The following is a summary of the Hyliion Holdings Corp. (HYLN) Q4 2023 Earnings Call Transcript:
Financial Performance:
Hyliion expects a 70% reduction in cash burn for the year due to the wind-down of its powertrain segment and starts 2024 with $291 million on hand.
The company has a plan to use $40-50 million of its capital for the development of KARNO.
They initiated a $20 million stock repurchase program to enhance shareholder value.
A customer backlog has begun with expected revenues in the low double-digit millions from the KARNO generator by 2025.
Operating expenses of Q4 were recorded at $32.6 million, compared to $31.6 million in the previous year.
The total cash consumed in Q4 was around $33 million with a reported net loss of $29 million for the quarter, similar to last year.
Full-year 2023 operating expenses were $136 million, compared to $152 million in 2022.
Full-year 2023 interest income was $13.8 million, higher than last year's $5.7 million.
The net loss for the year was $124 million, lower than last year's loss of $153 million.
Business Progress:
Hyliion is shifting focus to the KARNO generator which offers several advantages over conventional generators.
They have made progress on key milestones which keeps the company on track.
They had favorable results from the successful test of different types of gas in powering the KARNO generator.
They secured an LOI with GTL Leasing and Detmar Logistics in relation to KARNO technology.
They aim to scale up production to larger volumes by 2025 after starting with high single-digit units for customers.
The company forecasts consumption of $40 million and $50 million in cash for 2024 due to an anticipated rapid ramp-up in additive printer growth investments.
By 2024's end, the company expects to have between $220 million and $230 million of cash and investments.
They expect to start deploying KARNO generator units to customers late in the fourth quarter, with a significant increase in deliveries and revenue by 2025.
More details: Hyliion IR
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