Le Lézard
Classified in: Environment, Transportation, Science and technology, Business
Subject: ERN

Nikola Corporation Reports Fourth Quarter and Full Year 2023 Results


PHOENIX, Feb. 22, 2024 /PRNewswire/ -- Nikola Corporation (Nasdaq: NKLA), a global leader in zero-emissions transportation and energy supply and infrastructure solutions, via the HYLA brand, today reported financial results and business updates for the fourth quarter and full year ended December 31, 2023.

"Today we're sharing what we've accomplished and how we are providing fully integrated zero-emissions mobility solutions to fleets right now," said Nikola President and CEO Steve Girsky. "We began delivering production hydrogen fuel cell electric trucks in Q4, fleets are fueling daily at our modular refueling station in Ontario, California, we continue to rack up HVIP vouchers, and we are on track to start getting our battery-electric trucks back to end users by the end of the first quarter."

"In California, we have 99% of all the hydrogen fuel cell electric tractor HVIP vouchers requested in 2023 through January 2024," Girsky continued. "There are more requests for our fuel cell truck alone than all other truck OEMs combined on both battery and hydrogen fuel cell electric trucks in the same period. It's a testament to our market leading position, quality of our products, and the high level of Nikola fleet success. We are making the most of our head start and capitalizing on our first-mover advantage."

Launch of the Hydrogen Fuel Cell Electric Truck and Hydrogen Refueling Ecosystem

In Q4 2023, we demonstrated our ability to produce, manufacture, and deliver the hydrogen fuel cell electric truck. We believe we have delivered the first production Class 8 hydrogen fuel cell truck available in North America. Fleets are operating the trucks daily, fueling at our first modular refueling site in Ontario, Calif. and our partner FirstElement Fuel's station in Oakland, Calif.

Looking forward to 2024, we are focused on optimizing revenue and costs in our business, as we seek to scale hydrogen fuel cell electric truck production, secure additional modular refueling sites and deploy modular fuelers to support fleets and bring the battery-electric product back to the marketplace.

Hydrogen Fuel Cell Electric Truck

In Q4 2023, we delivered what we believe is the first production hydrogen fuel cell electric truck available in North America. We produced 42, delivering 35 of those to dealers and reserved seven for continued testing and fleet demos. Every truck delivered to dealers is spoken for by an end user, some of which are already utilizing the trucks in operations daily. End users include:

In Calif. 99% (355 of 360) of the hydrogen fuel cell electric HVIP vouchers requested in 2023 through January 2024 are for our hydrogen fuel cell electric truck. We continue to build a strong sales funnel as our sales team works in conjunction with dealers. Initial fleet feedback on truck performance has been positive. Coyote Container completed an 866-mile round trip haul between The Port of Oakland, Port of Long Beach, HYLA Ontario refueling station, and returned to Oakland, stopping for only one refuel.

Battery-Electric Truck

We remain on track to deliver the first re-worked battery-electric trucks with new battery packs back to end users by the end of Q1 and believe all trucks will be returned to end user fleets by the end of Q2 or early Q3. Once end user trucks have been returned, we plan to begin retrofitting the remaining battery-electric trucks in Nikola inventory and selling them for revenue in late Q3 or early Q4.

Since October 2023, there have been 33 additional HVIP voucher requests for the battery-electric truck in Calif. In addition to new battery packs from an alternative supplier, what we call the BEV "2.0" is expected to have a number of additional enhancements, some available upon release and some to be implemented over time, which further improve the trucks capabilities. Some of the improvements include an updated instrument display, a more user-friendly mobile app, and scheduled departure charging to ensure maximum state of charge when a driver begins their route. In addition to the new packs and features, we also expect the trucks will be lighter, improving payload capacity.

Energy

We recently announced the opening of our first HYLA modular refueling station in Ontario, Calif., as well as our collaboration with FirstElement Fuel for fleets to use their refueling station in Oakland, Calif. Fleets are utilizing both fueling locations and hauling freight between Southern and Northern Calif.

Our HYLA team is working to secure additional fueling sites throughout Calif., and believes we have line of sight to secure an additional six in Southern Calif. and three in Northern Calif. in 2024. The HYLA station development strategy is to deploy modular fueling assets as truck network density is amassed in the region. Once truck density is amassed, fixed stations can be constructed and placed into service. Upon the completion of fixed station infrastructure, modular fuelers can be redeployed to a new geography and the cycle can be replicated. We believe the modular refueling strategy allows us to be nimble and rapidly enter new markets, while remaining capital efficient.

Fourth Quarter and Full Year Financial Highlights


 Three Months Ended
December 31,


 Years Ended
December 31,

(In thousands, except share, per share and truck data)

2023


2022


2023


2022

Trucks produced

42


133


138


258

Trucks shipped

35


20


114


131

Total revenues

$        11,532


$          5,463


$        35,839


$        49,725

Gross profit (loss)

$      (38,236)


$      (26,974)


$    (214,067)


$      (85,969)

Gross margin

(332) %


(494) %


(597) %


(173) %

Net loss from continuing operations

$    (153,596)


$    (175,966)


$    (864,621)


$    (738,138)

Net loss

$    (153,596)


$    (222,066)


$    (966,282)


$    (784,238)

Adjusted EBITDA (1)

$    (102,031)


$    (131,489)


$    (519,348)


$    (414,894)

Net loss from continuing operations per share, basic and diluted

$          (0.14)


$          (0.36)


$          (1.08)


$          (1.67)

Non-GAAP net loss per share, basic and diluted(1)

$          (0.11)


$          (0.30)


$          (0.79)


$          (1.03)

Weighted-average shares outstanding, basic and diluted

1,078,090,959


487,551,035


800,030,551


441,800,499



(1)

A reconciliation of the non-GAAP information is provided below in the financial statement tables in the press release.



Webcast and Conference Call Information

Nikola will host a webcast to discuss its fourth quarter and full year 2023 results and business progress at 7:30 a.m. Pacific Time (10:30 a.m. Eastern Time) on February 22, 2024. To access the webcast, parties in the United States should follow this link: https://www.webcast-eqs.com/nikola20240222/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.

About Nikola Corporation

Nikola Corporation's mission is clear: pioneering solutions for a zero-emissions world. As an integrated truck and energy company, Nikola is transforming commercial transportation, with our Class 8 vehicles, including battery-electric and hydrogen fuel cell electric trucks, and our energy brand, HYLA, driving the advancement of the complete hydrogen refueling ecosystem, covering supply, distribution and dispensing. Nikola headquarters is based in Phoenix, Arizona with a manufacturing facility in Coolidge, Arizona.

For more information visit our website Facebook @nikolamotorcompany, Instagram @nikolamotorcompany, YouTube @nikolamotorcompany, LinkedIn @nikolamotorcompany 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 financial and business performance, business plan, strategy, focus, opportunities and milestones; expected orders and customer demand for trucks; the Company's beliefs regarding competition and that it has competitive and first-mover advantage; the Company's business outlook; the Company's expectations regarding hydrogen supply and plans to secure adequate hydrogen supply; expected benefits of the modular refueling strategy; expectations related to the battery-electric truck recall, including the nature of the repairs, the Company's expectations regarding the trucks, and timing of battery replacement and truck deliveries and sales; the Company's sales efforts; and government incentives and expectations regarding customer demand related to such incentives. 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: successful execution of the Company's business plan; design and manufacturing changes and delays, including global shortages in parts and materials and other supply challenges; general economic, financial, legal, regulatory, political and business conditions and changes in domestic and foreign markets; demand for and customer acceptance of the Company's trucks and hydrogen refueling solutions; the results of customer pilot testing; the execution and terms of definitive agreements with strategic partners and customers; the failure to convert LOIs or MOUs into binding orders; the cancellation of orders; risks associated with development and testing of fuel cell power modules and hydrogen storage systems; risks related to the recall, including higher than expected costs, the discovery of additional problems, delays retrofitting the trucks and delivering such trucks to customers, supply chain and other issues that may create additional delays, order cancellations as a result of the recall, litigation, complaints and/or product liability claims, and reputational harm; risks related to the rollout of the Company's business and milestones and the timing of expected business milestones; the effects of competition on the Company's business; the Company's ability to raise capital; the Company's ability to achieve cost reductions and decrease its cash usage; the grant, receipt and continued availability of federal and state incentives; the completion of the 2023 audit and any related adjustments to financial results; and the factors, risks and uncertainties regarding the Company's business described in the "Risk Factors" section of the Company's quarterly report on Form 10-Q for the quarter ended September 30, 2023 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 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
December 31,


 Years Ended December 31,


2023


2022


2023


2022







Revenues:








Truck sales

$           10,368


$             4,695


$           30,061


$           45,931

Service and other

1,164


768


5,778


3,794

Total revenues

11,532


5,463


35,839


49,725

Cost of revenues:








Truck sales

46,617


31,695


242,519


132,556

Service and other

3,151


742


7,387


3,138

Total cost of revenues

49,768


32,437


249,906


135,694

Gross loss

(38,236)


(26,974)


(214,067)


(85,969)

Operating expenses:








Research and development

39,874


66,134


208,160


270,480

Selling, general and administrative

39,325


56,270


198,768


346,186

Loss on supplier deposits

10,401


?


28,834


?

Total operating expenses

89,600


122,404


435,762


616,666

Loss from operations

(127,836)


(149,378)


(649,829)


(702,635)

Other income (expense):








Interest expense, net

(4,761)


(6,958)


(76,023)


(17,712)

Revaluation of warrant liability

56


410


371


3,903

Gain on divestiture of affiliate

?


?


70,849


?

Loss on debt extinguishment

(10,663)


?


(31,025)


?

Other income (expense), net

(10,250)


(5,446)


(162,534)


(1,023)

Loss before income taxes and equity in net loss of affiliates

(153,454)


(161,372)


(848,191)


(717,467)

Income tax expense

11


3


12


6

Loss before equity in net loss of affiliates

$       (153,465)


$       (161,375)


$       (848,203)


$       (717,473)

Equity in net loss of affiliates

(131)


(14,591)


(16,418)


(20,665)

Net loss from continuing operations

$       (153,596)


$       (175,966)


$       (864,621)


$       (738,138)

Discontinued operations:








Loss from discontinued operations

?


(46,100)


(76,726)


(46,100)

Loss from deconsolidation of discontinued operations

?


?


(24,935)


?

Net loss from discontinued operations

?


(46,100)


(101,661)


(46,100)

Net loss

$       (153,596)


$       (222,066)


$       (966,282)


$       (784,238)









Basic net loss per share:








Net loss from continuing operations

$             (0.14)


$             (0.36)


$             (1.08)


$             (1.67)

Net loss from discontinued operations

?


(0.10)


(0.13)


(0.11)

Net loss

$             (0.14)


$             (0.46)


$             (1.21)


$             (1.78)









Diluted net loss per share:








Net loss

$             (0.14)


$             (0.46)


$             (1.21)


$             (1.78)









Weighted-average shares outstanding, basic and diluted

1,078,090,959


487,551,035


800,030,551


441,800,499

 

Includes stock-based compensation as follows:



Three Months Ended
December 31,


Years Ended December 31,


2023


2022


2023


2022

Cost of revenues

$                362


$             2,779


$              2,175


$             2,779

Research and development

3,170


6,837


22,213


34,949

Selling, general, and administrative

2,943


31,615


51,003


214,717

Total stock-based compensation

$             6,475


$           41,231


$            75,391


$         252,445

 

CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share data) (unaudited)



December 31,


2023


2022

Assets




Current assets




Cash and cash equivalents

$                          464,715


$                          225,850

Restricted cash and cash equivalents

1,224


10,600

Accounts receivable, net

17,974


31,638

Inventory

62,588


111,870

Prepaid expenses and other current assets

25,911


27,943

Assets subject to assignment for the benefit of creditors, current portion

?


29,025

Total current assets

572,412


436,926

Restricted cash and cash equivalents

28,026


77,459

Long-term deposits

14,954


34,279

Property, plant and equipment, net

503,416


417,785

Intangible assets, net

85,860


92,473

Investment in affiliates

57,062


62,816

Goodwill

5,238


6,688

Other assets

7,889


8,107

Assets subject to assignment for the benefit of creditors

?


100,125

Total assets

$                       1,274,857


$                       1,236,658

Liabilities and stockholders' equity




Current liabilities




Accounts payable

$                             44,133


$                             93,242

Accrued expenses and other current liabilities

207,022


179,571

Debt and finance lease liabilities, current

8,950


61,675

Liabilities subject to assignment for the benefit of creditors, current portion

?


49,102

Total current liabilities

260,105


383,590

Long-term debt and finance lease liabilities, net of current portion

269,279


290,128

Operating lease liabilities

4,765


6,091

Other long-term liabilities

21,512


6,684

Deferred tax liabilities, net

22


15

Liabilities subject to assignment for the benefit of creditors

?


23,671

Total liabilities

555,683


710,179

Commitments and contingencies




Stockholders' equity




Preferred stock

?


?

Common stock

133


51

Additional paid-in capital

3,790,272


2,562,855

Accumulated deficit

(3,071,069)


(2,034,850)

Accumulated other comprehensive loss

(162)


(1,577)

Total stockholders' equity

719,174


526,479

Total liabilities and stockholders' equity

$                       1,274,857


$                       1,236,658

 

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands) (unaudited)



Years Ended December 31,


2023


2022

Cash flows from operating activities




Net loss

$                      (966,282)


$                      (784,238)

Less: Loss from discontinued operations

(101,661)


(46,100)

Loss from continuing operations

(864,621)


(738,138)

Adjustments to reconcile net loss from continuing operations to net cash used in operating activities:




Depreciation and amortization

35,890


22,765

Stock-based compensation

75,391


252,445

Equity in net loss of affiliates

16,418


20,665

Revaluation of financial instruments

205,589


(174)

Revaluation of contingent stock consideration

(43,981)


?

Inventory write-downs

71,218


19,705

Non-cash interest expense

79,201


15,481

Loss on supplier deposits

28,834


?

Gain on divestiture of affiliate

(70,849)


?

Loss on debt extinguishment

31,025


?

Other non-cash activity

4,343


873

Changes in operating assets and liabilities:




Accounts receivable, net

13,665


(31,638)

Inventory

(23,756)


(141,168)

Prepaid expenses and other current assets

(44,732)


(27,681)

Long-term deposits

(1,377)


(4,306)

Other assets

(1,530)


(912)

Accounts payable, accrued expenses and other current liabilities

(14,613)


29,669

Operating lease liabilities

(2,009)


(843)

Other long-term liabilities

9,716


1,694

Net cash used in operating activities

(496,178)


(581,563)

Cash flows from investing activities




Purchases and deposits for property, plant and equipment

(120,516)


(168,257)

Divestiture of affiliates

36,000


?

Proceeds from the sale of assets

20,742


18

Payments to assignee

(2,725)


?

Investments in affiliates

(250)


(23,027)

Issuance of senior secured note receivable and prepaid acquisition-related consideration

?


(27,791)

Settlement of price differentials

?


(6,588)

Net cash used in investing activities

(66,749)


(225,645)





Cash flows from financing activities




Proceeds from the exercise of stock options

7,395


6,867

Proceeds from issuance of shares under the Tumim Purchase Agreements

67,587


123,672

Proceeds from registered direct offering, net of underwriter's discount

63,246


?

Proceeds from public offerings, net of underwriter's discount

128,152


?

Proceeds from issuances of convertible debt instruments, net of discount and issuance costs

386,733


233,214

Proceeds from issuance of common stock under Equity Distribution Agreement, net of commissions paid

115,893


165,143

Proceeds from issuance of debt, promissory notes and notes payable, net of issuance costs

?


54,000

Proceeds from issuance of financing obligations, net of issuance costs

56,148


44,823

Proceeds from insurance premium financing

5,223


6,637

Payment for Coupon Make-Whole Premiums

(35,241)


?

Repayment of debt, promissory notes and notes payable

(45,469)


(30,526)

Payments on insurance premium financing

(5,369)


(4,638)

Payments on finance lease liabilities and financing obligation

(1,315)


(316)

Net cash provided by financing activities

742,983


598,876

Net increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents

180,056


(208,332)

Cash and cash equivalents, including restricted cash and cash equivalents, beginning of period

313,909


522,241

Cash and cash equivalents, including restricted cash and cash equivalents, end of period

$                        493,965


$                        313,909





Cash flows from discontinued operations:




Operating activities

(4,964)


4,857

Investing activities

(1,804)


(2,469)

Financing activities

(572)


(198)

Net cash provided by (used in) discontinued operations

$                          (7,340)


$                            2,190

 

Reconciliation of GAAP Financial Metrics to Non-GAAP

(In thousands, except share and per share data) (unaudited)


Reconciliation of Net Loss from continuing operations to EBITDA and Adjusted EBITDA



Three Months Ended
December 31,


Years Ended December 31,


2023


2022


2023


2022

Net loss from continuing operations

$       (153,596)


$      (175,966)


$       (864,621)


$       (738,138)

Interest expense, net

4,761


6,958


76,023


17,712

Income tax expense

11


3


12


6

Depreciation and amortization

7,132


6,293


35,890


22,765

EBITDA

(141,692)


(162,712)


(752,696)


(697,655)

Stock-based compensation

6,475


41,231


75,391


252,445

Loss on supplier deposits

10,401


?


28,834


?

Gain on divestiture of affiliates

?


?


(70,849)


?

Loss on debt extinguishment

10,663


?


31,025


?

Revaluation of financial instruments

10,457


(81)


161,608


(174)

Romeo Acquisition transaction costs

?


5,218


?


7,315

Regulatory and legal matters (1)

1,665


(15,145)


7,339


23,175

Adjusted EBITDA

$       (102,031)


$      (131,489)


$       (519,348)


$       (414,894)



(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
December 31,


Years Ended December 31,


2023


2022


2023


2022

Net loss from continuing operations

$       (153,596)


$      (175,966)


$       (864,621)


$       (738,138)

Stock-based compensation

6,475


41,231


75,391


252,445

Loss on supplier deposits

10,401


?


28,834


?

Gain on divestiture of affiliate

?


?


(70,849)


?

Loss on debt extinguishment

10,663


?


31,025


?

Revaluation of financial instruments

10,457


(81)


161,608


(174)

Romeo Acquisition transaction costs

?


5,218


?


7,315

Regulatory and legal matters (1)

1,665


(15,145)


7,339


23,175

Non-GAAP net loss

$       (113,935)


$      (144,743)


$       (631,273)


$       (455,377)









Non-GAAP net loss per share:








Basic

$             (0.11)


$            (0.30)


$             (0.79)


$             (1.03)

Diluted

$             (0.11)


$            (0.30)


$             (0.79)


$             (1.03)

Weighted average shares outstanding:








Basic

1,078,090,959


487,551,035


800,030,551


441,800,499

Diluted

1,078,090,959


487,551,035


800,030,551


441,800,499



(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 Cash flows to Adjusted free cash flow




Three Months Ended
December 31,


Years Ended December 31,



2023


2022


2023


2022

Most comparable GAAP measure:









Net cash used for operating activities


$      (117,754)


$      (150,104)


$      (496,178)


$      (581,563)

Net cash used for investing activities


(11,107)


(55,702)


(66,749)


(225,645)

Net cash provided by financing activities


230,726


115,925


742,983


598,876










Non-GAAP measure:









Net cash used for operating activities


(117,754)


(150,104)


(496,178)


(581,563)

Purchases of property, plant and equipment


(12,107)


(49,821)


(120,516)


(168,257)

Adjusted free cash flow


$      (129,861)


$      (199,925)


$      (616,694)


$      (749,820)

 

SOURCE Nikola Corporation


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