- Produced 329 Nomad™ snowmobiles in the first
quarter of 2024.
- Recorded $5.08 million in
revenue from the delivery of 207 vehicles.
- Began deployment of enhanced omnichannel sales model adding
dealerships supporting improved local sales & servicing of
Taiga vehicles.
- Continued international market growth and secured electric
snowmobile sales agreements to resort operators in Sweden, Italy
and France, and watercraft
distribution to U.A.E. and South
America.
MONTREAL, May 15, 2024
/CNW/ - Taiga Motors Corporation (TSX:
TAIG) ("Taiga" or the "Company"), a
leading electric off-road vehicle manufacturer, today reported its
financial and operating results for the first quarter of 2024.Taiga
reported $5.08 million from the sale
of 207 vehicles during the first quarter ending March 31, 2024, showcasing revenue growth of 194%
compared to the first quarter of 2023.
During the quarter, the Company launched an evolution of its
omnichannel retail model, by adding established powersport
dealerships as future points of sale alongside distribution and
direct to customer sales to further accelerate its market
penetration and better support customers in their local markets.
Taiga continued building its international markets by initiating
deliveries in Brazil and the
U.A.E., and securing sales agreements in France, Italie and Sweden.
First Quarter 2024 Operational Updates
- Produced 329 Nomad snowmobiles.
- Sold and delivered 207 vehicles, including 129 Orca™
PWC and 78 Nomad snowmobiles.
- Focused on strengthening its order book in line with its
seasonal production plan by initiating the deployment of its dealer
model in addition to its existing fleet, distributor and direct
customer orders.
- Announced partnership with Alterra Mountain Company with
snowmobile deliveries to 15 mountain resorts across North America.
- Implemented strategic cost reduction initiatives and adjusted
its operations to better align seasonal production timing with
dealer inventory levels.
First quarter 2024 Financial Highlights (All amounts
in Canadian dollars unless indicated otherwise)
- Recorded revenue of $5.08 million
during the first quarter of 2024, compared to $1.72 million in the first quarter of 2023.
- Recorded Cost of Sales of $8.67
million during the first quarter of 2024, compared to
$5.78 million in the first quarter of
2023 attributed to a higher production volume.
- Research & Development (R&D) expense (net of tax
credits) decreased to $3.01 million
in the first quarter of 2024 from $3.91
million in the first quarter of 2023.
- General & Administration (G&A) expense decreased to
$4.38 million from $5.02 million compared to the first quarter of
2023.
- Sales & Marketing (S&M) expense of $1.08 million remained relatively stable with no
significant change compared to the first quarter of 2023.
- Net loss for the period increased to $14.38 million compared to $12.99 million in the first quarter of 2023.
2024 Priorities
After making major investments in 2022-2023 on new product
launches and to support the Company's rapid production ramp-up,
Taiga is now focused on driving cost efficiency throughout the
business, including continued vehicle cost down programs to improve
margins. In addition, Taiga is continuing to develop its
omnichannel sales model, with distributors, dealers and DTC, to
support sustainable growth. Investors should see "Forward-Looking
Statements" below and "Business Risks" sections of the accompanying
first quarter 2024 MD&A.
About Taiga
Taiga (TSX: TAIG) is a Canadian company reinventing the
powersports landscape with breakthrough electric off-road vehicles.
Through a clean-sheet engineering approach, Taiga has pushed the
frontiers of electric technology to achieve extreme power-to-weight
ratios and thermal specifications required to outperform comparable
high-performance combustion powersports vehicles. The first models
released include a lineup of electric snowmobiles and personal
watercraft to deliver on a rapidly growing demand from recreational
and commercial customers who are seeking better ways to explore the
great outdoors without compromise. For more information, visit
www.taigamotors.com
Forward-Looking Statements
This press release contains "forward-looking information"
within the meaning of applicable Canadian securities legislation.
Such forward-looking information includes, but is not limited to,
information with respect to our objectives and the strategies to
achieve these objectives, the expected operations, financial
results and condition of the Company, expectations regarding market
trends, the Company's growth rates, the Company's future objectives
and strategies to achieve those objectives, as well as information
with respect to our beliefs, plans, expectations, anticipations,
estimates and intentions.
This forward-looking information is identified by the use of
terms and phrases such as "may", "would", "should", "could",
"expect", "intend", "estimate", "anticipate", "plan", "foresee",
"believe", and "continue", as well as the negative of these terms
and similar terminology, including references to assumptions,
although not all forward-looking information contains these terms
and phrases. Forward-looking information is provided for the
purposes of assisting the reader in understanding the Company and
its business, its financial position, operations, prospects and
risks at a point in time in the context of historical and possible
future developments and therefore the reader is cautioned that such
information may not be appropriate for other purposes.
We draw your attention to the "Financial Position" section of
the Company's management's discussion and analysis for the
three-month period ended March 31,
2024, and to note 2 of our condensed consolidated interim
financial statements which indicate the existence of material
uncertainty that may cast significant doubt on the Company's
ability to continue as a going concern. Both during the upcoming
fiscal quarter and over the next twelve months, and despite having
announced earlier in March 2024 that
an existing lender of the Company had agreed to upsize its funding
facility with Taiga, the Company will require additional financing
in the immediate term in order to fund its existing and future
operations and obligations, including through the issuance of
equity, equity-related or debt securities or through obtaining
credit from government or financial institutions. See the "Update
on Financing" section of the Company's management's discussion and
analysis for the three-month period ended March 31, 2024 for additional details. At the
present time and despite having deployed significant efforts to
seek any form of additional funding, there is a risk that the
Company will not be able to secure any meaningful amount of
additional third-party funding or financing in the immediate, near
and medium terms. Given all of the above, Taiga has taken a number
of steps to restructure its operations and to reduce its operating
expenses, and the Company may well be required to take additional
restructuring measures in the near term. However, there can be no
assurance that any such downsizing efforts and initiatives
currently underway or that may be undertaken by the Company in the
near term will prove to be effective in sufficiently reducing the
Company's operating burn and, as such, there can be no assurance
that the Company will be able to continue as a going concern and
continue to pay its obligations and liabilities as they become
due.
Forward-looking information is based on a number of
assumptions and is subject to a number of risks and uncertainties,
many of which are beyond our control, which could cause actual
results to differ materially from those that are disclosed in, or
implied by, such forward-looking information. These risks and
uncertainties include, but are not limited to, the Company's
continuing negative operating cash flows and the limited prospects
for the Company to obtain a meaning amount of additional funding or
financing, limited operating history, delays in the ramp-up and
commissioning of our assembly and production facilities,
development of the network of dealers, supply chain dependence and
disruptions and the impact of such disruptions on our ability to
fulfil orders, quality control concerns, regulatory compliance,
future capital requirements, warranty and product recalls, product
and those described in the Company's management's discussion and
analysis for the three-month period ended March 31, 2024, and under the "Risk Factors"
section of the Company's annual information form filed on
April 2, 2024 on the Company's SEDAR+
profile at sedarplus.ca. Forward-looking statements reflect
management's current beliefs, expectations and assumptions and are
based on information currently available to management. Readers are
cautioned not to place undue reliance on forward-looking
statements, as there can be no assurance that the future
circumstances, outcomes or results anticipated or implied by such
forward-looking statements will occur or that plans, intentions or
expectations upon which the forward-looking statements are based
will occur. By their nature, forward-looking statements involve
known and unknown risks and uncertainties and other factors that
could cause actual results to differ materially from those
contemplated by such statements.
All of the forward-looking information contained in this
press release is qualified by the foregoing cautionary statements,
and there can be no guarantee that the results or developments that
we anticipate will be realized or, even if substantially realized,
that they will have the expected consequences or effects on our
business, financial condition or results of operation. Unless
otherwise noted or the context otherwise indicates, the
forward-looking information contained herein is provided as of the
date hereof, and we do not undertake to update or amend such
forward-looking information whether as a result of new information,
future events or otherwise, except as may be required by applicable
law.
SOURCE Taiga Motors Corporation
