Hyliion Holdings Corp. (NYSE: HYLN) (“Hyliion”), a leader in
electrified powertrain solutions for Class 8 semi-trucks, today
reported its second quarter 2021 financial results.
Key Business Highlights
- Hired Dennis M. Gallagher as Chief Operating Officer, an
experienced industry executive, with a proven track record in the
heavy-duty commercial vehicle space
- Announced a 300-unit Hypertruck ERX product reservation
agreement from Detmar Logistics, an industry-leading oilfield
logistics company
- Continued to execute on the Multi-Phase Product Development
Program used to reach commercialization of the Hypertruck ERX
powertrain
- Announced a longer-range all-electric configuration mode that
will meet California’s Advanced Clean Truck Rule and qualify for
ZEV sales credits
- Improved Hybrid product on track to launch in the latter part
of 2021
- Strong balance sheet with sufficient liquidity available to
fund current commercialization plans for Hybrid and Hypertruck
ERX
Executive Commentary
Thomas Healy, Hyliion’s Founder and Chief Executive Officer,
said, “After a strong start to the year, our team continues to
execute effectively against the timelines for both Hybrid and
Hypertruck ERX products. With the unveiling of our improved Hybrid
powertrain and the debut of our Hypertruck ERX demo units both
scheduled for the third quarter of 2021, we are at an exciting
inflection point in Hyliion’s history.”
“As we make progress on the commercialization of our Hypertruck
ERX, I am very pleased to announce the recent appointment of Dennis
M. Gallagher as our Chief Operating Officer who will be responsible
for all commercialization efforts within Hyliion. Dennis recently
served as President of Jacobs Vehicle Systems, an industry-leading
supplier to the heavy-duty commercial vehicle market. He brings
over 20 years of tenure at Danaher, where he led various global
business units and has a proven track record of commercial and
operational excellence.”
“Beginning later this year, we plan to take Hypertruck ERX
demonstration units on the road to showcase them with our
Hypertruck Innovation Council members and other interested fleets.
As fleets experience the benefits of our Hypertruck ERX firsthand,
like improved driver experience, improved performance versus
diesel, and the means to reduce operating costs while offering the
ability to reduce carbon emissions more than any other alternative
fuel option available now or in the works, we expect customer
interest and excitement to continue to grow.”
Hypertruck ERX Commercialization Progress and Product
Reservations
Hyliion remains on track with its Hypertruck ERX
commercialization timeline, which involves showcasing demo trucks
to fleets late in 2021, followed by evaluation and testing
throughout 2022. The Hypertruck ERX is projected to be commercially
available in late 2022 and followed by volume ramp up.
Hyliion recently announced a reservation for 300 Hypertruck ERX
units from Detmar Logistics, a leading oilfield logistics company.
An early adopter of electrification solutions in the industry,
Detmar placed an initial order of 10 Hyliion Hybrid Electric units
earlier this spring. The successful program and deployment met with
positive feedback from Detmar’s operations team, drivers, and
customers, and generated further interest in the Hypertruck ERX
solution and a longer-term commercial relationship with Hyliion.
The purchase and sale of the 300 Hypertruck ERX units is subject to
the execution of a final agreement between Hyliion and Detmar.
Hypertruck ERX Long-Range Configuration Qualifies for CA’s
ACT Rule
In late July, Hyliion announced a long-range variant of the
Hypertruck ERX that will offer 75 miles of all-electric range. This
new configuration will enable the production vehicle to qualify for
zero-emission vehicle (ZEV) sales credits by meeting California’s
Advanced Clean Truck (ACT) Rule. The ACT Rule, approved by the
California Air Resources Board in June 2020, requires Class 8 truck
tractor manufacturers to sell ZEVs in California. Truck
manufacturers will be able to achieve up to a 75% ZEV sales credit
by selling a Class 8 truck with the Hypertruck ERX electric
powertrain. Taking a modular approach to the platform to meet OEM
demand, address fleet needs and satisfy government mandates, the
production Hypertruck ERX will be available in multiple
configurations, including a reduced electric range model that will
follow the release of the long-range version. Both configurations
will offer over 1,000 miles of total range when using the onboard
generator to recharge the battery pack.
Commercial Hybrid Launch
Hyliion is currently finalizing its improved Hybrid electric
powertrain and is on track to launch during the latter part of
2021. This improved hybrid electric powertrain includes several
enhancements to make the product more attractive to potential
customers while also simplifying the installation process. After
the launch of the improved Hybrid product, the company will begin
to recognize revenue on the units.
Financial Highlights and Operating Expense Guidance
Hyliion ended the second quarter 2021 with $317.7 million in
cash and cash equivalents on its balance sheet. Including
short-term investments of $140.0 million and long-term investments
of $159.7 million, Hyliion had over $617 million available to fund
its current commercialization plans for its Hybrid and Hypertruck
ERX powertrains.
While Hyliion expects to begin generating revenue from its
improved Hybrid product after launch later this year, it does not
expect the revenue generated in 2021 to be material.
Hyliion expects full year 2021 operating expenses to range
between $130 million and $140 million, a reduction compared to
previously disclosed guidance of approximately $140 million. This
consists of SG&A and R&D expenses.
Second Quarter 2021 Conference Call
Hyliion will host a conference call and webcast for investors
and other interested parties to review its second quarter 2021
financial results on Wednesday, Aug. 11, 2021 at 11:00 a.m. Eastern
Time. 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/1449669
Webcast:
https://investors.hyliion.com/events-and-presentations/default.aspx
Second quarter 2021 financial results for Hyliion Holdings Corp.
(f/k/a Tortoise Acquisition Corp.) on a consolidated basis 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 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 2021 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 2021 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.
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollar amounts in thousands,
except share and per share data)
Three Months Ended June
30,
Six Months Ended June
30,
2021
2020
2021
2020
Operating expenses:
Research and development
$
(13,389)
$
(2,554)
(22,721)
(5,225)
Selling, general and administrative
(10,052)
(874)
$
(17,451)
$
(1,565)
Loss from operations
(23,441)
(3,428)
(40,172)
(6,790)
Other income (expense):
Interest expense
—
(1,663)
—
(3,228)
Interest income
197
—
366
—
Change in fair value of convertible notes
payable derivative liabilities
—
1,090
—
455
Total other income (expense)
197
(573)
366
(2,773)
Net loss
$
(23,244)
$
(4,001)
$
(39,806)
$
(9,563)
Weighted-average shares outstanding, basic
and diluted
172,260,525
86,777,844
171,260,671
86,770,153
Net loss per share, basic and diluted
$
(0.13)
$
(0.05)
$
(0.23)
$
(0.11)
HYLIION HOLDINGS CORP.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Dollar amounts in thousands,
except share and per share data)
June 30, 2021
December 31, 2020
(Unaudited)
Assets
Current assets:
Cash and cash equivalents
$
317,712
$
389,705
Accounts receivable
92
92
Prepaid expenses and other current
assets
3,777
20,690
Short-term investments
139,984
201,881
Total current assets
461,565
612,368
Property and equipment, net
2,039
1,171
Operating lease right-of-use assets
8,676
5,055
Intangible assets, net
283
332
Other assets
250
193
Long-term investments
159,683
35,970
Total assets
$
632,496
$
655,089
Liabilities and stockholders’
equity:
Current liabilities:
Accounts payable
$
8,098
$
1,890
Current portion of operating lease
liabilities
722
734
Accrued expenses and other current
liabilities
6,131
6,313
Total current liabilities
14,951
8,937
Operating lease liabilities, net of
current portion
8,971
5,076
Debt, net of current portion
—
908
Total liabilities
23,922
14,921
Stockholders’ Equity:
Common stock, $0.0001 par value;
250,000,000 shares authorized; 172,798,338 and 169,316,421 shares
issued and outstanding at June 30, 2021 and December 31, 2020,
respectively
20
19
Additional paid-in capital
373,209
364,998
Retained earnings
235,345
275,151
Total stockholders’ equity
608,574
640,168
Total liabilities and stockholders’
equity
$
632,496
$
655,089
HYLIION HOLDINGS CORP.
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollar amounts in
thousands)
For the Six Months Ended June
30,
2021
2020
Cash Flows from Operating
Activities:
Net loss
$
(39,806)
$
(9,563)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
414
482
Amortization of investment premiums and
discounts
847
—
Noncash lease expense
518
540
Paid-in-kind interest on convertible notes
payable
—
690
Amortization of debt discount
—
2,523
Share-based compensation
3,427
91
Change in fair value of convertible notes
payable derivative liabilities
—
(455)
Changes in operating assets and
liabilities:
Accounts receivable
—
83
Prepaid expenses and other current
assets
4,939
66
Accounts payable
5,940
(332)
Accrued expenses and other current
liabilities
(182)
(122)
Operating lease liabilities
(256)
(558)
Net cash used in operating
activities
(24,159)
(6,555)
Cash Flows from Investing
Activities:
Purchase of property and equipment
(965)
(80)
Proceeds from sale of property and
equipment
—
10
Payments for security deposit
(57)
—
Purchase of investments
(239,021)
—
Proceeds from sale of investments
176,358
—
Net cash used in investing
activities
(63,685)
(70)
Cash Flows from Financing
Activities:
Proceeds from exercise of stock warrants,
net of issuance costs
16,257
—
(Payments for)/proceeds from Paycheck
Protection Program loan
(908)
908
Proceeds from exercise of common stock
options
502
25
Proceeds from convertible notes payable
issuance and derivative liabilities
—
3,200
Payments for deferred transaction
costs
—
(339)
Repayments on finance lease
obligations
—
(153)
Net cash provided by financing
activities
15,851
3,641
Net decrease in cash and cash
equivalents
(71,993)
(2,984)
Cash and cash equivalents- beginning of
the period
389,705
6,285
Cash and cash equivalents - end of the
period
$
317,712
$
3,301
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210810006022/en/
Hyliion Holdings Corp. Investor Contact Louis
Baltimore ir@hyliion.com
Press Contact Ryann Malone press@hyliion.com (833)
495-4466
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