HYLN - Earnings call transcript Q1 2024

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Operator

Thank you for standing by. My name is [ Margaloo ] and I will be your conference operator today. At this time, I would like to welcome everyone to the Hyliion Holdings First Quarter 2024 Earnings Conference Call.

[Operator Instructions]. I would now like to turn the call over to Greg Standley, Chief Accounting Officer. ahead. go Please

Greg Standley

good Quarter and Welcome Hyliion to Thank Earnings morning, Conference First XXXX Call. Holdings you, everyone.

On the A call Officer; today website is are Thomas Healy, Investor Hyliion's Panzer, this call Relations Chief available accompanies on and investors.hyliion.com. our our Financial presentation Officer. slide at conference and Jon Chief Executive

company's today's during that make note outlook. we will certain business forward-looking Please call, statements regarding the

are projections that and differ predictions, made are actual and to such, are assumptions, on statements about cause events this other on uncertainties. Forward-looking anticipated materially and expectations based current as could statements Many subject risks statements call. from factors forward-looking to results

our on our results factors from statements, Securities materially with presentation more may cause release to the Commission. forward-looking both as well and to information filings and press as differ the company's Exchange such For refer that please

reliance you. to undertake law. unless not Thank cautioned no are to put required update duty we You forward-looking information this undue statements, and applicable by on

And turn the to over now I will Thomas. call

Thomas Healy

Hello, Quarter our have KARNO I and focused Panzer. have and Call. primarily this Chief progress our great past Earnings First the Officer, Over Financial been XXXX Hyliion's joined by call, quarter, am on today's shift we On to made towards to welcome generator. Jon

I milestones with am our shared to over pleased previously that able to us critical share track on that line. the some months achieve we were keep past few time

of communicated this We million also year. remain guidance $XX $XX million on previously our capital with to of spend track

I'll update as target the share in detail operational development, customer markets around continued KARNO of base for to our this and build product and past more generator. backlog This orders call highlights we an plans. well expanded a the on on today's as our quarter, cover

customer growing XX up for in with that that to KARNO like a and can to produce backlog. off adoption have we week, megawatts of pleased to approximately we the the LOI HX interest order Energy announce This are X discussing our executed start call I'd nonbinding generator aggregate.

of plan hydrogen. is Victory second subsidiary to units to HX to green in KARNO one Clean offering Energy, deploy excess producer of of XXXX the combined a of efficiencies also heat They plan power generator, Energy provide half a production their first from solutions the to X the the They utilize and heat to of process. manufacturing sites. power their improve their

an to minutes Upon that of successful first megawatt additional KARNO KARNO deployment talking has few X addressing that produce HX of with generators spend the for a the about market units, generator. like the now these I'd Energy could are another landscape option X power. we

are discussions, X we engaging in will adoption. target be markets first identified we've As for customer that

includes The stationary and first is both EV charging, mobile which chargers.

available than currently With at we more the desired addressing the are line EV charging, power utility. need is by for the time often

The wasted electricity otherwise as market, oil digesters, flared market as been and gas or utilizing that have gas this would gas and second is landfills, In are using to waste from we byproduct. locations the produce sites. such

buildings, industrial commercial microgrids also is applications, includes prime and power. data category third and The This broadest centers.

focused from it customer can they the these utility. often cost lower interest the applications, on a than to In at able electricity source is produce being

low its over With marine significant incumbent Lastly, unique the high is maintenance as including mobility our a applications fourth engines. such of low advantage KARNO is efficiency, bucket marine. generator, performance applications, and the noise

and call, also presentation adoption we the LOIs, across to or accompanying all interested opportunities. this share agreements announced ongoing that HX pleased we In the these a previously additional in discussions of markets. addition am other slide that I to customer included that have have target have highlights executed market with in we companies Energy LOIs

and year of the all ship this We a for for backlog identified anticipated creating have we to are customers now units XXXX. plan

this unit disclose not have their our some deployment planned we operations. until customers the we do that in At time, asked have

like see KARNO target our event in can to that now initial you recapping business Ohio transition half Cincinnati, included secured we other However, hosted to showcase facility. have stakeholders. of that agreements we for our Attendees customers, early-April I'd partners markets. and over at R&D our

generator At operating show intent the production KARNO running we generator machines turnout We on had a dyno. were showcase how all the great works, hydrogen who the for manufacturing printing the attended. the event, and able demonstrate those and reactor our KARNO explain to parts lastly, additive actively the event appreciate on

the for those from some as on videos are interested. channel well YouTube We as since presentations have who event on our website posted our

supply have addition high-pressure transport trailers customers. to chain and I'd we also In that highly with secured highlight. BayoTech, Hyliion leading progress hydrogen in quarter, producer like past customers a production our reliable units of efficient a hydrogen partnership with to to a for this hubs ensure making aiming partnering great storage

producing ability as on to each we generators a to saw introduce will KARNO combined electricity customers the natural jointly this partnership This hydrogen company's innovative products Hyliion operate allow can customers. to we solution. BayoTech where and collaboration, With a hydrogen, each offer other's and

with as customers track remain to This units beginning have we few timing production now cover timing our updates ship next I'd ramp on includes and scale that production starting to later to like on We plans a year road the well to year. communicated. plans our previously this as map. and

to earnings the we on As millions we revenue last dollars double-digit in generate call, low shared units deploy expect of of to year. worth our next

we'll parts this the have of The beta KARNO been be development beta beta this design generator. as the of that KARNO and the components later units to we starting previously and We shared. for intended our quarter be completing component production are are design track We test to continued remain technology to customers additive our on printing validation shipping generator year.

dyno and manufacturing have generator released. on designed subsystems In the of the and additive tested. the to We the beta are quarter, third of testing begin for being the and preparing generator are produced where today, been deployments. it the field The at a beta expect we being are stage components major generator parts

time, the this I expect it's printer as regard couple the pleased we the printing deliveries With current in begun begin to beta and we production earlier. machines just At of development customer generator quarters. production as going we Ohio additive to a well, and in of components mentioned for have are that have generators, planning, with

to be manufacturing increasing in We will recently Austin, production will anticipate of these our and machines Our set printers R&D plan facility our XXXX. assembly by working we are end received capacity of Ohio is be facility. and first and that and an Austin a the just commission currently

machines into in Austin we plan our progress and headquarters. additional deploy As XXXX to continue to our XXXX, is additive

Our facility space ample is feet, capacity gives square for printing the for which XXX,XXX years us ahead.

quarter. to the from to over financial the I'd now hand some like cover Jon to updates call

Jon Panzer

Thank increase you, first Thomas, an by good shutdown year. The for of to decrease Operating to in expenses the this XXXX. of $XX offset related KARNO and million entirely were expenses in is morning, business, first the powertrain quarter in compared quarter spending partly everyone. $XX.X million our the

to recorded the by In costs. that assets were of for powertrain expenses received other value the quarter. exit million and termination of $X.X in components proceeds asset the offset quarter, Exit of trucks made we expected related payments This of and write-down the shutdown fair recoveries, and sale includes quarter, realized during market first termination of expenses partly to powertrain. severance and the sale we powertrain certain asset $XXX,XXX net

expenses first KARNO the all for $XX.X powertrain-related were SG&A and quarter, expenses in Excluding and Development Research million.

expect business. we most powertrain the With shutdown of future quarter, be and the directly close generator KARNO be related of our minimal expenses to expenses will that first will our that

last for XXXX million compared approximately due by investment and $X.X flat higher balance was lower income the to rates to quarter being year. was a approximately first Interest interest to offset compared

quarter Our the to was total the first of first quarter powertrain the shutdown our million with loss compared related decrease net entirely being in the to $XX.X of million again XXXX, business. $XX.X for

of quarter, repurchase million $X.XX. During we XXXX. average the the program X.X for $XX.X purchase in announced share share million we stock $XX The per of was first shares price late as million part repurchased

a be share it stock strengthens. and if targeting share purchases our when rate, will we slower rate expect lower a opportunistic forward, our of Going repurchases is price more greater

to investments on cash quarter. Turning and designated for position. assets million our balance indicating received our ended cash investments of in $XX cash We million XXXX with including the of closed of million $XXX in We sheet, with cash the cash of $XXX payment restricted powertrain during first quarter expenditures XXXX. out the

the activities. XXXX, share uses first spent addition repurchases, in expenses paid our expenses the that down but we to shutdown This as paid in accrued of million we million in on as Breaking incurred and well $XX.X during XXXX. were on spent powertrain approximately includes quarter $XX.X cash, powertrain

in to the was were the that We used also business. million Powertrain related received in $XXX,XXX quarter asset from KARNO expenditures. related cash our to remaining and quarter The of $XX.X capital expenses former sales

certain Furthermore, asset the will total measured XXXX. proceeds the will sale earlier cash asset beginning we low powertrain into we of year, dollars. expenditures from continue be payments year. when We extend sales powertrain and may powertrain-related maintain of remainder the single-digit approximately for be that cash ahead will of negligible this that Looking expenses anticipate millions although equal throughout year, projection operating our asset be will and sales that the this in

to reflects expect business additive KARNO earlier. $XX earlier XXXX million more end estimate on referenced in of Thomas will a $XX investments estimate for rapid cash that be generator total We This ramp-up growth million. higher our in that high printer our expenditures of the

for our expenditures excludes expenses shutdown share activities cash and asset sale proceeds. cash forecast operating cash spent spending interest and income, a reminder, capital but powertrain repurchases, includes for As

Generator in to to begin KARNO expect late-XXXX. We deploying units customers

the the deployments, While the of certification and the initial these operating of to agreements varying as nature well to uncertain be paid the performance timing permitting deployment expected generators of as criteria. remains are due payments

expect double-digit to XXXX in margin and slightly that maintaining with total gross to revenue negative. guidance millions dollars low of sales generator approximately we are our We and KARNO deliveries breakeven ramp-up is that the

XXXX, revenue Beyond yet gross margin. or don't volume, estimate we for an have

the have be of sufficient Finally, KARNO we foreseeable future, expect hand that commercialization including sales. the today capital we on for generator will

Now back I'll to over turn Thomas. the call

Thomas Healy

Thank you, Jon.

quarter. the Q&A, of quick transitioning to a I'd over to recap Before share like

the you progress both pipeline. we've heard in generator our growing today, well made as of the as As customer development significant

to our interest to secured initial great and we far for will units. ready are get place be so on to couple adopter partners in have quarters focused believe units. continuing confident as We we the XXXX ship in of have deploy next these early we grow backlog The

I'd call for now like Q&A. the to open

Operator

questions are conference There time. Executive I now this will over Chief Instructions] to at the Healy, back no [Operator Thomas Officer. turn

Thomas Healy

QX our joining earnings call. for everyone, you, 'XX Thank

call, the you today's out both customer As as organization of of at the here. couple well front generator. the time milestone this getting as the on the progress really a heard of of development next on hands lot we is approach this focused major we units And on KARNO customers' as the made into of quarters year on

So look thank joining, update for next you another quarter. we sharing forward to all and

Operator

This concludes today's conference call.

may now You disconnect.

Hyliion (HYLN) 1 May 242024 Q1 Earnings call transcript