
amount. Supply shortages also caused some Hyliion deliveries to be
delayed into the first quarter of 2022.
Leadership Expansion
In February, the Company welcomed Jeffrey A. (Jay) Craig to its
board of directors. Mr. Craig is a recognized leader in the
commercial vehicle space, and was previously the Chairman and CEO
of Meritor, Inc., where he oversaw the advancement of Meritor’s
product portfolio and the development of a number of
electrification products, some of which are now used on Hyliion’s
Hypertruck ERX. Prior to joining Meritor, Mr. Craig was president
and CEO of General Motors Acceptance Corporation (GMAC) Commercial
Finance and before that was president and CEO of GMAC’s business
credit division.
In late February, Cheri Lantz will be joining Hyliion as Chief
Strategy Officer. Ms. Lantz will continue to drive the Company’s
strategic roadmap forward as it expands into Fuel Agnostic and
Hydrogen Fuel Cell generator technology and advanced software
solutions. Most recently, Ms. Lantz was the VP of Strategy,
Transportation Solutions for TE Connectivity and previously was the
Chief Strategy Officer at Meritor.
Financial Highlights and Operating Expense Guidance
In the fourth quarter, the Company recorded $200,000 in revenue.
The Company’s full year 2021 operating expenses totaled $93.6
million. Hyliion ended the fourth quarter of 2021 with over $557
million on its balance sheet, which is sufficient to fund its
current commercialization plans for the Hybrid eX and Hypertruck
ERX powertrains. This includes $258.4 million in cash and cash
equivalents, short-term investments of $118.8 million, and
long-term investments of $180.2 million.
For the full year 2022, Hyliion expects revenue in the range of
$2 million to $3 million in Hybrid eX sales and operating expenses
to range between $135 million and $145 million, driven primarily by
an increase in research and development costs to support the
Hypertruck ERX commercialization milestones.
Fourth Quarter 2021 Conference Call
Hyliion will host a conference call and accompanying webcast at
11:00 a.m. EST / 10:00 a.m. CST on Thursday, February 24, 2022, to
discuss its financials, business results, and outlook. 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/9738028
Access the Webcast:
https://investors.hyliion.com/events-and-presentations/default.aspx
Fourth quarter and full year 2021 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 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 2022 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 2022 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.
CONSOLIDATED STATEMENTS OF
OPERATIONS
(Dollar amounts in thousands,
except share and per share data)
Three Months Ended
December 31,
Year Ended December
31,
2021
2020
2021
2020
(Unaudited)
Revenues
Product sales and other
$
200
$
—
$
200
$
—
Total revenues
200
—
200
—
Cost of revenues
Product sales and other
(2,737
)
—
(2,737
)
—
Total cost of revenues
(2,737
)
—
(2,737
)
—
Gross loss
(2,537
)
—
(2,537
)
—
Operating expenses
Research and development
(17,390
)
(4,464
)
(58,261
)
(12,598
)
Selling, general and administrative
expenses
(9,188
)
(5,880
)
(35,299
)
(9,585
)
Total operating expenses
(26,578
)
(10,344
)
(93,560
)
(22,183
)
Loss from operations
(29,115
)
(10,344
)
(96,097
)
(22,183
)
Interest expense
—
(7
)
—
(5,465
)
Interest income
218
6
779
6
Loss on impairment and disposal of
assets
(730
)
—
(730
)
—
Change in fair value of convertible notes
payable derivative liabilities
—
—
—
(1,358
)
Change in fair value of warrant
liabilities
—
363,299
—
363,299
Other expense
—
—
—
(12
)
Loss on extinguishment of debt
—
(10,170
)
—
(10,170
)
Net (loss) income
$
(29,627
)
$
342,784
$
(96,048
)
$
324,117
Net (loss) income per share, basic
$
(0.17
)
$
2.19
$
(0.56
)
$
3.11
Net loss per share, diluted
$
(0.17
)
$
(0.12
)
$
(0.56
)
$
(0.35
)
Weighted-average shares outstanding,
basic
173,325,727
156,352,637
172,216,477
104,324,059
Weighted-average shares outstanding,
diluted
173,325,727
164,599,538
172,216,477
112,570,960
HYLIION HOLDINGS CORP.
CONSOLIDATED BALANCE
SHEETS
(Dollar amounts in thousands,
except share data)
December 31,
2021
2020
Assets
Current assets
Cash and cash equivalents
$
258,445
$
389,705
Accounts receivable
70
92
Inventory
114
132
Prepaid expenses and other current
assets
9,068
20,558
Short-term investments
118,787
201,881
Total current assets
386,484
612,368
Property and equipment, net
2,235
1,171
Operating lease right-of-use assets
7,734
5,055
Intangible assets, net
235
332
Other assets
1,535
193
Long-term investments
180,217
35,970
Total assets
$
578,440
$
655,089
Liabilities and stockholders’
equity
Current liabilities
Accounts payable
$
7,455
$
1,890
Current portion of operating lease
liabilities
21
734
Accrued expenses and other current
liabilities
7,759
6,138
Total current liabilities
15,235
8,762
Operating lease liabilities, net of
current portion
8,623
5,076
Other liabilities
667
175
Debt, net of current portion
—
908
Total liabilities
24,525
14,921
Commitments and contingencies (Note
16)
Stockholders’ equity
Common stock, $0.0001 par value;
250,000,000 shares authorized; 173,468,979 and
169,316,421 shares issued and outstanding
at December 31, 2021 and 2020, respectively
17
19
Additional paid-in capital
374,795
364,998
Retained earnings
179,103
275,151
Total stockholders’ equity
553,915
640,168
Total liabilities and stockholders’
equity
$
578,440
$
655,089
HYLIION HOLDINGS CORP.
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(Dollar amounts in
thousands)
Year Ended December
31,
2021
2020
2019
Cash Flows from Operating
Activities
Net (loss) income
$
(96,048
)
$
324,117
$
(14,113
)
Adjustments to reconcile net (loss) income
to net cash used in operating activities:
Depreciation and amortization
884
850
1,028
Amortization of investment premiums and
discounts
1,816
—
—
Loss on extinguishment of debt
—
10,170
—
Noncash lease expense
731
928
1,312
Inventory write-down
2,298
—
—
Loss on impairment and disposal of
assets
730
—
—
Paid-in-kind interest on convertible notes
payable
—
1,085
723
Amortization of debt discount
—
4,237
2,485
Share-based compensation
4,922
294
125
Change in fair value of convertible notes
payable derivative liabilities
—
1,358
(1,118
)
Change in fair value of contingent
consideration liability
—
—
(27
)
Change in fair value of warrant
liability
—
(363,299
)
—
Change in operating assets and
liabilities, net of effects of business acquisition:
Accounts receivable
22
53
(28
)
Inventory
(2,280
)
(132
)
—
Prepaid expenses and other assets
(475
)
(8,150
)
44
Accounts payable
5,319
734
(684
)
Accrued expenses and other liabilities
2,155
5,764
(21
)
Operating lease liabilities
(576
)
(953
)
(798
)
Net cash used in operating activities
(80,502
)
(22,944
)
(11,072
)
Cash Flows from Investing
Activities
Purchase of property and equipment
(2,380
)
(311
)
(349
)
Proceeds from sale of property and
equipment
45
22
—
Payments for security deposit, net
(29
)
—
—
Purchase of investments
(317,807
)
(237,851
)
—
Proceeds from sale and maturity of
investments
254,180
—
—
Net cash used in investing activities
(65,991
)
(238,140
)
(349
)
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
16,803
(Payments for)/proceeds from Paycheck
Protection Program loan
(908
)
908
—
Payments for deferred financing costs
—
(468
)
—
Repayments on finance lease
obligations
(42
)
(247
)
(201
)
Proceeds from exercise of common stock
options
591
121
7
Net cash provided by financing
activities
15,898
644,504
16,609
Net (decrease) increase in cash and cash
equivalents and restricted cash
(130,595
)
383,420
5,188
Cash and cash equivalents, beginning of
period
389,705
6,285
1,097
Cash and cash equivalents and restricted
cash, end of period
$
259,110
$
389,705
$
6,285
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220223006351/en/
Hyliion Holdings Corp. Ryann Malone
press@hyliion.com (833) 495-4466
Sharon Merrill Associates, Inc. Nicholas Manganaro
hyln@investorrelations.com (617) 542-5300
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