Hyzon Motors Inc., Announces Second Quarter 2023 Financial and Operational Results
- Deployment of ten FCEVs under commercial agreements showcases successful progress in commercialization.
- Completion of six single-stack 200kW Fuel Cell System B-samples demonstrates advancements in fuel cell technology.
- Appointment of Matthew Foulston, an accomplished finance executive, to the Board of Directors adds valuable expertise to the company's leadership.
- Net loss of $(60.2) million and unrestricted cash decrease from $209.0 million as of March 31, 2023, to $172.4 million as of June 30, 2023, may raise concerns about financial performance and cash management.
Recent Highlights
- Deployed ten FCEVs under commercial agreements and collected
in cash year-to-date$2.9 million U.S. 110kW truck program moved from prototype to production- Completed 15 vehicle trials in
North America since trial program launch in March 2022 - Five 110kW FCEVs truck orders from Performance Food Group ("PFG") expected to be delivered in late 2023
- Successfully completed six single-stack 200kW Fuel Cell System ("FCS") B-samples in the second quarter in addition to three completed in the first quarter of 2023
- Appointed Matthew Foulston, an accomplished finance executive, to the Board of Directors
- Net loss attributable to Hyzon of
and loss per share of$(60.2) million $(0.25) - EBITDA(1) of
and adjusted EBITDA(1) of$(59.4) million $(33.0) million - Unrestricted Cash, cash equivalents, and short-term investments of
as of June 30, 2023, and approximately$172.4 million as of July 31, 2023$158 million
"Hyzon has made significant strides in the second quarter, both in the advancement of our 200kW fuel cell technology and in the commercialization of our heavy-duty fuel cell electric truck platforms, " said Parker Meeks, Hyzon Chief Executive Officer. "We have been hard at work streamlining our vehicle offerings, operations, and geographies, and we are proud of the progress we have made at our
(1) These non-GAAP financial measures have been reconciled to the nearest GAAP measure in the tables under "Non-GAAP Financial Measures" within this press release. These measures may not be comparable to other similarly titled measures computed by other companies, because all companies may not calculate in the same fashion. |
Second Quarter 2023 Business Highlights
Fuel Cell Electric Vehicle Deployments
By the end of the second quarter, Hyzon had deployed seven vehicles under commercial agreements to customers in 2023; three additional vehicles were deployed subsequent to the quarter end. Of those vehicles, three were deployed to customers in
With a total of ten vehicles deployed to date, Hyzon met the lower end of its previously announced 2023 guidance of 10-20 vehicles deployed under commercial agreements. Hyzon also has collected
At the beginning of August, the Company completed its first
North America Trial Program Expansion and Commercial Relationship Activation
The Company's North American trial program continued to expand, with 15 trials completed since March 2022, of which seven trials were completed in 2023. The Company has accumulated over 40,000 miles on its conventional truck platform in customer trial and track testing, gaining experience with and learnings from real world operations for future FCEV deployments.
Five 110kW FCEV Agreement Reached with Performance Food Group with 15 additional 200kW FCEVs upon successful completion of 200kW Trial
In June, Hyzon signed its first commercial agreement in the
Six Single-Stack 200kW Fuel Cell System B-samples completed in the second quarter of 2023, from three completions in the first quarter of 2023
In the second quarter, the Company announced completion and factory acceptance testing of six single-stack 200kW FCS B-samples at its production and innovation center in
New Board Member Appointment
In July, the Company appointed Matthew Foulston, an accomplished finance executive who served as CFO for three publicly listed companies: Covetus, Treehouse Foods, and Compass Minerals. Foulston serves as the Chair of the Audit Committee and as a member of the Compensation Committee.
Second Quarter 2023 Financial Results
For the quarter ended June 30, 2023, the Company reported cost of revenue of
For the six months ended June 30, 2023, the Company reported cost of revenue of
As of June 30, 2023, unrestricted cash, cash equivalents and short-term investments were
Non-GAAP Financial Measures
The Company reported adjusted EBITDA of
Conference Call Information
The Hyzon management team will host a conference call to discuss its second quarter 2023 financial results on Tuesday, August 8, 2023, at 8:30 a.m. Eastern Time. The conference call can be accessed by dialing 1 (833) 470-1428 and entering the access code 848699. International participants can access the call via the corresponding number listed here and enter the access code 848699.
To listen to the live audio webcast and Q&A, visit the Hyzon investor relations website at investors.hyzonmotors.com. A replay and transcript of the webcast will be available on the website within 24 hours after the call. Hyzon's earnings press release and related materials will also be available on the Company's investor relations website.
About Hyzon Motors Inc.
Hyzon Motors is a global supplier of high-power fuel cell technology focused on integrating the technology into zero-emission heavy-duty hydrogen fuel cell electric vehicles. Hyzon's low-cost, clean hydrogen infrastructure approach synchronizes supply with demand, accelerating the deployment of zero emission trucks. Utilizing its proven and proprietary hydrogen fuel cell technology, Hyzon aims to supply zero-emission heavy duty trucks to customers in
Use of Non-GAAP Financial Information
EBITDA and Adjusted EBITDA
To supplement its Consolidated Balance Sheets and Statements of Operations and Comprehensive Income (Loss), which are prepared and presented in accordance with
Free Cash Flow
In addition to reporting Hyzon's cash flow generation and usage based upon the operating, investing, and financing classifications included in the Consolidated Statements of Cash Flows, the Company also reports free cash flow, a non-GAAP financial measure which represents net cash used in operating activities less capital expenditures. The Company believes free cash flow is an important measure of operating performance because it provides management and investors with a measure of cash that is available for mandatory payment obligations and investment opportunities. Free Cash Flow has been reconciled to the nearest GAAP measure in the tables within this press release.
Forward-Looking Statements
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, are forward-looking statements. When used in this press release, 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, including statements relating to the Company's expectations regarding actions to focus and restructure its business and its expectations regarding the benefits of actions taken and that may be taken in the future in furtherance of such efforts, its beliefs and expectations regarding its technology and the performance and capabilities of its fuel cells and FCEVs; its outlook regarding its business milestones and the expected timing and benefits thereof, including commencement of commercial production of its fuel cell systems and FCEVs, its beliefs and outlook regarding momentum in its business, and its beliefs regarding its competitive position and the benefits thereof, 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, Hyzon disclaims any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this press release. Hyzon 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 Hyzon, including risks and uncertainties described in the "Risk Factors" section of Hyzon's Form 10-K for the year ended December 31, 2022 filed with the SEC on May 31, 2023, Form 10-Q for the quarter ended March 31, 2023 filed on June 7, 2023, and other documents filed by Hyzon from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements, such as risks related to the ability to convert non-binding memoranda of understanding or vehicle trial agreements into binding orders or sales (including because of the current or prospective financial resources of the counterparties to Hyzon's non-binding memoranda of understanding and letters of intent), or the ability to identify additional potential customers and convert them to paying customers. Hyzon gives no assurance that Hyzon will achieve its expectations.
HYZON MOTORS INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share amounts) (unaudited) | |||
June 30, | December 31, | ||
ASSETS | |||
Current assets | |||
Cash and cash equivalents | $ 140,536 | $ 60,554 | |
Short-term investments | 31,879 | 194,775 | |
Accounts receivable | 950 | 29 | |
Related party receivable | 324 | 6,578 | |
Inventory | 44,008 | 35,553 | |
Prepaid expenses and other current assets | 8,542 | 15,365 | |
Total current assets | 226,239 | 312,854 | |
Property, plant, and equipment, net | 21,893 | 22,420 | |
Right-of-use assets | 8,536 | 9,181 | |
Investments in equity securities | 15,030 | 15,030 | |
Other assets | 13,351 | 15,411 | |
Total Assets | $ 285,049 | $ 374,896 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Current liabilities | |||
Accounts payable | $ 7,743 | $ 13,798 | |
Accrued liabilities | 23,564 | 25,587 | |
Related party payables | 424 | 433 | |
Contract liabilities | 6,836 | 3,919 | |
Current portion of lease liabilities | 1,899 | 2,132 | |
Total current liabilities | 40,466 | 45,869 | |
Long term liabilities | |||
Lease liabilities | 6,727 | 7,492 | |
Private placement warrant liability | 321 | 1,122 | |
Earnout liability | 3,591 | 10,927 | |
Deferred income taxes | 526 | 526 | |
Other liabilities | 16,719 | 1,901 | |
Total Liabilities | $ 68,350 | $ 67,837 | |
Commitments and contingencies | |||
Stockholders' Equity | |||
Common stock, | 25 | 25 | |
Treasury stock, at cost; 3,769,592 shares as of June 30, 2023 and December 31, 2022, respectively. | (6,446) | (6,446) | |
Additional paid-in capital | 375,818 | 372,942 | |
Accumulated deficit | (149,094) | (58,598) | |
Accumulated other comprehensive loss | (2,898) | (153) | |
Total Hyzon Motors Inc. stockholders' equity | 217,405 | 307,770 | |
Noncontrolling interest | (706) | (711) | |
Total Stockholders' Equity | 216,699 | 307,059 | |
Total Liabilities and Stockholders' Equity | $ 285,049 | $ 374,896 |
HYZON MOTORS INC. AND SUBSIDIARIES | |||||||
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | |||||||
(in thousands, except per share amounts) | |||||||
(unaudited) | |||||||
Three Months Ended June 30, | Six Months Ended | ||||||
2023 | 2022 | 2023 | 2022 | ||||
Revenue | $ — | $ 46 | $ — | $ 2,934 | |||
Operating expense: | |||||||
Cost of revenue | 2,410 | 1,370 | 3,248 | 2,023 | |||
Research and development | 12,597 | 10,483 | 21,937 | 17,419 | |||
Selling, general, and administrative | 49,098 | 20,065 | 79,955 | 39,817 | |||
Total operating expenses | 64,105 | 31,918 | 105,140 | 59,259 | |||
Loss from operations | (64,105) | (31,872) | (105,140) | (56,325) | |||
Other income (expense): | |||||||
Change in fair value of private placement warrant liability | 160 | 8,415 | 801 | 9,938 | |||
Change in fair value of earnout liability | 916 | 66,096 | 7,336 | 69,337 | |||
Gain (loss) on equity securities | — | (2,448) | — | 10,082 | |||
Foreign currency exchange gain (loss) and other expense, net | 280 | (1,454) | 1,430 | (2,604) | |||
Investment income and interest income, net | 2,494 | 54 | 5,060 | 71 | |||
Total other income (expense) | 3,850 | 70,663 | 14,627 | 86,824 | |||
Net income (loss) before income taxes | $ (60,255) | $ 38,791 | $ (90,513) | $ 30,499 | |||
Income tax expense | — | — | — | 526 | |||
Net income (loss) | $ (60,255) | $ 38,791 | (90,513) | 29,973 | |||
Less: Net loss attributable to noncontrolling interest | (7) | (3,208) | (17) | (5,503) | |||
Net income (loss) attributable to Hyzon | $ (60,248) | $ 41,999 | $ (90,496) | $ 35,476 | |||
Comprehensive income (loss): | |||||||
Net income (loss) | $ (60,255) | $ 38,791 | $ (90,513) | $ 29,973 | |||
Foreign currency translation adjustment | (931) | (235) | (1,735) | (24) | |||
Net change in unrealized gain (loss) on short-term investments | (691) | $ — | (988) | — | |||
Comprehensive income (loss) | $ (61,877) | $ 38,556 | $ (93,236) | $ 29,949 | |||
Less: Comprehensive income (loss) attributable to noncontrolling interest | 22 | (2,840) | 5 | (5,009) | |||
Comprehensive income (loss) attributable to Hyzon | $ (61,899) | $ 41,396 | $ (93,241) | $ 34,958 | |||
Net income (loss) per share attributable to Hyzon: | |||||||
Basic | $ (0.25) | $ 0.17 | $ (0.37) | $ 0.14 | |||
Diluted | $ (0.25) | $ 0.16 | $ (0.37) | $ 0.14 | |||
Weighted average common shares outstanding: | |||||||
Basic | 244,628 | 248,056 | 244,585 | 247,999 | |||
Diluted | 244,628 | 258,265 | 244,585 | 258,772 |
Non-GAAP Financial Measures | ||||||||
EBITDA and Adjusted EBITDA | ||||||||
The following table reconciles net income (loss) to EBITDA and Adjusted EBITDA (in thousands): | ||||||||
Three Months Ended | Six Months Ended June 30, | |||||||
2023 | 2022 | 2023 | 2022 | |||||
Net income (loss) | $ (60,255) | $ 38,791 | $ (90,513) | $ 29,973 | ||||
Interest (income) expense, net | (304) | (54) | (439) | (71) | ||||
Income tax expense | — | — | — | 526 | ||||
Depreciation and amortization | 1,111 | 702 | 2,193 | 1,606 | ||||
EBITDA | $ (59,448) | $ 39,439 | $ (88,759) | $ 32,034 | ||||
Adjusted for: | ||||||||
Change in fair value of private placement warrant liability | (160) | (8,415) | (801) | (9,938) | ||||
Change in fair value of earnout liability | (916) | (66,096) | (7,336) | (69,337) | ||||
(Gain) loss on equity securities | — | 2,448 | — | (10,082) | ||||
Stock-based compensation | 1,628 | 1,859 | 2,987 | 3,052 | ||||
Regulatory and legal matters (1) | 25,894 | 2,773 | 33,636 | 5,503 | ||||
Adjusted EBITDA | $ (33,002) | $ (27,992) | $ (60,273) | $ (48,768) |
(1) | Regulatory and legal matters include legal, advisory, and other professional service fees incurred in connection with the short-seller analyst article from September 2021, and investigations and litigation related thereto. Also, includes legal loss contingency accrual of |
Free Cash Flow | ||||||||
The following table reconciles cash flow used in operating activities to our free cash flow (in thousands): | ||||||||
Three Months Ended | Six Months Ended | |||||||
2023 | 2022 | 2023 | 2022 | |||||
Cash flow used in operating activities | $ (36,045) | $ (38,784) | $ (82,058) | $ (68,880) | ||||
Less: Capital expenditures | (1,223) | (3,757) | (2,684) | (7,652) | ||||
Free cash flow | $ (37,268) | $ (42,541) | $ (84,742) | $ (76,532) |
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SOURCE Hyzon Motors Inc.
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