Hyliion Reports First Quarter 2021 Business Updates
Hyliion Holdings Corp. (NYSE: HYLN) announced significant progress in Q1 2021, focusing on the commercialization of its Hypertruck ERX powertrain solutions. Key highlights include the formation of the Hypertruck Innovation Council and the delivery of Peterbilt chassis for demo units. Hyliion aims to recognize revenue from improved Hybrid products by late 2021. However, the company is also planning to restate its 2020 financials regarding warrants, expected to be a non-cash adjustment. Overall, 2021 is anticipated to be pivotal for Hyliion's growth strategy.
- Formation of the Hypertruck Innovation Council to enhance Hypertruck ERX development.
- Delivery of Peterbilt chassis for initial Hypertruck ERX demonstration units.
- Continued deployment of Hybrid electric powertrains, with ten units installed in Q1.
- Expected revenue recognition from improved Hybrid products in the second half of 2021.
- Pending restatement of 2020 financials regarding warrant accounting, though expected to be non-cash.
Hyliion Holdings Corp. (NYSE: HYLN) (“Hyliion”), a leader in electrified powertrain solutions for Class 8 semi-trucks, today reported its first quarter 2021 business updates.
Key Business Highlights
- Announced the formation of the Hypertruck Innovation Council, a select group of fleet, logistics and transportation industry leaders that will actively support and advance the development of Hyliion’s Hypertruck powertrain solution
- Took delivery of Peterbilt chassis, which will be used for initial Hypertruck ERX demonstration units
- Continued the multi-phase product development program used to reach commercialization of the Hypertruck ERX electric powertrain solution
- Installed ten Hybrid electric powertrains during the first quarter, continuing deployment of the technology to prepare for volume growth
- Expects to recognize revenue on improved Hybrid products delivered in the second half of the year
Executive Commentary
Thomas Healy, Hyliion’s Chief Executive Officer, said, “After a momentous 2020 for Hyliion, 2021 is off to a great start as we continue to advance our commercialization strategy for both our Hybrid and Hypertruck ERX powertrains. I am especially pleased with the talented team we have been assembling to execute on Hyliion’s growth plans.”
“We are building the first units of Hypertruck ERX demo vehicles right now, which is a major milestone on our path to commercialization. Along with the formation of the Hypertruck Innovation Council, our Hypertruck ERX program is gaining operational momentum that we expect will ultimately drive significant demand for this game-changing electric powertrain solution. We continue to make rolling improvements to our current Hybrid system, and we expect to begin recognizing revenue on our improved Hybrid product in the second half of this year,” added Healy.
“Last year was a notable year for renewable natural gas (RNG) as it for the first time supplied the majority of on-road natural gas vehicle fuel. Captured above ground from organic material in agricultural, wastewater, landfill, or food waste, RNG can produce carbon-negative results when fueling on-road vehicles. With RNG solutions for heavy-duty long-haul trucking, Hyliion is uniquely positioned to benefit from this large and growing megatrend,” concluded Healy.
Hypertruck Innovation Council
In early April, Hyliion announced the formation of the Hypertruck Innovation Council. Representing over 100,000 Class 8 semi-trucks globally, the Council members will collaborate closely with Hyliion to provide key user insights in the development of the Hypertruck ERX and will be among the first to operate the Hypertruck ERX.
As Hyliion works to commercialize its Hypertruck ERX solution, this feedback from the Council will be incorporated into the design to help ensure the company brings to market a solution that is most attractive to the largest portions of the Class 8 market. Additionally, since these fleets will all get the chance to use the Hypertruck ERX, this presents a unique opportunity to demonstrate the product’s superior performance, emissions reductions, and lower operating costs to potentially generate demand and substantial orders for the product.
Hypertruck ERX Multi-Phase Product Development Program
Hyliion has begun its multi-phase product development program that will be used to commercialize its Hypertruck ERX powertrain solution. Utilizing the Peterbilt Model 579, a modern, class-leading long-haul Class 8 commercial truck, this process enables the efficient development, integration, and validation of Hyliion’s Hypertruck ERX platform from the ongoing product development phase through the start of commercial production. By using this phased approach to commercialization, along with the valuable insights gained from its Hypertruck Innovation Council, Hyliion expects to efficiently and rapidly commercialize a potentially net-carbon-negative powertrain solution with a lower total cost of ownership that appeals to broad portions of the Class 8 market.
The natural gas tanks and generators have been installed on the initial trucks, and the installation of the electric powertrain is underway. These demonstration units, which closely resemble production intent but are built with prototype tooling, will be used for performance testing and model validation. These trucks will also be on display at major trade shows later this summer and fall.
Hyliion will incorporate learnings from the first phase of development with feedback from the Hypertruck Innovation Council into subsequent testing and validation phases, with customer deliveries expected to begin in 2022.
2021 Milestones
Hyliion expects 2021 to be a pivotal year with the first revenue expected in the second half of the year from its improved Hybrid electric powertrains and with Hypertruck ERX demo units on track for showcasing with fleets towards the end of the year.
Pending Restatement of 2020 Financials
In response to guidance provided by the SEC on April 12, 2021 regarding the accounting and reporting of warrants issued by SPACs, Hyliion has elected to restate its consolidated financial statements for the year ending December 31, 2020 to change the accounting treatment of its warrants. The restatement involves Hyliion’s historical accounting for its public warrants and private placement warrants issued in connection with its business combination. Consistent with previous practice among SPACs, these warrants have been accounted for as equity. Hyliion now plans to restate its fourth quarter and full-year 2020 financial statements to account for the warrants as liabilities. The warrants will be marked-to-market with non-cash fair value adjustments. On November 30, 2020, Hyliion redeemed its public warrants for cash, leaving no outstanding warrants at year-end 2020.
The impacts of these restatements are expected to be entirely non-cash and have no impact on Hyliion’s ongoing business operations or future plans.
First Quarter 2021 Conference Call
Hyliion will host a conference call and webcast for investors and other interested parties to review its first quarter 2021 business upd
FAQ
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