Lightning eMotors Reports Financial Results for First Quarter 2023
-
GAAP revenue of
, after$1.3 million of recall-related costs$2.3 million -
Adjusted revenue of
from sales of 29 units; produced 53 units during the quarter$3.6 million -
Today announced funding commitment with Yorkville Advisors to provide up to
of capital$50 million - Recent contract to sell 126 Lightning ZEV3 and ZEV4 cargo vans, passenger vans and shuttle buses to new Canadian customer expected to contribute to Q2 and Q3 revenue
- Strong order momentum in Type A zero-emission school buses through partnership with Collins Bus
“I’m very excited about the progress we made in Q1 on our portfolio transition. Customer feedback on our new Class 4 vehicles built on the GM platform has been very positive,” stated Tim Reeser, Lightning Co-founder and CEO. “The large Macnab order announced Friday, plus sizeable orders for Type A school buses from Collins Bus Corporation are driving growth in our business in the near term. We are also seeing strong demand momentum for shuttle buses and other Class 4 zero-emission vehicles. Further, initial customer response to our Lightning Mobile DC Fast Charger has been tremendous. We believe we are on track to achieve our stated annual revenue guidance of
“The lower GAAP revenue resulted from booking the apportioned cost of an accommodation we made to support our customers, as we bought back vehicles with defective Romeo batteries. Many of those customers have placed new orders with us, and some have already received their new vehicles in Q2.”
“Today we announced an agreement with Yorkville Advisors that will provide us with up to
First Quarter 2023 Financial Results
First quarter production was 53 units (vehicles and powertrains), down from 74 units in Q1 2022. Unit sales were 29, compared to 68 in the year-ago quarter. First quarter revenue was
First quarter net loss was
First quarter adjusted EBITDA loss was
Guidance
Based on current demand and supply conditions, the Company reiterates its prior 2023 guidance:
-
2023 revenue to be in the range of
to$35 million $50 million - 2023 unit sales to be in the range of 300 to 400 units
- 2023 unit production to be in the range of 400 to 450 units
Webcast and Conference Call Information
Company management will host a conference call on Wednesday, May 17, 2023, at 8:30 a.m. Eastern Time, to discuss the Company's financial results.
Interested investors and other parties can listen to a webcast of the live conference call and access the Company’s first quarter update presentation by logging onto the Investor Relations section of the Company's website at ir.lightningemotors.com.
The conference call can be accessed live over the phone by dialing (877) 407-6910 (domestic) or +1 (201) 689-8731 (international).
About Lightning eMotors
Lightning eMotors (NYSE: ZEV) has been providing specialized and sustainable fleet solutions since 2009, deploying complete zero-emission-vehicle solutions for commercial fleets since 2018 – including cargo and passenger vans, ambulances, shuttle buses, Type A school buses, work trucks, city buses, and motor coaches. The Lightning eMotors team designs, engineers, customizes, and manufactures zero-emission vehicles to support the wide array of fleet customer needs with a full suite of control software, telematics, analytics, and charging solutions to simplify the buying and ownership experience and maximize uptime and energy efficiency. To learn more, visit our website at lightningemotors.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of
Lightning eMotors, Inc. |
||||||||
Consolidated Balance Sheets |
||||||||
(in thousands, except share data) |
||||||||
|
March 31,
|
December 31,
|
||||||
|
(Unaudited) |
|
||||||
Assets |
|
|
||||||
Current assets |
|
|
||||||
Cash and cash equivalents |
$ |
35,447 |
|
$ |
56,011 |
|
||
Accounts receivable, net of allowance of |
|
10,901 |
|
|
9,899 |
|
||
Inventories |
|
46,988 |
|
|
47,066 |
|
||
Prepaid expenses and other current assets |
|
7,826 |
|
|
9,401 |
|
||
Total current assets |
|
101,162 |
|
|
122,377 |
|
||
Property and equipment, net |
|
12,475 |
|
|
11,519 |
|
||
Operating lease right-of-use asset, net |
|
7,411 |
|
|
7,735 |
|
||
Other assets |
|
1,770 |
|
|
1,928 |
|
||
Total assets |
$ |
122,818 |
|
$ |
143,559 |
|
||
Liabilities and stockholders’ equity |
|
|
||||||
Current liabilities |
|
|
||||||
Accounts payable |
$ |
5,228 |
|
$ |
7,961 |
|
||
Accrued expenses and other current liabilities |
|
11,912 |
|
|
6,270 |
|
||
Warrant liability |
|
54 |
|
|
60 |
|
||
Current portion of operating lease obligation |
|
1,734 |
|
|
1,649 |
|
||
Total current liabilities |
|
18,928 |
|
|
15,940 |
|
||
Long-term debt, net of debt discount |
|
52,755 |
|
|
62,103 |
|
||
Operating lease obligation, net of current portion |
|
7,262 |
|
|
7,735 |
|
||
Derivative liability |
|
26 |
|
|
78 |
|
||
Earnout liability |
|
1,859 |
|
|
2,265 |
|
||
Other long-term liabilities |
|
851 |
|
|
880 |
|
||
Total liabilities |
|
81,681 |
|
|
89,001 |
|
||
Stockholders’ equity |
|
|
||||||
Preferred stock, par value |
|
— |
|
|
— |
|
||
Common stock, par value |
|
1 |
|
|
1 |
|
||
Additional paid-in capital |
|
230,965 |
|
|
220,951 |
|
||
Accumulated deficit |
|
(189,829 |
) |
|
(166,394 |
) |
||
Total stockholders’ equity |
|
41,137 |
|
|
54,558 |
|
||
Total liabilities and stockholders’ equity |
$ |
122,818 |
|
$ |
143,559 |
|
Lightning eMotors, Inc. |
||||||||
Consolidated Statements of Operations |
||||||||
(in thousands, except share and per share data) |
||||||||
(Unaudited) |
||||||||
|
Three Months Ended March 31, |
|||||||
|
2023 |
2022 |
||||||
Revenue, net of customer refunds |
$ |
1,311 |
|
$ |
5,412 |
|
||
Cost of revenues |
|
8,152 |
|
|
7,722 |
|
||
Gross loss |
|
(6,841 |
) |
|
(2,310 |
) |
||
Operating expenses |
|
|
||||||
Research and development |
|
2,087 |
|
|
1,942 |
|
||
Selling, general and administrative |
|
14,848 |
|
|
11,599 |
|
||
Total operating expenses |
|
16,935 |
|
|
13,541 |
|
||
Loss from operations |
|
(23,776 |
) |
|
(15,851 |
) |
||
Other (income) expense, net |
|
|
||||||
Interest expense, net |
|
3,129 |
|
|
3,861 |
|
||
(Gain) loss from change in fair value of warrant liabilities |
|
(6 |
) |
|
(188 |
) |
||
(Gain) loss from change in fair value of derivative liability |
|
(39 |
) |
|
(2,555 |
) |
||
(Gain) loss from change in earnout liability |
|
(406 |
) |
|
(6,172 |
) |
||
Gain on extinguishment of debt |
|
(2,965 |
) |
|
— |
|
||
Other expense (income), net |
|
(54 |
) |
|
(41 |
) |
||
Total other (income) expense, net |
|
(341 |
) |
|
(5,095 |
) |
||
Net income (loss) |
$ |
(23,435 |
) |
$ |
(10,756 |
) |
||
Net income (loss) per share, basic |
$ |
(4.89 |
) |
$ |
(2.86 |
) |
||
Net income (loss) per share, diluted |
$ |
(4.89 |
) |
$ |
(2.86 |
) |
||
Weighted-average shares outstanding, basic |
|
4,794,178 |
|
|
3,756,402 |
|
||
Weighted-average shares outstanding, diluted |
|
4,794,178 |
|
|
3,756,402 |
|
Lightning eMotors, Inc. |
||||||||
Consolidated Statements of Cash Flows |
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(in thousands) |
||||||||
(Unaudited) |
||||||||
|
Three Months Ended March 31, |
|||||||
|
2023 |
2022 |
||||||
Cash flows from operating activities |
|
|
||||||
Net income (loss) |
$ |
(23,435 |
) |
$ |
(10,756 |
) |
||
Adjustments to reconcile net income (loss) to net cash used in operating activities: |
|
|
||||||
Depreciation and amortization |
|
532 |
|
|
361 |
|
||
Provision for doubtful accounts |
|
961 |
|
|
48 |
|
||
Provision for inventory obsolescence and write-downs |
|
3,256 |
|
|
95 |
|
||
Loss (gain) on disposal of fixed asset |
|
— |
|
|
— |
|
||
Gain on extinguishment of debt |
|
(2,965 |
) |
|
— |
|
||
Change in fair value of warrant liability |
|
(6 |
) |
|
(188 |
) |
||
Change in fair value of earnout liability |
|
(406 |
) |
|
(6,172 |
) |
||
Change in fair value of derivative liability |
|
(39 |
) |
|
(2,555 |
) |
||
Stock-based compensation |
|
1,442 |
|
|
972 |
|
||
Amortization of debt discount |
|
2,171 |
|
|
2,119 |
|
||
Non-cash impact of operating lease right-of-use asset |
|
324 |
|
|
267 |
|
||
Changes in operating assets and liabilities: |
|
|
||||||
Accounts receivable |
|
(1,963 |
) |
|
213 |
|
||
Inventories |
|
(3,178 |
) |
|
(2,785 |
) |
||
Prepaid expenses and other assets |
|
1,695 |
|
|
80 |
|
||
Accounts payable |
|
(2,736 |
) |
|
(898 |
) |
||
Accrued expenses and other liabilities |
|
5,496 |
|
|
3,057 |
|
||
Net cash used in operating activities |
|
(18,851 |
) |
|
(16,142 |
) |
||
Cash flows from investing activities |
|
|
||||||
Purchase of property and equipment |
|
(1,673 |
) |
|
(2,024 |
) |
||
Proceeds from disposal of property and equipment |
|
— |
|
|
— |
|
||
Net cash used in investing activities |
|
(1,673 |
) |
|
(2,024 |
) |
||
Cash flows from financing activities |
|
|
||||||
Payments on finance lease obligations |
|
(45 |
) |
|
(15 |
) |
||
Proceeds from exercise of stock options |
|
7 |
|
|
6 |
|
||
Tax withholding payment related to net settlement of equity awards |
|
(2 |
) |
|
— |
|
||
Net cash (used in) provided by financing activities |
|
(40 |
) |
|
(9 |
) |
||
Net (decrease) increase in cash |
|
(20,564 |
) |
|
(18,175 |
) |
||
Cash - Beginning of period |
|
56,011 |
|
|
168,538 |
|
||
Cash - End of period |
$ |
35,447 |
|
$ |
150,363 |
|
||
|
|
|
||||||
Supplemental cash flow information - Cash paid for interest |
$ |
381 |
|
$ |
113 |
|
||
Significant noncash transactions |
|
|
||||||
Conversion of convertible notes for common stock |
$ |
8,567 |
|
$ |
— |
|
||
Property and equipment included in accounts payable and accruals |
|
(223 |
) |
|
387 |
|
||
Finance lease right-of-use asset in exchange for a lease liability |
|
— |
|
|
183 |
|
||
Inventory repossessed for accounts receivable |
|
— |
|
|
— |
|
Non-GAAP Financial Measures
In addition to our results determined in accordance with GAAP, we believe the following non-GAAP measures are useful in evaluating our operational performance. We use the following non-GAAP financial information among other operational metrics to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that non-GAAP financial information, when taken collectively, may be helpful to investors in assessing our operating performance. The presentation of non-GAAP financial information should not be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.
EBITDA and Adjusted EBITDA
EBITDA is defined as net income (loss) before depreciation and amortization and interest expense. Adjusted EBITDA is defined as net income (loss) before depreciation and amortization, interest expense, stock-based compensation, gains or losses related to the change in fair value of warrant, derivative and earnout share liabilities and other non-recurring costs determined by management, such as gains or losses on extinguishment of debt and losses related to the Romeo battery recall. EBITDA and adjusted EBITDA are intended as supplemental measures of our performance that are neither required by, nor presented in accordance with, GAAP. We believe that using EBITDA and adjusted EBITDA provide an additional tool for investors to use in evaluating ongoing operating results and trends while comparing our financial measures with those of comparable companies, which may present similar non-GAAP financial measures to investors. However, you should be aware that when evaluating EBITDA and adjusted EBITDA we may incur future expenses similar to those excluded when calculating these measures. In addition, our presentation of these measures should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. Our computation of EBITDA and adjusted EBITDA may not be comparable to other similarly titled measures computed by other companies, because all companies may not calculate EBITDA and adjusted EBITDA in the same fashion.
Because of these limitations, EBITDA and adjusted EBITDA should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP. We compensate for these limitations by relying primarily on our GAAP results and using EBITDA and adjusted EBITDA on a supplemental basis. You should review the reconciliations of net income (loss) to EBITDA and adjusted EBITDA below and not rely on any single financial measure to evaluate our business.
The following table reconciles net income (loss) to EBITDA and adjusted EBITDA for the three months ended March 31, 2023 and 2022:
|
Three Months Ended March 31, |
|||||||
|
2023 |
2022 |
||||||
Net income (loss) |
$ |
(23,435 |
) |
$ |
(10,756 |
) |
||
Adjustments: |
|
|
||||||
Depreciation and amortization |
|
532 |
|
|
11 |
|
||
Interest expense, net |
|
3,129 |
|
|
3,861 |
|
||
EBITDA |
$ |
(19,774 |
) |
$ |
(6,884 |
) |
||
Stock-based compensation |
|
1,442 |
|
|
972 |
|
||
(Gain) loss from change in fair value of warrant liabilities |
|
(6 |
) |
|
(188 |
) |
||
(Gain) loss from change in fair value of derivative liability |
|
(39 |
) |
|
(2,555 |
) |
||
(Gain) loss from change in earnout liability |
|
(406 |
) |
|
(6,172 |
) |
||
Gain on extinguishment of debt |
|
(2,965 |
) |
|
— |
|
||
Romeo battery recall |
|
2,025 |
|
|
— |
|
||
Adjusted EBITDA |
$ |
(19,723 |
) |
$ |
(14,827 |
) |
Adjusted Revenue
Adjusted revenue is defined as revenue before customer refunds. The following table reconciles revenue, net of customer refunds and adjusted revenue for the three months ended March 31, 2023 and 2022:
|
Three Months Ended March 31, |
|||||
|
2023 |
2022 |
||||
Revenue, net of customer refunds |
$ |
1,311 |
$ |
5,412 |
||
Customer refunds |
|
2,255 |
|
— |
||
Adjusted Revenue |
$ |
3,566 |
$ |
5,412 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20230517005332/en/
Investor Relations Contact:
Brian Smith
(800) 223-0740
ir@lightningemotors.com
Media Relations Contact:
Nick Bettis
(800) 223-0740
pressrelations@lightningemotors.com
Source: Lightning eMotors, Inc.