HYZON ANNOUNCES FOURTH QUARTER 2023 FINANCIAL AND OPERATING RESULTS
Announces first commercial delivery of fuel cell electric truck in the
Recent Highlights
- Advanced single stack 200kW fuel cell technology from B-sample to C-sample development phase
- Completed first deliveries in
the United States , including four fuel cell electric vehicles (FCEVs) to Performance Food Group (PFG) at its Vistar facility inFontana, California - Commenced trial deployment of a fuel cell electric waste collection truck with
REMONDIS Australia , a global recycling, service, and water company - Deployed 19 FCEVs in 2023 at the high-end of 15-20 FCEV guidance range, including PFG deliveries and REMONDIS commercial trial vehicle
- Accelerated refuse program in
North America through a recently announced Joint Development Agreement with New Way Trucks, the largest private refuse equipment manufacturer inNorth America - Unrestricted cash, cash equivalents, and short term investments of
$112.3 million as ofDecember 31, 2023 , from$137.8 million as ofSeptember 30, 2023
"2023 was an inflection point for Hyzon from a commercial and operational standpoint. We deployed 19 vehicles globally, including to both large fleet and drayage customers and our first heavy-duty fuel cell electric truck in
Fourth Quarter 2023 Business Highlights
Fuel Cell Electric Vehicle Deployments
As of
In Q4 2023, as a part of the 19 deployments, the Company also announced the commercial trial deployment of its first fuel cell electric waste collection truck to
Commercial Progress
The Company announced sale and delivery of a heavy-duty FCEV in
Hyzon also delivered four FCEVs to leading food distributor and supplier, PFG, in
Hyzon entered into a revised commercial agreement with
Single Stack 200kW Fuel Cell System Advances to C-Sample Development Phase
Hyzon completed its B-sample development phase of the 200kW Fuel Cell System (FCS) in Q4 2023, and advanced to C-sample development phase. In Hyzon's C-sample phase, FCSs are built with production tooling to meet all technical requirements. This step precedes Start of Production (SOP), which is currently on track for the second half of 2024.
The Company develops and builds key components for its 200kW FCSs in-house at its fuel cell production facility in
Newly Appointed Chief Technology Officer
In
Prior to his role at cellcentric, Mohrdieck was Chief Executive Officer of
Fourth Quarter 2023 Financial Updates
As of
"We are pleased with the continued progress we have made on reducing our net cash burn through focused operational efficiencies, cash management, lower legal and professional services expenses, and strategic focus. Our quarterly net cash burn in Q4 came to
Conference Call Information
The Hyzon management team will host a conference call to discuss its fourth quarter financial results on
Participants may access the call at 1-888-800-7840, international callers may use 1-646-307-1856 and enter the access code 5240234. To listen to the live audio webcast and Q&A, visit the Hyzon investor relations website at https://investors.hyzonfuelcell.com/.
About Hyzon
Hyzon is a global supplier of high-performance hydrogen fuel cell technology focused on providing zero-emission power to decarbonize demanding industries. With agile, high-power technology designed for heavy-duty applications, Hyzon is at the center of a new industrial revolution fueled by hydrogen, an abundant and clean energy source. Hyzon focuses on deploying its fuel cell technology in heavy-duty commercial vehicles across
Use of Non-GAAP Financial Information
EBITDA and Adjusted EBITDA
To supplement its Consolidated Balance Sheets and Statements of Operations and Comprehensive Loss, which are prepared and presented in accordance with
EBITDA is determined by taking net loss and adding interest expense, income tax expense or benefit, depreciation and amortization. Adjusted EBITDA is determined by taking EBITDA and adding non-cash stock-based compensation expense, change in fair value of private placement warrant liability, change in fair value of earnout liability, gain (loss) on equity securities, investment and interest income, and other special items determined by management, if applicable. We believe that these non-GAAP measures, viewed in addition to and not in lieu of our reported GAAP results, provide useful information to investors by providing a more focused measure of operating results, enhances the overall understanding of past financial performance and future prospects, and allows for greater transparency with respect to key metrics used by management in its financial and operational decision making. The non-GAAP measures presented herein may not be comparable to similarly titled measures presented by other companies. EBITDA and Adjusted EBITDA has been reconciled to the nearest GAAP measure in the tables within this press release.
Free Cash Flow
In addition to reporting Hyzon's cash flow generation and usage based upon the operating, investing, and financing classifications included in the Consolidated Statements of Cash Flows, the Company also reports free cash flow, a non-GAAP financial measure which represents net cash used in operating activities less capital expenditures. The Company believes free cash flow is an important measure of operating performance because it provides management and investors with a measure of cash that is available for mandatory payment obligations and investment opportunities. Free Cash Flow has been reconciled to the nearest GAAP measure in the tables within this press release.
Forward-Looking Statements
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, are forward-looking statements. When used in this press release, the words "aims," "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, including statements relating to the Company's expectations regarding actions to focus and restructure its business and its expectations regarding the benefits of actions taken and that may be taken in the future in furtherance of such efforts, its beliefs and expectations regarding its technology and the performance and capabilities of its fuel cells and FCEVs; its outlook regarding its business milestones and the expected timing and benefits thereof, including commencement of commercial production of its fuel cell systems and FCEVs, its beliefs and outlook regarding momentum in its business, and its beliefs regarding its competitive position and the benefits thereof, 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, Hyzon disclaims any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this press release. Hyzon 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 Hyzon, including risks and uncertainties described in the "Risk Factors" section of Hyzon's latest Annual Report on Form 10-K, Form 10-Q for the quarter ended
CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share amounts) |
|||
|
|
|
|
ASSETS |
|
|
|
Current assets |
|
|
|
Cash and cash equivalents |
$ 112,280 |
|
$ 60,554 |
Short-term investments |
— |
|
194,775 |
Accounts receivable |
498 |
|
29 |
Unbilled receivable |
1,599 |
|
— |
Related party receivable |
— |
|
6,578 |
Inventory |
28,811 |
|
35,553 |
Prepaid expenses and other current assets |
9,335 |
|
15,365 |
Total current assets |
152,523 |
|
312,854 |
Property, plant, and equipment, net |
18,569 |
|
22,420 |
Right-of-use assets |
4,741 |
|
9,181 |
Equity method investments |
8,382 |
|
8,500 |
Investments in equity securities |
763 |
|
15,030 |
Other assets |
6,157 |
|
6,911 |
Total Assets |
$ 191,135 |
|
$ 374,896 |
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
Current liabilities |
|
|
|
Accounts payable |
$ 1,479 |
|
$ 13,798 |
Accrued liabilities |
30,116 |
|
25,587 |
Related party payables |
265 |
|
433 |
Contract liabilities |
8,872 |
|
3,919 |
Current portion of lease liabilities |
1,821 |
|
2,132 |
Total current liabilities |
42,553 |
|
45,869 |
Long term liabilities |
|
|
|
Lease liabilities |
5,733 |
|
7,492 |
Private placement warrant liability |
160 |
|
1,122 |
Earnout liability |
1,725 |
|
10,927 |
Deferred income taxes |
— |
|
526 |
Accrued |
8,000 |
|
— |
Other liabilities |
2,964 |
|
1,901 |
Total Liabilities |
$ 61,135 |
|
$ 67,837 |
Commitments and contingencies |
|
|
|
Stockholders' Equity |
|
|
|
Common stock, |
25 |
|
25 |
|
(6,446) |
|
(6,446) |
Additional paid-in capital |
380,261 |
|
372,942 |
Accumulated deficit |
(242,640) |
|
(58,598) |
Accumulated other comprehensive loss |
(514) |
|
(153) |
|
130,686 |
|
307,770 |
Noncontrolling interest |
(686) |
|
(711) |
Total Stockholders' Equity |
130,000 |
|
307,059 |
Total Liabilities and Stockholders' Equity |
$ 191,135 |
|
$ 374,896 |
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (in thousands, except per share amounts) |
|||
|
|||
|
Year Ended
2023 |
|
Year Ended
2022 |
Revenue |
$ 295 |
|
$ 3,726 |
Operating expense: |
|
|
|
Cost of revenue |
15,656 |
|
23,320 |
Research and development |
43,729 |
|
39,132 |
Selling, general, and administrative |
121,164 |
|
114,073 |
Restructuring and related charges |
7,765 |
|
— |
Total operating expenses |
188,314 |
|
176,525 |
Loss from operations |
(188,019) |
|
(172,799) |
Other income (expense): |
|
|
|
Change in fair value of private placement warrant liability |
962 |
|
14,106 |
Change in fair value of earnout liability |
9,202 |
|
92,834 |
Gain (loss) on equity securities |
(14,267) |
|
10,082 |
Foreign currency exchange loss and other expense, net |
(1,402) |
|
(549) |
Investment income and interest income, net |
9,006 |
|
2,339 |
Total other income (expense) |
3,501 |
|
118,812 |
Loss before income taxes |
$ (184,518) |
|
$ (53,987) |
Income tax expense (benefit) |
(492) |
|
526 |
Net loss |
$ (184,026) |
|
$ (54,513) |
Less: Net gain (loss) attributable to noncontrolling interest |
16 |
|
(22,327) |
Net loss attributable to Hyzon |
$ (184,042) |
|
$ (32,186) |
|
|
|
|
Comprehensive loss: |
|
|
|
Net loss |
$ (184,026) |
|
$ (54,513) |
Foreign currency translation adjustment |
951 |
|
(1,921) |
Net change in unrealized gain (loss) on short-term investments |
(1,303) |
|
1,303 |
Comprehensive loss |
$ (184,378) |
|
$ (55,131) |
Less: Comprehensive income (loss) attributable to noncontrolling interest |
25 |
|
(22,443) |
Comprehensive loss attributable to Hyzon |
$ (184,403) |
|
$ (32,688) |
Net loss per share attributable to Hyzon: |
|
|
|
Basic |
$ (0.75) |
|
$ (0.13) |
Diluted |
$ (0.75) |
|
$ (0.13) |
Weighted average common shares outstanding: |
|
|
|
Basic |
244,774 |
|
248,040 |
Diluted |
244,774 |
|
248,040 |
Non-GAAP Financial Measures |
||||
|
||||
EBITDA and Adjusted EBITDA |
||||
|
||||
The following table reconciles net loss to EBITDA and Adjusted EBITDA (in thousands): |
||||
|
||||
|
|
Year Ended
|
|
Year Ended
|
Net loss |
|
$ (184,026) |
|
$ (54,513) |
Interest expense |
|
17 |
|
41 |
Income tax expense (benefit) |
|
(492) |
|
526 |
Depreciation and amortization |
|
3,977 |
|
3,704 |
EBITDA |
|
$ (180,524) |
|
$ (50,242) |
Adjusted for: |
|
|
|
|
Change in fair value of private placement warrant liability |
|
(962) |
|
(14,106) |
Change in fair value of earnout liability |
|
(9,202) |
|
(92,834) |
(Gain) loss on equity securities |
|
14,267 |
|
(10,082) |
Stock-based compensation |
|
7,481 |
|
5,332 |
Executive transition charges (1) |
|
— |
|
602 |
Regulatory and legal matters (2) |
|
35,983 |
|
29,816 |
Acquisition-related expenses (3) |
|
— |
|
8,400 |
Investment and interest income |
|
(9,023) |
|
(2,380) |
Restructuring and related charges |
|
7,765 |
|
— |
Adjusted EBITDA |
|
$ (134,215) |
|
$ (125,494) |
|
|
(1) |
The 2022 executive transition charges include a separation payment and salary expense for technical advisory services related to the Company's former Executive Chairman. |
(2) |
Regulatory and legal matters include legal, advisory, and other professional service fees incurred in connection with the short-seller analyst article from |
(3) |
Acquisition-related expenses incurred for potential and actual acquisitions that are unrelated to the current operations and are neither comparable to the prior period nor predictive of future results. The 2022 expenses relate to the Orten business combination cancellation. |
Free Cash Flow |
||||
|
||||
The following table reconciles cash flow used in operating activities to our free cash flow (in thousands): |
||||
|
||||
|
|
Year Ended
|
|
Year Ended
|
Cash used in operating activities |
|
$ (135,606) |
|
$ (149,097) |
Less: Capital expenditures |
|
(7,849) |
|
(14,133) |
Free cash flow |
|
$ (143,455) |
|
$ (163,230) |
View original content to download multimedia:https://www.prnewswire.com/news-releases/hyzon-announces-fourth-quarter-2023-financial-and-operating-results-302096725.html
SOURCE Hyzon