Heliogen Inc (HLGN)

[WeTheMarket]

Heliogen, Inc. Announces Third Quarter 2022 Financial and Operational Results; Reports Commercial Progress on Green Hydrogen Initiatives
November 07 2022 - 08:43PM
https://ih.advfn.com/stock-market/NYSE/heliogen-HLGN/stock-news/89487469/heliogen-inc-announces-third-quarter-2022-financ

Heliogen, Inc. (“Heliogen”) (NYSE: HLGN), a leading provider of AI-enabled concentrating solar energy technology, today provided its third quarter 2022 financial results.

Third Quarter 2022 Highlights

- Selected to receive a $4.1 million award from the U.S. Department of Energy to accelerate the large-scale development and deployment of a solar thermal calciner to decarbonize cement production
- Entered into a letter of intent with Dimensional Energy for the production of sustainable aviation fuel
- Successfully completed initial field testing of ChariotAV, Heliogen’s autonomous heliostat cleaning vehicle
- Began final qualification for main production lines at Heliogen’s automated, high-volume manufacturing facility
- Appointed industrial energy transition veteran Barbara Burger to Heliogen’s Board of Directors

Recent Highlights

- Entered into a memorandum of understanding (“MOU”) with the City of Lancaster, California to build a new green hydrogen production facility deploying Heliogen’s technology

Executive Commentary

“During the third quarter, Heliogen continued to make progress towards its goal of deploying its groundbreaking, AI-enabled concentrating solar thermal energy technology,” said Bill Gross, Founder and Chief Executive Officer of Heliogen. “The successful completion of the initial field testing of our ChariotAV autonomous heliostat cleaning vehicle and the start of final qualification for our automated, high-volume heliostat production lines, moves us that much closer to achieving these goals.”

“By signing the MOU with the City of Lancaster, California for the production of green hydrogen, Heliogen continues to grow its portfolio of hydrogen-focused customers. Between our Brenda Solar Energy Zone project for large-scale hydrogen production in an area ideally located for both long-haul transportation and for shipping to other end markets, our agreement with Dimensional Energy for the production of sustainable aviation fuel and now this agreement with the City of Lancaster, Heliogen is building a diverse portfolio of hydrogen customers and end-use markets.”

“With the passage of the Inflation Reduction Act and its $3.00 per kilogram hydrogen production tax credit, we seem to be witnessing a tipping point that is greatly elevating hydrogen’s role in the transition from a petroleum economy to a low-carbon society.”

Memorandum of Understanding with the City of Lancaster, California

Heliogen and the City of Lancaster, California recently entered into a non-binding MOU to work together to create a green hydrogen production facility, with a capacity of up to 1500 metric tons of green hydrogen fuel per year, intended to help the City of Lancaster achieve its goal to become one of the first net zero cities in the United States. The facility is expected to produce green hydrogen that can be sold to industrial customers in Lancaster and the greater Los Angeles area. The MOU is subject to negotiation and execution of a definitive agreement.

This agreement contemplates Heliogen as the technology provider, project developer, builder, operator and equity partner in the project. Heliogen intends to bring on an equity provider to fund construction and own the asset. The City of Lancaster will assist in site identification, review by its City Council and the community, support for the permitting process and evaluation of economic development potential.

2022 Guidance Revision

Heliogen is working to finalize its second commercial-scale contract by year end, which would be within its guidance range of two to three modules contracted. Heliogen believes the number of modules contracted is the most useful indicator of demand for its products and technology at this stage in its lifecycle. Over time, Heliogen expects these contracts to be converted to revenue as the projects are installed, although there is no assurance as to the time period for such conversion.

Due to delays in project timing, Heliogen now expects 2022 revenues of $12 - $14 million, revised from its prior guidance of $20 - $25 million. This change reflects a shift in timing of earned revenue, but the associated total project revenue on its first commercial-scale contract remains unchanged.

Third Quarter 2022 Financial Results

For the third quarter 2022, Heliogen reported total revenue of $3.1 million, total operating expenses of $29.4 million and net loss of $27.8 million. Heliogen’s net loss was driven primarily by growth of Heliogen’s operations to support its first commercial-scale projects, including personnel costs such as a non-cash stock-based compensation expense of $10.0 million. Heliogen’s Adjusted EBITDA, which excludes the non-cash stock-based compensation expense and other impacts, was negative $19.2 million for the third quarter 2022.

Conference Call Information

The Heliogen management team will host a conference call to discuss its third quarter 2022 financial results on Tuesday, November 8, 2022, at 10:00 a.m. EST. The call can be accessed via a live webcast accessible on the Events & Presentations page in the Investor Relations section of Heliogen’s website at www.heliogen.com. The call can also be accessed live via telephone by dialing 1-877-407-0789 (1-201-689-8562 for international callers) and referencing Heliogen.

An archive of the webcast will also be available shortly after the call on the Investor Relations section of Heliogen’s website.

About Heliogen

Heliogen is a renewable energy technology company focused on decarbonizing industry and empowering a sustainable civilization. The company’s concentrating solar energy and thermal storage systems aim to deliver carbon-free heat, steam, power, or green hydrogen at scale to support round-the-clock industrial operations. Powered by AI, computer vision and robotics, Heliogen is focused on providing robust clean energy solutions that accelerate the transition to renewable energy, without compromising reliability, availability, or cost. For more information about Heliogen, please visit heliogen.com.

Use of Non-GAAP Financial Information

Management uses certain financial measures, including EBITDA and Adjusted EBITDA, to evaluate our financial and operating performance that are calculated and presented on the basis of methodologies other than in accordance with GAAP. We believe these non-GAAP financial measures are useful to investors and analysts to assess our ongoing financial performance because they provide improved comparability between periods through the exclusion of certain items that we believe are not indicative of our core operating performance, enhance the overall understanding of our past financial performance and future prospects, and remove items that may obscure our underlying business results and trends. These measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP, and our calculations thereof may not be comparable to similarly titled measures reported by other companies. Please see the accompanying tables for reconciliations of the following non-GAAP financial measures for Heliogen’s current and historical results: EBITDA and Adjusted EBITDA.