Lightning eMotors Reports Financial Results for Second Quarter 2022
Lightning eMotors reported a production increase to 74 vehicles and powertrains in Q2 2022, up from 40 units in the same period last year. Quarterly revenue was $3.5 million, a decline from $5.9 million in Q2 2021. The company achieved a net income of $35.7 million, influenced by a one-time gain of $44.1 million. Full year guidance predicts 350 to 450 vehicles sold and revenue between $35 million and $45 million. The company also launched new products, including the Lightning Mobile Battery Charger and telematics software, and expanded partnerships for chassis supply.
- Produced 74 vehicles and powertrains, a 85% increase year-over-year.
- Achieved a net income of $35.7 million, significantly improved from a loss of $46.1 million in Q2 2021.
- Introduced new products like the Lightning Mobile Battery Vehicle Charger.
- Expanded agreements with Forest River and Collins Bus for chassis supply.
- Quarterly revenue declined to $3.5 million from $5.9 million year-over-year.
- Adjusted EBITDA loss of $13.9 million, worsening from a loss of $8.4 million in Q2 2021.
- Customer financing delays impacted unit sales, with some pushed to later quarters.
- Continued uncertainty in medium-term chassis supply may affect production.
– Produced 74 vehicles and powertrains during the quarter, up from 40 in the prior year quarter
– Quarterly revenue of
– Announced new Lightning MobileTM Battery Vehicle Charger
– Introduced next-generation Lightning InsightsTM real-time telematics and charger management software
– Expanded agreement with
– Full year guidance of 350 to 450 vehicles and powertrains sold and revenue of
“Our operations team executed well and produced 74 vehicles and powertrains in the quarter. Some unit sales were pushed out of the quarter due to customer financing delays,” said
“Mitigation strategies we employed earlier in the year are improving the outlook for the second half of this year, and we now have a commitment from
“The opportunities at
Second Quarter 2022 Financial Results
Second quarter production was 74 vehicles and powertrains, up from 40 units in Q2 2021. Second quarter revenue was
Second quarter net income was
Second quarter adjusted EBITDA loss was
Guidance
Based on current demand and supply conditions, the Company expects:
- Third quarter vehicle and powertrain sales to be in the range of 60 to 90 units
-
Third quarter revenue to be in the range of
to$7 million $10 million -
Third quarter adjusted EBITDA to be in the range of -
to$18 million - $20 million - Full year 2022 vehicle and powertrain sales to be in the range of 350 to 450 units
-
Full year 2022 revenue to be in the range of
to$35 million $45 million
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 second 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 (888) 645-4404 (domestic) or +1 (404) 267-0371 (international).
About
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of
Consolidated Balance Sheets (in thousands, except share data) |
|||||||
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(Unaudited) |
|
|
||||
Assets |
|
|
|
||||
Current assets |
|
|
|
||||
Cash and cash equivalents |
$ |
125,410 |
|
|
$ |
168,538 |
|
Accounts receivable, net of allowance of |
|
6,831 |
|
|
|
9,172 |
|
Inventories |
|
25,167 |
|
|
|
14,621 |
|
Prepaid expenses and other current assets |
|
8,251 |
|
|
|
7,067 |
|
Total current assets |
|
165,659 |
|
|
|
199,398 |
|
Property and equipment, net |
|
9,159 |
|
|
|
4,891 |
|
Operating lease right-of-use asset, net |
|
8,344 |
|
|
|
8,742 |
|
Other assets |
|
2,201 |
|
|
|
379 |
|
Total assets |
$ |
185,363 |
|
|
$ |
213,410 |
|
Liabilities and stockholders’ equity |
|
|
|
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Current liabilities |
|
|
|
||||
Accounts payable |
$ |
7,256 |
|
|
$ |
6,021 |
|
Accrued expenses and other current liabilities |
|
8,044 |
|
|
|
5,045 |
|
Warrant liability |
|
871 |
|
|
|
2,185 |
|
Current portion of operating lease obligation |
|
1,432 |
|
|
|
1,166 |
|
Total current liabilities |
|
17,603 |
|
|
|
14,417 |
|
Long-term debt, net of debt discount |
|
68,181 |
|
|
|
63,768 |
|
Operating lease obligation, net of current portion |
|
8,594 |
|
|
|
9,260 |
|
Derivative liability |
|
4,776 |
|
|
|
17,418 |
|
Earnout liability |
|
32,841 |
|
|
|
83,144 |
|
Other long-term liabilities |
|
751 |
|
|
|
191 |
|
Total liabilities |
|
132,746 |
|
|
|
188,198 |
|
Stockholders’ equity |
|
|
|
||||
Preferred stock, par value |
|
— |
|
|
|
— |
|
Common stock, par value |
|
8 |
|
|
|
8 |
|
Additional paid-in capital |
|
209,191 |
|
|
|
206,768 |
|
Accumulated deficit |
|
(156,582 |
) |
|
|
(181,564 |
) |
Total stockholders’ equity |
|
52,617 |
|
|
|
25,212 |
|
Total liabilities and stockholders’ equity |
$ |
185,363 |
|
|
$ |
213,410 |
|
Consolidated Statements of Operations (in thousands, except share and per share data) (Unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
Revenues |
$ |
3,536 |
|
|
$ |
5,923 |
|
|
$ |
8,948 |
|
|
$ |
10,514 |
|
Cost of revenues |
|
4,889 |
|
|
|
7,048 |
|
|
|
12,611 |
|
|
|
12,366 |
|
Gross loss |
|
(1,353 |
) |
|
|
(1,125 |
) |
|
|
(3,663 |
) |
|
|
(1,852 |
) |
Operating expenses |
|
|
|
|
|
|
|
||||||||
Research and development |
|
1,810 |
|
|
|
743 |
|
|
|
3,752 |
|
|
|
1,391 |
|
Selling, general and administrative |
|
12,559 |
|
|
|
16,026 |
|
|
|
24,158 |
|
|
|
19,946 |
|
Total operating expenses |
|
14,369 |
|
|
|
16,769 |
|
|
|
27,910 |
|
|
|
21,337 |
|
Loss from operations |
|
(15,722 |
) |
|
|
(17,894 |
) |
|
|
(31,573 |
) |
|
|
(23,189 |
) |
Other (income) expense, net |
|
|
|
|
|
|
|
||||||||
Interest expense, net |
|
3,849 |
|
|
|
3,940 |
|
|
|
7,710 |
|
|
|
5,551 |
|
(Gain) loss from change in fair value of warrant liabilities |
|
(1,126 |
) |
|
|
7,596 |
|
|
|
(1,314 |
) |
|
|
28,135 |
|
(Gain) loss from change in fair value of derivative liability |
|
(10,087 |
) |
|
|
4,267 |
|
|
|
(12,642 |
) |
|
|
4,267 |
|
(Gain) loss from change in earnout liability |
|
(44,131 |
) |
|
|
12,376 |
|
|
|
(50,303 |
) |
|
|
12,376 |
|
Other expense (income), net |
|
35 |
|
|
|
(15 |
) |
|
|
(6 |
) |
|
|
(24 |
) |
Total other (income) expense, net |
|
(51,460 |
) |
|
|
28,164 |
|
|
|
(56,555 |
) |
|
|
50,305 |
|
Net income (loss) |
$ |
35,738 |
|
|
$ |
(46,058 |
) |
|
$ |
24,982 |
|
|
$ |
(73,494 |
) |
Net income (loss) per share, basic |
$ |
0.47 |
|
|
$ |
(0.79 |
) |
|
$ |
0.33 |
|
|
$ |
(1.60 |
) |
Net income (loss) per share, diluted |
$ |
0.35 |
|
|
$ |
(0.79 |
) |
|
$ |
0.23 |
|
|
$ |
(1.60 |
) |
Weighted-average shares outstanding, basic |
|
75,408,116 |
|
|
|
58,560,928 |
|
|
|
75,268,854 |
|
|
|
45,924,405 |
|
Weighted-average shares outstanding, diluted |
|
85,210,210 |
|
|
|
58,560,928 |
|
|
|
85,281,301 |
|
|
|
45,924,405 |
|
Consolidated Statements of Cash Flows (in thousands) (Unaudited) |
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|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
Cash flows from operating activities |
|
|
|
|
|
|
|
||||||||
Net income (loss) |
$ |
35,738 |
|
|
$ |
(46,058 |
) |
|
$ |
24,982 |
|
|
$ |
(73,494 |
) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: |
|
|
|
|
|
|
|
||||||||
Depreciation and amortization |
|
407 |
|
|
|
224 |
|
|
|
768 |
|
|
|
350 |
|
Provision for doubtful accounts |
|
450 |
|
|
|
— |
|
|
|
498 |
|
|
|
142 |
|
Provision for inventory obsolescence and write-downs |
|
682 |
|
|
|
98 |
|
|
|
777 |
|
|
|
98 |
|
Loss (gain) on disposal of fixed asset |
|
37 |
|
|
|
— |
|
|
|
37 |
|
|
|
(9 |
) |
Change in fair value of warrant liability |
|
(1,126 |
) |
|
|
7,596 |
|
|
|
(1,314 |
) |
|
|
28,135 |
|
Change in fair value of earnout liability |
|
(44,131 |
) |
|
|
12,376 |
|
|
|
(50,303 |
) |
|
|
12,376 |
|
Change in fair value of derivative liability |
|
(10,087 |
) |
|
|
4,267 |
|
|
|
(12,642 |
) |
|
|
4,267 |
|
Stock-based compensation |
|
1,436 |
|
|
|
128 |
|
|
|
2,408 |
|
|
|
196 |
|
Amortization of debt discount |
|
2,294 |
|
|
|
1,537 |
|
|
|
4,413 |
|
|
|
2,522 |
|
Non-cash impact of operating lease right-of-use asset |
|
284 |
|
|
|
671 |
|
|
|
551 |
|
|
|
1,224 |
|
Issuance of common stock warrants for services performed |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
433 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
||||||||
Accounts receivable |
|
1,630 |
|
|
|
(3,901 |
) |
|
|
1,843 |
|
|
|
(4,458 |
) |
Inventories |
|
(8,597 |
) |
|
|
(2,094 |
) |
|
|
(11,382 |
) |
|
|
(3,480 |
) |
Prepaid expenses and other assets |
|
(2,738 |
) |
|
|
(6,294 |
) |
|
|
(2,658 |
) |
|
|
(8,775 |
) |
Accounts payable |
|
2,084 |
|
|
|
(742 |
) |
|
|
1,186 |
|
|
|
562 |
|
Accrued expenses and other liabilities |
|
(1,399 |
) |
|
|
5,148 |
|
|
|
1,658 |
|
|
|
6,237 |
|
Net cash used in operating activities |
|
(23,036 |
) |
|
|
(27,044 |
) |
|
|
(39,178 |
) |
|
|
(33,674 |
) |
Cash flows from investing activities |
|
|
|
|
|
|
|
||||||||
Purchase of property and equipment |
|
(1,906 |
) |
|
|
(876 |
) |
|
|
(3,930 |
) |
|
|
(1,445 |
) |
Proceeds from disposal of property and equipment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
9 |
|
Net cash used in investing activities |
|
(1,906 |
) |
|
|
(876 |
) |
|
|
(3,930 |
) |
|
|
(1,436 |
) |
Cash flows from financing activities |
|
|
|
|
|
|
|
||||||||
Proceeds from convertible notes payable, net of issuance costs paid |
|
— |
|
|
|
95,000 |
|
|
|
— |
|
|
|
95,000 |
|
Proceeds from Business Combination and PIPE Financing, net of issuance costs paid |
|
— |
|
|
|
142,796 |
|
|
|
— |
|
|
|
142,796 |
|
Proceeds from facility borrowings |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7,000 |
|
Repayments of facility borrowings |
|
— |
|
|
|
(11,500 |
) |
|
|
— |
|
|
|
(11,500 |
) |
Proceeds from the exercise of Series C redeemable convertible preferred warrants |
|
— |
|
|
|
1,600 |
|
|
|
— |
|
|
|
3,100 |
|
Proceeds from exercise of common warrants |
|
— |
|
|
|
157 |
|
|
|
— |
|
|
|
157 |
|
Payments on finance lease obligations |
|
(20 |
) |
|
|
(48 |
) |
|
|
(35 |
) |
|
|
(54 |
) |
Proceeds from exercise of stock options |
|
117 |
|
|
|
31 |
|
|
|
123 |
|
|
|
41 |
|
Tax withholding payment related to net settlement of equity awards |
|
(108 |
) |
|
|
— |
|
|
|
(108 |
) |
|
|
— |
|
Net cash (used in) provided by financing activities |
|
(11 |
) |
|
|
228,036 |
|
|
|
(20 |
) |
|
|
236,540 |
|
Net (decrease) increase in cash |
|
(24,953 |
) |
|
|
200,116 |
|
|
|
(43,128 |
) |
|
|
201,430 |
|
Cash - Beginning of period |
|
150,363 |
|
|
|
1,774 |
|
|
|
168,538 |
|
|
|
460 |
|
Cash - End of period |
$ |
125,410 |
|
|
$ |
201,890 |
|
|
$ |
125,410 |
|
|
$ |
201,890 |
|
|
|
|
|
|
|
|
|
||||||||
Supplemental cash flow information - Cash paid for interest |
$ |
3,413 |
|
|
$ |
1,299 |
|
|
$ |
3,526 |
|
|
$ |
1,649 |
|
Significant noncash transactions |
|
|
|
|
|
|
|
||||||||
Earnout liability at inception |
$ |
— |
|
|
$ |
78,960 |
|
|
$ |
— |
|
|
$ |
78,960 |
|
Warrant liability at inception |
|
— |
|
|
|
1,253 |
|
|
|
— |
|
|
|
1,253 |
|
Derivative liability at inception |
|
— |
|
|
|
17,063 |
|
|
|
— |
|
|
|
17,063 |
|
Conversion of convertible notes for common stock |
|
— |
|
|
|
9,679 |
|
|
|
— |
|
|
|
9,679 |
|
Conversion of warrant liabilities for common stock |
|
— |
|
|
|
37,580 |
|
|
|
— |
|
|
|
37,580 |
|
Property and equipment included in accounts payable and accruals |
|
321 |
|
|
|
— |
|
|
|
708 |
|
|
|
— |
|
Finance lease right-of-use asset in exchange for a lease liability |
|
603 |
|
|
|
— |
|
|
|
786 |
|
|
|
— |
|
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.
EBITDA, Adjusted EBITDA and Adjusted Net Loss
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 Business Combination related expenses. Adjusted net loss is defined as net income (loss) adjusted for stock-based compensation expense, gains or losses related to the change in fair value of warrant, derivative and earnout share liabilities and certain other non-recurring costs determined by management, such as Business Combination related expenses. EBITDA, adjusted EBITDA and adjusted net loss are intended as supplemental measures of our performance that are neither required by, nor presented in accordance with, GAAP. We believe that using EBITDA, adjusted EBITDA and adjusted net loss 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, adjusted EBITDA and adjusted net loss 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, adjusted EBITDA and adjusted net loss may not be comparable to other similarly titled measures computed by other companies, because all companies may not calculate EBITDA, adjusted EBITDA and adjusted net loss in the same fashion.
Because of these limitations, EBITDA, adjusted EBITDA and adjusted net loss 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, adjusted EBITDA and adjusted net loss on a supplemental basis. You should review the reconciliations of net income (loss) to EBITDA and adjusted EBITDA and net income (loss) to adjusted net loss 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 six months ended |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
Net income (loss) |
$ |
35,738 |
|
|
$ |
(46,058 |
) |
|
$ |
24,982 |
|
|
$ |
(73,494 |
) |
Adjustments: |
|
|
|
|
|
|
|
||||||||
Depreciation and amortization |
|
407 |
|
|
|
224 |
|
|
|
768 |
|
|
|
350 |
|
Interest expense, net |
|
3,849 |
|
|
|
3,940 |
|
|
|
7,710 |
|
|
|
5,551 |
|
EBITDA |
$ |
39,994 |
|
|
$ |
(41,894 |
) |
|
$ |
33,460 |
|
|
$ |
(67,593 |
) |
Stock-based compensation |
|
1,436 |
|
|
|
128 |
|
|
|
2,408 |
|
|
|
196 |
|
(Gain) loss from change in fair value of warrant liabilities |
|
(1,126 |
) |
|
|
7,596 |
|
|
|
(1,314 |
) |
|
|
28,135 |
|
(Gain) loss from change in fair value of derivative liability |
|
(10,087 |
) |
|
|
4,267 |
|
|
|
(12,642 |
) |
|
|
4,267 |
|
(Gain) loss from change in earnout liability |
|
(44,131 |
) |
|
|
12,376 |
|
|
|
(50,303 |
) |
|
|
12,376 |
|
Business Combination expense |
|
— |
|
|
|
9,098 |
|
|
|
— |
|
|
|
9,098 |
|
Adjusted EBITDA |
$ |
(13,914 |
) |
|
$ |
(8,429 |
) |
|
$ |
(28,391 |
) |
|
$ |
(13,521 |
) |
The following table reconciles net loss to adjusted net loss for the three and six months ended |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
Net income (loss) |
$ |
35,738 |
|
|
$ |
(46,058 |
) |
|
$ |
24,982 |
|
|
$ |
(73,494 |
) |
Adjustments: |
|
|
|
|
|
|
|
||||||||
Stock-based compensation |
|
1,436 |
|
|
|
128 |
|
|
|
2,408 |
|
|
|
196 |
|
Business Combination expense |
|
— |
|
|
|
9,098 |
|
|
|
— |
|
|
|
9,098 |
|
(Gain) loss from change in fair value of warrant liabilities |
|
(1,126 |
) |
|
|
7,596 |
|
|
|
(1,314 |
) |
|
|
28,135 |
|
(Gain) loss from change in fair value of derivative liability |
|
(10,087 |
) |
|
|
4,267 |
|
|
|
(12,642 |
) |
|
|
4,267 |
|
(Gain) loss from change in earnout liability |
|
(44,131 |
) |
|
|
12,376 |
|
|
|
(50,303 |
) |
|
|
12,376 |
|
Adjusted net loss |
$ |
(18,170 |
) |
|
$ |
(12,593 |
) |
|
$ |
(36,869 |
) |
|
$ |
(19,422 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20220809005834/en/
Investor Relations Contact:
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Source:
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