Hyzon Motors (US:HYZN)2021-08-11 22:13Financial Data and Key Metrics Changes - The company reported total operating expenses of $9.3 million and a net loss of $9.4 million, resulting in a net loss of $0.10 per share [19] - EBITDA was reported at negative $9.1 million, which was significantly above internal plans as the company managed costs effectively [20] - Cash on hand exceeded $500 million with no debt, allowing for continued investment in growth [23] Business Line Data and Key Metrics Changes - The backlog under contract or MOU grew from $40 million to $83 million over the last six months, indicating strong customer uptake [24] - The company delivered three heavy trucks since mid-July, marking the beginning of seed sales [12] Market Data and Key Metrics Changes - The company is expanding its market presence in Europe and Australia, with additional customer uptake reported [12] - A new agreement was signed with TTSI in California to trial a Class A Fuel Cell Electric truck, expected to commence in Q4 [13] Company Strategy and Development Direction - The company aims to be a leader in the transition to net zero emissions, focusing on hydrogen-powered commercial vehicles [11][17] - Strategic partnerships have been established to enhance the portfolio, including a $2.5 million investment in Raven SR for hydrogen supply [15] - The company is broadening its addressable market by targeting high power on and off-road applications and long-distance heavy trucking [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand for hydrogen solutions, supported by federal actions to reduce vehicle emissions [14] - The company anticipates achieving free cash flow by 2024 without needing to sell additional equity [21] - Management acknowledged supply chain challenges but indicated proactive measures were taken to secure inventory [41] Other Important Information - The company plans to reach operational capacity in New York and Illinois by the first half of 2022 [17] - The focus remains on maintaining a high gross margin while managing costs effectively [72] Q&A Session Summary Question: Supply chain challenges and vehicle acquisition - Management acknowledged supply chain challenges but expressed confidence in securing the necessary components for vehicle production [40][41] Question: Customer conversations and competition with battery electric vehicles - Management noted that hydrogen vehicles are seen as a viable solution for high-utilization commercial vehicles, while battery electric vehicles have their place in the market [45][46] Question: TTSI order strategy and competition - Management explained that TTSI is evaluating various technologies, including hydrogen, to meet their operational needs, emphasizing the suitability of hydrogen for high-utilization applications [62][63] Question: Subsidy approval process in California - Management confirmed that the certification process for subsidies is underway and expected to be completed within six to nine months [67][69] Question: Cash burn and financial outlook - Management indicated a modest cash burn of less than $50 million for the remainder of the year, focusing on cost management and maintaining margins [74] Question: User experience with initial vehicle deployments - Management reported positive feedback from early customers regarding vehicle performance and ease of use, highlighting the advantages of hydrogen vehicles over diesel [106][116]