XL Fleet Announces Second Quarter 2022 Financial Results
XL Fleet Corp. reported second quarter 2022 revenue of $3.0 million, down from $3.7 million in Q2 2021. Gross profit also decreased to $0.6 million from $1.0 million year-over-year. Despite a net loss of $12.7 million, an improvement from a $16.1 million loss in Q1 2022, cash reserves stood strong at approximately $322.4 million. The company introduced its all-electric Curbtender Quantum refuse truck and appointed Donald P. Klein as CFO. Management is pursuing transformative M&A opportunities focused on decarbonization, with a commitment to finding viable businesses in growing markets.
- Introduced first all-electric refuse truck, Curbtender Quantum, targeting deliveries by year-end.
- Strong cash reserves of approximately $322.4 million, providing financial stability for growth.
- Revenue declined sequentially from $4.8 million in Q1 2022 to $3.0 million in Q2 2022.
- Gross profit decreased to $0.6 million, down from $1.0 million in Q2 2021.
- Adjusted EBITDA worsened to ($11.7) million compared to ($10.8) million in Q1 2022.
Second Quarter 2022 and Recent Highlights
-
Generated revenue for second quarter of 2022 of
$3.0 million $3.7 million -
Realized gross profit for the second quarter of 2022 of
$0.6 million $1.0 million -
Exited second quarter of 2022 with cash and cash equivalents of approximately
$322.4 million -
Appointed
Donald P. Klein as CFO ofXL Fleet ; seasoned executive with 25+ years of public company experience - Unveiled pre-series Curbtender Quantum refuse truck at WasteExpo 2022; the Company’s first all-electric vehicle
- Advancing process to identify transformational M&A focused on large and growing need for decarbonization
Management Commentary & Outlook
“Our progress towards identifying transformational M&A accelerated during the quarter,” said Eric Tech, CEO of
“During the quarter, we unveiled and made exciting progress on our Curbtender refuse truck, our first all-electric vehicle, which remains on target for first deliveries by the end of this year,” continued Mr. Tech. “We continue to constantly evaluate new opportunities for growth, while assessing the right and most efficient uses of our resources and capital to benefit our business and its value over the long-term.”
Consolidated Financial Results
Revenue totaled
Gross profit was
Selling, general & administrative expenses for the second quarter of 2022 totaled
Adjusted EBITDA totaled
Net loss was
Segment Financial Results
Drivetrain: Revenues totaled
XL Grid: Revenues totaled
Balance Sheet and Capital
Cash and cash equivalents as of
Second Quarter 2022 and Recent Operational & Business Updates
-
In
May 2022 ,XL Fleet announced the unveiling of its pre-series Curbtender Quantum refuse truck at WasteExpo 2022. The vehicle is being jointly developed in collaboration withCurbtender, Inc. and represents the company’s first all-electric refuse vehicle.
-
In
April 2022 ,XL Fleet announced that it appointedDonald P. Klein as Chief Financial Officer ofXL Fleet .Mr. Klein is an accomplished senior executive with over 25 years of public company finance & accounting experience.Mr. Klein has strong industry experience and a track-record of execution in complex operating environments.
Conference Call Information
The
About
Forward Looking Statements
Certain statements in this press release may constitute “forward-looking statements” within the meaning of the federal securities laws. Forward-looking statements generally are accompanied by words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “predict,” “potential,” “seem,” “seek,” “future,” “outlook,” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of management and are not predictions of actual performance. Forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements, including but not limited to; the effects of pending and future legislation; the highly competitive nature of the Company’s business and the commercial vehicle electrification market; litigation, complaints, product liability claims and/or adverse publicity; cost increases or shortages in the components or chassis necessary to support the Company’s products and services; the introduction of new technologies; the impact of the COVID-19 pandemic on the Company’s business, results of operations, financial condition, regulatory compliance and customer experience; the potential loss of certain significant customers; privacy and data protection laws, privacy or data breaches, or the loss of data; general economic, financial, legal, political and business conditions and changes in domestic and foreign markets; the inability to convert its sales opportunity pipeline into binding orders; risks related to the rollout of the Company’s business and the timing of expected business milestones, including the ongoing global microchip shortage and limited availability of chassis from vehicle OEMs and our reliance on our suppliers; the effects of competition on the Company’s future business; the availability of capital; supply chain issues including the lack of available components and/or inflationated component prices, including with respect to batteries, solar panels, and other critical components, and the other risks discussed under the heading “Risk Factors” in the Company’s current report on Form 10-K filed on
Use of Non-GAAP Financial Information
To supplement its consolidated financial statements, which are prepared and presented in accordance with
Earnings (loss) Before Interest, Income Taxes, Depreciation, and Amortization (“EBITDA”): We define EBITDA as our consolidated net income (loss) and adding interest expense, income taxes, and depreciation and amortization. We believe EBITDA provides meaningful information to the performance of our business and therefore we use it to supplement our GAAP reporting. We have chosen to provide this supplemental information to investors, analysts and other interested parties to enable them to perform additional analyses of operating results.
Adjusted EBITDA and Adjusted Net Income (Loss): We believe that adjusted EBITDA and Adjusted Net Income (loss), which excludes certain identified items that we do not consider to be part of our ongoing business, improves the comparability of year to year results, and is representative of our underlying performance. Management uses this information to assess and measure the performance of our operating segments. We have chosen to provide this supplemental information to investors, analysts and other interested parties to enable them to perform additional analyses of operating results, to illustrate the results of operations giving effect to the non-GAAP adjustments shown in the below reconciliations, and to provide an additional measure of performance.
|
|||||||||||||||
Unaudited Consolidated Statements of Operations |
|||||||||||||||
For the Three and Six Months Ended |
|||||||||||||||
Three Months Ended |
|
Six Months Ended |
|||||||||||||
| (In thousands, except per share and share amounts) | 2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
| Revenues |
|
3,010 |
|
|
3,694 |
|
|
7,773 |
|
|
4,369 |
|
|||
| Cost of revenues |
|
2,445 |
|
|
2,732 |
|
|
7,641 |
|
|
4,123 |
|
|||
| Gross loss |
|
565 |
|
|
962 |
|
|
132 |
|
|
246 |
|
|||
| Operating expenses: | |||||||||||||||
| Research and development |
|
2,404 |
|
|
2,809 |
|
|
5,393 |
|
|
4,221 |
|
|||
| Selling, general, and administrative expenses |
|
12,801 |
|
|
10,822 |
|
|
24,459 |
|
|
18,780 |
|
|||
| Impairment of goodwill |
|
- |
|
|
- |
|
|
8,606 |
|
|
- |
|
|||
| Loss from operations |
|
(14,640 |
) |
|
(12,669 |
) |
|
(38,326 |
) |
|
(22,755 |
) |
|||
| Other (income) expense: | |||||||||||||||
| Interest expense, net |
|
7 |
|
|
10 |
|
|
19 |
|
|
21 |
|
|||
| Gain on extinguishment of debt |
|
- |
|
|
- |
|
|
(4,527 |
) |
|
- |
|
|||
| Gain on asset disposal |
|
(7 |
) |
|
21 |
|
|
(16 |
) |
|
21 |
|
|||
| Change in fair value of obligation to issue shares of common stock |
|
(137 |
) |
|
514 |
|
|
(498 |
) |
|
514 |
|
|||
| Change in fair value of warrant liability |
|
(1,783 |
) |
|
(2,726 |
) |
|
(4,500 |
) |
|
(74,731 |
) |
|||
| Other Income |
|
(22 |
) |
|
(19 |
) |
|
(29 |
) |
|
(25 |
) |
|||
| Net (Loss) Income | $ |
(12,698 |
) |
$ |
(10,469 |
) |
$ |
(28,775 |
) |
$ |
51,445 |
|
|||
| Net (loss) income per share, basic | $ |
(0.09 |
) |
$ |
(0.08 |
) |
$ |
(0.20 |
) |
$ |
0.37 |
|
|||
| Net loss per share, diluted | $ |
(0.09 |
) |
$ |
(0.08 |
) |
$ |
(0.20 |
) |
$ |
(0.17 |
) |
|||
| Weighted-average shares outstanding, basic |
|
142,247,590 |
|
|
139,237,805 |
|
|
141,760,478 |
|
|
137,416,593 |
|
|||
| Weighted-average shares outstanding, diluted |
|
142,247,590 |
|
|
139,237,805 |
|
|
141,760,478 |
|
|
137,598,535 |
|
|||
|
||||||||||||||
Segment Results |
||||||||||||||
For the Three and Six Months Ended |
||||||||||||||
|
|
|
|
|
||||||||||
Three Months Ended |
|
Six Months Ended |
||||||||||||
| (In thousands) | 2022 |
2021 |
|
2022 |
2021 |
|||||||||
| As Reported | ||||||||||||||
| DriveTrain | ||||||||||||||
| Revenues | $ |
808 |
|
$ |
1,282 |
|
$ |
1,406 |
|
$ |
1,957 |
|
||
| Loss from Operation |
|
(3,404 |
) |
|
(3,950 |
) |
|
(9,310 |
) |
|
(7,511 |
) |
||
| XL Grid | ||||||||||||||
| Revenues | $ |
2,202 |
|
$ |
2,412 |
|
$ |
6,367 |
|
$ |
4,221 |
|
||
| Loss from Operation |
|
(1,453 |
) |
|
(438 |
) |
|
(2,894 |
) |
|
(489 |
) |
||
| Corporate | ||||||||||||||
| Revenues | $ |
- |
|
$ |
- |
|
|
- |
|
|
- |
|
||
| Loss from Operation |
|
(9,782 |
) |
|
(8,282 |
) |
|
(26,122 |
) |
|
(14,754 |
) |
||
| As Adjusted (1) | ||||||||||||||
| DriveTrain | ||||||||||||||
| Revenues | $ |
808 |
|
$ |
1,282 |
|
$ |
1,406 |
|
$ |
1,957 |
|
||
| Loss from Operation |
|
(3,211 |
) |
|
(3,950 |
) |
|
(7,599 |
) |
|
(7,511 |
) |
||
| XL Grid | ||||||||||||||
| Revenues | $ |
2,202 |
|
$ |
2,412 |
|
$ |
6,367 |
|
$ |
4,221 |
|
||
| Loss from Operation |
|
(1,453 |
) |
|
(438 |
) |
|
(2,894 |
) |
|
(489 |
) |
||
| Corporate | ||||||||||||||
| Revenues | $ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
||
| Loss from Operation |
|
(7,081 |
) |
|
(7,357 |
) |
|
(12,616 |
) |
|
(13,829 |
) |
||
(1) As adjusted adjusts for the following one-time charges: Severance charges (including benefits) included in Corporate, Inventory charge for obsolete inventory included in DriveTrain, |
||||||||||||||
|
||||||||||||||
Reconciliation of Non-GAAP Financial Measures |
||||||||||||||
For the Three and Six Months Ended |
||||||||||||||
Three Months Ended |
|
Six Months Ended |
||||||||||||
| (In thousands) | 2022 |
2021 |
|
2022 |
2021 |
|||||||||
| Reconciliation of Net (Loss) Income to EBITDA and Adjusted EBITDA | ||||||||||||||
| Net (Loss) Income | $ |
(12,698 |
) |
$ |
(10,469 |
) |
$ |
(28,775 |
) |
$ |
51,445 |
|
||
| Interest Expense, net |
|
7 |
|
|
10 |
|
|
19 |
|
|
21 |
|
||
| Impairment of |
|
- |
|
|
- |
|
|
8,606 |
|
|
- |
|
||
| Depreciation and Amortization |
|
648 |
|
|
382 |
|
|
1,204 |
|
|
601 |
|
||
| EBITDA |
|
(12,043 |
) |
|
(10,077 |
) |
|
(18,946 |
) |
|
52,067 |
|
||
| Gain on extinguishment of debt |
|
- |
|
|
- |
|
|
(4,527 |
) |
|
- |
|
||
| Restructuring charges (1) |
|
418 |
|
|
- |
|
|
2,898 |
|
|||||
| Severance charges related to former President and Chief Financial Officer (2) |
|
- |
|
|
- |
|
|
705 |
|
|
- |
|
||
| Legal charges related to |
|
2,536 |
|
|
- |
|
|
3,112 |
|
|||||
| Accreted contingent compensation obligation to sellers of World Energy |
|
(60 |
) |
|
427 |
|
|
(104 |
) |
|
427 |
|
||
| Change in fair value of obligation to issue shares of common stock |
|
(137 |
) |
|
514 |
|
|
(498 |
) |
|
514 |
|
||
| Change in fair value warrant liabilities |
|
(1,783 |
) |
|
(2,726 |
) |
|
(4,500 |
) |
|
(74,731 |
) |
||
| Non-recurring World Energy acquisition expenses |
|
- |
|
|
498 |
|
|
- |
|
|
498 |
|
||
| Adjusted EBITDA | $ |
(11,069 |
) |
$ |
(11,364 |
) |
$ |
(21,860 |
) |
$ |
(21,225 |
) |
||
Three Months Ended |
|
Six Months Ended |
||||||||||||
| (In thousands) | 2022 |
2021 |
|
2022 |
2021 |
|||||||||
| Reconciliation of Net (Loss) Income to Adjusted Net Loss | ||||||||||||||
| Net (Loss) Income | $ |
(12,698 |
) |
$ |
(10,469 |
) |
$ |
(28,775 |
) |
$ |
51,445 |
|
||
| Gain on extinguishment of debt |
|
- |
|
|
- |
|
|
(4,527 |
) |
|
- |
|
||
| Impairment of goodwill |
|
- |
|
|
- |
|
|
8,606 |
|
|
- |
|
||
| Restructuring charges (1) |
|
418 |
|
|
- |
|
|
2,898 |
|
|
- |
|
||
| Severance charges related to former President and Chief Financial Officer (2) |
|
- |
|
|
- |
|
|
705 |
|
|
- |
|
||
| Legal charges related to |
|
2,536 |
|
|
- |
|
|
3,112 |
|
|
- |
|
||
| Accreted contingent compensation obligation to sellers of World Energy |
|
(60 |
) |
|
427 |
|
|
(104 |
) |
|
427 |
|
||
| Change in fair value of obligation to issue shares of common stock |
|
(137 |
) |
|
514 |
|
|
(565 |
) |
|
514 |
|
||
| Change in fair value warrant liabilities |
|
(1,783 |
) |
|
(2,726 |
) |
|
(4,500 |
) |
|
(74,731 |
) |
||
| Non-recurring World Energy acquisition expenses |
|
- |
|
|
498 |
|
|
- |
|
|
498 |
|
||
| Adjusted Net Loss | $ |
(11,724 |
) |
$ |
(11,756 |
) |
$ |
(23,150 |
) |
$ |
(21,847 |
) |
||
(1) Amount for the three months ended |
||||||||||||||
(2) Amount consists of severance charges incurred with the departure of the former president of |
||||||||||||||
|
||||||||
Unaudited Condensed Consolidated Balance Sheets |
||||||||
As of |
||||||||
|
|
|
||||||
| (In thousands, except share and per share amounts) | 2022 |
|
2021 |
|||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ |
322,371 |
|
$ |
351,676 |
|
||
| Restricted cash |
|
150 |
|
|
150 |
|
||
| Accounts receivable |
|
7,051 |
|
|
6,477 |
|
||
| Inventory, net |
|
14,189 |
|
|
15,262 |
|
||
| Prepaid expenses and other current assets |
|
1,323 |
|
|
1,040 |
|
||
| Total current assets |
|
345,084 |
|
|
374,605 |
|
||
| Property and equipment, net |
|
2,239 |
|
|
3,495 |
|
||
| Intangible assets, net |
|
1,245 |
|
|
1,863 |
|
||
| Right-of-use asset |
|
5,124 |
|
|
4,564 |
|
||
|
- |
|
|
8,606 |
|
|||
| Other assets |
|
114 |
|
|
88 |
|
||
| Total assets | $ |
353,806 |
|
$ |
393,221 |
|
||
| Liabilities and stockholders' equity (deficit) | ||||||||
| Current liabilities: | ||||||||
| Current portion of long-term debt, net of debt discount and issuance costs | $ |
27 |
|
$ |
78 |
|
||
| Accounts payable |
|
2,029 |
|
|
3,799 |
|
||
| Lease liability, current |
|
774 |
|
|
900 |
|
||
| Accrued expenses and other current liabilities |
|
9,042 |
|
|
11,856 |
|
||
| Total current liabilities |
|
11,872 |
|
|
16,633 |
|
||
| Long-term debt, net of current portion |
|
6 |
|
|
21 |
|
||
| Deferred revenue |
|
1,142 |
|
|
691 |
|
||
| Lease liability, non-current |
|
4,670 |
|
|
3,599 |
|
||
| Warrant liabilities |
|
905 |
|
|
5,405 |
|
||
| Contingent consideration |
|
95 |
|
|
541 |
|
||
| New market tax credit obligation |
|
- |
|
|
4,521 |
|
||
| Total liabilities |
|
18,690 |
|
|
31,411 |
|
||
| Stockholders' equity | ||||||||
| Common stock, |
|
14 |
|
|
14 |
|
||
| Additional paid-in capital |
|
463,288 |
|
|
461,207 |
|
||
| Accumulated deficit |
|
(128,186 |
) |
|
(99,411 |
) |
||
| Total stockholders' equity |
|
335,116 |
|
|
361,810 |
|
||
| Total liabilities and stockholders' equity | $ |
353,806 |
|
$ |
393,221 |
|
||
View source version on businesswire.com: https://www.businesswire.com/news/home/20220809005388/en/
Investor Contact:
xlfleetIR@icrinc.com
Media Contact:
PR@xlfleet.com
Source:
FAQ
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