- Began serial production of the Nikola Tre BEV on March 21
- Received Purchase Orders (POs) for 134 Tre BEVs utilizing
California's HVIP[1] incentive
through April
- Shipped 11 saleable production trucks to dealers in April for
customer delivery
- Completed Tre FCEV alpha pilot testing with Anheuser-Busch
(A-B) in Southern California
operations in April
- Completed Phase 1 of Coolidge,
Arizona manufacturing facility in March
- Announced $200 million Senior
Note Investment by Antara Capital
PHOENIX, May 5, 2022
/PRNewswire/ -- Nikola Corporation (Nasdaq: NKLA), a global leader
in zero-emissions transportation solutions, today reported
financial results for the quarter ended March 31, 2022.
"During the first quarter, we reached a significant milestone
with the start of serial production for the Nikola Tre BEV at our
Coolidge, Arizona manufacturing
facility and are currently delivering saleable trucks to dealers
for customer deliveries," said Mark
Russell, Nikola's Chief Executive Officer. "We look forward
to scaling production and delivering 300 – 500 production vehicles
to customers this year."
1
|
"HVIP" stands for
California's Hybrid and Zero-Emission Truck and Bus Voucher
Incentive Project which allows for up to $150,000 towards the
purchase of qualifying vehicles.
|
Nikola Tre BEV Update
During the first quarter, the final 10 of a total fleet of 40
pre-series Tre BEVs came off the line in Coolidge, Arizona. Pre-series trucks continue
to be used in customer pilots, dealer demos, and internal R&D
testing. On April 29, we successfully
completed our first Tre BEV customer pilot with TTSI. We also
successfully completed a 14-day pilot with Univar Solutions (NYSE:
UNVR). We are currently undergoing pilot testing with several other
customers, including Covenant Logistics (Nasdaq: CVLG).
On March 21, 2022, we began serial
production of the Nikola Tre BEV in Coolidge, Arizona. We began shipping saleable
Tre BEVs to dealers in April for customer deliveries. Customer POs
for 134 trucks have been issued to our dealers utilizing California
HVIP. To date, we have received POs, LOIs, and MOUs for a total of
510 Nikola Tre BEVs.
Nikola Tre FCEV Program
Update
Tre FCEV alpha pilot testing with Anheuser-Busch (A-B) in
Southern California was
successfully concluded on April 29.
The Tre FCEV alphas logged over 12,000 miles in A-B operations.
FCEV alpha pilot testing is scheduled to begin with TTSI by the end
of May. We plan to begin building the first six beta FCEV trucks by
the end of Q2 2022 and complete them by the end of Q3 2022. This
first batch is expected to be followed by builds of a second batch
of five and a third batch of eight beta trucks. Each beta cohort
will incorporate learnings from alpha fleet testing and previous
batches. Validation of the beta fleet trucks is scheduled to
progress through the first half of 2023, followed by the start of
serial production planned in the second half of 2023.
Coolidge, Arizona Manufacturing Facility
Update
Phase 1 of the Coolidge,
Arizona facility is completed with a production capacity of
2,500 trucks. We have begun the Phase 2 assembly area expansion,
which is expected to be completed in 2023 and provide a production
capacity of up to 20,000 trucks per year on two shifts.
Energy Business Updates
In Q1, we selected our first dispensing station location with
our station partner, TravelCenters of America (TA). Nikola and TA
plan to jointly build hydrogen refueling infrastructure on TA's
existing station in Ontario,
California along Interstate
10.
On April 26, 2022, TC Energy, in
conjunction with Nikola, announced a plan to evaluate a hydrogen
production hub in Crossfield,
Alberta. The hub is expected to produce an estimated 60
tonnes of hydrogen per day, with the capacity to expand to up to
150 tonnes per day. Nikola is intended to serve as TC Energy's
anchor customer for the hub.
Dealer Network Expansion with Alta
Equipment Group in Arizona
On March 23, 2022, we announced an
expanded partnership with Alta Equipment Group covering the
Arizona sales and service
territory. Our sales and service network now covers 27 states with
over 127 locations.
Announced Finance Agreement with
ENGS Commercial Finance Co.
On March 29, 2022, we signed an
agreement with ENGS Commercial Finance Co. to facilitate the sale
of Class 8 Nikola Tre BEVs and FCEVs. Working directly through the
Nikola dealer network, ENGS will offer a broad range of customer
finance solutions for the purchase of Nikola vehicles, charging
assets, and infrastructure requirements.
Strengthened Leadership Team and
Board of Directors
On February 22, 2022, Michael
Lohscheller was named President of Nikola Motor division, reporting
to CEO Mark Russell. On February 24, 2022, Lynn
Forester de Rothschild of Inclusive Capital Partners was
appointed to the Board of Directors, replacing Jeff Ubben.
$200
Million Senior Notes Investment
On May 2, 2022, we announced a
$200 million investment from funds
advised by Antara Capital. The investment comes in the form of a
senior unsecured note bearing interest of 8% if paid in cash, and
11% if paid by the issuance of additional notes. The notes will
mature in May of 2026. We expect the note to fund in early
June 2022.
First Quarter
Financial Highlights
|
|
(In thousands, except
share and per share data)
|
Q1
2022
|
|
Q1
2021
|
Gross profit
|
$
431
|
|
$
—
|
Loss from
operations
|
$ (151,309)
|
|
$ (120,590)
|
Net loss
|
$ (152,941)
|
|
$ (120,224)
|
Adjusted EBITDA
(1)
|
$
(79,152)
|
|
$
(53,434)
|
Net loss per share,
basic
|
$
(0.37)
|
|
$
(0.31)
|
Net loss per share,
diluted
|
$
(0.37)
|
|
$
(0.31)
|
Non-GAAP net loss per
share, basic(1)
|
$
(0.21)
|
|
$
(0.14)
|
Non-GAAP net loss per
share, diluted(1)
|
$
(0.21)
|
|
$
(0.14)
|
Weighted-average shares
outstanding, basic
|
415,152,656
|
|
392,189,851
|
Weighted-average shares
outstanding, diluted
|
415,152,656
|
|
392,489,761
|
|
|
(1)
|
A reconciliation of the
non-GAAP versus GAAP information is provided below in the financial
statement tables in this press release.
|
Business Outlook
Nikola looks forward to achieving the following milestones in
2022:
- Deliver 300 to 500 production Tre BEV trucks
- Successful FCEV alpha pilot testing with Anheuser-Busch and
TTSI
- Build, validate and test Tre FCEV beta trucks
- Announce location, break ground, and commence construction of
the first hydrogen production hub in Arizona
- Announce two or more dispensing station partners in
California
Webcast and Conference Call
Information
Nikola will host a webcast to discuss its first-quarter results
at 6:30 a.m. Pacific Time
(9:30 a.m. Eastern Time) on
May 5, 2022. To access the webcast,
parties in the United States
should follow this
link: https://www.webcast-eqs.com/register/nikola20220505/en.
The live audio webcast, along with supplemental information,
will be accessible on the Company's Investor Relations website at
https://nikolamotor.com/investors/news?active=events. A recording
of the webcast will also be available following the earnings
call.
Photos to Accompany
Release
EDITOR'S NOTE: Photos to accompany this release can be
found here:
https://nikolamotor.com/press_releases/nikola-corporation-reports-first-quarter-2022-results-165
About Nikola Corporation
Nikola Corporation is globally transforming the transportation
industry. As a designer and manufacturer of zero-emission
battery-electric and hydrogen-electric vehicles, electric vehicle
drivetrains, vehicle components, energy storage systems, and
hydrogen station infrastructure, Nikola is driven to revolutionize
the economic and environmental impact of commerce as we know it
today. Founded in 2015, Nikola Corporation is headquartered in
Phoenix, Arizona. For more
information, visit www.nikolamotor.com or Twitter @nikolamotor.
Forward-Looking
Statements
This press release contains certain forward-looking statements
within the meaning of federal securities laws with respect to
Nikola Corporation (the "Company"), including statements relating
to the Company's future performance and milestones; expected timing
of manufacturing facility expansion and production capacity; timing
of completion of testing, production, as well as other milestones;
expectations regarding the trucks' uses and impact; and terms and
potential benefits of the planned collaborations with its strategic
partners. These forward-looking statements generally are identified
by words such as "believe," "project," "expect," "anticipate,"
"estimate," "intend," "strategy," "future," "opportunity," "plan,"
"may," "should," "will," "would," and similar expressions.
Forward-looking statements are predictions, projections, and other
statements about future events based on current expectations and
assumptions and, as a result, are subject to risks and
uncertainties. Many factors could cause actual future events to
differ materially from the forward-looking statements in this press
release, including but not limited to: design and manufacturing
changes and delays, including global shortages in parts and
materials; general economic, financial, legal, regulatory,
political and business conditions and changes in domestic and
foreign markets; the potential effects of COVID-19; the outcome of
legal, regulatory and judicial proceedings to which the Company is,
or may become a party; demand for and customer acceptance of the
Company's trucks; the results of customer pilot testing; the
execution and terms of definitive agreements; risks associated with
development and testing of fuel-cell power modules and hydrogen
storage systems; risks related to the rollout of the Company's
business and the timing of expected business milestones; the
effects of competition on the Company's future business; the
availability of and need for capital; and the factors, risks and
uncertainties regarding the Company's business described in the
"Risk Factors" section of the Company's annual report on Form 10-K
for the year ended December 31, 2021
filed with the SEC, in addition to the Company's subsequent filings
with the SEC. These filings identify and address other important
risks and uncertainties that could cause the Company's actual
events and results to differ materially from those contained in the
forward-looking statements. Forward-looking statements speak only
as of the date they are made. Readers are cautioned not to put
undue reliance on forward-looking statements, and, except as
required by law, the Company assumes no obligation and does not
intend to update or revise these forward-looking statements,
whether as a result of new information, future events, or
otherwise.
Use of Non-GAAP Financial
Measures
This press release references Adjusted EBITDA, non-GAAP net
loss, and non-GAAP net loss per share, basic and diluted, all of
which are non-GAAP financial measures and are presented as
supplemental measures of the Company's performance. The Company
defines Adjusted EBITDA as earnings before interest expense, taxes,
depreciation and amortization, stock-based compensation expense,
and certain other items determined by the Company. Non-GAAP net
loss is defined as net loss adjusted for stock-based compensation
expense and certain other items determined by the Company. Non-GAAP
net loss per share basic and diluted is defined as non-GAAP net
loss divided by weighted average basic and diluted shares
outstanding. These non-GAAP measures are not substitutes for or
superior to measures of financial performance prepared in
accordance with generally accepted accounting principles in
the United States (GAAP) and
should not be considered as an alternative to any other performance
measures derived in accordance with GAAP.
The Company believes that presenting these non-GAAP measures
provides useful supplemental information to investors about the
Company in understanding and evaluating its operating results,
enhancing the overall understanding of its past performance and
future prospects, and allowing for greater transparency with
respect to key financial metrics used by its management in
financial and operational-decision making. However, there are a
number of limitations related to the use of non-GAAP measures and
their nearest GAAP equivalents. For example, other companies may
calculate non-GAAP measures differently or may use other measures
to calculate their financial performance, and therefore any
non-GAAP measures the Company uses may not be directly comparable
to similarly titled measures of other companies.
CONSOLIDATED
STATEMENTS OF OPERATIONS (In thousands, except share and per
share data)
(Unaudited)
|
|
|
Three Months
Ended
March 31,
|
|
2022
|
|
2021
|
Revenues
|
|
|
|
Truck
sales
|
$
—
|
|
$
—
|
Service
and other
|
1,887
|
|
—
|
Total revenues
|
1,887
|
|
—
|
Cost of
revenues
|
|
|
|
Truck
sales
|
—
|
|
—
|
Service
and other
|
1,456
|
|
—
|
Total cost of revenues
|
1,456
|
|
—
|
Gross
profit
|
431
|
|
—
|
Operating
expenses:
|
|
|
|
Research
and development(1)
|
74,557
|
|
55,163
|
Selling,
general, and administrative(1)
|
77,183
|
|
65,427
|
Total operating expenses
|
151,740
|
|
120,590
|
Loss from
operations
|
(151,309)
|
|
(120,590)
|
Other income
(expense):
|
|
|
|
Interest
expense, net
|
(211)
|
|
(9)
|
Revaluation of warrant liability
|
(434)
|
|
951
|
Other
income, net
|
1,833
|
|
219
|
Loss before income
taxes and equity in net loss of affiliates
|
(150,121)
|
|
(119,429)
|
Income
tax expense
|
—
|
|
1
|
Loss before equity
in net loss of affiliates
|
(150,121)
|
|
(119,430)
|
Equity in
net loss of affiliates
|
(2,820)
|
|
(794)
|
Net
loss
|
$
(152,941)
|
|
$
(120,224)
|
|
|
|
|
Net loss per
share:
|
|
|
|
Basic
|
$
(0.37)
|
|
$
(0.31)
|
Diluted
|
$
(0.37)
|
|
$
(0.31)
|
Weighted average shares
outstanding:
|
|
|
|
Basic
|
415,152,656
|
|
392,189,851
|
Diluted
|
415,152,656
|
|
392,489,761
|
|
(1) Includes stock-based compensation
as follows:
|
|
Three Months Ended
March 31,
|
|
2022
|
|
2021
|
Research and
development
|
$
8,707
|
|
$
10,322
|
Selling, general, and
administrative
|
44,821
|
|
39,944
|
Total stock-based
compensation expense
|
$
53,528
|
|
$
50,266
|
CONSOLIDATED BALANCE
SHEETS (In thousands, except share and per share
data)
|
|
|
March
31,
|
|
December
31,
|
|
2022
|
|
2021
|
|
(Unaudited)
|
|
|
Assets
|
|
|
|
Current
assets
|
|
|
|
Cash and
cash equivalents
|
$
360,118
|
|
$
497,241
|
Accounts
receivable, net
|
1,339
|
|
—
|
Inventory
|
25,847
|
|
11,597
|
Prepaid
expenses and other current assets
|
31,730
|
|
15,891
|
Total current assets
|
419,034
|
|
524,729
|
Restricted cash and
cash equivalents
|
25,000
|
|
25,000
|
Long-term
deposits
|
33,800
|
|
27,620
|
Property, plant and
equipment, net
|
264,121
|
|
244,377
|
Intangible assets,
net
|
97,181
|
|
97,181
|
Investment in
affiliates
|
62,634
|
|
61,778
|
Goodwill
|
5,238
|
|
5,238
|
Other assets
|
3,353
|
|
3,896
|
Total assets
|
$
910,361
|
|
$
989,819
|
Liabilities and
stockholders' equity
|
|
|
|
Current
liabilities
|
|
|
|
Accounts
payable
|
$
77,478
|
|
$
86,982
|
Accrued
expenses and other current liabilities
|
105,657
|
|
93,487
|
Debt and
finance lease liabilities, current
|
507
|
|
140
|
Total current liabilities
|
183,642
|
|
180,609
|
Long-term debt and
finance lease liabilities, net of current portion
|
25,045
|
|
25,047
|
Operating lease
liabilities
|
2,542
|
|
2,263
|
Warrant
liability
|
4,718
|
|
4,284
|
Other long-term
liabilities
|
72,231
|
|
84,033
|
Deferred tax
liabilities, net
|
11
|
|
11
|
Total liabilities
|
288,189
|
|
296,247
|
Commitments and
contingencies (Note 9)
|
|
|
|
Stockholders'
equity
|
|
|
|
Preferred
stock
|
—
|
|
—
|
Common
stock
|
42
|
|
41
|
Additional paid-in capital
|
2,025,552
|
|
1,944,341
|
Accumulated deficit
|
(1,403,553)
|
|
(1,250,612)
|
Accumulated other comprehensive income (loss)
|
131
|
|
(198)
|
Total stockholders' equity
|
622,172
|
|
693,572
|
Total liabilities and stockholders' equity
|
$
910,361
|
|
$
989,819
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS (In thousands)
(Unaudited)
|
|
|
Three Months Ended
March 31,
|
|
2022
|
|
2021
|
Cash flows from
operating activities
|
|
|
|
Net loss
|
$ (152,941)
|
|
$ (120,224)
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
Depreciation and amortization
|
3,111
|
|
1,805
|
Stock-based compensation
|
53,528
|
|
50,266
|
Non-cash
in-kind services
|
—
|
|
12,896
|
Equity in
net loss of affiliates
|
2,820
|
|
794
|
Revaluation of warrant liability
|
434
|
|
(951)
|
Inventory
write-downs
|
3,473
|
|
—
|
Other
non-cash activity
|
(326)
|
|
1
|
Changes
in operating assets and liabilities:
|
|
|
|
Accounts receivable, net
|
(1,339)
|
|
—
|
Inventory
|
(22,404)
|
|
—
|
Prepaid expenses and other current assets
|
(14,710)
|
|
(1,758)
|
Accounts payable, accrued expenses and other current
liabilities
|
(2,131)
|
|
2,083
|
Long-term deposits
|
—
|
|
(4,161)
|
Other assets
|
(304)
|
|
—
|
Operating lease liabilities
|
(77)
|
|
—
|
Other long-term liabilities
|
(457)
|
|
—
|
Net cash used in operating activities
|
(131,323)
|
|
(59,249)
|
Cash flows from
investing activities
|
|
|
|
Purchases and deposits
of property, plant and equipment
|
(30,106)
|
|
(24,521)
|
Investments in
affiliates
|
(3,348)
|
|
—
|
Net cash used in investing activities
|
(33,454)
|
|
(24,521)
|
Cash flows from
financing activities
|
|
|
|
Proceeds from the
exercise of stock options
|
308
|
|
2,626
|
Proceeds from issuance
of shares under the Tumim Purchase Agreements
|
27,376
|
|
—
|
Payments on finance
lease liabilities
|
(30)
|
|
(258)
|
Payment of note
payable
|
—
|
|
(4,100)
|
Payments for issuance
costs
|
—
|
|
(26)
|
Net cash provided by (used in) financing
activities
|
27,654
|
|
(1,758)
|
Net decrease in cash
and cash equivalents, including restricted cash
|
(137,123)
|
|
(85,528)
|
Cash and cash
equivalents, including restricted cash, beginning of
period
|
522,241
|
|
849,278
|
Cash and cash
equivalents, including restricted cash, end of period
|
$
385,118
|
|
$
763,750
|
Reconciliation of
GAAP Financial Metrics to Non-GAAP (In thousands,
except share and per share data)
(Unaudited)
|
|
Reconciliation of
Net Loss to EBITDA and
Adjusted EBITDA
|
|
|
|
Three Months Ended
March 31,
|
|
|
2022
|
|
2021
|
Net loss
|
|
$
(152,941)
|
|
$
(120,224)
|
Interest expense,
net
|
|
211
|
|
9
|
Income tax
expense
|
|
—
|
|
1
|
Depreciation and
amortization
|
|
3,111
|
|
1,805
|
EBITDA
|
|
(149,619)
|
|
(118,409)
|
Stock-based
compensation
|
|
53,528
|
|
50,266
|
Revaluation of warrant
liability
|
|
434
|
|
(951)
|
Revaluation of
derivative liability
|
|
(437)
|
|
—
|
Equity in net loss of
affiliates
|
|
2,820
|
|
794
|
Regulatory and legal
matters (1)
|
|
14,122
|
|
14,866
|
Adjusted
EBITDA
|
|
$
(79,152)
|
|
$
(53,434)
|
|
|
(1)
|
Regulatory and legal
matters include legal, advisory, and other professional service
fees incurred in connection with the short-seller article from
September 2020, and investigations and litigation related
thereto.
|
Reconciliation of
GAAP to Non-GAAP Net Loss, and GAAP
to Non-GAAP Net Loss per Share, basic and
diluted
|
|
|
|
Three Months Ended
March 31,
|
|
|
2022
|
|
2021
|
Net loss
|
|
$
(152,941)
|
|
$
(120,224)
|
Stock-based
compensation
|
|
53,528
|
|
50,266
|
Revaluation of warrant
liability
|
|
434
|
|
(951)
|
Revaluation of
derivative liability
|
|
(437)
|
|
—
|
Regulatory and legal
matters(1)
|
|
14,122
|
|
14,866
|
Non-GAAP net
loss
|
|
$
(85,294)
|
|
$
(56,043)
|
Non-GAAP net loss per
share:
|
|
|
|
|
Basic
|
|
$
(0.21)
|
|
$
(0.14)
|
Diluted
|
|
$
(0.21)
|
|
$
(0.14)
|
Weighted average shares
outstanding:
|
|
|
|
|
Basic
|
|
415,152,656
|
|
392,189,851
|
Diluted
|
|
415,152,656
|
|
392,489,761
|
|
|
(1)
|
Regulatory and legal
matters include legal, advisory, and other professional service
fees incurred in connection with the short-seller article from
September 2020, and investigations and litigation related
thereto.
|
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SOURCE Nikola Corporation