Workhorse Group Reports Fourth Quarter and Full Year 2020 Results
Workhorse Group Inc. (WKHS) reported its Q4 and full year 2020 financial results, showcasing a remarkable increase in sales to $652,000 from just $3,000 year-over-year. The company's backlog now exceeds 8,000 vehicles, bolstered by significant orders from Pritchard Companies and Pride Group Enterprises. Workhorse raised $270 million in capital, supporting a cash position of $215 million as of March 1, 2021. Additionally, the strategic stake in Lordstown Motors Corp. is valued at approximately $320 million. The company faces supply chain challenges as it ramps up production for its growth plans.
- Sales for Q4 2020 reached $652,000, up from $3,000 in Q4 2019.
- Backlog increased to over 8,000 vehicles.
- Raised $270 million in capital, boosting cash position to $215 million.
- Net income for 2020 was $69.8 million, compared to a net loss of $37.2 million in 2019.
- Cost of goods sold rose to $7.0 million in Q4 2020 from $2.1 million in Q4 2019.
- Selling, general and administrative expenses increased to $4.7 million from $3.6 million in Q4 2019.
- Interest expense increased to $190.5 million for 2020 compared to $29.1 million in 2019.
CINCINNATI, March 01, 2021 (GLOBE NEWSWIRE) -- Workhorse Group Inc. (Nasdaq: WKHS) (“Workhorse” or “the Company”), an American technology company focused on providing sustainable and cost-effective drone-integrated electric vehicles to the last-mile delivery sector, today reported financial results for the fourth quarter and full year ended December 31, 2020.
Release Updates and Highlights
- Increased the backlog to over 8,000 vehicles, including purchase orders from Pritchard Companies and Pride Group Enterprises in November 2020 and January 2021, respectively.
- Partnered with Hitachi and Hitachi Capital America (“HCA”) to optimize the Company’s manufacturing, operational and supply chain capabilities as well as to develop a national dealer network to support Workhorse's sales with vehicle financing options for both dealers and customers.
- Raised
$270 million in capital over several financings, providing the Company with necessary capital to execute on its significant backlog; cash position of$215 million as of March 1, 2021. - Workhorse strategic stake in Lordstown Motors Corp. (Nasdaq: RIDE) valued at nearly
$320 million based on the February 26th closing price. This investment becomes liquid in April.
Management Commentary
“The past twelve months have been a remarkable period for our company and for the world at large,” said Workhorse CEO Duane Hughes. “We’re entering the new year in our strongest-ever position, both financially and operationally. Counting over
Fourth Quarter 2020 and Recent Operational Highlights
- February 2021: Launched Purpose Built National Campaign Event with Pritchard Companies featuring the C-1000 all-electric truck on Super Bowl weekend in Tampa, Florida. The event was designed to highlight the value of electric vehicle (“EVs”) and educate the broader market on the benefits of going EV.
- February 2021: Appointed former Ryder System Inc. Senior Director of Advanced Vehicle Technology & Energy Products Chris Nordh as VP of Commercial Development, a newly created role designed to augment and expand Workhorse’s sales and support infrastructure.
- January 2021: Received a purchase order for 6,320 C-Series all-electric delivery vehicles from Pride Group Enterprises, a premier Canadian and U.S. based, privately held company with businesses in transportation equipment retail, wholesale, rental, leasing and logistics. Inventory financing is being provided by HCA with initial delivery of the vehicles tentatively scheduled to begin by July 2021 and running through 2026.
- January 2021: Confirmed eligibility and was officially included into California Air Resources Board Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project list, applicable for various C-Series models.
- November 2020: Received a purchase order for 500 C-1000 trucks from Pritchard Companies for its National Fleet Program, which is being financed by HCA.
- October 2020: Submitted formal “Type Certification” application to the Federal Aviation Administration for the Company’s HorseFlyTM Unmanned Aerial System.
- October 2020: Received approval from the New York Truck Voucher Incentive Program to offer monetary vouchers for C-Series all-electric delivery vehicles in select New York State counties.
- October 2020: Closed
$200 million convertible notes financing from institutional lenders and converted pre-existing$70 million note into shares of the Company's common stock.
Fourth Quarter 2020 Financial Results
Sales for the fourth quarter of 2020 were recorded at
Cost of goods sold increased to
Selling, general and administrative expenses increased to
Research and development expenses were
Other income increased to
Interest expense decreased to
Net income was
Full Year 2020 Financial Results
Sales for the full year 2020 were recorded at
Cost of goods sold for the full year 2020 increased to
Selling, general and administrative expenses for the full year 2020 increased to
Research and development expenses for the full year 2020 increased to
Other income increased to
Interest expense for the full year 2020 increased to
Net income for the full year 2020 was
Conference Call
Workhorse management will hold a conference call today (March 1, 2021) at 10:00 a.m. Eastern time (7:00 a.m. Pacific time) to discuss these results.
Workhorse management will host the presentation, followed by a question and answer period.
U.S. dial-in: 877-407-8289
International dial-in: 201-689-8341
Please call the conference telephone number 10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Investor Relations at 949-574-3860.
The conference call will be broadcast live and available for replay here and via the Investor Relations section of Workhorse's website.
A telephonic replay of the conference call will be available after 4:00 p.m. Eastern time on the same day through March 8, 2021.
Toll-free replay number: 877-660-6853
International replay number: 201-612-7415
Replay ID: 13715558
About Workhorse Group Inc.
Workhorse is a technology company focused on providing drone-integrated electric vehicles to the last-mile delivery sector. As an American original equipment manufacturer, we design and build high performance, battery-electric vehicles including trucks and aircraft. Workhorse also develops cloud-based, real-time telematics performance monitoring systems that are fully integrated with our vehicles and enable fleet operators to optimize energy and route efficiency. All Workhorse vehicles are designed to make the movement of people and goods more efficient and less harmful to the environment. For additional information visit workhorse.com.
Forward-Looking Statements
This press release includes forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements may be identified by words such as "believes," "expects," "anticipates," "estimates," "projects," "intends," "should," "seeks," "future," "continue," or the negative of such terms, or other comparable terminology. Forward-looking statements are statements that are not historical facts. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from the forward-looking statements contained herein. Factors that could cause actual results to differ materially include, but are not limited to: our limited operations and need to expand in the near future to fulfill product orders; risks associated with obtaining orders and executing upon such orders; the ability to protect our intellectual property; negative impacts stemming from the continuing COVID-19 pandemic; the potential lack of market acceptance of our products; potential competition; our inability to retain key members of our management team; our inability to raise additional capital to fund our operations and business plan; our inability to satisfy covenants in our financing agreements; our inability to maintain our listing of our securities on the Nasdaq Capital Market; our inability to satisfy our customer warranty claims; our liquidity and other risks and uncertainties and other factors discussed from time to time in our filings with the Securities and Exchange Commission ("SEC"), including our annual report on Form 10-K filed with the SEC. Workhorse expressly disclaims any obligation to publicly update any forward-looking statements contained herein, whether as a result of new information, future events or otherwise, except as required by law.
Media Contact:
Mike Dektas
Creative Storm PR
513-266-3590
mike@creativestorm.com
Investor Relations Contact:
Matt Glover and Tom Colton
Gateway Investor Relations
949-574-3860
WKHS@gatewayir.com
Workhorse Group Inc.
Consolidated Statements of Operations
| For the Years Ended December 31, | |||||||
| 2020 | 2019 | ||||||
| Net sales | $ | 1,392,519 | $ | 376,562 | |||
| Cost of sales | 13,067,108 | 5,844,891 | |||||
| Gross loss | (11,674,589 | ) | (5,468,329 | ) | |||
| Operating expenses | |||||||
| Selling, general and administrative | 20,157,658 | 10,199,534 | |||||
| Research and development | 9,148,931 | 8,199,074 | |||||
| Total operating expenses | 29,306,589 | 18,398,608 | |||||
| Other income | 323,111,944 | 15,849,800 | |||||
| Income (loss) from operations | 282,130,766 | (8,017,137 | ) | ||||
| Interest expense, net | 190,520,337 | 29,145,690 | |||||
| Income (loss) before provision for income taxes | 91,610,429 | (37,162,827 | ) | ||||
| Provision for income taxes | 21,833,930 | - | |||||
| Net income (loss) | $ | 69,776,499 | $ | (37,162,827 | ) | ||
Workhorse Group Inc.
Consolidated Balance Sheets
| December 31, | ||||||
| 2020 | 2019 | |||||
| Assets | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 46,817,825 | $ | 23,868,416 | ||
| Restricted cash held in escrow | 194,411,242 | 1,000,000 | ||||
| Accounts and lease receivable, current | 1,037,466 | 41,021 | ||||
| Inventory, net | 15,467,012 | 1,798,146 | ||||
| Prepaid expenses and deposits | 32,759,216 | 4,812,088 | ||||
| Total current assets | 290,492,761 | 31,519,671 | ||||
| Property, plant and equipment, net | 11,398,166 | 6,830,181 | ||||
| Investment in LMC | 330,556,744 | 12,194,800 | ||||
| Lease receivable, long-term | 94,698 | 129,177 | ||||
| Total Assets | $ | 632,542,369 | $ | 50,673,829 | ||
| Liabilities | ||||||
| Current liabilities: | ||||||
| Accounts payable and accrued liabilities | $ | 10,786,065 | $ | 5,087,167 | ||
| Warranty liability | 5,400,000 | 6,001,864 | ||||
| Warrant liability | - | 16,335,000 | ||||
| Current portion of convertible notes, at fair value | - | 19,620,000 | ||||
| PPP Term Note | 1,411,000 | - | ||||
| Total current liabilities | 17,597,065 | 47,044,031 | ||||
| Other long-term liabilities | 207,040 | - | ||||
| Deferred tax liability | 21,833,930 | - | ||||
| Convertible notes, at fair value | 197,700,000 | 19,400,000 | ||||
| Mandatory redeemable Series B preferred stock | - | 19,142,908 | ||||
| Total Liabilities | 237,338,035 | 85,586,939 | ||||
| Stockholders' Equity (Deficit) | 395,204,334 | (34,913,110 | ) | |||
| Total Liabilities and Stockholders' Equity (Deficit) | $ | 632,542,369 | $ | 50,673,829 | ||
FAQ
What are Workhorse Group's Q4 2020 financial results?
What is the current backlog of Workhorse Group?
How much capital did Workhorse raise recently?
What is the status of Workhorse's investment in Lordstown Motors?
What are the main challenges facing Workhorse Group?
