Heliogen, Inc. Announces Second Quarter 2022 Financial and Operational Results; Reports Progress on Scale Up of Long Beach Facility
Heliogen, NYSE: HLGN, announced its second quarter 2022 results, reaffirming guidance of $20-$25 million in revenue and 2-3 contracted modules. Key highlights include a lease execution for the Brenda Solar Energy Zone, a partnership with Hanwha Power Systems for a supercritical CO2 power block, and an LOI with Dimensional Energy for sustainable aviation fuel production. Financially, the company reported $2.4 million in revenue and a net loss of $20.2 million, driven by operational growth and expenses. Heliogen is set to ramp up automated heliostat manufacturing in Q4 2022.
- Partnership with Hanwha Power Systems for a next-generation CO2 power block.
- Entered LOI with Dimensional Energy for sustainable aviation fuel production.
- Reaffirmed 2022 guidance of $20-$25 million in revenue.
- Reported a net loss of $20.2 million for Q2 2022.
- Total operating expenses were $28.7 million, indicating high costs.
- Adjusted EBITDA was negative $19.8 million, reflecting significant operational losses.
Reaffirms 2022 Guidance
Second Quarter 2022 Highlights
-
Finalized and executed a lease for
Brenda Solar Energy Zone withU.S. Bureau of Land Management -
Announced partnership with
Hanwha Power Systems for the production of a 5 megawatt electric (MWe) next-generation supercritical CO2 power block integrated with high-temperature solid media thermal energy storage designed byHeliogen and to be deployed with the Woodside project
Recent Highlights
- Entered into a letter of intent with Dimensional Energy for the production of sustainable aviation fuel
-
Completed installation of fourth generation heliostats at Heliogen’s
Lancaster demonstration facility -
Manufactured, deployed and began testing of the first commercial configuration of Heliogen’s autonomous cleaning vehicle at the
Lancaster demonstration facility
Executive Commentary
“During the second quarter,
“In addition to the exciting announcements we have made over the last several months,
“In sum,
Letter of Intent with Dimensional Energy
The companies will work to deploy Heliogen’s proprietary, artificial intelligence (AI)-powered HelioHeat™ technology to convert sunlight directly into thermal energy in the form of high temperature steam and air that will be used to produce green hydrogen for Dimensional Energy’s Reactor platform. The hydrogen will be produced leveraging the previously announced successful demonstration of Heliogen’s concentrated solar technology. As part of the collaboration between
2022 Guidance Reaffirmed
Second Quarter 2022 Financial Results
For the second quarter 2022,
Conference Call Information
The
An archive of the webcast will also be available shortly after the call on the Investor Relations section of Heliogen’s website.
About
Use of Non-GAAP Financial Information
Management uses certain financial measures, including EBITDA and Adjusted EBITDA, to evaluate our financial and operating performance that are calculated and presented on the basis of methodologies other than in accordance with GAAP. We believe these non-GAAP financial measures are useful to investors and analysts to assess our ongoing financial performance because they provide improved comparability between periods through the exclusion of certain items that we believe are not indicative of our core operating performance, enhance the overall understanding of our past financial performance and future prospects, and remove items that may obscure our underlying business results and trends. These measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP, and our calculations thereof may not be comparable to similarly titled measures reported by other companies. Please see the accompanying tables for reconciliations of the following non-GAAP financial measures for Heliogen’s current and historical results: EBITDA and Adjusted EBITDA.
Forward-Looking Statements
This press release contains certain 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. Statements that are not historical in nature, including the words “anticipate,” “expect,” “suggests,” “plan,” “believe,” “intend,” “estimates,” “targets,” “projects,” “should,” “could,” “would,” “may,” “will,” “forecast” and other similar expressions are intended to identify forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding our guidance for full-year 2022, the development of our manufacturing and production facilities, maintaining our trajectory in 2022, achieving our financial and operational goals, progress with potential customers and future growth opportunities. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: (i) our financial and business performance, including risk of uncertainty in our financial projections and business metrics and any underlying assumptions thereunder; (ii) our ability to execute our business model, including market acceptance of our planned products and services and achieving sufficient production volumes at acceptable quality levels and prices; (iii) our ability to access sources of capital to finance operations, growth and future capital requirements; (iv) our ability to maintain and enhance our products and brand, and to attract and retain customers; (v) our ability to scale in a cost effective manner; (vi) changes in applicable laws or regulations; (vii) the ongoing impacts of the COVID-19 pandemic and the potential impacts of Russia’s invasion of
Condensed Consolidated Balance Sheets ($ in thousands) (unaudited) |
|||||
|
|
|
|
||
|
2022 |
|
2021 |
||
ASSETS |
|
|
|
||
Cash and cash equivalents |
$ |
60,731 |
|
$ |
190,081 |
Investments, available-for-sale |
|
115,142 |
|
|
32,332 |
Other current assets |
|
13,921 |
|
|
4,770 |
Total current assets |
|
189,794 |
|
|
227,183 |
Non-current assets |
|
47,783 |
|
|
30,265 |
Total assets |
$ |
237,577 |
|
$ |
257,448 |
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
||
Trade payables |
$ |
3,916 |
|
$ |
4,645 |
Contract liabilities |
|
8,521 |
|
|
513 |
Contract loss provisions |
|
30,923 |
|
|
397 |
Other current liabilities |
|
5,794 |
|
|
6,974 |
Total current liabilities |
|
49,154 |
|
|
12,529 |
Long-term liabilities |
|
19,477 |
|
|
30,861 |
Total liabilities |
|
68,631 |
|
|
43,390 |
Shareholders’ equity |
|
168,946 |
|
|
214,058 |
Total liabilities and shareholders’ equity |
$ |
237,577 |
|
$ |
257,448 |
Condensed Consolidated Statements of Operations and Comprehensive Loss ($ in thousands, except per share and share data) (unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Revenue |
$ |
2,392 |
|
|
$ |
845 |
|
|
$ |
5,931 |
|
|
$ |
1,361 |
|
Cost of revenue |
|
2,386 |
|
|
|
845 |
|
|
|
39,647 |
1,361 |
||||
Gross profit (loss) |
|
6 |
|
|
|
— |
|
|
|
(33,716 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
||||||||
Operating expenses: |
|
|
|
|
|
|
|
||||||||
Selling, general, and administrative |
|
22,589 |
|
|
|
4,260 |
|
|
|
42,984 |
|
|
|
6,412 |
|
Research and development |
|
6,147 |
|
|
|
2,665 |
|
|
|
15,752 |
|
|
|
4,273 |
|
Total operating expenses |
|
28,736 |
|
|
|
6,925 |
|
|
|
58,736 |
|
|
|
10,685 |
|
Operating loss |
|
(28,730 |
) |
|
|
(6,925 |
) |
|
|
(92,452 |
) |
|
|
(10,685 |
) |
|
|
|
|
|
|
|
|
||||||||
Interest income (expense), net |
|
213 |
|
|
|
(41 |
) |
|
|
407 |
|
|
|
(1 |
) |
SAFE instruments remeasurement |
|
— |
|
|
|
(47,460 |
) |
|
|
— |
|
|
|
(47,460 |
) |
Gain (loss) on warrant remeasurement |
|
8,284 |
|
|
|
(1,979 |
) |
|
|
12,310 |
|
|
|
(2,282 |
) |
Other (expense) income, net |
|
(109 |
) |
|
|
72 |
|
|
|
(185 |
) |
|
|
39 |
|
Net loss before taxes |
|
(20,342 |
) |
|
|
(56,333 |
) |
|
|
(79,920 |
) |
|
|
(60,389 |
) |
Income tax benefit |
|
125 |
|
|
|
— |
|
|
|
735 |
|
|
|
— |
|
Net loss |
|
(20,217 |
) |
|
|
(56,333 |
) |
|
|
(79,185 |
) |
|
|
(60,389 |
) |
Other comprehensive loss, net of taxes |
|
|
|
|
|
|
|
||||||||
Unrealized losses on available-for-sale securities |
|
(127 |
) |
|
|
(2 |
) |
|
|
(506 |
) |
|
|
(14 |
) |
Cumulative translation adjustment |
|
(323 |
) |
|
|
— |
|
|
|
(324 |
) |
|
|
— |
|
Total comprehensive loss |
$ |
(20,667 |
) |
|
$ |
(56,335 |
) |
|
$ |
(80,015 |
) |
|
$ |
(60,403 |
) |
|
|
|
|
|
|
|
|
||||||||
Loss per share |
|
|
|
|
|
|
|
||||||||
Loss per share – Basic and Diluted |
$ |
(0.11 |
) |
|
$ |
(5.30 |
) |
|
$ |
(0.42 |
) |
|
$ |
(5.92 |
) |
Weighted average number of shares outstanding – Diluted |
|
190,182,474 |
|
|
|
10,623,517 |
|
|
|
187,123,737 |
|
|
|
10,195,971 |
|
Non-GAAP Financial Measures
EBITDA represents condensed consolidated net loss before (i) interest (income) expense, net, (ii) income tax expense (benefit) and (iii) depreciation and amortization expense.
Adjusted EBITDA represents EBITDA adjusted for certain significant non-cash items and items that management believes are not attributable to or indicative of our on-going operations or that may obscure our underlying results and trends.
The following reconciles net loss to EBITDA and Adjusted EBITDA for the periods as shown:
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
$ in thousands |
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Net loss |
$ |
(20,217 |
) |
|
$ |
(56,333 |
) |
|
$ |
(79,185 |
) |
|
$ |
(60,389 |
) |
Adjustments |
|
|
|
|
|
|
|
||||||||
Interest (income) expense, net |
|
(213 |
) |
|
|
41 |
|
|
|
(407 |
) |
|
|
1 |
|
Income tax benefit |
|
(125 |
) |
|
|
— |
|
|
|
(735 |
) |
|
|
— |
|
Depreciation and amortization |
|
693 |
|
|
|
80 |
|
|
|
1,453 |
|
|
|
134 |
|
EBITDA |
$ |
(19,862 |
) |
|
$ |
(56,212 |
) |
|
$ |
(78,874 |
) |
|
$ |
(60,254 |
) |
Adjustments |
|
|
|
|
|
|
|
||||||||
SAFE instruments remeasurement(1) |
|
— |
|
|
|
47,460 |
|
|
|
— |
|
|
|
47,460 |
|
(Gain) loss on warrant remeasurement(2) |
|
(8,284 |
) |
|
|
1,979 |
|
|
|
(12,310 |
) |
|
|
2,282 |
|
Share-based compensation |
|
11,524 |
|
|
|
353 |
|
|
|
24,506 |
|
|
|
564 |
|
Provision for contract losses (3) |
|
— |
|
|
|
— |
|
|
|
33,737 |
|
|
|
— |
|
Contract losses incurred (3) |
|
(3,131 |
) |
|
|
— |
|
|
|
(3,160 |
) |
|
|
— |
|
Adjusted EBITDA |
$ |
(19,753 |
) |
|
$ |
(6,420 |
) |
|
$ |
(36,101 |
) |
|
$ |
(9,948 |
) |
__________________
(1) |
Represents the change in fair value on our SAFE instruments which were converted to common stock immediately prior to the closing of the business combination with |
|
(2) |
Represents the change in fair value on our warrant liabilities for the outstanding warrants that we assumed in the business combination with |
|
(3) | Represents contract losses with customers for which estimated costs to satisfy performance obligations exceeded considerations expected to be realized. Contract loss is reduced and recognized in cost of revenue as expenditures are incurred and related revenue is recognized. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20220810005800/en/
Heliogen Investor Contact
Investor Relations
Louis.Baltimore@Heliogen.com
Heliogen Media Contact:
HeliogenPR@icrinc.com
Source:
FAQ
What were Heliogen's revenue figures in Q2 2022?
What is Heliogen's guidance for 2022?
What is the partnership between Heliogen and Hanwha Power Systems about?
How much was Heliogen's net loss in Q2 2022?