Lordstown Motors Reports Third Quarter 2021 Financial Results
11 Novembro 2021 - 6:09PM
Lordstown Motors Corp. (Nasdaq: RIDE), (“Lordstown Motors” or
“LMC”), a provider of electric light duty trucks focused on the
commercial fleet market, today released its third quarter 2021
financial results, and provided a business and financial outlook
update.
Third Quarter and Recent Key Business
Highlights
- Reported third quarter 2021 net loss of $95.8 million, capex of
$79.9 million and cash of $233.8 million on September 30,
2021.
- Executed an asset purchase agreement with an affiliate of Hon
Hai Precision Industry (“Foxconn”) that will culminate in the
transfer of the Lordstown plant to Foxconn, and a plan to establish
a contract manufacturing agreement whereby Foxconn will manufacture
the Endurance.
- Agreed to pursue a joint venture agreement with Foxconn to
jointly design and develop vehicle programs for the commercial
market in North America and internationally using Foxconn’s
Mobility in Harmony (“MIH”) open electric vehicle platform.
- Signed an MoU with Cox Automotive Inc. with a mutual goal to
provide service and support to all Lordstown Motors electric
vehicle fleet customers.
- Received $50 million equity investment from Foxconn in October
at approximately $6.90 per share; $230 million purchase price of
the Lordstown plant would be pre-funded with three down payments —
$100 million on or about November 18th, $50 million on February 1,
2022, and $50 million no later than April 15, 2022, subject to
certain conditions. At closing, the remaining $30 million purchase
price, along with reimbursement for certain operating and capital
costs from September 1, 2021 through closing, will be paid.
- Net loss includes non-cash items of $11.1 million in intangible
asset amortization, $6.6 million in stock compensation, and a $3.3
million gain on a fair value adjustment of warrants.
Executive Commentary
“The third quarter marked a significant strategic shift for
Lordstown Motors,” said Dan Ninivaggi, Chief Executive Officer of
Lordstown, “We announced our Agreement in Principle (“AIP”) with
Foxconn regarding the sale of our Lordstown, Ohio assembly plant
and the negotiation of a contract manufacturing agreement. The
definitive Asset Purchase Agreement with Foxconn, implementing the
AIP, was executed earlier this week.”
“Our partnership with Foxconn will unlock the tremendous
potential of the Lordstown automotive plant, enable us to reduce
the overall cost of bringing the Endurance to market, and position
us to be able to jointly develop vehicles with a partner that has
significant scale, manufacturing expertise, and a commitment to
electric vehicle manufacturing as one of its key global strategic
priorities. As part of the transaction, LMC and Foxconn have agreed
to pursue a joint venture to jointly design and develop commercial
vehicle programs for North America and internationally using
Foxconn’s “MIH” open EV platform. Working collaboratively with
Foxconn, we expect to be able to bring future vehicles to market
faster and more efficiently.”
“Our organization’s top priority has remained bringing the
Lordstown Endurance full size all-electric pickup to market as
quickly and efficiently as possible. In the third quarter, we
continued to build and test prototype vehicles. We also continued
to execute on our ‘commercial fleet first’ strategy, and have
received additional non-binding indications of interest from a
number of commercial customers, including fleet management
companies. We have a unique vehicle in the biggest part of the
market targeting commercial customers. As such, we believe that as
potential future customers demo our vehicles, interest in the
Endurance will grow, laying the groundwork for building out our
order book as we get closer to commercial production.”
“Since the beginning of the fourth quarter, we have begun
building the first of what we expect to be approximately 100
pre-production vehicles that we will use to pursue a variety of
validation activities aimed at achieving full homologation. This is
a modest delay from earlier expectations as component and material
shortages, along with other supply chain challenges, remain an
issue for Lordstown Motors just as they are for the industry at
large. We now expect that commercial production and deliveries of
the Endurance will begin in the third quarter of 2022.”
Please refer to “Forward Looking Statements” below.
2021 Financial Outlook
We are updating the financial outlook for 2021 that we
previously provided on September 30th. Revised guidance is as
follows:
- Endurance commercial production and deliveries beginning in the
third quarter of 2022; building a limited number of vehicles for
testing, validation, verification, and regulatory approvals during
the remainder of 2021 and the first quarter of 2022.
- Cash balances of between $150 million and $180 million as of
December 31, 2021, inclusive of the anticipated down payment of
$100 million to be made by Foxconn under the Asset Purchase
Agreement in November, and $15 million in issuances under the
equity purchase agreement in October, but exclusive of any other
potential financings.
- Capital expenditures of between $330 million and $350 million
for the full year 2021, down from $375 million to $400 million,
largely as a result of the timing of purchases related to tooling
and production readiness.
- Selling, general and administrative (SG&A) expenses of
between $105 million and $120 million and research and development
(R&D) costs of between $320 million and $340 million, for the
full year 2021, in each case unchanged.
Please refer to “Forward Looking Statements” below.
Conference call InformationLordstown Motors
will host a conference call at 4:30 p.m. Eastern Time today
(Thursday, November 11, 2021). The call can be accessed via a live
webcast that is accessible on the Events page of Lordstown Motors’
Investor Relations website, as well as the investor presentation
deck, at https://investor.lordstownmotors.com/. An archive of the
webcast will be available shortly after the call.
Financial Results
Lordstown Motors
Corp.Consolidated Statement of
Operations(Amounts in thousands, except per share data --
Unaudited)
|
|
Three
monthsended |
|
Three
monthsended |
|
Nine
monthsended |
|
Nine
monthsended |
|
|
September 30, 2021 |
|
September 30, 2020 |
|
September 30, 2021 |
|
September 30, 2020 |
Net sales |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Operating
expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses |
|
|
31,281 |
|
|
|
12,033 |
|
|
|
79,468 |
|
|
|
20,710 |
|
Research and development expenses |
|
|
56,890 |
|
|
|
29,966 |
|
|
|
225,246 |
|
|
|
43,220 |
|
Amortization of intangible assets |
|
|
11,111 |
|
|
|
— |
|
|
|
11,111 |
|
|
|
— |
|
Total operating expenses |
|
$ |
99,282 |
|
|
$ |
41,999 |
|
|
$ |
315,825 |
|
|
$ |
63,930 |
|
Loss from operations |
|
|
(99,282 |
) |
|
|
(41,999 |
) |
|
$ |
(315,825 |
) |
|
$ |
(63,930 |
) |
Other income
(expense) |
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense) |
|
|
3,467 |
|
|
|
58 |
|
|
|
(13,788 |
) |
|
|
2,530 |
|
Interest income (expense) |
|
|
9 |
|
|
|
(557 |
) |
|
|
396 |
|
|
|
(921 |
) |
Loss before income taxes |
|
$ |
(95,806 |
) |
|
$ |
(42,498 |
) |
|
$ |
(329,217 |
) |
|
$ |
(62,321 |
) |
Income tax expense |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net loss |
|
$ |
95,806 |
|
|
$ |
(42,498 |
) |
|
$ |
(329,217 |
) |
|
$ |
(62,321 |
) |
Loss per
share attributable to common shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
Basic & Diluted |
|
|
(0.54 |
) |
|
|
(0.57 |
) |
|
|
(1.86 |
) |
|
|
(0.85 |
) |
Weighted-average number of common shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
Basic & Diluted |
|
|
178,761 |
|
|
|
73,951 |
|
|
|
176,573 |
|
|
|
73,273 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lordstown Motors
Corp.Consolidated Balance Sheets(Amounts
in thousands except share data -- Unaudited)
|
|
|
|
Restated |
|
|
September 30, 2021 |
|
December 31, 2020 |
ASSETS: |
|
|
|
|
|
|
Current
Assets |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
233,831 |
|
|
$ |
629,761 |
|
Accounts receivable |
|
|
— |
|
|
|
21 |
|
Prepaid expenses and other current assets |
|
|
22,916 |
|
|
|
24,663 |
|
Total current assets |
|
$ |
256,747 |
|
|
$ |
654,445 |
|
Property,
plant and equipment |
|
|
362,391 |
|
|
|
101,663 |
|
Intangible
assets |
|
|
— |
|
|
|
11,111 |
|
Other
non-current assets |
|
|
4,750 |
|
|
|
— |
|
Total Assets |
|
$ |
623,888 |
|
|
$ |
767,219 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY: |
|
|
|
|
|
|
Current
Liabilities |
|
|
|
|
|
|
Accounts payable |
|
$ |
48,666 |
|
|
$ |
32,536 |
|
Accrued and other current liabilities |
|
|
39,187 |
|
|
|
1,538 |
|
Total current liabilities |
|
$ |
87,853 |
|
|
$ |
34,074 |
|
Note
payable |
|
|
— |
|
|
|
1,015 |
|
Warrant
liability |
|
|
3,529 |
|
|
|
101,392 |
|
Total liabilities |
|
$ |
91,382 |
|
|
$ |
136,481 |
|
Stockholders’ equity |
|
|
|
|
|
|
Class A common stock, $0.0001 par value, 300,000,000 shares
authorized; 182,074,899 and 168,007,960 shares issued and
outstanding as of September 30, 2021 and
December 31, 2020, respectively |
|
$ |
18 |
|
|
$ |
17 |
|
Additional paid in capital |
|
|
996,146 |
|
|
|
765,162 |
|
Accumulated deficit |
|
|
(463,658 |
) |
|
|
(134,441 |
) |
Total stockholders’ equity |
|
$ |
532,506 |
|
|
$ |
630,738 |
|
Total liabilities and stockholders' equity |
|
$ |
623,888 |
|
|
$ |
767,219 |
|
|
|
|
|
|
|
|
|
|
Lordstown Motors
Corp.Consolidated Statements of Cash
Flow(Amounts in thousands except share data --
Unaudited)
|
|
Nine months
ended |
|
Nine months
ended |
|
|
September 30, 2021 |
|
September 30, 2020 |
Cash flows
from operating activities |
|
|
|
|
|
|
Net loss |
|
$ |
(329,217 |
) |
|
$ |
(62,321 |
) |
Adjustments to reconcile net loss to cash used by operating
activities: |
|
|
|
|
|
|
Stock-based compensation |
|
|
12,365 |
|
|
|
2,022 |
|
Non-cash change in fair value related to warrants |
|
|
14,918 |
|
|
|
— |
|
Amortization of intangible assets |
|
|
11,111 |
|
|
|
— |
|
Forgiveness of note payable |
|
|
(1,015 |
) |
|
|
— |
|
Gain on disposal of fixed assets |
|
|
— |
|
|
|
(2,346 |
) |
Changes in assets and liabilities: |
|
|
|
|
|
|
Accounts receivables |
|
|
21 |
|
|
|
(20 |
) |
Prepaid expenses |
|
|
(3,001 |
) |
|
|
(4,794 |
) |
Accounts payable |
|
|
10,929 |
|
|
|
20,587 |
|
Accrued expenses and other current liabilities |
|
|
37,649 |
|
|
|
11,267 |
|
Cash used by operating activities |
|
$ |
(246,240 |
) |
|
$ |
(35,605 |
) |
|
|
|
|
|
|
|
Cash flows
from investing activities |
|
|
|
|
|
|
Purchases of capital assets |
|
$ |
(255,528 |
) |
|
$ |
— |
|
Proceeds from the sale of capital assets |
|
|
— |
|
|
|
2,396 |
|
Cash (used by) provided by investing activities |
|
$ |
(255,528 |
) |
|
$ |
2,396 |
|
|
|
|
|
|
|
|
Cash flows
from financing activities |
|
|
|
|
|
|
Cash proceeds from exercise of warrants |
|
$ |
82,016 |
|
|
$ |
— |
|
Proceeds from Equity Purchase Agreement |
|
|
20,000 |
|
|
|
— |
|
Issuance of common stock |
|
|
3,822 |
|
|
$ |
6,404 |
|
Proceeds from notes payable |
|
|
— |
|
|
|
44,353 |
|
Cash provided by financing activities |
|
$ |
105,838 |
|
|
$ |
50,757 |
|
Decrease in
cash and cash equivalents |
|
$ |
(395,930 |
) |
|
$ |
17,548 |
|
Cash and
cash equivalents, beginning balance |
|
|
629,761 |
|
|
|
2,159 |
|
Cash and
cash equivalents, ending balance |
|
$ |
233,831 |
|
|
$ |
19,707 |
|
|
|
|
|
|
|
|
About Lordstown Motors Corp.
Lordstown Motors is an electric vehicle (EV) innovator
developing high-quality light duty commercial fleet vehicles, with
the Endurance all electric pick-up truck as its first vehicle being
launched in the Lordstown, Ohio facility. Lordstown Motors has
engineering, research and development facilities in Farmington
Hills, Michigan and Irvine, California. For additional information
visit www.lordstownmotors.com.
Forward Looking Statements
This press release includes forward-looking statements. These
statements are made under the “safe harbor” provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These statements
may be identified by words such as “feel,” “believes,” “expects,”
“estimates,” “projects,” “intends,” “should,” “is to be,” or the
negative of such terms, or other comparable terminology.
Forward-looking statements are statements that are not historical
facts. Such forward-looking statements are not guarantees of future
performance and are subject to risks and uncertainties, which could
cause actual results to differ materially from the forward-looking
statements contained herein due to many factors, including, but not
limited to: our limited operating history and our significant
projected funding needs; our liquidity position ; the need to raise
substantial additional capital to continue ongoing operations;
risks associated with the conversion and retooling of our facility
and ramp up of production; our inability to obtain binding purchase
orders from customers and potential customers’ inability to
integrate our electric vehicles into their existing fleets; our
inability to retain key personnel and to hire additional personnel;
competition in the electric pickup truck market; supply chain
disruptions; the potential inability to source essential
components; our inability to develop a sales distribution network;
the ability to protect our intellectual property rights; and the
failure to obtain required regulatory approvals. Furthermore,
potential supply chain disruptions, and their consequences on
testing and other activities, could present challenges that impact
the timing of our commercial production. Any forward-looking
statements speak only as of the date on which they are made, and
Lordstown Motors undertakes no obligation to update any
forward-looking statement to reflect events or circumstances after
the date of this press release. In addition, the closing of the
transactions contemplated by the Asset Purchase Agreement is
subject to certain conditions, including regulatory approvals and
the negotiation and execution of a contract manufacturing
agreement, so there can be no assurance that the transactions will
be completed in a timely manner or at all. Further, there can be no
assurance we will enter into a definitive joint venture agreement
with Foxconn to co-design and develop vehicle programs.
Contacts:
InvestorsCarter W. Driscoll,
CFAlordstownIR@icrinc.com
MediaKimberly SpellKimberly.Spell.ext@lordstownmotors.com
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