Xos, Inc (XOS)

[WeTheMarket]

Xos, Inc. Reports Third Quarter 2022 Results
November 10 2022 - 04:05PM
https://ih.advfn.com/stock-market/NASDAQ/xos-XOS/stock-news/89525225/xos-inc-reports-third-quarter-2022-results

Xos, Inc. (NASDAQ: XOS) (“Xos” or the “Company”), a leading technology company which provides fleet service and software solutions and manufactures 100% battery-electric Class 5 to Class 8 commercial vehicles, today reported financial results for the quarter ended September 30, 2022.

Recent Strategic Highlights:

- Revenue for the third quarter of 2022 was $11.0 million, up 12% compared to the previous quarter.
- Deliveries of 88 units in the third quarter of 2022, up 21% compared to 73 units in the previous quarter, to key customers such as Merchants Fleet and FedEx Ground operators.
- Net loss was $23.3 million and loss from operations was $31.2 million for the third quarter of 2022; non-GAAP operating loss for the quarter was $26.6 million.
- Expanded the offering of Xos Energy Solutions with the introduction of a suite of Xos DC Fast Chargers, and secured purchase orders from Morgan Linen, Inc. and additional fleet customers. This follows the announcement of the proprietary XosHub, the Company’s mobile charging infrastructure solution.
- Entered a strategic partnership to expand the Company’s leasing and distribution network with NationaLease.
- Named W.W. Williams as a pilot service provider to support Xos customers with world-class maintenance, service, and repair.
- Unveiled a suite of Advanced Driver Assistance System (ADAS) features that will be implemented as a standard feature in Xos stepvans.
- Decreased total cost of ownership (TCO) with extended warranty offering in partnership with National Truck Protection Co. Inc.

Dakota Semler, Chief Executive Officer of Xos, commented, “We are pleased to see continued strong demand for Xos vehicles. Xos achieved vehicle deliveries to key customers such as Merchants Fleet and FedEx Ground operators in 15 cities despite charging infrastructure bottlenecks, global supply chain obstacles, and macroeconomic headwinds. As our installed base grows and our vehicles season within customers’ operations, we are also seeing strong follow on order activity. Operationally, Xos has made several strategic decisions that will position us for strong growth and gross margin profitability at a unit level by the end of the first half of 2023.”

“We are making considerable progress in overcoming supply chain challenges and improving procurement and logistics costs. In addition, we are focussed on reducing direct material costs and overhead as we scale manufacturing at our principal manufacturing site in Tennessee,” said Giordano Sordoni, Chief Operating Officer of Xos. “As we realize the benefits of these advances, it will position us to see strong production volume increases.”

Third Quarter 2022 Financial Highlights Compared to Second Quarter 2022:

- Total revenue increased by approximately 12% to $11.0 million, driven by higher deliveries during the period, compared to $9.8 million in the prior quarter.
- Gross Margin loss was $10.8 million, versus $5.1 million in the prior quarter.
- Non-GAAP Gross (Loss) Margin loss was $5.5 million, compared to $4.2 million in the prior quarter
- Net Loss was $23.3 million and loss from operations was $31.2 million, compared to Net Loss of $9.5 million and loss from operations of $27.8 million in the prior quarter.
- Non-GAAP operating loss was $26.6 million, compared to $25.8 million in the prior quarter.
- Inventories increased to $66.3 million, compared to $62.2 million during the prior quarter as the Company prepared to increase deliveries.
- Cash, cash equivalents, restricted cash, and marketable debt securities, available-for-sale were $109.2 million as of September 30, 2022.

Second Half 2022 Outlook:

Based on current business conditions, business trends and other factors, the Company is reaffirming its previously provided outlook for the second half of 2022 as follows:

- Second Half 2022
- Revenue $18.75 to $25.60 million
- Unit Deliveries 150 to 200 units
- Non-GAAP Operating Loss $43 to $52 million

Kingsley Afemikhe, Chief Financial Officer of Xos, added, “Unit deliveries and revenue were in line with our expectations, as we saw meaningful increases during the quarter on a sequential basis underpinned by continued strong demand for our products and energy solutions. We are reaffirming our second half 2022 outlook and remain on track for deliveries to fall within our previously provided range. Our gross margin was impacted by a number of non-cash adjustments in the quarter that we believe are transitory as we scale and bolster our systems.”

Our balance sheet remains strong, with proceeds from the recently issued convertible securities, which provided us with the capital that we need as we scale production in 2023. We expect our cash used from operations to fall further in the fourth quarter as we become more operationally efficient, and utilize working capital more efficiently.”

The outlook provided above is based on management beliefs and expectations as of the date of this press release. This outlook assumes that no business acquisitions, investments, restructurings, or legal settlements are concluded in the quarter. The results are based on assumptions that are believed to be reasonable as of this date, but may be materially affected by many factors, as discussed below in “Forward-Looking Statements”. Actual results may vary from the outlook above and the variations may be material. The Company undertakes no intent or obligation to publicly update or revise any of these projections, whether as a result of new information, future events or otherwise, except as required by law.

Conference Call and Webcast Details:

Management will host a conference call and webcast to discuss these financial results at 4:30 p.m. Eastern Standard Time / 1:30 p.m. Pacific Standard Time today. The presentation is open to all interested parties and may include forward-looking information.

Date/Time: Thursday, November 10, 2022, at 4:30 p.m. EST / 1:30 p.m. PST

Webcast: https://viavid.webcasts.com/starthere.jsp?ei=1573425&tp_key=c63ccbd2e2

U.S. Toll-Free Dial In: 1-844-826-3033

International Dial In: 1-412-317-5185

Conference ID: 10171513
To access the call, please dial in approximately ten minutes before the start of the call. An accompanying slide presentation will be available in PDF format within the “Events & Presentations” section of the Company’s website.

For those unable to participate in the live call, an audio replay will be available following the call through midnight Thursday, November 24, 2022. To access the replay, please call 844-512-2921 or 412-317-6671 (International) and enter confirmation code 10171513. A replay of the webcast will also be archived shortly after the call and can be accessed on the Company's website.

About Xos, Inc.

Xos is a leading technology company, fleet services provider, and original equipment manufacturer of Class 5 through Class 8 battery-electric vehicles. Xos vehicles and fleet management software are purpose-built for medium- and heavy-duty commercial vehicles that travel on last-mile, back-to-base routes of up to 270 miles or less per day. The company leverages its proprietary technologies to provide commercial fleets with zero-emission vehicles that are easier to maintain and more cost-efficient on a total cost of ownership (TCO) basis than their internal combustion engine counterparts. For more information, please visit www.xostrucks.com.