Archer Announces Second Quarter 2022 Results
Archer Aviation Inc. (ACHR) reported its second quarter 2022 financial results and progress towards commercialization. The company received a $10 million deposit from United Airlines for 100 eVTOL aircraft. Key achievements include the completion of flight tests and the Preliminary Design Review for its four-passenger aircraft, Midnight. Financially, total operating expenses were $80.2 million, resulting in a net loss of $71.7 million. Looking forward, Archer estimates third-quarter operating expenses between $95 million and $103 million.
- Received a $10 million pre-delivery payment from United Airlines for 100 eVTOL aircraft.
- Successfully completed flight tests and Preliminary Design Review for the Midnight aircraft.
- Midnight is expected to carry a payload of over 1,000 pounds with a turnaround time of approximately 10 minutes.
- Total operating expenses for Q2 2022 were $80.2 million, leading to a net loss of $71.7 million.
- Third-quarter operating expenses estimated between $95 million and $103 million, reflecting increased costs.
Success of Maker Flight Test Program, Completion of PDR and United Airlines Pre-Delivery Payment Advances Path To Commercialization
Archer will be conducting its earnings conference call at
The Company has issued a shareholder letter discussing its second quarter 2022 operating and financial results, as well as its third quarter 2022 estimates. The shareholder letter may be accessed on the Company’s Investor Relations website here.
The Company’s recent key operating highlights include:
-
We announced earlier today that we have received a
$10 million - Successfully completed two phases of Maker’s test flight campaign, validating key technical data enabling advancements in Archer’s production aircraft
- Successfully completed preliminary design review, PDR, for our four-passenger, piloted production aircraft named MidnightTM
- Validated critical performance metrics for Midnight, which is expected to have a payload of 1,000+ pounds and charging turnaround time of approximately 10 minutes on our target missions, enabling our UAM network operating model
Commenting on second quarter results,
“Archer is now advancing our commercialization efforts. We are executing our plan including the development and certification of our production aircraft, Midnight, and initiating efforts for our early launch markets for commercial operations. Our recent successful completion of Midnight’s Preliminary Design Review provides us confidence that our technology supports our commercial objectives. These accomplishments are validated by United Airlines
Second Quarter 2022 Financial Results
|
Q2 2022
|
|
Q2 20221
|
||
Total Operating Expenses |
$ |
80.2M |
|
$ |
50.0M |
Net Loss and Comprehensive Loss |
$ |
(71.7M) |
|
|
NA |
Adjusted EBITDA |
|
NA |
|
$ |
(49.2M) |
Cash and Cash Equivalents |
$ |
654.8M |
|
|
NA |
1. |
A reconciliation of non-GAAP financial measures to the most comparable GAAP measures is provided below in the section titled “Reconciliation of Selected GAAP To Non-GAAP Results for Q2 2022.” |
Third Quarter 2022 Financial Estimates
Archer’s financial estimates for third quarter of 2022 are as follows:
-
GAAP total operating expenses of
$95 million $103 million -
Non-GAAP total operating expenses of
$63 million $71 million -
This reflects expected stock-based compensation, warrant expense and other one-time expenses of approximately
$32 million
-
This reflects expected stock-based compensation, warrant expense and other one-time expenses of approximately
We have not reconciled our non-GAAP total operating expense estimates because certain items that impact non-GAAP total operating expense are uncertain or out of our control and cannot be reasonably predicted. In particular, stock-based compensation expense is impacted by the future fair market value of our common stock and other factors, all of which are difficult to predict, subject to frequent change, or not within our control. The actual amount of these expenses during 2022 will have a significant impact on our future GAAP financials. Accordingly, a reconciliation of non-GAAP total operating expenses is not available without unreasonable effort.
About Archer
Archer is designing and developing electric vertical takeoff and landing aircraft for use in urban air mobility networks. Archer’s mission is to unlock the skies, freeing everyone to reimagine how they move and spend time. Archer's team is based in
To learn more, visit www.archer.com.
Forward Looking Statements
This press release contains forward looking statements regarding our future business plans and expectations, including statements regarding our estimates for the third quarter of 2022 and our Midnight aircraft. These forward looking statements are only predictions and may differ materially from actual results due to a variety of factors. The risks and uncertainties that could cause actual results to differ from the results predicted are more fully detailed under the caption "Risk Factors" in our Annual Report on Form 10-K for the year ended
Reconciliation of Selected GAAP To Non-GAAP Results for Q2 2022
Reconciliation of Total Operating Expenses (in millions; unaudited): A reconciliation of total operating expenses to non-GAAP total operating expenses for the three months ended
|
Three Months Ended
|
|
Total operating expenses |
$ |
(80.2) |
Adjusted to exclude the following: |
|
|
|
|
1.2 |
Stock-based compensation (2) |
|
25.6 |
One-time co-CEO severance expense (3) |
|
3.4 |
Non-GAAP total operating expenses |
$ |
(50.0) |
(1) |
Amounts include non-cash warrant costs, classified as research and development expenses, for the warrants issued to |
|
(2) |
Amounts include stock-based compensation for options and restricted stock units issued to both employees and non-employees, including the grants issued to our founders in connection with the closing of the business combination. |
|
(3) |
One time severance related expenses for the former co-CEO. |
Reconciliation of Adjusted EBITDA (in millions; unaudited): A reconciliation of net loss and comprehensive loss to Adjusted EBITDA for the three months ended
|
Three Months Ended
|
|
Net loss and comprehensive loss |
$ |
(71.7) |
Adjusted to exclude the following: |
|
|
Change in fair value of warrant liability and other warrant costs (1) |
|
(7.9) |
|
|
1.2 |
Depreciation and amortization expense |
|
0.7 |
Stock-based compensation (3) |
|
25.6 |
Interest income, net |
|
(0.5) |
One-time co-CEO severance expense (4) |
|
3.4 |
Adjusted EBITDA |
$ |
(49.2) |
(1) |
Amounts include changes in fair value of the public and private warrants, which are classified as warrant liabilities, and other warrant costs. |
|
(2) |
Amounts include non-cash warrant costs, classified as research and development expenses, for the warrants issued to |
|
(3) |
Amounts include stock-based compensation for options and restricted stock units issued to both employees and non-employees, including the grants issued to our founders in connection with the closing of the business combination. |
|
(4) |
One time severance related expenses for the former co-CEO. |
Non-GAAP Financial Measures
To supplement our condensed consolidated financial results prepared in accordance with GAAP, we use a number of non-GAAP financial measures to help us in analyzing and assessing our overall business performance, for making operating decisions and for forecasting and planning future periods. We consider the use of non-GAAP financial measures helpful in assessing our current financial performance, ongoing operations and prospects for the future as well as understanding financial and business trends relating to our financial condition and results of operations.
While we use non-GAAP financial measures as a tool to enhance our understanding of certain aspects of our financial performance and to provide incremental insight into the underlying factors and trends affecting our performance, we do not consider these measures to be a substitute for, or superior to, the information provided by GAAP financial measures. Consistent with this approach, we believe that disclosing non-GAAP financial measures to the readers of our financial statements provides useful supplemental data that, while not a substitute for GAAP financial measures, can offer insight in the review of our financial and operational performance and enables investors to more fully understand trends in our current and future performance.
In assessing our business during the quarter ended
Stock-Based Compensation Expense: We believe that providing non-GAAP measures excluding stock-based compensation expense, in addition to the GAAP measures, allows for better comparability of our financial results from period to period. We prepare and maintain our budgets and forecasts for future periods on a basis consistent with this non-GAAP financial measure. Further, companies use a variety of types of equity awards as well as a variety of methodologies, assumptions and estimates to determine stock-based compensation expense. We believe that excluding stock-based compensation expenses enhances our ability and the ability of investors to understand the impact of non-cash stock-based compensation on our operating results and to compare our results against the results of other companies.
Warrant Expense and Gains or Losses from Revaluation of Warrants: Expense from our common stock warrants issued to United Airlines,
Non-Recurring One-Time Expense. We excluded one-time non-recurring expense such as the severance related expense incurred to transition to a sole CEO operating structure.
Each of the non-GAAP financial measures presented in this release should not be considered in isolation from, or as a substitute for, a measure of financial performance prepared in accordance with GAAP and are presented for supplemental informational purposes only. Further, investors are cautioned that there are inherent limitations associated with the use of each of these non-GAAP financial measures as an analytical tool. In particular, these non-GAAP financial measures have no standardized meaning prescribed by GAAP and are not based on a comprehensive set of accounting rules or principles and many of the adjustments to the GAAP financial measures reflect the exclusion of items that are recurring and may be reflected in our financial results for the foreseeable future. In addition, the non-GAAP measures we use may be different from non-GAAP measures used by other companies, limiting their usefulness for comparison purposes. We compensate for these limitations by providing specific information in the reconciliation included in this release regarding the GAAP amounts excluded from the non-GAAP financial measures. In addition, as noted above, we evaluate the non-GAAP financial measures together with the most directly comparable GAAP financial information. Investors are encouraged to review the reconciliations of these non-GAAP measures to their most directly comparable GAAP financial measures included in this release.
Source: Archer
Text: ArcherIR
View source version on businesswire.com: https://www.businesswire.com/news/home/20220810005783/en/
For Investors
investors@archer.com
For Media
louise.bristow@archer.com
archer@launchsquad.com
Source:
FAQ
What were Archer Aviation's Q2 2022 financial results?
Did Archer Aviation receive any significant payments in Q2 2022?
What are Archer Aviation's operating expense estimates for Q3 2022?
What progress did Archer Aviation make in Q2 2022?
