- GAAP revenue of $1.3 million, after $2.3 million of
recall-related costs
- Adjusted revenue of $3.6 million from sales of 29 units;
produced 53 units during the quarter
- Today announced funding commitment with Yorkville Advisors to
provide up to $50 million of capital
- 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
Lightning eMotors, Inc., a leading provider of zero-emission
powertrains and medium-duty and specialty commercial electric
vehicles for fleets, today announced consolidated results for the
first quarter ended March 31, 2023.
“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 $35-50 million. As government incentive
programs take hold, we are helping customers navigate the
application process and are seeing orders. While focusing on the
revenue growth opportunities before us, we also have taken actions
to reduce our expense structure and secure new growth capital.”
“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 $50 million of capital that we plan to
use to fund our growth strategy,” said David Agatston, CFO of
Lightning. “We believe this funding commitment from Yorkville is a
strong endorsement of Lightning’s ability to attract new capital
and provide returns for investors.”
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
$1.3 million, compared to $5.4 million for the prior-year quarter.
Excluding customer refunds, adjusted revenue was $3.6 million.
First quarter net loss was $23.4 million, or $4.89 per diluted
share, compared to net loss of $10.8 million, or $2.86 per diluted
share, during the first quarter of last year.
First quarter adjusted EBITDA loss was $19.7 million, compared
to a loss of $14.8 million during the same period in the prior
year. Adjusted revenue and adjusted EBITDA are non-GAAP measures.
See explanatory language and reconciliation to the GAAP measures
below.
Guidance
Based on current demand and supply conditions, the Company
reiterates its prior 2023 guidance:
- 2023 revenue to be in the range of $35 million to $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 U.S. federal securities laws. Such forward-looking
statements include, but are not limited to, statements regarding
the financial statements of Lightning eMotors (including guidance),
its product and customer developments, its expectations, hopes,
beliefs, intentions, plans, prospects or strategies regarding the
future revenues and expenses, its expectations regarding the
availability and timing of components and supplies and the business
plans of Lightning eMotors’ management team. Any statements
contained herein that are not statements of historical fact may be
deemed to be forward-looking statements. In addition, any
statements that refer to projections, forecasts or other
characterizations of future events or circumstances, including any
underlying assumptions, are forward-looking statements. The words
“anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,”
“intends,” “may,” “might,” “plan,” “possible,” “potential,”
“predict,” “project,” “should,” “would” and similar expressions may
identify forward-looking statements, but the absence of these words
does not mean that a statement is not forward-looking. The
forward-looking statements contained in this press release are
based on certain assumptions and analyses made by the management of
Lightning eMotors considering their respective experience and
perception of historical trends, current conditions and expected
future developments and their potential effects on Lightning
eMotors as well as other factors they believe are appropriate in
the circumstances. There can be no assurance that future
developments affecting Lightning eMotors will be those anticipated.
These forward-looking statements contained in this press release
are subject to known and unknown risks, uncertainties, assumptions
and other factors that may cause actual results or outcomes to be
materially different from any future results or outcomes expressed
or implied by the forward-looking statements. These risks,
uncertainties, assumptions and other factors, many of which are
described in our most recent annual report on Form 10-K and our
other filings with the U.S. Securities and Exchange Commission,
include, but are not limited to: (i) those related to our
operations and business and financial performance; (ii) our ability
to service our debt; (iii) our ability to have access to an
adequate supply of motors, chassis and other critical components
for our vehicles on the timeline we expect (iv) our ability to
attract and retain customers; (v) our ability to generate revenue
or sales; (vi) the success of our customers' development programs
which will drive future revenues; (vii) our ability to execute on
our business strategy; (viii) our ability to compete effectively;
(ix) our ability to maintain the New York Stock Exchange’s listing
standards, (x) potential business and supply chain disruptions,
including those related to physical security threats, information
technology or cyber-attacks, epidemics, pandemics, sanctions,
political unrest, war, terrorism or natural disasters; (xi)
macroeconomic factors, including current global and regional market
conditions, commodity prices, inflation and deflation; (xii)
federal, state, and local laws, regulations and government
incentives, particularly those related to the commercial electric
vehicle market; (xiii) the volatility in the price of our
securities due to a variety of factors, including changes in the
competitive industries in which we operate, variations in operating
performance across competitors, changes in laws and regulations
affecting our business and changes in the capital structure; (xiv)
planned and potential business or asset acquisitions or
combinations; (xv) the size and growth of the markets in which we
operate; (xvi) the mix of products utilized by our customers and
such customers’ needs for these products and their ability to
obtain financing; (xvii) market acceptance of new product
offerings; and (xviii) our funding and liquidity plans. Moreover,
we operate in a competitive and rapidly changing environment, and
new risks may emerge from time to time. You should not put undue
reliance on any forward-looking statements. Forward-looking
statements should not be read as a guarantee of future performance
or results and will not necessarily be accurate indications of the
times at, or by, which such performance or results will be
achieved, if at all. Should one or more of these risks or
uncertainties materialize or should any of the assumptions being
made prove incorrect, actual results may vary in material respects
from those projected in these forward-looking statements. We
undertake no obligation to update or revise any forward-looking
statements, whether because of new information, future events or
otherwise, except as may be required under applicable securities
laws.
Lightning eMotors,
Inc.
Consolidated Balance
Sheets
(in thousands, except share
data)
March 31, 2023
December 31,
2022
(Unaudited)
Assets
Current assets
Cash and cash equivalents
$
35,447
$
56,011
Accounts receivable, net of allowance of
$2,989 and $2,028 as of March 31, 2023 and December 31, 2022,
respectively
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 $0.0001,
1,000,000 shares authorized and no shares issued and outstanding as
of March 31, 2023 and December 31, 2022
—
—
Common stock, par value $0.0001,
250,000,000 shares authorized as of March 31, 2023 and December 31,
2022; 5,652,448 and 4,492,157 shares issued and outstanding as of
March 31, 2023 and December 31, 2022, respectively
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
(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
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