Lightning eMotors Reports Financial Results for Fourth Quarter and Full Year 2022
Lightning eMotors announced record production of 128 units in Q4 2022, up from 104 units in Q3 2022. The company's revenue reached $4.3 million, a slight increase from $4.2 million year-over-year, despite facing supplier quality issues with legacy battery systems that delayed shipments. The full year 2022 revenue was $24.4 million, up 16% from 2021. The company expects 2023 revenue between $35 million and $50 million, despite ongoing challenges in the first half due to supply chain issues. Lightning is transitioning to a new Class 4 platform on GM chassis, leveraging recent government incentives for commercial EVs. A debt exchange agreement was also initiated to strengthen the balance sheet.
- Record production of 128 units in Q4 2022, up from 38 units in Q4 2021.
- Full-year 2022 revenue increased by 16% to $24.4 million.
- Transition to a new Class 4 platform on GM chassis expected to enhance product offerings.
- New 2023 revenue guidance set between $35 million to $50 million highlighting growth potential.
- Revenue constrained in Q4 2022 due to supplier quality issues with Romeo batteries.
- Net loss of $8.6 million in Q4 2022 compared to a profit of $22.2 million in Q4 2021.
- Adjusted EBITDA loss widened to $19.9 million in Q4 2022.
- Produced a record 128 units during the quarter, up from 104 in the prior quarter
- Sales of 31 zero-emission vehicles and powertrains were limited by supplier quality issues for certain batteries, and demand shifting to 2023 as a result of incentive timing
-
New Class 4 platform built on
GM chassis ready for volume production in Q2 2023 - Received Buy America and Altoona testing certification
- New strategic focus on Class 4 and above takes advantage of the convergence of new incentives with Lightning’s experience, competitive advantage, and recent investments
“Our record vehicle production in the fourth quarter capped a year in which we dramatically grew our manufacturing capacity and efficiency, managed through supply chain challenges, introduced new vehicle platforms, and established associations with strong OEM partners,” said
Reeser continued, “The dynamics of the commercial EV landscape have changed over the course of the last six months. Specifically, government policy and incentives are driving demand toward our Class 4 (14,000 lbs. Gross Vehicle Weight Rated) school bus, shuttle bus, and box truck vehicles. Since our inception, we have offered the widest variety of vehicle weight classes and applications of any
Fourth Quarter 2022 Financial Results
Fourth quarter production was 128 units, up from 38 units in Q4 2021. Revenue was
Fourth quarter net loss was
Fourth quarter adjusted EBITDA loss was
Full Year 2022 Financial Results
Full year 2022 production was 381 units, up from 156 units in 2021. Revenue was
Guidance
Based on current demand and supply conditions, the Company expects:
-
2023 revenue to be in the range of
to$35 million $50 million - 2023 vehicle and powertrain sales to be in the range of 300 to 400 units
- 2023 vehicle and powertrain production to be in the range of 400 to 450 units
Exchange Agreement
Additionally, on
The Company expects to complete the exchanges by
The exchanges are being made pursuant to an exemption from registration provided in Section 4(a)(2) of the Securities Act of 1933, as amended.
This press release does not constitute an offer to sell or a solicitation to buy any of the securities described herein, nor shall there be any offer, solicitation, or sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
Webcast and Conference Call Information
Company management will host a conference call on
Interested investors and other parties can listen to a webcast of the live conference call and access the Company’s fourth 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
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of
Consolidated Balance Sheets (in thousands, except share data) |
|||||||
|
|
|
|
||||
Assets |
|
|
|
||||
Current assets |
|
|
|
||||
Cash and cash equivalents |
$ |
56,011 |
|
|
$ |
168,538 |
|
Accounts receivable, net of allowance of |
|
9,899 |
|
|
|
9,172 |
|
Inventories |
|
47,066 |
|
|
|
14,621 |
|
Prepaid expenses and other current assets |
|
9,401 |
|
|
|
7,067 |
|
Total current assets |
|
122,377 |
|
|
|
199,398 |
|
Property and equipment, net |
|
11,519 |
|
|
|
4,891 |
|
Operating lease right-of-use asset, net |
|
7,735 |
|
|
|
8,742 |
|
Other assets |
|
1,928 |
|
|
|
379 |
|
Total assets |
$ |
143,559 |
|
|
$ |
213,410 |
|
Liabilities and stockholders’ equity |
|
|
|
||||
Current liabilities |
|
|
|
||||
Accounts payable |
$ |
7,961 |
|
|
$ |
6,021 |
|
Accrued expenses and other current liabilities |
|
6,270 |
|
|
|
5,045 |
|
Warrant liability |
|
60 |
|
|
|
2,185 |
|
Current portion of operating lease obligation |
|
1,649 |
|
|
|
1,166 |
|
Total current liabilities |
|
15,940 |
|
|
|
14,417 |
|
Long-term debt, net of debt discount |
|
62,103 |
|
|
|
63,768 |
|
Operating lease obligation, net of current portion |
|
7,735 |
|
|
|
9,260 |
|
Derivative liability |
|
78 |
|
|
|
17,418 |
|
Earnout liability |
|
2,265 |
|
|
|
83,144 |
|
Other long-term liabilities |
|
880 |
|
|
|
191 |
|
Total liabilities |
|
89,001 |
|
|
|
188,198 |
|
Stockholders’ equity |
|
|
|
||||
Preferred stock, par value |
|
— |
|
|
|
— |
|
Common stock, par value |
|
9 |
|
|
|
8 |
|
Additional paid-in capital |
|
220,943 |
|
|
|
206,768 |
|
Accumulated deficit |
|
(166,394 |
) |
|
|
(181,564 |
) |
Total stockholders’ equity |
|
54,558 |
|
|
|
25,212 |
|
Total liabilities and stockholders’ equity |
$ |
143,559 |
|
|
$ |
213,410 |
|
Consolidated Statements of Operations (in thousands, except share and per share data) |
|||||||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Revenues |
$ |
4,334 |
|
|
$ |
4,221 |
|
|
$ |
24,413 |
|
|
$ |
20,992 |
|
Cost of revenues |
|
9,060 |
|
|
|
6,901 |
|
|
|
36,251 |
|
|
|
26,293 |
|
Gross loss |
|
(4,726 |
) |
|
|
(2,680 |
) |
|
|
(11,838 |
) |
|
|
(5,301 |
) |
Operating expenses |
|
|
|
|
|
|
|
||||||||
Research and development |
|
4,434 |
|
|
|
875 |
|
|
|
9,614 |
|
|
|
3,089 |
|
Selling, general and administrative |
|
12,587 |
|
|
|
13,606 |
|
|
|
51,642 |
|
|
|
42,851 |
|
Total operating expenses |
|
17,021 |
|
|
|
14,481 |
|
|
|
61,256 |
|
|
|
45,940 |
|
Loss from operations |
|
(21,747 |
) |
|
|
(17,161 |
) |
|
|
(73,094 |
) |
|
|
(51,241 |
) |
Other (income) expense, net |
|
|
|
|
|
|
|
||||||||
Interest expense, net |
|
3,490 |
|
|
|
3,833 |
|
|
|
14,958 |
|
|
|
13,367 |
|
(Gain) loss from change in fair value of warrant liabilities |
|
(275 |
) |
|
|
704 |
|
|
|
(2,125 |
) |
|
|
28,812 |
|
(Gain) loss from change in fair value of derivative liability |
|
(932 |
) |
|
|
(3,949 |
) |
|
|
(17,302 |
) |
|
|
5,341 |
|
(Gain) loss from change in fair value of earnout liability |
|
(12,522 |
) |
|
|
(39,981 |
) |
|
|
(80,879 |
) |
|
|
4,183 |
|
Gain on extinguishment of debt |
|
(2,921 |
) |
|
|
— |
|
|
|
(2,921 |
) |
|
|
(2,194 |
) |
Other (income) expense, net |
|
(6 |
) |
|
|
46 |
|
|
|
5 |
|
|
|
19 |
|
Total other (income) expense, net |
|
(13,166 |
) |
|
|
(39,347 |
) |
|
|
(88,264 |
) |
|
|
49,528 |
|
Net income (loss) |
$ |
(8,581 |
) |
|
$ |
22,186 |
|
|
$ |
15,170 |
|
|
$ |
(100,769 |
) |
Net income (loss) per share, basic |
$ |
(0.11 |
) |
|
$ |
0.30 |
|
|
$ |
0.20 |
|
|
$ |
(1.67 |
) |
Net income (loss) per share, diluted |
$ |
(0.11 |
) |
|
$ |
0.28 |
|
|
$ |
0.16 |
|
|
$ |
(1.67 |
) |
Weighted-average shares outstanding, basic |
|
77,132,774 |
|
|
|
74,984,051 |
|
|
|
77,132,774 |
|
|
|
60,260,156 |
|
Weighted-average shares outstanding, diluted |
|
77,132,774 |
|
|
|
78,311,597 |
|
|
|
85,605,836 |
|
|
|
60,260,156 |
|
Consolidated Statements of Cash Flows (in thousands) |
|||||||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Cash flows from operating activities |
|
|
|
|
|
|
|
||||||||
Net income (loss) |
$ |
(8,581 |
) |
|
$ |
22,186 |
|
|
$ |
15,170 |
|
|
$ |
(100,769 |
) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: |
|
|
|
|
|
|
|
||||||||
Depreciation and amortization |
|
541 |
|
|
|
269 |
|
|
|
1,820 |
|
|
|
874 |
|
Provision for doubtful accounts |
|
228 |
|
|
|
3,207 |
|
|
|
2,459 |
|
|
|
3,349 |
|
Inventory obsolescence and write-downs |
|
3,864 |
|
|
|
917 |
|
|
|
5,019 |
|
|
|
917 |
|
Loss on disposal of fixed asset |
|
— |
|
|
|
48 |
|
|
|
58 |
|
|
|
39 |
|
Gain on extinguishment of debt |
|
(2,921 |
) |
|
|
— |
|
|
|
(2,921 |
) |
|
|
(2,194 |
) |
Change in fair value of warrant liability |
|
(275 |
) |
|
|
704 |
|
|
|
(2,125 |
) |
|
|
28,812 |
|
Change in fair value of earnout liability |
|
(12,522 |
) |
|
|
(39,981 |
) |
|
|
(80,879 |
) |
|
|
4,183 |
|
Change in fair value of derivative liability |
|
(932 |
) |
|
|
(3,949 |
) |
|
|
(17,302 |
) |
|
|
5,341 |
|
Stock-based compensation |
|
1,273 |
|
|
|
993 |
|
|
|
5,151 |
|
|
|
2,538 |
|
Amortization of debt discount |
|
2,457 |
|
|
|
2,072 |
|
|
|
9,356 |
|
|
|
6,670 |
|
Non-cash impact of operating lease right-of-use asset |
|
311 |
|
|
|
(462 |
) |
|
|
1,160 |
|
|
|
991 |
|
Issuance of common stock for commitment shares |
|
— |
|
|
|
— |
|
|
|
851 |
|
|
|
— |
|
Issuance of common stock warrants for services performed |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
433 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
||||||||
Accounts receivable |
|
197 |
|
|
|
(309 |
) |
|
|
(4,596 |
) |
|
|
(8,399 |
) |
Inventories |
|
(14,158 |
) |
|
|
(4,777 |
) |
|
|
(36,113 |
) |
|
|
(9,795 |
) |
Prepaid expenses and other assets |
|
959 |
|
|
|
131 |
|
|
|
(3,167 |
) |
|
|
(6,380 |
) |
Accounts payable |
|
(4,122 |
) |
|
|
2,285 |
|
|
|
1,930 |
|
|
|
3,578 |
|
Accrued expenses and other liabilities |
|
(3,856 |
) |
|
|
(1,179 |
) |
|
|
(394 |
) |
|
|
4,005 |
|
Net cash used in operating activities |
|
(37,537 |
) |
|
|
(17,845 |
) |
|
|
(104,523 |
) |
|
|
(65,807 |
) |
Cash flows from investing activities |
|
|
|
|
|
|
|
||||||||
Purchase of property and equipment |
|
(2,225 |
) |
|
|
(924 |
) |
|
|
(7,919 |
) |
|
|
(3,244 |
) |
Proceeds from disposal of property and equipment |
|
— |
|
|
|
46 |
|
|
|
— |
|
|
|
55 |
|
Net cash used in investing activities |
|
(2,225 |
) |
|
|
(878 |
) |
|
|
(7,919 |
) |
|
|
(3,189 |
) |
Cash flows from financing activities |
|
|
|
|
|
|
|
||||||||
Proceeds from convertible notes payable, net of issuance costs paid |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
95,000 |
|
Proceeds from Business combination and PIPE Financing, net of issuance costs paid |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
142,796 |
|
Proceeds from facility borrowings |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7,000 |
|
Repayments of facility borrowings |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(11,500 |
) |
Proceeds from the exercise of Series C redeemable convertible preferred warrants |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,100 |
|
Proceeds from exercise of common warrants |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
157 |
|
Payments on finance lease obligations |
|
(43 |
) |
|
|
— |
|
|
|
(121 |
) |
|
|
(54 |
) |
Proceeds from exercise of stock options |
|
22 |
|
|
|
23 |
|
|
|
151 |
|
|
|
575 |
|
Tax withholding payment related to net settlement of equity awards |
|
(1 |
) |
|
|
— |
|
|
|
(115 |
) |
|
|
— |
|
Net cash (used in) provided by financing activities |
|
(22 |
) |
|
|
23 |
|
|
|
(85 |
) |
|
|
237,074 |
|
Net (decrease) increase in cash |
|
(39,784 |
) |
|
|
(18,700 |
) |
|
|
(112,527 |
) |
|
|
168,078 |
|
Cash - Beginning of year |
|
95,795 |
|
|
|
187,238 |
|
|
|
168,538 |
|
|
|
460 |
|
Cash - End of year |
$ |
56,011 |
|
|
$ |
168,538 |
|
|
$ |
56,011 |
|
|
$ |
168,538 |
|
|
|
|
|
|
|
|
|
||||||||
Supplemental cash flow information - Cash paid for interest |
$ |
3,414 |
|
|
$ |
3,686 |
|
|
$ |
6,950 |
|
|
$ |
6,245 |
|
Significant noncash transactions |
|
|
|
|
|
|
|
||||||||
Earnout liability at inception |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
78,960 |
|
Warrant liability at inception |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,253 |
|
Derivative liability at inception |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
17,063 |
|
Conversion of short-term convertible notes for common stock |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
9,679 |
|
Conversion of convertible notes for common stock |
|
8,138 |
|
|
|
— |
|
|
|
8,138 |
|
|
|
10,089 |
|
Conversion of warrant liabilities for common stock |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
37,580 |
|
Property and equipment included in accounts payable and accruals |
|
(240 |
) |
|
|
— |
|
|
|
639 |
|
|
|
— |
|
Finance lease right-of-use asset in exchange for a lease liability |
|
— |
|
|
|
208 |
|
|
|
786 |
|
|
|
208 |
|
Inventory repossessed for accounts receivable |
|
— |
|
|
|
— |
|
|
|
1,410 |
|
|
|
— |
|
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 the commitment fee associated with our equity line of credit agreement with
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 reconciliation 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 and twelve months ended
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Net income (loss) |
$ |
(8,581 |
) |
|
$ |
22,186 |
|
|
$ |
15,170 |
|
|
$ |
(100,769 |
) |
Adjustments: |
|
|
|
|
|
|
|
||||||||
Depreciation and Amortization |
|
541 |
|
|
|
269 |
|
|
|
1,820 |
|
|
|
874 |
|
Interest expense, net |
|
3,490 |
|
|
|
3,833 |
|
|
|
14,958 |
|
|
|
13,367 |
|
EBITDA |
$ |
(4,550 |
) |
|
$ |
26,288 |
|
|
$ |
31,948 |
|
|
$ |
(86,528 |
) |
Stock-based compensation |
|
1,273 |
|
|
|
993 |
|
|
|
5,151 |
|
|
|
2,538 |
|
(Gain) loss from change in fair value of warrant liabilities |
|
(275 |
) |
|
|
704 |
|
|
|
(2,125 |
) |
|
|
28,812 |
|
(Gain) loss from change in fair value of derivative liability |
|
(932 |
) |
|
|
(3,949 |
) |
|
|
(17,302 |
) |
|
|
5,341 |
|
(Gain) loss from change in fair value of earnout liability |
|
(12,522 |
) |
|
|
(39,981 |
) |
|
|
(80,879 |
) |
|
|
4,183 |
|
Gain on extinguishment of debt |
|
(2,921 |
) |
|
|
— |
|
|
(2,921 |
) |
|
|
(2,194 |
) |
|
ELOC Agreement commitment fee |
|
— |
|
|
|
— |
|
|
|
851 |
|
|
|
— |
|
Business Combination expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
9,098 |
|
Adjusted EBITDA |
$ |
(19,927 |
) |
|
$ |
(15,945 |
) |
|
$ |
(65,277 |
) |
|
$ |
(38,750 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20230313005270/en/
Investor Relations Contact:
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ir@lightningemotors.com
Media Relations Contact:
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