Lightning eMotors Reports Financial Results for Third Quarter 2022
Lightning eMotors reported a record quarterly revenue of $11.1 million for Q3 2022, a significant increase from $6.3 million in Q3 2021. The company sold a record 93 zero-emission vehicles and produced 104 vehicles, up from 43 year-over-year. A strategic partnership with GoBolt was announced, deploying 170 zero-emission vehicles across the U.S. and Canada. Despite a net loss of $1.2 million, improved production capacity and demand were highlighted. Guidance for Q4 2022 anticipates revenue between $13 million and $18 million.
- Record quarterly revenue of $11.1 million, up from $6.3 million YoY.
- Production of 104 vehicles, significantly higher than 43 in Q3 2021.
- Established a strategic partnership with GoBolt for 170 zero-emission vehicles.
- Expected Q4 2022 revenue guidance of $13 million to $18 million.
- Net loss of $1.2 million, despite an $18.1 million one-time gain.
- Adjusted EBITDA loss of $17.0 million, worsened from $9.3 million YoY.
- Adjusted net loss increased to $21.2 million from $13.5 million in the prior year.
-
Record quarterly revenue of
$11.1 million - Sold a record 93 zero-emission vehicles
- Produced 104 vehicles and powertrains during the quarter, up from 43 in the prior year quarter
-
Announced strategic partnership with GoBolt to deploy 170 zero-emission cargo vans and box trucks across the
U.S. andCanada - Announced 2nd Generation repower program for 40-foot transit buses
“Our strong third quarter results highlight our improved production capacity, supply chain execution, and strong demand for Lightning products,” said
Reeser continued, “The forces driving the adoption of zero-emission vehicles among fleets are strengthening with the signing of the Inflation Reduction Act of 2022, which contains provisions that, starting in 2023, include up to a
Third Quarter 2022 Financial Results
Third quarter production was 104 vehicles, up from 43 units in Q3 2021. Third quarter revenue was
Third quarter Net loss was
Third quarter adjusted EBITDA loss was
Guidance
Based on current demand and supply conditions, the Company expects:
-
Fourth quarter revenue to be in the range of
to$13 million $18 million - Fourth quarter vehicle and powertrain sales to be in the range of 100 to 130 units
- Fourth quarter vehicle and powertrain production to be in the range of 130 to 140 units
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 (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) |
|||||||
|
|
|
|
||||
|
(Unaudited) |
|
|
||||
Assets |
|
|
|
||||
Current assets |
|
|
|
||||
Cash and cash equivalents |
$ |
95,795 |
|
|
$ |
168,538 |
|
Accounts receivable, net of allowance of |
|
10,324 |
|
|
|
9,172 |
|
Inventories |
|
36,772 |
|
|
|
14,621 |
|
Prepaid expenses and other current assets |
|
10,418 |
|
|
|
7,067 |
|
Total current assets |
|
153,309 |
|
|
|
199,398 |
|
Property and equipment, net |
|
10,042 |
|
|
|
4,891 |
|
Operating lease right-of-use asset, net |
|
8,046 |
|
|
|
8,742 |
|
Other assets |
|
1,909 |
|
|
|
379 |
|
Total assets |
$ |
173,306 |
|
|
$ |
213,410 |
|
Liabilities and stockholders’ equity |
|
|
|
||||
Current liabilities |
|
|
|
||||
Accounts payable |
$ |
12,082 |
|
|
$ |
6,021 |
|
Accrued expenses and other current liabilities |
|
10,031 |
|
|
|
5,045 |
|
Warrant liability |
|
335 |
|
|
|
2,185 |
|
Current portion of operating lease obligation |
|
1,544 |
|
|
|
1,166 |
|
Total current liabilities |
|
23,992 |
|
|
|
14,417 |
|
Long-term debt, net of debt discount |
|
70,667 |
|
|
|
63,768 |
|
Operating lease obligation, net of current portion |
|
8,176 |
|
|
|
9,260 |
|
Derivative liability |
|
1,048 |
|
|
|
17,418 |
|
Earnout liability |
|
14,787 |
|
|
|
83,144 |
|
Other long-term liabilities |
|
929 |
|
|
|
191 |
|
Total liabilities |
|
119,599 |
|
|
|
188,198 |
|
Stockholders’ equity |
|
|
|
||||
Preferred stock, par value |
|
— |
|
|
|
— |
|
Common stock, par value |
|
8 |
|
|
|
8 |
|
Additional paid-in capital |
|
211,512 |
|
|
|
206,768 |
|
Accumulated deficit |
|
(157,813 |
) |
|
|
(181,564 |
) |
Total stockholders’ equity |
|
53,707 |
|
|
|
25,212 |
|
Total liabilities and stockholders’ equity |
$ |
173,306 |
|
|
$ |
213,410 |
|
Consolidated Statements of Operations (in thousands, except share and per share data) (Unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Revenues |
$ |
11,131 |
|
|
$ |
6,257 |
|
|
$ |
20,079 |
|
|
$ |
16,771 |
|
Cost of revenues |
|
14,580 |
|
|
|
7,026 |
|
|
|
27,191 |
|
|
|
19,392 |
|
Gross loss |
|
(3,449 |
) |
|
|
(769 |
) |
|
|
(7,112 |
) |
|
|
(2,621 |
) |
Operating expenses |
|
|
|
|
|
|
|
||||||||
Research and development |
|
1,428 |
|
|
|
823 |
|
|
|
5,180 |
|
|
|
2,214 |
|
Selling, general and administrative |
|
14,897 |
|
|
|
9,299 |
|
|
|
39,055 |
|
|
|
29,245 |
|
Total operating expenses |
|
16,325 |
|
|
|
10,122 |
|
|
|
44,235 |
|
|
|
31,459 |
|
Loss from operations |
|
(19,774 |
) |
|
|
(10,891 |
) |
|
|
(51,347 |
) |
|
|
(34,080 |
) |
Other (income) expense, net |
|
|
|
|
|
|
|
||||||||
Interest expense, net |
|
3,758 |
|
|
|
3,983 |
|
|
|
11,468 |
|
|
|
9,534 |
|
(Gain) loss from change in fair value of warrant liabilities |
|
(536 |
) |
|
|
(27 |
) |
|
|
(1,850 |
) |
|
|
28,108 |
|
(Gain) loss from change in fair value of derivative liability |
|
(3,728 |
) |
|
|
5,023 |
|
|
|
(16,370 |
) |
|
|
9,290 |
|
(Gain) loss from change in earnout liability |
|
(18,054 |
) |
|
|
31,788 |
|
|
|
(68,357 |
) |
|
|
44,164 |
|
Gain on extinguishment of debt |
|
— |
|
|
|
(2,194 |
) |
|
|
— |
|
|
|
(2,194 |
) |
Other expense (income), net |
|
17 |
|
|
|
(3 |
) |
|
|
11 |
|
|
|
(27 |
) |
Total other (income) expense, net |
|
(18,543 |
) |
|
|
38,570 |
|
|
|
(75,098 |
) |
|
|
88,875 |
|
Net income (loss) |
$ |
(1,231 |
) |
|
$ |
(49,461 |
) |
|
$ |
23,751 |
|
|
$ |
(122,955 |
) |
Net income (loss) per share, basic |
$ |
(0.02 |
) |
|
$ |
(0.67 |
) |
|
$ |
0.31 |
|
|
$ |
(2.22 |
) |
Net income (loss) per share, diluted |
$ |
(0.02 |
) |
|
$ |
(0.67 |
) |
|
$ |
0.23 |
|
|
$ |
(2.22 |
) |
Weighted-average shares outstanding, basic |
|
75,745,388 |
|
|
|
73,740,294 |
|
|
|
75,429,444 |
|
|
|
55,298,257 |
|
Weighted-average shares outstanding, diluted |
|
75,745,388 |
|
|
|
73,740,294 |
|
|
|
85,374,404 |
|
|
|
55,298,257 |
|
Consolidated Statements of Cash Flows (in thousands) (Unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Cash flows from operating activities |
|
|
|
|
|
|
|
||||||||
Net income (loss) |
$ |
(1,231 |
) |
|
$ |
(49,461 |
) |
|
$ |
23,751 |
|
|
$ |
(122,955 |
) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: |
|
|
|
|
|
|
|
||||||||
Depreciation and amortization |
|
511 |
|
|
|
255 |
|
|
|
1,279 |
|
|
|
605 |
|
Provision for doubtful accounts |
|
1,733 |
|
|
|
— |
|
|
|
2,231 |
|
|
|
142 |
|
Provision for inventory obsolescence and write-downs |
|
378 |
|
|
|
— |
|
|
|
1,155 |
|
|
|
98 |
|
Loss (gain) on disposal of fixed asset |
|
21 |
|
|
|
— |
|
|
|
58 |
|
|
|
(9 |
) |
Gain on extinguishment of debt |
|
— |
|
|
|
(2,194 |
) |
|
|
— |
|
|
|
(2,194 |
) |
Change in fair value of warrant liability |
|
(536 |
) |
|
|
(27 |
) |
|
|
(1,850 |
) |
|
|
28,108 |
|
Change in fair value of earnout liability |
|
(18,054 |
) |
|
|
31,788 |
|
|
|
(68,357 |
) |
|
|
44,164 |
|
Change in fair value of derivative liability |
|
(3,728 |
) |
|
|
5,023 |
|
|
|
(16,370 |
) |
|
|
9,290 |
|
Stock-based compensation |
|
1,470 |
|
|
|
1,349 |
|
|
|
3,878 |
|
|
|
1,545 |
|
Amortization of debt discount |
|
2,486 |
|
|
|
2,076 |
|
|
|
6,899 |
|
|
|
4,598 |
|
Non-cash impact of operating lease right-of-use asset |
|
298 |
|
|
|
229 |
|
|
|
849 |
|
|
|
1,453 |
|
Issuance of common stock for commitment shares |
|
851 |
|
|
|
— |
|
|
|
851 |
|
|
|
— |
|
Issuance of common stock warrants for services performed |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
433 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
||||||||
Accounts receivable |
|
(6,636 |
) |
|
|
(3,632 |
) |
|
|
(4,793 |
) |
|
|
(8,090 |
) |
Inventories |
|
(10,573 |
) |
|
|
(1,636 |
) |
|
|
(21,955 |
) |
|
|
(5,116 |
) |
Prepaid expenses and other assets |
|
(1,468 |
) |
|
|
2,264 |
|
|
|
(4,126 |
) |
|
|
(6,511 |
) |
Accounts payable |
|
4,866 |
|
|
|
731 |
|
|
|
6,052 |
|
|
|
1,293 |
|
Accrued expenses and other liabilities |
|
1,804 |
|
|
|
(1,053 |
) |
|
|
3,462 |
|
|
|
5,184 |
|
Net cash used in operating activities |
|
(27,808 |
) |
|
|
(14,288 |
) |
|
|
(66,986 |
) |
|
|
(47,962 |
) |
Cash flows from investing activities |
|
|
|
|
|
|
|
||||||||
Purchase of property and equipment |
|
(1,764 |
) |
|
|
(875 |
) |
|
|
(5,694 |
) |
|
|
(2,320 |
) |
Proceeds from disposal of property and equipment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
9 |
|
Net cash used in investing activities |
|
(1,764 |
) |
|
|
(875 |
) |
|
|
(5,694 |
) |
|
|
(2,311 |
) |
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 |
) |
|
|
— |
|
|
|
(78 |
) |
|
|
(54 |
) |
Proceeds from exercise of stock options |
|
6 |
|
|
|
511 |
|
|
|
129 |
|
|
|
552 |
|
Tax withholding payment related to net settlement of equity awards |
|
(6 |
) |
|
|
— |
|
|
|
(114 |
) |
|
|
— |
|
Net cash (used in) provided by financing activities |
|
(43 |
) |
|
|
511 |
|
|
|
(63 |
) |
|
|
237,051 |
|
Net (decrease) increase in cash |
|
(29,615 |
) |
|
|
(14,652 |
) |
|
|
(72,743 |
) |
|
|
186,778 |
|
Cash - Beginning of period |
|
125,410 |
|
|
|
201,890 |
|
|
|
168,538 |
|
|
|
460 |
|
Cash - End of period |
$ |
95,795 |
|
|
$ |
187,238 |
|
|
$ |
95,795 |
|
|
$ |
187,238 |
|
|
|
|
|
|
|
|
|
||||||||
Supplemental cash flow information - Cash paid for interest |
$ |
10 |
|
|
$ |
910 |
|
|
$ |
3,536 |
|
|
$ |
2,559 |
|
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 |
|
— |
|
|
|
10,089 |
|
|
|
— |
|
|
|
10,089 |
|
Conversion of warrant liabilities for common stock |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
37,580 |
|
Property and equipment included in accounts payable and accruals |
|
171 |
|
|
|
— |
|
|
|
879 |
|
|
|
— |
|
Finance lease right-of-use asset in exchange for a lease liability |
|
— |
|
|
|
— |
|
|
|
786 |
|
|
|
— |
|
Inventory repossessed for accounts receivable |
|
1,410 |
|
|
|
— |
|
|
|
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, 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 the commitment fee associated with our equity line of credit agreement with
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 nine months ended
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Net income (loss) |
$ |
(1,231 |
) |
|
$ |
(49,461 |
) |
|
$ |
23,751 |
|
|
$ |
(122,955 |
) |
Adjustments: |
|
|
|
|
|
|
|
||||||||
Depreciation and amortization |
|
511 |
|
|
|
255 |
|
|
|
1,279 |
|
|
|
605 |
|
Interest expense, net |
|
3,758 |
|
|
|
3,983 |
|
|
|
11,468 |
|
|
|
9,534 |
|
EBITDA |
$ |
3,038 |
|
|
$ |
(45,223 |
) |
|
$ |
36,498 |
|
|
$ |
(112,816 |
) |
Stock-based compensation |
|
1,470 |
|
|
|
1,349 |
|
|
|
3,878 |
|
|
|
1,545 |
|
(Gain) loss from change in fair value of warrant liabilities |
|
(536 |
) |
|
|
(27 |
) |
|
|
(1,850 |
) |
|
|
28,108 |
|
(Gain) loss from change in fair value of derivative liability |
|
(3,728 |
) |
|
|
5,023 |
|
|
|
(16,370 |
) |
|
|
9,290 |
|
(Gain) loss from change in earnout liability |
|
(18,054 |
) |
|
|
31,788 |
|
|
|
(68,357 |
) |
|
|
44,164 |
|
Gain on extinguishment of debt |
|
— |
|
|
(2,194 |
) |
|
— |
|
|
(2,194 |
) |
|||
Other income |
|
— |
|
|
|
(3 |
) |
|
|
— |
|
|
|
(27 |
) |
ELOC Agreement commitment fee |
|
851 |
|
|
|
— |
|
|
|
851 |
|
|
|
— |
|
Business Combination expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
9,098 |
|
Adjusted EBITDA |
$ |
(16,959 |
) |
|
$ |
(9,287 |
) |
|
$ |
(45,350 |
) |
|
$ |
(22,832 |
) |
The following table reconciles net loss to adjusted net loss for the three and nine months ended
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Net income (loss) |
$ |
(1,231 |
) |
|
$ |
(49,461 |
) |
|
$ |
23,751 |
|
|
$ |
(122,955 |
) |
Adjustments: |
|
|
|
|
|
|
|
||||||||
Stock-based compensation |
|
1,470 |
|
|
|
1,349 |
|
|
|
3,878 |
|
|
|
1,545 |
|
Business Combination expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
9,098 |
|
ELOC Agreement commitment fee |
|
851 |
|
|
|
— |
|
|
|
851 |
|
|
|
— |
|
(Gain) loss from change in fair value of warrant liabilities |
|
(536 |
) |
|
|
(27 |
) |
|
|
(1,850 |
) |
|
|
28,108 |
|
(Gain) loss from change in fair value of derivative liability |
|
(3,728 |
) |
|
|
5,023 |
|
|
|
(16,370 |
) |
|
|
9,290 |
|
(Gain) loss from change in earnout liability |
|
(18,054 |
) |
|
|
31,788 |
|
|
|
(68,357 |
) |
|
|
44,164 |
|
Gain on extinguishment of debt |
|
— |
|
|
(2,194 |
) |
|
— |
|
|
(2,194 |
) |
|||
Adjusted net loss |
$ |
(21,228 |
) |
|
$ |
(13,522 |
) |
|
$ |
(58,097 |
) |
|
$ |
(32,944 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20221107006022/en/
Investor Relations Contact:
(800) 223-0740
ir@lightningemotors.com
Media Relations Contact:
(800) 223-0740
pressrelations@lightningemotors.com
Source:
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