Hyliion Holdings Reports Second-Quarter 2024 Financial Results
Key Business Highlights
- Secured customer commitments for all 2024 early adopter production capacity and for more than 50% of anticipated 2025 production
- Executed a letter of intent with US Energy, a leading provider of refined products, alternative fuels, and environmental credits, to deploy a KARNO™ generator at an RNG fueling station
- Executed a letter of intent with Flexnode, a producer of advanced high-performance micro data centers, for the purchase of up to 10 KARNO generator units
-
Executed a memorandum of understanding with
Jardine Engineering Corporation , a leading provider of power systems inHong Kong andMacau , to collaborate on bringing KARNO technology toAsia Pacific markets -
Awarded a
Small Business Innovation Research grant for the proposed development of a multi-megawatt KARNO generator forUS Navy applications -
Repurchased 1.9 million shares for
$2.7 million as part of the company’s$20 million Stock Repurchase Program -
Ended the quarter with
$249 million of cash and investments -
Updated guidance to approximately
$55 million in cash expenditures in 2024 for KARNO development including capital investments for additional additive printing machines
Executive Commentary
"
KARNO Commercial Updates
Over the past quarter, customer interest in the KARNO generator has been growing, with commitments secured for all anticipated 2024 deliveries and more than half of expected production capacity in 2025. A significant increase in interest has come from data center companies as growth in artificial intelligence strains the power grid. The KARNO generator will be well-positioned to meet these needs by delivering megawatt-scale power solutions.
Additionally,
The US government also awarded
Customer commitments are executed as non-binding LOIs and are subject to the execution of definitive sales agreements prior to deliveries.
Development of the KARNO generator remains on track for deliveries later this year. As work to commercialize the BETA version of the KARNO generator progresses,
During the quarter,
Financial Highlights and Guidance
Second quarter operating expenses totaled
The company repurchased 1.9 million shares of its common stock in the second quarter for
Total changes in cash and investment balances for the quarter were
For 2024, total cash consumed for KARNO development and capital investments is expected to be approximately
Projections for 2025 include growth of KARNO generator deliveries, with proceeds from sales in the low double-digit millions of dollars. The company is also targeting approximately break-even gross margins on a cash basis by late 2025 or early 2026, 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 |
|
Six Months Ended |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Revenues |
|
|
|
|
|
|
|
||||||||
Product sales and other |
$ |
— |
|
|
$ |
266 |
|
|
$ |
— |
|
|
$ |
576 |
|
Total revenues |
|
— |
|
|
|
266 |
|
|
|
— |
|
|
|
576 |
|
Cost of revenues |
|
|
|
|
|
|
|
||||||||
Product sales and other |
|
— |
|
|
|
307 |
|
|
|
— |
|
|
|
998 |
|
Total cost of revenues |
|
— |
|
|
|
307 |
|
|
|
— |
|
|
|
998 |
|
Gross loss |
|
— |
|
|
|
(41 |
) |
|
|
— |
|
|
|
(422 |
) |
Operating expenses |
|
|
|
|
|
|
|
||||||||
Research and development |
|
8,311 |
|
|
|
27,439 |
|
|
|
16,279 |
|
|
|
48,357 |
|
Selling, general and administrative |
|
6,262 |
|
|
|
11,098 |
|
|
|
12,854 |
|
|
|
22,079 |
|
Exit and termination costs |
|
(556 |
) |
|
|
— |
|
|
|
3,875 |
|
|
|
— |
|
Total operating expenses |
|
14,017 |
|
|
|
38,537 |
|
|
|
33,008 |
|
|
|
70,436 |
|
Loss from operations |
|
(14,017 |
) |
|
|
(38,578 |
) |
|
|
(33,008 |
) |
|
|
(70,858 |
) |
Interest income |
|
3,129 |
|
|
|
3,349 |
|
|
|
6,525 |
|
|
|
6,811 |
|
Gain (loss) on disposal of assets |
|
— |
|
|
|
(1 |
) |
|
|
3 |
|
|
|
1 |
|
Other income (expense), net |
|
32 |
|
|
|
3 |
|
|
|
32 |
|
|
|
(12 |
) |
Net loss |
$ |
(10,856 |
) |
|
$ |
(35,227 |
) |
|
$ |
(26,448 |
) |
|
$ |
(64,058 |
) |
|
|
|
|
|
|
|
|
||||||||
Net loss per share, basic and diluted |
$ |
(0.06 |
) |
|
$ |
(0.19 |
) |
|
$ |
(0.15 |
) |
|
$ |
(0.35 |
) |
|
|
|
|
|
|
|
|
||||||||
Weighted-average shares outstanding, basic and diluted |
|
173,829,107 |
|
|
|
180,966,908 |
|
|
|
176,156,001 |
|
|
|
180,544,821 |
|
CONDENSED CONSOLIDATED BALANCE SHEETS (Dollar amounts in thousands, except share data) |
|||||||
|
|
|
|
||||
|
(Unaudited) |
|
|
||||
Assets |
|
|
|
||||
Current assets |
|
|
|
||||
Cash and cash equivalents |
$ |
19,133 |
|
|
$ |
12,881 |
|
Accounts receivable |
|
373 |
|
|
|
40 |
|
Prepaid expenses and other current assets |
|
5,449 |
|
|
|
18,483 |
|
Short-term investments |
|
136,091 |
|
|
|
150,297 |
|
Assets held for sale |
|
3,573 |
|
|
|
— |
|
Total current assets |
|
164,619 |
|
|
|
181,701 |
|
|
|
|
|
||||
Property and equipment, net |
|
15,781 |
|
|
|
9,987 |
|
Operating lease right-of-use assets |
|
6,221 |
|
|
|
7,070 |
|
Other assets |
|
1,266 |
|
|
|
1,439 |
|
Long-term investments |
|
93,476 |
|
|
|
128,186 |
|
Total assets |
$ |
281,363 |
|
|
$ |
328,383 |
|
|
|
|
|
||||
Liabilities and stockholders’ equity |
|
|
|
||||
Current liabilities |
|
|
|
||||
Accounts payable |
$ |
1,043 |
|
|
$ |
4,224 |
|
Current portion of operating lease liabilities |
|
985 |
|
|
|
847 |
|
Accrued expenses and other current liabilities |
|
5,485 |
|
|
|
10,051 |
|
Total current liabilities |
|
7,513 |
|
|
|
15,122 |
|
|
|
|
|
||||
Operating lease liabilities, net of current portion |
|
5,610 |
|
|
|
6,792 |
|
Other liabilities |
|
400 |
|
|
|
203 |
|
Total liabilities |
|
13,523 |
|
|
|
22,117 |
|
|
|
|
|
||||
Commitments and contingencies |
|
|
|
||||
|
|
|
|
||||
Stockholders’ equity |
|
|
|
||||
Common stock, |
|
18 |
|
|
|
18 |
|
Additional paid-in capital |
|
406,175 |
|
|
|
404,045 |
|
|
|
(14,141 |
) |
|
|
(33 |
) |
Accumulated deficit |
|
(124,212 |
) |
|
|
(97,764 |
) |
Total stockholders’ equity |
|
267,840 |
|
|
|
306,266 |
|
Total liabilities and stockholders’ equity |
$ |
281,363 |
|
|
$ |
328,383 |
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollar amounts in thousands) |
|||||||
|
Six Months Ended |
||||||
|
2024 |
|
2023 |
||||
Cash flows from operating activities |
|
|
|
||||
Net loss |
$ |
(26,448 |
) |
|
$ |
(64,058 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
||||
Depreciation and amortization |
|
1,285 |
|
|
|
1,132 |
|
Amortization and accretion of investments, net |
|
(1,839 |
) |
|
|
(789 |
) |
Noncash lease expense |
|
849 |
|
|
|
658 |
|
Inventory write-down |
|
— |
|
|
|
231 |
|
Gain on disposal of assets |
|
(1,078 |
) |
|
|
(1 |
) |
Share-based compensation |
|
2,445 |
|
|
|
3,761 |
|
Carrying value adjustment to assets held for sale |
|
5,564 |
|
|
|
— |
|
Changes in operating assets and liabilities: |
|
|
|
||||
Accounts receivable |
|
(333 |
) |
|
|
332 |
|
Inventory |
|
— |
|
|
|
(1,049 |
) |
Prepaid expenses and other assets |
|
(5,131 |
) |
|
|
(5,763 |
) |
Accounts payable |
|
(3,239 |
) |
|
|
(713 |
) |
Accrued expenses and other liabilities |
|
(4,427 |
) |
|
|
3,418 |
|
Operating lease liabilities |
|
(1,044 |
) |
|
|
(748 |
) |
Net cash used in operating activities |
|
(33,396 |
) |
|
|
(63,589 |
) |
|
|
|
|
||||
Cash flows from investing activities |
|
|
|
||||
Purchase of property and equipment and other |
|
(8,054 |
) |
|
|
(3,952 |
) |
Proceeds from sale of property and equipment |
|
3,470 |
|
|
|
2 |
|
Payments for security deposit, net |
|
— |
|
|
|
(45 |
) |
Purchase of investments |
|
(32,623 |
) |
|
|
(99,193 |
) |
Proceeds from sale and maturity of investments |
|
83,234 |
|
|
|
95,646 |
|
Net cash provided by (used in) investing activities |
|
46,027 |
|
|
|
(7,542 |
) |
|
|
|
|
||||
Cash flows from financing activities |
|
|
|
||||
Proceeds from exercise of common stock options |
|
50 |
|
|
|
84 |
|
Taxes paid related to net share settlement of equity awards |
|
(365 |
) |
|
|
(216 |
) |
Repurchase of treasury stock |
|
(13,982 |
) |
|
|
— |
|
Net cash used in financing activities |
|
(14,297 |
) |
|
|
(132 |
) |
|
|
|
|
||||
Net decrease in cash and cash equivalents and restricted cash |
|
(1,666 |
) |
|
|
(71,263 |
) |
Cash and cash equivalents and restricted cash, beginning of period |
|
21,464 |
|
|
|
120,133 |
|
Cash and cash equivalents and restricted cash, end of period |
$ |
19,798 |
|
|
$ |
48,870 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240806650987/en/
press@hyliion.com
Investor Relations
ir@hyliion.com
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