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Hyzon Motors Announces Second Quarter 2021 Financial Results

By August 11, 2021 6   min read  (1141 words)

August 11, 2021 |

fuel cells works, Hyzon Motors Issues Business Update, Confirms 2021 Prior Guidance and on Track For 2022

First Half and Second Quarter 2021 Highlights

  • Appointed Parker Meeks, former McKinsey Partner, as Chief Strategy Officer
  • Appointed Shinichi Hirano, formerly with Ford Motor Company and with over 30 years of experience in automotive fuel cell technology, as Chief Engineer

ROCHESTER, N.Y.–Hyzon Motors Inc. (NASDAQ: HYZN) (“Hyzon” or the “Company”), a leading global supplier of zero-emission fuel cell electric heavy vehicles, today announced second-quarter 2021 financial results.

Recent Business Highlights

  • Delivered the first Hyzon fuel cell electric trucks in July 2021 to customers in Europe
  • In the fourth quarter, Total Transportation Services, Inc. (TTSI) to trial a Hyzon Class 8 fuel cell electric truck in California, a first in the U.S.
  • Hyzon expanded its orders and non-binding memoranda of understanding from $40 million to $83 million, with additional customer uptake in Europe and Australia
  • First Hyzon fuel cell electric truck driven in America in Rochester, NY; Hyzon Class 8 truck planned to be at the Advanced Clean Technology (ACT) Expo at the end of August 2021
  • Invested $2.5 million in Raven SR, secured negative carbon-score hydrogen supply option from 250 hubs
  • Manufacturing equipment to be received for United States production facilities in New York and Illinois
  • $517 million cash on hand as of August 10, 2021 to deploy as Hyzon’s operations scale up
  • Hyzon fuel cell electric vehicles are now on the road today https://hyzonmotors.com/on-the-roads-of-rochester

“During the second quarter we achieved significant milestones for Hyzon. We advanced our business objectives, expanded our partnerships, grew our world-class team, and increased the number of contracted customers to further our efforts in the global adoption of hydrogen in commercial transport,” said Craig Knight, Chief Executive Officer of Hyzon.  “Shortly after the close of the second quarter, we completed our business combination and we currently have over $500 million of cash on the balance sheet as a result, which we expect to help accelerate our growth, meet customer demands, and enable us to expand our teams and operations globally.”

Following the close of the second quarter, Hyzon Motors USA Inc. (f/k/a Hyzon Motors Inc.) successfully completed its planned business combination with Decarbonization Plus Acquisition Corporation (“DCRB”) on July 16, 2021.  With 94.8% of the shares of DCRB having voted in favor of the business combination, and only 7.4% of common shares electing to redeem shares for cash, the combination resulted in a primary capital raise of $559 million for Hyzon, before transaction expenses. “This remarkable achievement of closing our transaction with such overwhelming support from DCRB shareholders was both a validation of our strategy and an investment in our future,” continued Mr. Knight.

Between announcing and closing the business combination, Hyzon executed a number of memoranda of understanding (MOUs) and purchase orders with a growing roster of global industrial, commercial and transportation counterparties, including: Superior Pak (Australia/New Zealand), Coregas, subsidiary of Wesfarmers (Australia), FrieslandCampina (The Netherlands), TotalEnergies (France), MPREIS (Austria), John G Russell (United Kingdom), ARK Energy, subsidiary of Sun Metals (Australia), Chart Industries (North America), Fortescue Metals Group (Australia), Sojitz Machinery Corporation of America (North America), JuVe Automotion (Europe), and NEOM (Middle East / North Africa).  The Company also advanced its pipeline with numerous municipalities across the globe, strengthened alliances with industry leaders in the hydrogen ecosystem, and announced a number of technical milestones that are rapidly advancing total cost of ownership (TCO) parity and performance superiority for Hyzon’s products more quickly than originally envisioned.

“Hyzon’s strategy remains firmly rooted as a business built around a defined and already commercialized technology that is the product of years of investment with customer uptake that is both global in reach and accelerating in pace.  Our sales pipeline is proof that the world is truly recognizing the need to seek out immediate solutions to mitigate climate change, thereby accelerating efforts to move the world economy down the path to net-zero emissions.  We are the company providing hydrogen solutions today for commercial, heavy-duty, high-utilization transportation use cases, and we could not be more excited as the opportunity set for our offerings grows daily.  Particularly following the recent IPCC Sixth Assessment and escalating investor attention to ESG focused opportunities, the backdrop for Hyzon’s business has never been stronger.” concluded Mr. Knight.

Second Quarter 2021 Financial Results

For the second quarter ending June 30, 2021, the Company reported total operating expenses of $9.3 million and a net loss attributable to Hyzon of $9.4 million, resulting in a net loss of $0.10 per share.  Second quarter operating expenses were comprised of $3.5 million in research and development and $5.8 million in selling, general and administrative expenses, as the Company prioritized cost control, with the business combination closing later than originally expected.  For the prior year second quarter ending June 30, 2020 the Company reported a net loss attributable to Hyzon of $0.2 million, resulting in a net loss of $0.00 per share.

For the six months ended June 30, 2021, the Company reported total operating expenses of $13.0 million and a net loss attributable to Hyzon of $17.6 million resulting in a net loss of $0.19 per share.  Year-to-date operating expenses were comprised of $4.1 million in research and development and $8.9 million in selling, general and administrative expenses.  For the prior year period January 21, 2020 (Inception) through June 30, 2020, the Company reported a net loss attributable to Hyzon of $0.3 million, resulting in a net loss of $0.00 per share.

The Company also reported negative EBITDA of $9.1 million and $12.9 million for the three and six months ended June 30, 2021, respectively.  EBITDA is a non-GAAP financial measure which is defined and reconciled to its comparable GAAP measure later in this press release.

Balance Sheet and Capital

On July 16, 2021, Hyzon Motors USA Inc. (f/k/a Hyzon Motors Inc.) completed its business combination with DCRB.  Commencing at the open of trading on July 19, 2021, Hyzon’s Class A common stock and Hyzon’s warrants began trading on Nasdaq under the symbols “HYZN” and “HYZNW,” respectively.  The Company received $506.2 million in cash, net of transaction costs and redemptions on July 16, 2021 as a result of the business combination.

The Company had 93,825,000 shares of common stock outstanding as of June 30, 2021.  Upon completion of the business combination, shares of common stock outstanding increased to 246,994,208.

2021 Outlook

  • Hyzon reaffirms 2021 sales outlook, including 85 vehicles to be shipped worldwide
  • First vehicle revenues forecast to occur in Q3 2021
  • The first U.S.-assembled Hyzon trucks expected to commence trials with US customers before the end of 2021
  • Domestic U.S. production facilities are currently being set up in both Rochester, NY and Chicago, IL; anticipated start-up dates in Q2 2022 and Q4 2021, respectively.

Conference Call Information

The Hyzon management team will host a conference call to discuss its second quarter 2021 financial results on Wednesday, August 11, 2021 at 8:00 a.m. Eastern Time. The call can be accessed via a live webcast accessible on the Events & Presentations page in the Investor Relations section of Hyzon’s website at www.hyzonmotors.com. An archive of the webcast will be available for a period of time shortly after the call on the Investor Relations section of Hyzon’s website as well.

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