Hyliion Holdings Reports First-Quarter 2024 Financial Results
Key Business Highlights
-
Announced that
H2 Energy Group has executed a letter of intent to purchase up to 10 KARNO generator units that will operate on hydrogen rich syngas produced from sustainable processes -
Announced partnership with BayoTech to introduce
Hyliion and BayoTech’s innovative solutions to each other’s customers - Reiterated plans to deliver initial KARNO generator units to customers in late 2024
- Reported today that customer commitments are secured for 2024 production capacity and actively building a backlog of commitments for 2025 generator deliveries
- Hosted event with customers and other stakeholders to showcase KARNO technology and development progress
-
Repurchased 8.7 million shares for
$11.3 million as part of the company’s$20 million Stock Repurchase Program -
Ended the quarter with
$264 million of cash and investments -
Reaffirmed guidance of
$40 to$50 million cash expenditures in 2024 for KARNO development and capital investments
Executive Commentary
“I'm excited with the progress we've achieved in the past quarter as we remain on course for the initial deployment of KARNO generators to customers later this year," stated
KARNO Commercial Updates
The development of the KARNO generator remains on track for initial customer deployments in late 2024. The company has been testing its Alpha version of the generator and earlier this year began printing components for its BETA version, which is the production-intent design. The company is taking delivery of additive manufacturing machines at its
Powertrain Wind-Down
In
Financial Highlights and Guidance
First quarter operating expenses totaled
The company repurchased 8.7 million shares of stock in the first quarter for
For 2024, total cash consumed by KARNO development and capital investments is expected to be between
Projections for 2025 include growth of KARNO generator deliveries with proceeds from sales in the low double-digit millions of dollars. The company also projects gross margins to be approximately break-even or slightly negative and cash spending to grow modestly compared to 2024.
About
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
|
|||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||
(Dollar amounts in thousands, except share and per share data) |
|||||||
|
Three Months Ended |
||||||
|
|
2024 |
|
|
|
2023 |
|
Revenues |
|
|
|
||||
Product sales and other |
$ |
— |
|
|
$ |
310 |
|
Total revenues |
|
— |
|
|
|
310 |
|
Cost of revenues |
|
|
|
||||
Product sales and other |
|
— |
|
|
|
691 |
|
Total cost of revenues |
|
— |
|
|
|
691 |
|
Gross loss |
|
— |
|
|
|
(381 |
) |
Operating expenses |
|
|
|
||||
Research and development |
|
7,968 |
|
|
|
20,918 |
|
Selling, general and administrative |
|
6,592 |
|
|
|
10,981 |
|
Exit and termination costs |
|
4,431 |
|
|
|
— |
|
Total operating expenses |
|
18,991 |
|
|
|
31,899 |
|
Loss from operations |
|
(18,991 |
) |
|
|
(32,280 |
) |
Interest income |
|
3,396 |
|
|
|
3,462 |
|
Gain on disposal of assets |
|
3 |
|
|
|
2 |
|
Other expense, net |
|
— |
|
|
|
(15 |
) |
Net loss |
$ |
(15,592 |
) |
|
$ |
(28,831 |
) |
|
|
|
|
||||
Net loss per share, basic and diluted |
$ |
(0.09 |
) |
|
$ |
(0.16 |
) |
|
|
|
|
||||
Weighted-average shares outstanding, basic and diluted |
|
178,482,894 |
|
|
|
180,118,044 |
|
|
|||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||
(Dollar amounts in thousands, except share data) |
|||||||
|
|
|
|
||||
|
(Unaudited) |
|
|
||||
Assets |
|
|
|
||||
Current assets |
|
|
|
||||
Cash and cash equivalents |
$ |
14,715 |
|
|
$ |
12,881 |
|
Accounts receivable |
|
122 |
|
|
|
40 |
|
Prepaid expenses and other current assets |
|
6,559 |
|
|
|
18,483 |
|
Short-term investments |
|
126,703 |
|
|
|
150,297 |
|
Assets held for sale |
|
5,973 |
|
|
|
— |
|
Total current assets |
|
154,072 |
|
|
|
181,701 |
|
|
|
|
|
||||
Property and equipment, net |
|
12,701 |
|
|
|
9,987 |
|
Operating lease right-of-use assets |
|
6,992 |
|
|
|
7,070 |
|
Other assets |
|
1,360 |
|
|
|
1,439 |
|
Long-term investments |
|
122,529 |
|
|
|
128,186 |
|
Total assets |
$ |
297,654 |
|
|
$ |
328,383 |
|
|
|
|
|
||||
Liabilities and stockholders’ equity |
|
|
|
||||
Current liabilities |
|
|
|
||||
Accounts payable |
$ |
2,119 |
|
|
$ |
4,224 |
|
Current portion of operating lease liabilities |
|
1,436 |
|
|
|
847 |
|
Accrued expenses and other current liabilities |
|
6,948 |
|
|
|
10,051 |
|
Total current liabilities |
|
10,503 |
|
|
|
15,122 |
|
|
|
|
|
||||
Operating lease liabilities, net of current portion |
|
6,207 |
|
|
|
6,792 |
|
Other liabilities |
|
534 |
|
|
|
203 |
|
Total liabilities |
|
17,244 |
|
|
|
22,117 |
|
|
|
|
|
||||
Commitments and contingencies |
|
|
|
||||
|
|
|
|
||||
Stockholders’ equity |
|
|
|
||||
Common stock, |
|
18 |
|
|
|
18 |
|
Additional paid-in capital |
|
405,118 |
|
|
|
404,045 |
|
|
|
(11,370 |
) |
|
|
(33 |
) |
Accumulated deficit |
|
(113,356 |
) |
|
|
(97,764 |
) |
Total stockholders’ equity |
|
280,410 |
|
|
|
306,266 |
|
Total liabilities and stockholders’ equity |
$ |
297,654 |
|
|
$ |
328,383 |
|
|
|||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
(Dollar amounts in thousands) |
|||||||
|
Three Months Ended |
||||||
|
|
2024 |
|
|
|
2023 |
|
Cash flows from operating activities |
|
|
|
||||
Net loss |
$ |
(15,592 |
) |
|
$ |
(28,831 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
||||
Depreciation and amortization |
|
572 |
|
|
|
524 |
|
Amortization and accretion of investments, net |
|
(973 |
) |
|
|
(194 |
) |
Noncash lease expense |
|
78 |
|
|
|
302 |
|
Inventory write-down |
|
— |
|
|
|
231 |
|
Gain on disposal of assets |
|
(572 |
) |
|
|
(2 |
) |
Share-based compensation |
|
1,320 |
|
|
|
2,040 |
|
Carrying value adjustment to assets held for sale |
|
5,564 |
|
|
|
— |
|
Changes in operating assets and liabilities: |
|
|
|
||||
Accounts receivable |
|
(82 |
) |
|
|
299 |
|
Inventory |
|
— |
|
|
|
(1,026 |
) |
Prepaid expenses and other assets |
|
(7,382 |
) |
|
|
(5,313 |
) |
Accounts payable |
|
(2,573 |
) |
|
|
215 |
|
Accrued expenses and other liabilities |
|
(3,066 |
) |
|
|
(1,144 |
) |
Operating lease liabilities |
|
4 |
|
|
|
(340 |
) |
Net cash used in operating activities |
|
(22,702 |
) |
|
|
(33,239 |
) |
|
|
|
|
||||
Cash flows from investing activities |
|
|
|
||||
Purchase of property and equipment and other |
|
(2,818 |
) |
|
|
(2,988 |
) |
Proceeds from sale of property and equipment |
|
572 |
|
|
|
2 |
|
Purchase of investments |
|
(23,707 |
) |
|
|
(31,394 |
) |
Proceeds from sale and maturity of investments |
|
53,861 |
|
|
|
33,533 |
|
Net cash provided by (used in) investing activities |
|
27,908 |
|
|
|
(847 |
) |
|
|
|
|
||||
Cash flows from financing activities |
|
|
|
||||
Proceeds from exercise of common stock options |
|
48 |
|
|
|
19 |
|
Taxes paid related to net share settlement of equity awards |
|
(295 |
) |
|
|
(195 |
) |
Repurchase of treasury stock |
|
(11,043 |
) |
|
|
— |
|
Net cash used in financing activities |
|
(11,290 |
) |
|
|
(176 |
) |
|
|
|
|
||||
Net decrease in cash and cash equivalents and restricted cash |
|
(6,084 |
) |
|
|
(34,262 |
) |
Cash and cash equivalents and restricted cash, beginning of period |
|
21,464 |
|
|
|
120,133 |
|
Cash and cash equivalents and restricted cash, end of period |
$ |
15,380 |
|
|
$ |
85,871 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240430068077/en/
press@hyliion.com
ir@hyliion.com
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