Hyliion Holdings Corp. (NYSE: HYLN) (“Hyliion”), a leader in
electrified powertrain solutions for Class 8 semi-trucks, today
reported its first-quarter 2022 financial results.
Key Business Highlights
- Order backlog increases to 170 Hypertruck ERX™ production slots
backed by deposits, plus nearly 2,000 units in reservations to
date
- Hypertruck ERX expected to qualify for full credit within the
Advanced Clean Fleet legislation, CARB’s new mandate for
fleets
- On track with Hypertruck ERX development timeline as the
initial design verification units are complete; start of production
expected late 2023
- Generated $0.3 million in revenue from Hybrid sales, 70%
increase from prior quarter
- Closes quarter with $527 million on balance sheet
- Reiterates full-year 2022 revenue expectations of between $2.0
million and $3.0 million; full-year operating expenses between $135
million to $145 million
Executive Commentary
“The trucking industry is increasingly recognizing Hyliion’s
potential to revolutionize the market for Class 8 semi-trucks,”
said Thomas Healy, Hyliion’s Founder and Chief Executive Officer.
“To date, we have received orders for 170 Hypertruck ERX production
slots backed by deposits. At the same time, we reached critical
development milestones on schedule for the Hypertruck ERX.
“The recent expansion of our sales force has paid immediate
dividends and we are progressing quickly with our commercialization
plans to take advantage of the positive feedback we continue to
receive from customers at our ongoing Ride and Drive events. 2022
should be a critical year for Hyliion’s product development as we
advance our technology solutions to address the transportation
sector’s environmental impact.”
Hypertruck ERX Orders and Reservations Update
In the first quarter, the Company secured orders for production
slots backed by deposits from multiple fleets, bringing the total
number of orders to 170 units for the Hypertruck ERX. These orders
are expected to ship between late 2023 and the first quarter of
2024. The Company also has received reservations totaling nearly
2,000 units to date. These orders and reservations remain subject
to the finalization of commercial terms.
The Company announced in the first quarter that GreenPath
Logistics ordered 50 Hypertruck ERX units backed by deposits to
secure production slots after their Ride and Drive experience at
Hyliion HQ. The Dallas-based, full-service private fleet - which
uses only vehicles powered by alternative fuels - will begin
initial controlled fleet trials for the Hypertruck ERX in their
operations later this year. GreenPath Logistics moves freight for
notable customers such as Amazon, UPS, and the United States Postal
Service.
Also, in the first quarter Mone Transport converted 20 of their
40 reservations to orders for production slots after their Ride and
Drive experience. Based in Laredo, Texas, Mone is a door-to-door
service provider and an early adopter of green technology, with
Hyliion Hybrid solution already incorporated into its
operations.
Hypertruck ERX Government Credits
In the first quarter, the California Air Resource Board (CARB)
released draft language for their Advanced Clean Fleet (ACF)
mandate. This initiative puts requirements on the fleets regarding
credits that must be obtained by adopting clean vehicles. Under the
current draft language of the ACF Rule, the Hypertruck ERX will
qualify for a full credit for each vehicle the fleet adopts.
As previously noted, the Hypertruck ERX will also qualify for
75% of a ZEV credit under the Advanced Clean Truck (ACT) CARB
mandate. This initiative puts requirements on the vehicle OEMs with
regards to the ratio of clean vehicles they manufacture compared to
diesel trucks. The Company will continue to work with state and
federal government agencies through the legislative process to
demonstrate the benefits of the Hypertruck ERX both for its
customers and the environment.
Hypertruck ERX Development
In the first quarter, the Company completed the first of its
design verification vehicle builds. Hyliion remains on schedule
with its previously communicated timeline to complete design
verification and initial controlled fleet trials for the Hypertruck
ERX by the second half of this year. This will then be followed by
final regulatory approvals that will keep the Company on track to
start production by late 2023. Hyliion continues to work closely
with its suppliers to secure delivery of components necessary to
reach its development and commercial milestones.
The use case of the Hypertruck ERX is focused on bringing
electrification to linehaul applications of up to 1,000 miles
between refueling stops. Hyliion’s multi-phase development program
includes design verification and product validation testing,
including summer and winter seasons, and the accumulation of up to
one million test miles prior to starting production.
Hybrid Update
In the first quarter, Hyliion continued to deliver, install, and
recognize revenue on its Hybrid powertrain systems. Due to
persistent global shortages of various components, the Company
continues to experience longer delivery times, which has continued
to impact delivery timing.
Financial Highlights and Operating Expense Guidance
In the first quarter, the Company recorded $0.3 million in
revenue which represents a 70% increase from the prior quarter. The
Company’s first-quarter operating expenses totaled $25.6 million,
driven primarily by R&D. Hyliion ended the quarter with over
$527 million of capital available on its balance sheet, which is
sufficient to fund its current commercialization plans for the
Hybrid and Hypertruck ERX powertrains. This includes $227 million
in cash and cash equivalents, short-term investments of $134
million, and long-term investments of $166 million.
For the full-year 2022, Hyliion continues to expect revenue in
the range of $2 million to $3 million from Hybrid sales, with
operating expenses in the range of $135 million to $145 million,
driven primarily by an increase in research and development costs
to support commercialization of the Hypertruck ERX.
Upcoming Events
The Hyliion team is participating in the 2022 Advanced Clean
Transportation Expo, May 10 – 12, in Long Beach, California. The
Expo is the world’s largest advanced transportation technology and
clean fleet event. Hyliion-powered trucks will be on display and
available for ride-along demonstrations. The Company will also
attend the World Economic Forum, May 22 – 26, in Davos,
Switzerland.
First 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 Tuesday, May 10, 2022, to
discuss its financials, 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%20
Webcast:
https://investors.hyliion.com/events-and-presentations/default.aspx
First-quarter 2022 financial results for Hyliion Holdings Corp.
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 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
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 2022 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,
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 24, 2022
for the year ended December 31, 2021. 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 March
31,
2022
2021
Revenues
Product sales and other
$
340
$
—
Total revenues
340
—
Cost of revenues
Product sales and other
2,099
—
Total cost of revenues
2,099
—
Gross loss
(1,759
)
—
Operating expenses
Research and development
(15,808
)
(9,332
)
Selling, general and administrative
(9,824
)
(7,399
)
Total operating expenses
(25,632
)
(16,731
)
Loss from operations
(27,391
)
(16,731
)
Interest income
285
169
Loss on disposal of assets
(2
)
—
Net loss
$
(27,108
)
$
(16,562
)
Net loss per share, basic and diluted
$
(0.16
)
$
(0.10
)
Weighted-average shares outstanding, basic
and diluted
173,584,573
170,249,708
HYLIION HOLDINGS CORP.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Dollar amounts in thousands,
except share data)
March 31, 2022
December 31, 2021
(Unaudited)
Assets
Current assets
Cash and cash equivalents
$
227,107
$
258,445
Accounts receivable
765
70
Inventory
186
114
Prepaid expenses and other current
assets
8,865
9,068
Short-term investments
134,160
118,787
Total current assets
371,083
386,484
Property and equipment, net
2,478
2,235
Operating lease right-of-use assets
7,411
7,734
Intangible assets, net
211
235
Other assets
1,682
1,535
Long-term investments
165,958
180,217
Total assets
$
548,823
$
578,440
Liabilities and stockholders’
equity
Current liabilities
Accounts payable
$
3,258
$
7,455
Current portion of operating lease
liabilities
190
21
Accrued expenses and other current
liabilities
7,860
7,759
Total current liabilities
11,308
15,235
Operating lease liabilities, net of
current portion
8,222
8,623
Other liabilities
1,015
667
Total liabilities
20,545
24,525
Commitments and contingencies (Note 8)
Stockholders’ equity
Common stock, $0.0001 par value;
250,000,000 shares authorized; 173,805,134 and 173,468,979 shares
issued and outstanding at March 31, 2022 and December 31, 2021,
respectively
17
17
Additional paid-in capital
376,266
374,795
Retained earnings
151,995
179,103
Total stockholders’ equity
528,278
553,915
Total liabilities and stockholders’
equity
$
548,823
$
578,440
HYLIION HOLDINGS CORP.
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollar amounts in
thousands)
Three Months Ended March
31,
2022
2021
Cash flows from operating
activities
Net loss
$
(27,108
)
$
(16,562
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
270
203
Amortization and accretion of
investments
578
—
Noncash lease expense
303
222
Inventory write-down
1,325
—
Loss on disposal of assets
2
—
Share-based compensation
1,563
1,510
Changes in operating assets and
liabilities:
Accounts receivable
(695
)
12
Inventory
(1,397
)
—
Prepaid expenses and other assets
98
817
Accounts payable
(4,249
)
132
Accrued expenses and other liabilities
219
3,091
Operating lease liabilities
(212
)
(182
)
Net cash used in operating activities
(29,303
)
(10,757
)
Cash flows from investing
activities
Purchase of property and equipment
(209
)
(358
)
Purchase of investments
(59,234
)
(219,460
)
Proceeds from sale and maturity of
investments
57,500
160,001
Net cash used in investing activities
(1,943
)
(59,817
)
Cash flows from financing
activities
Proceeds from exercise of stock warrants,
net of issuance costs
—
16,257
Payments for Paycheck Protection Program
loan
—
(908
)
Proceeds from exercise of common stock
options
28
287
Taxes paid related to net share settlement
of equity awards
(120
)
—
Repayments on finance lease
obligations
—
(49
)
Net cash (used in) provided by financing
activities
(92
)
15,587
Net decrease in cash and cash equivalents
and restricted cash
(31,338
)
(54,987
)
Cash and cash equivalents and restricted
cash, beginning of period
259,110
389,705
Cash and cash equivalents and restricted
cash, end of period
$
227,772
$
334,718
Supplemental disclosure of noncash
investing information:
Acquisitions of property and equipment
included in accounts payable and other
$
282
$
—
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220509006186/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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