Announces first commercial delivery of fuel
cell electric truck in the U.S.
BOLINGBROOK, Ill., March 22,
2024 /PRNewswire/ -- Hyzon (NASDAQ: HYZN) (Hyzon or
the Company), a U.S.-based manufacturer and global supplier of
high-performance hydrogen fuel cell systems focused on providing
zero-emission power to decarbonize the most demanding industries,
today announced its fourth quarter 2023 financial and operational
results:
Recent Highlights
- Advanced single stack 200kW fuel cell technology from B-sample
to C-sample development phase
- Completed first deliveries in the
United States, including four fuel cell electric vehicles
(FCEVs) to Performance Food Group (PFG) at its Vistar facility in
Fontana, California
- Commenced trial deployment of a fuel cell electric waste
collection truck with REMONDIS Australia, a global recycling,
service, and water company
- Deployed 19 FCEVs in 2023 at the high-end of 15-20 FCEV
guidance range, including PFG deliveries and REMONDIS commercial
trial vehicle
- Accelerated refuse program in North
America through a recently announced Joint Development
Agreement with New Way Trucks, the largest private refuse equipment
manufacturer in North America
- Unrestricted cash, cash equivalents, and short term investments
of $112.3 million as of December 31, 2023, from $137.8 million as of September 30, 2023
"2023 was an inflection point for Hyzon from a commercial and
operational standpoint. We deployed 19 vehicles globally, including
to both large fleet and drayage customers and our first heavy-duty
fuel cell electric truck in the United
States. Additionally, we advanced our industry-leading
single stack 200kW fuel cell technology from B-sample to C-sample
development by completing manufacturing and factory acceptance
testing, full design verification, and certain durability testing
of 25 200kW fuel cell system B-samples. Operationally, we took
steps to drive efficiencies and significantly reduce our monthly
cash burn rate while accelerating our leading 200kW fuel cell
system technology and FCEV commercialization," said Hyzon Chief
Executive Officer (CEO) Parker
Meeks.
Fourth Quarter 2023 Business Highlights
Fuel Cell Electric Vehicle Deployments
As of December 31, 2023, Hyzon
deployed 19 vehicles under commercial agreements to customers in
2023, towards the upper end of its annual guidance range of 15-20
vehicles. Of those vehicles, five were deployed in the U.S. to both
drayage and large fleet customers, three in Europe, and 11 in Australia.
In Q4 2023, as a part of the 19 deployments, the Company also
announced the commercial trial deployment of its first fuel cell
electric waste collection truck to REMONDIS Australia. The four
month trial completed successfully, and Hyzon is working with
REMONDIS to transfer ownership of the truck to REMONDIS under the
existing commercial agreement.
Commercial Progress
The Company announced sale and delivery of a heavy-duty FCEV in
the United States to a U.S.
drayage customer operating at the ports of Los Angeles and Long
Beach, California, marking Hyzon's entry into the U.S.
drayage market in Q4 2023.
Hyzon also delivered four FCEVs to leading food distributor and
supplier, PFG, in December 2023.
Contingent upon a successful trial with Hyzon's 200kW FCEV, Hyzon
and PFG plan to collaborate on an agreement for 15 200kW FCEVs,
with an option for an additional 30 FCEVs.
Hyzon entered into a revised commercial agreement with TR Group,
New Zealand's largest heavy-duty
truck fleet owner, for up to 20 FCEVs upfit with Hyzon's single
stack 200kW fuel cell system. Following the initial commercial
trial, TR Group has an option to purchase the two trial trucks as
well as to upfit another 18 trucks with Hyzon's 200kW fuel cell
systems.
Single Stack 200kW Fuel Cell System Advances to C-Sample
Development Phase
Hyzon completed its B-sample development phase of the 200kW Fuel
Cell System (FCS) in Q4 2023, and advanced to C-sample development
phase. In Hyzon's C-sample phase, FCSs are built with production
tooling to meet all technical requirements. This step precedes
Start of Production (SOP), which is currently on track for the
second half of 2024.
The Company develops and builds key components for its 200kW
FCSs in-house at its fuel cell production facility in Bolingbrook, Ill., including proprietary
electrode formulations and Hyzon's roll-to-roll, Membrane Electrode
Assembly manufacturing line. Hyzon has less than $5 million in estimated remaining capital
expenditures to reach SOP, with an expected capacity at SOP of 700
200kW fuel cell systems over three shifts.
Newly Appointed Chief Technology Officer
In December 2023, Hyzon announced
the appointment of Dr. Christian
Mohrdieck as Chief Technology Officer. Mohrdieck joins Hyzon
with extensive C-Suite experience, most recently serving as Chief
Commercial Officer of cellcentric GmbH & Co. KG, a joint
venture between Daimler Truck AG and the Volvo Group AB.
Prior to his role at cellcentric, Mohrdieck was Chief Executive
Officer of Mercedes-Benz Fuel Cell GmbH since 2015, before it
merged into Daimler Truck Fuel Cell GmbH & Co. KG.
Fourth Quarter 2023 Financial Updates
As of December 31, 2023,
unrestricted cash, cash equivalents, and short-term investments
were $112.3 million, approximately
$25.5 million lower than the
September 30, 2023 balance of
$137.8 million. Net cash burn of
$25.5 million during the quarter
represented the lowest quarterly net cash burn over the last nine
quarters and the fourth consecutive quarter of declining net cash
burn.
"We are pleased with the continued progress we have made on
reducing our net cash burn through focused operational
efficiencies, cash management, lower legal and professional
services expenses, and strategic focus. Our quarterly net cash burn
in Q4 came to $25.5 million
representing a fourth consecutive quarter of declining burn,
showing our continued focus on prudent cash and capital management
while driving our technology and commercialization progress
forward," said Hyzon Chief Financial Officer Stephen Weiland.
Conference Call Information
The Hyzon management team will host a conference call to discuss
its fourth quarter financial results on Friday, March 22, 2024 at 8:30 am Eastern Time.
Participants may access the call at 1-888-800-7840,
international callers may use 1-646-307-1856 and enter the access
code 5240234. To listen to the live audio webcast and Q&A,
visit the Hyzon investor relations website at
https://investors.hyzonfuelcell.com/.
About Hyzon
Hyzon is a global supplier of high-performance hydrogen fuel
cell technology focused on providing zero-emission power to
decarbonize demanding industries. With agile, high-power technology
designed for heavy-duty applications, Hyzon is at the center of a
new industrial revolution fueled by hydrogen, an abundant and clean
energy source. Hyzon focuses on deploying its fuel cell technology
in heavy-duty commercial vehicles across North America, Europe, and Australia/New
Zealand today and in tomorrow's power generation and energy
storage, mining, construction, rail, marine, and airport
ecosystems. To learn more about how Hyzon partners across the
hydrogen value chain to accelerate the clean energy transition,
visit www.hyzonfuelcell.com.
Use of Non-GAAP Financial Information
EBITDA and Adjusted EBITDA
To supplement its Consolidated Balance Sheets and Statements of
Operations and Comprehensive Loss, which are prepared and presented
in accordance with U.S. generally accepted accounting principles
("GAAP"), Hyzon reports EBITDA and Adjusted EBITDA which are
non-GAAP financial measures.
EBITDA is determined by taking net loss and adding interest
expense, income tax expense or benefit, depreciation and
amortization. Adjusted EBITDA is determined by taking EBITDA and
adding non-cash stock-based compensation expense, change in fair
value of private placement warrant liability, change in fair value
of earnout liability, gain (loss) on equity securities, investment
and interest income, and other special items determined by
management, if applicable. We believe that these non-GAAP measures,
viewed in addition to and not in lieu of our reported GAAP results,
provide useful information to investors by providing a more focused
measure of operating results, enhances the overall understanding of
past financial performance and future prospects, and allows for
greater transparency with respect to key metrics used by management
in its financial and operational decision making. The non-GAAP
measures presented herein may not be comparable to similarly titled
measures presented by other companies. EBITDA and Adjusted EBITDA
has been reconciled to the nearest GAAP measure in the tables
within this press release.
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 "aims,"
"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
latest Annual Report on Form 10-K, Form 10-Q for the quarter ended
September 30, 2023 filed on
November 14, 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)
|
|
December 31,
2023
|
|
December 31,
2022
|
ASSETS
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
112,280
|
|
$
60,554
|
Short-term
investments
|
—
|
|
194,775
|
Accounts
receivable
|
498
|
|
29
|
Unbilled
receivable
|
1,599
|
|
—
|
Related party
receivable
|
—
|
|
6,578
|
Inventory
|
28,811
|
|
35,553
|
Prepaid expenses and
other current assets
|
9,335
|
|
15,365
|
Total current
assets
|
152,523
|
|
312,854
|
Property, plant, and
equipment, net
|
18,569
|
|
22,420
|
Right-of-use
assets
|
4,741
|
|
9,181
|
Equity method
investments
|
8,382
|
|
8,500
|
Investments in equity
securities
|
763
|
|
15,030
|
Other assets
|
6,157
|
|
6,911
|
Total
Assets
|
$
191,135
|
|
$
374,896
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Accounts
payable
|
$
1,479
|
|
$
13,798
|
Accrued
liabilities
|
30,116
|
|
25,587
|
Related party
payables
|
265
|
|
433
|
Contract
liabilities
|
8,872
|
|
3,919
|
Current portion of
lease liabilities
|
1,821
|
|
2,132
|
Total current
liabilities
|
42,553
|
|
45,869
|
Long term
liabilities
|
|
|
|
Lease
liabilities
|
5,733
|
|
7,492
|
Private placement
warrant liability
|
160
|
|
1,122
|
Earnout
liability
|
1,725
|
|
10,927
|
Deferred income
taxes
|
—
|
|
526
|
Accrued SEC
settlement
|
8,000
|
|
—
|
Other
liabilities
|
2,964
|
|
1,901
|
Total
Liabilities
|
$
61,135
|
|
$
67,837
|
Commitments and
contingencies
|
|
|
|
Stockholders'
Equity
|
|
|
|
Common stock, $0.0001
par value; 400,000,000 shares authorized, 245,081,497 and
244,509,208
shares issued and outstanding as of December 31, 2023 and 2022,
respectively.
|
25
|
|
25
|
Treasury stock, at
cost; 3,769,592 shares as of December 31, 2023 and 2022,
respectively.
|
(6,446)
|
|
(6,446)
|
Additional paid-in
capital
|
380,261
|
|
372,942
|
Accumulated
deficit
|
(242,640)
|
|
(58,598)
|
Accumulated other
comprehensive loss
|
(514)
|
|
(153)
|
Total Hyzon Motors
Inc. stockholders' equity
|
130,686
|
|
307,770
|
Noncontrolling
interest
|
(686)
|
|
(711)
|
Total Stockholders'
Equity
|
130,000
|
|
307,059
|
Total Liabilities
and Stockholders' Equity
|
$
191,135
|
|
$
374,896
|
HYZON MOTORS INC.
AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(in thousands,
except per share amounts)
|
|
|
Year
Ended
December
31,
2023
|
|
Year
Ended
December
31,
2022
|
Revenue
|
$
295
|
|
$
3,726
|
Operating
expense:
|
|
|
|
Cost of
revenue
|
15,656
|
|
23,320
|
Research and
development
|
43,729
|
|
39,132
|
Selling, general, and
administrative
|
121,164
|
|
114,073
|
Restructuring and
related charges
|
7,765
|
|
—
|
Total operating
expenses
|
188,314
|
|
176,525
|
Loss from
operations
|
(188,019)
|
|
(172,799)
|
Other income
(expense):
|
|
|
|
Change in fair value
of private placement warrant liability
|
962
|
|
14,106
|
Change in fair value
of earnout liability
|
9,202
|
|
92,834
|
Gain (loss) on equity
securities
|
(14,267)
|
|
10,082
|
Foreign currency
exchange loss and other expense, net
|
(1,402)
|
|
(549)
|
Investment income and
interest income, net
|
9,006
|
|
2,339
|
Total other income
(expense)
|
3,501
|
|
118,812
|
Loss before income
taxes
|
$
(184,518)
|
|
$
(53,987)
|
Income tax expense
(benefit)
|
(492)
|
|
526
|
Net
loss
|
$
(184,026)
|
|
$
(54,513)
|
Less: Net gain (loss)
attributable to noncontrolling interest
|
16
|
|
(22,327)
|
Net loss
attributable to Hyzon
|
$
(184,042)
|
|
$
(32,186)
|
|
|
|
|
Comprehensive
loss:
|
|
|
|
Net
loss
|
$
(184,026)
|
|
$
(54,513)
|
Foreign currency
translation adjustment
|
951
|
|
(1,921)
|
Net change in
unrealized gain (loss) on short-term investments
|
(1,303)
|
|
1,303
|
Comprehensive
loss
|
$
(184,378)
|
|
$
(55,131)
|
Less: Comprehensive
income (loss) attributable to noncontrolling interest
|
25
|
|
(22,443)
|
Comprehensive loss
attributable to Hyzon
|
$
(184,403)
|
|
$
(32,688)
|
Net loss per share
attributable to Hyzon:
|
|
|
|
Basic
|
$
(0.75)
|
|
$
(0.13)
|
Diluted
|
$
(0.75)
|
|
$
(0.13)
|
Weighted average
common shares outstanding:
|
|
|
|
Basic
|
244,774
|
|
248,040
|
Diluted
|
244,774
|
|
248,040
|
Non-GAAP Financial
Measures
|
|
EBITDA and Adjusted
EBITDA
|
|
The following table
reconciles net loss to EBITDA and Adjusted EBITDA (in
thousands):
|
|
|
|
Year Ended
December 31,
2023
|
|
Year Ended
December 31,
2022
|
Net
loss
|
|
$
(184,026)
|
|
$
(54,513)
|
Interest
expense
|
|
17
|
|
41
|
Income tax expense
(benefit)
|
|
(492)
|
|
526
|
Depreciation and
amortization
|
|
3,977
|
|
3,704
|
EBITDA
|
|
$
(180,524)
|
|
$
(50,242)
|
Adjusted
for:
|
|
|
|
|
Change in fair value of
private placement warrant liability
|
|
(962)
|
|
(14,106)
|
Change in fair value of
earnout liability
|
|
(9,202)
|
|
(92,834)
|
(Gain) loss on equity
securities
|
|
14,267
|
|
(10,082)
|
Stock-based
compensation
|
|
7,481
|
|
5,332
|
Executive transition
charges (1)
|
|
—
|
|
602
|
Regulatory and legal
matters (2)
|
|
35,983
|
|
29,816
|
Acquisition-related
expenses (3)
|
|
—
|
|
8,400
|
Investment and interest
income
|
|
(9,023)
|
|
(2,380)
|
Restructuring and
related charges
|
|
7,765
|
|
—
|
Adjusted EBITDA
|
|
$
(134,215)
|
|
$
(125,494)
|
|
|
(1)
|
The 2022 executive
transition charges include a separation payment and salary expense
for technical advisory services related to the Company's former
Executive Chairman.
|
(2)
|
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. The year ended December 31, 2023 includes the legal loss
contingency accrual of $25.0 million from the final resolution of
the SEC investigation.
|
(3)
|
Acquisition-related
expenses incurred for potential and actual acquisitions that are
unrelated to the current operations and are neither comparable to
the prior period nor predictive of future results. The 2022
expenses relate to the Orten business combination
cancellation.
|
Free Cash
Flow
|
|
The following table
reconciles cash flow used in operating activities to our free cash
flow (in thousands):
|
|
|
|
Year Ended
December 31,
2023
|
|
Year Ended
December 31,
2022
|
Cash used in operating
activities
|
|
$
(135,606)
|
|
$
(149,097)
|
Less: Capital
expenditures
|
|
(7,849)
|
|
(14,133)
|
Free cash
flow
|
|
$
(143,455)
|
|
$
(163,230)
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/hyzon-announces-fourth-quarter-2023-financial-and-operating-results-302096725.html
SOURCE Hyzon