Le Lézard
Classified in: Business
Subjects: EARNINGS, Conference Call, Webcast

Lightning eMotors Reports Financial Results for Second Quarter 2022


Lightning eMotors, Inc. ("Lightning eMotors", "Lightning", or the "Company"), a leading provider of zero-emission powertrains and medium-duty and specialty commercial electric vehicles for fleets, today announced consolidated results for the second quarter ended June 30, 2022.

"Our operations team executed well and produced 74 vehicles and powertrains in the quarter. Some unit sales were pushed out of the quarter due to customer financing delays," said Tim Reeser, CEO of Lightning eMotors. "We expect all of those units to be sold in Q3 or Q4. On the product front, we are excited about our new Lightning MobileTM Battery Vehicle Charger and our next-generation Lightning InsightsTM real-time telematics and charger management software solution, announced this morning. In addition, last week we announced a factory-certified repower offering for Blue Bird Class C school buses, which extends the partnership with Blue Bird we announced last May."

"Mitigation strategies we employed earlier in the year are improving the outlook for the second half of this year, and we now have a commitment from GM and other OEMs for over 400 chassis that are either onsite or are expected to arrive by the end of the year," Reeser continued. "Our expanded relationship with Forest River and Collins Bus to now include GM chassis, in addition to the Ford chassis we have been using, allows us to use our new stock of GM chassis to accelerate our builds in Q4. Although medium-term chassis supply remains uncertain, longer term, our own Lightning eChassis and the Blue Bird eChassis should put chassis supply more within our control, allowing us to service the strong customer demand for our vehicles. Further, our continued investments in productivity tools, from cobots to torque tools, have improved safety, labor efficiency, and overall productivity."

"The opportunities at Lightning eMotors have never been greater. The enthusiastic customer response to our vehicles, solutions, and service reveal the positive impact from the investments in technology and productivity we have made up to this point. To continue this momentum we are looking to invest further in our people and processes, as well as in potential strategic investments and acquisitions, to develop Lightning eMotors into a world-class manufacturer of commercial zero-emission vehicles and powertrains and accelerate our push to reach critical mass and scale. As such, while we believe we have sufficient cash to fund our operations for the next year, we are exploring ways to raise more capital to fund critical investments."

Second Quarter 2022 Financial Results

Second quarter production was 74 vehicles and powertrains, up from 40 units in Q2 2021. Second quarter revenue was $3.5 million, compared to $5.9 million for the prior-year quarter.

Second quarter net income was $35.7 million, or $0.35 per diluted share, compared to net loss of $46.1 million, or $0.79 per diluted share, during the second quarter of last year. This year's second quarter net income included a one-time $44.1 million gain from the change in our earnout liability, and a $10.1 million gain from the change in our derivative liability.

Second quarter adjusted EBITDA loss was $13.9 million, compared to a loss of $8.4 million during the same period in the prior year. Second quarter adjusted net loss was $18.2 million, compared to $12.6 million during the prior year quarter. Adjusted EBITDA and adjusted net loss are non-GAAP measures. See explanatory language and reconciliation to the GAAP measures below.

Guidance

Based on current demand and supply conditions, the Company expects:

Webcast and Conference Call Information

Company management will host a conference call on Tuesday, August 9, 2022, at 5:00 p.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 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 (888) 645-4404 (domestic) or +1 (404) 267-0371 (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 Class 3 cargo and passenger vans, ambulances, Class 4 and 5 cargo vans and shuttle buses, Class 4 Type A school buses, Class 6 work trucks, Class 7 city buses, and Class A 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 have access to an adequate supply of motors, chassis and other critical components for our vehicles on the timeline we expect (iii) our ability to attract and retain customers; (iv) our ability to convert backlog amounts and sales pipeline in actual revenue or sales; (v) our ability to up-sell and cross-sell to customers; (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 manage growth, scale up infrastructure and manage increased headcount; (x) our ability to maintain the New York Stock Exchange's listing standards, (xi) 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; (xii) macroeconomic factors, including current global and regional market conditions, commodity prices, inflation and deflation; (xiii) federal, state, and local laws, regulations and government incentives, particularly those related to the commercial electric vehicle market; (xiv) 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; (xv) planned and potential business or asset acquisitions or combinations; (xvi) the size and growth of the markets in which we operate; (xvii) the mix of products utilized by our customers and such customers' needs for these products and their ability to obtain financing; (xviii) market acceptance of new product offerings; and (xix) 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)

 

 

June 30,
2022

 

December 31,
2021

 

(Unaudited)

 

 

Assets

 

 

 

Current assets

 

 

 

Cash and cash equivalents

$

125,410

 

 

$

168,538

 

Accounts receivable, net of allowance of $3,847 and $3,349 as of June 30, 2022 and December 31, 2021, respectively

 

6,831

 

 

 

9,172

 

Inventories

 

25,167

 

 

 

14,621

 

Prepaid expenses and other current assets

 

8,251

 

 

 

7,067

 

Total current assets

 

165,659

 

 

 

199,398

 

Property and equipment, net

 

9,159

 

 

 

4,891

 

Operating lease right-of-use asset, net

 

8,344

 

 

 

8,742

 

Other assets

 

2,201

 

 

 

379

 

Total assets

$

185,363

 

 

$

213,410

 

Liabilities and stockholders' equity

 

 

 

Current liabilities

 

 

 

Accounts payable

$

7,256

 

 

$

6,021

 

Accrued expenses and other current liabilities

 

8,044

 

 

 

5,045

 

Warrant liability

 

871

 

 

 

2,185

 

Current portion of operating lease obligation

 

1,432

 

 

 

1,166

 

Total current liabilities

 

17,603

 

 

 

14,417

 

Long-term debt, net of debt discount

 

68,181

 

 

 

63,768

 

Operating lease obligation, net of current portion

 

8,594

 

 

 

9,260

 

Derivative liability

 

4,776

 

 

 

17,418

 

Earnout liability

 

32,841

 

 

 

83,144

 

Other long-term liabilities

 

751

 

 

 

191

 

Total liabilities

 

132,746

 

 

 

188,198

 

Stockholders' equity

 

 

 

Preferred stock, par value $0.0001, 1,000,000 shares authorized and no shares issued and outstanding as of June 30, 2022 and December 31, 2021

 

?

 

 

 

?

 

Common stock, par value $0.0001, 250,000,000 shares authorized as of June 30, 2022 and December 31, 2021; 75,610,103 and 75,062,642 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively

 

8

 

 

 

8

 

Additional paid-in capital

 

209,191

 

 

 

206,768

 

Accumulated deficit

 

(156,582

)

 

 

(181,564

)

Total stockholders' equity

 

52,617

 

 

 

25,212

 

Total liabilities and stockholders' equity

$

185,363

 

 

$

213,410

 

Lightning eMotors, Inc.

Consolidated Statements of Operations

(in thousands, except share and per share data)

(Unaudited)

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2022

 

2021

 

2022

 

2021

Revenues

$

3,536

 

 

$

5,923

 

 

$

8,948

 

 

$

10,514

 

Cost of revenues

 

4,889

 

 

 

7,048

 

 

 

12,611

 

 

 

12,366

 

Gross loss

 

(1,353

)

 

 

(1,125

)

 

 

(3,663

)

 

 

(1,852

)

Operating expenses

 

 

 

 

 

 

 

Research and development

 

1,810

 

 

 

743

 

 

 

3,752

 

 

 

1,391

 

Selling, general and administrative

 

12,559

 

 

 

16,026

 

 

 

24,158

 

 

 

19,946

 

Total operating expenses

 

14,369

 

 

 

16,769

 

 

 

27,910

 

 

 

21,337

 

Loss from operations

 

(15,722

)

 

 

(17,894

)

 

 

(31,573

)

 

 

(23,189

)

Other (income) expense, net

 

 

 

 

 

 

 

Interest expense, net

 

3,849

 

 

 

3,940

 

 

 

7,710

 

 

 

5,551

 

(Gain) loss from change in fair value of warrant liabilities

 

(1,126

)

 

 

7,596

 

 

 

(1,314

)

 

 

28,135

 

(Gain) loss from change in fair value of derivative liability

 

(10,087

)

 

 

4,267

 

 

 

(12,642

)

 

 

4,267

 

(Gain) loss from change in earnout liability

 

(44,131

)

 

 

12,376

 

 

 

(50,303

)

 

 

12,376

 

Other expense (income), net

 

35

 

 

 

(15

)

 

 

(6

)

 

 

(24

)

Total other (income) expense, net

 

(51,460

)

 

 

28,164

 

 

 

(56,555

)

 

 

50,305

 

Net income (loss)

$

35,738

 

 

$

(46,058

)

 

$

24,982

 

 

$

(73,494

)

Net income (loss) per share, basic

$

0.47

 

 

$

(0.79

)

 

$

0.33

 

 

$

(1.60

)

Net income (loss) per share, diluted

$

0.35

 

 

$

(0.79

)

 

$

0.23

 

 

$

(1.60

)

Weighted-average shares outstanding, basic

 

75,408,116

 

 

 

58,560,928

 

 

 

75,268,854

 

 

 

45,924,405

 

Weighted-average shares outstanding, diluted

 

85,210,210

 

 

 

58,560,928

 

 

 

85,281,301

 

 

 

45,924,405

 

Lightning eMotors, Inc.

Consolidated Statements of Cash Flows

(in thousands)

(Unaudited)

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2022

 

2021

 

2022

 

2021

Cash flows from operating activities

 

 

 

 

 

 

 

Net income (loss)

$

35,738

 

 

$

(46,058

)

 

$

24,982

 

 

$

(73,494

)

Adjustments to reconcile net income (loss) to net cash used in operating activities:

 

 

 

 

 

 

 

Depreciation and amortization

 

407

 

 

 

224

 

 

 

768

 

 

 

350

 

Provision for doubtful accounts

 

450

 

 

 

?

 

 

 

498

 

 

 

142

 

Provision for inventory obsolescence and write-downs

 

682

 

 

 

98

 

 

 

777

 

 

 

98

 

Loss (gain) on disposal of fixed asset

 

37

 

 

 

?

 

 

 

37

 

 

 

(9

)

Change in fair value of warrant liability

 

(1,126

)

 

 

7,596

 

 

 

(1,314

)

 

 

28,135

 

Change in fair value of earnout liability

 

(44,131

)

 

 

12,376

 

 

 

(50,303

)

 

 

12,376

 

Change in fair value of derivative liability

 

(10,087

)

 

 

4,267

 

 

 

(12,642

)

 

 

4,267

 

Stock-based compensation

 

1,436

 

 

 

128

 

 

 

2,408

 

 

 

196

 

Amortization of debt discount

 

2,294

 

 

 

1,537

 

 

 

4,413

 

 

 

2,522

 

Non-cash impact of operating lease right-of-use asset

 

284

 

 

 

671

 

 

 

551

 

 

 

1,224

 

Issuance of common stock warrants for services performed

 

?

 

 

 

?

 

 

 

?

 

 

 

433

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

Accounts receivable

 

1,630

 

 

 

(3,901

)

 

 

1,843

 

 

 

(4,458

)

Inventories

 

(8,597

)

 

 

(2,094

)

 

 

(11,382

)

 

 

(3,480

)

Prepaid expenses and other assets

 

(2,738

)

 

 

(6,294

)

 

 

(2,658

)

 

 

(8,775

)

Accounts payable

 

2,084

 

 

 

(742

)

 

 

1,186

 

 

 

562

 

Accrued expenses and other liabilities

 

(1,399

)

 

 

5,148

 

 

 

1,658

 

 

 

6,237

 

Net cash used in operating activities

 

(23,036

)

 

 

(27,044

)

 

 

(39,178

)

 

 

(33,674

)

Cash flows from investing activities

 

 

 

 

 

 

 

Purchase of property and equipment

 

(1,906

)

 

 

(876

)

 

 

(3,930

)

 

 

(1,445

)

Proceeds from disposal of property and equipment

 

?

 

 

 

?

 

 

 

?

 

 

 

9

 

Net cash used in investing activities

 

(1,906

)

 

 

(876

)

 

 

(3,930

)

 

 

(1,436

)

Cash flows from financing activities

 

 

 

 

 

 

 

Proceeds from convertible notes payable, net of issuance costs paid

 

?

 

 

 

95,000

 

 

 

?

 

 

 

95,000

 

Proceeds from Business Combination and PIPE Financing, net of issuance costs paid

 

?

 

 

 

142,796

 

 

 

?

 

 

 

142,796

 

Proceeds from facility borrowings

 

?

 

 

 

?

 

 

 

?

 

 

 

7,000

 

Repayments of facility borrowings

 

?

 

 

 

(11,500

)

 

 

?

 

 

 

(11,500

)

Proceeds from the exercise of Series C redeemable convertible preferred warrants

 

?

 

 

 

1,600

 

 

 

?

 

 

 

3,100

 

Proceeds from exercise of common warrants

 

?

 

 

 

157

 

 

 

?

 

 

 

157

 

Payments on finance lease obligations

 

(20

)

 

 

(48

)

 

 

(35

)

 

 

(54

)

Proceeds from exercise of stock options

 

117

 

 

 

31

 

 

 

123

 

 

 

41

 

Tax withholding payment related to net settlement of equity awards

 

(108

)

 

 

?

 

 

 

(108

)

 

 

?

 

Net cash (used in) provided by financing activities

 

(11

)

 

 

228,036

 

 

 

(20

)

 

 

236,540

 

Net (decrease) increase in cash

 

(24,953

)

 

 

200,116

 

 

 

(43,128

)

 

 

201,430

 

Cash - Beginning of period

 

150,363

 

 

 

1,774

 

 

 

168,538

 

 

 

460

 

Cash - End of period

$

125,410

 

 

$

201,890

 

 

$

125,410

 

 

$

201,890

 

 

 

 

 

 

 

 

 

Supplemental cash flow information - Cash paid for interest

$

3,413

 

 

$

1,299

 

 

$

3,526

 

 

$

1,649

 

Significant noncash transactions

 

 

 

 

 

 

 

Earnout liability at inception

$

?

 

 

$

78,960

 

 

$

?

 

 

$

78,960

 

Warrant liability at inception

 

?

 

 

 

1,253

 

 

 

?

 

 

 

1,253

 

Derivative liability at inception

 

?

 

 

 

17,063

 

 

 

?

 

 

 

17,063

 

Conversion of convertible notes for common stock

 

?

 

 

 

9,679

 

 

 

?

 

 

 

9,679

 

Conversion of warrant liabilities for common stock

 

?

 

 

 

37,580

 

 

 

?

 

 

 

37,580

 

Property and equipment included in accounts payable and accruals

 

321

 

 

 

?

 

 

 

708

 

 

 

?

 

Finance lease right-of-use asset in exchange for a lease liability

 

603

 

 

 

?

 

 

 

786

 

 

 

?

 

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.

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 Business Combination related expenses. Adjusted net loss is defined as net income (loss) adjusted for stock-based compensation expense, gains or losses related to the change in fair value of warrant, derivative and earnout share liabilities and certain other non-recurring costs determined by management, such as Business Combination related expenses. EBITDA, adjusted EBITDA and adjusted net loss are intended as supplemental measures of our performance that are neither required by, nor presented in accordance with, GAAP. We believe that using EBITDA, adjusted EBITDA and adjusted net loss 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, adjusted EBITDA and adjusted net loss 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, adjusted EBITDA and adjusted net loss may not be comparable to other similarly titled measures computed by other companies, because all companies may not calculate EBITDA, adjusted EBITDA and adjusted net loss in the same fashion.

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 six months ended June 30, 2022 and 2021:

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2022

 

2021

 

2022

 

2021

Net income (loss)

$

35,738

 

 

$

(46,058

)

 

$

24,982

 

 

$

(73,494

)

Adjustments:

 

 

 

 

 

 

 

Depreciation and amortization

 

407

 

 

 

224

 

 

 

768

 

 

 

350

 

Interest expense, net

 

3,849

 

 

 

3,940

 

 

 

7,710

 

 

 

5,551

 

EBITDA

$

39,994

 

 

$

(41,894

)

 

$

33,460

 

 

$

(67,593

)

Stock-based compensation

 

1,436

 

 

 

128

 

 

 

2,408

 

 

 

196

 

(Gain) loss from change in fair value of warrant liabilities

 

(1,126

)

 

 

7,596

 

 

 

(1,314

)

 

 

28,135

 

(Gain) loss from change in fair value of derivative liability

 

(10,087

)

 

 

4,267

 

 

 

(12,642

)

 

 

4,267

 

(Gain) loss from change in earnout liability

 

(44,131

)

 

 

12,376

 

 

 

(50,303

)

 

 

12,376

 

Business Combination expense

 

?

 

 

 

9,098

 

 

 

?

 

 

 

9,098

 

Adjusted EBITDA

$

(13,914

)

 

$

(8,429

)

 

$

(28,391

)

 

$

(13,521

)

 

The following table reconciles net loss to adjusted net loss for the three and six months ended June 30, 2022 and 2021:

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2022

 

2021

 

2022

 

2021

Net income (loss)

$

35,738

 

 

$

(46,058

)

 

$

24,982

 

 

$

(73,494

)

Adjustments:

 

 

 

 

 

 

 

Stock-based compensation

 

1,436

 

 

 

128

 

 

 

2,408

 

 

 

196

 

Business Combination expense

 

?

 

 

 

9,098

 

 

 

?

 

 

 

9,098

 

(Gain) loss from change in fair value of warrant liabilities

 

(1,126

)

 

 

7,596

 

 

 

(1,314

)

 

 

28,135

 

(Gain) loss from change in fair value of derivative liability

 

(10,087

)

 

 

4,267

 

 

 

(12,642

)

 

 

4,267

 

(Gain) loss from change in earnout liability

 

(44,131

)

 

 

12,376

 

 

 

(50,303

)

 

 

12,376

 

Adjusted net loss

$

(18,170

)

 

$

(12,593

)

 

$

(36,869

)

 

$

(19,422

)

 


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