Lightning eMotors Inc (ZEVY)

[WeTheMarket]

LIGHTNING EMOTORS REPORTS FINANCIAL RESULTS FOR SECOND QUARTER 2023
AUGUST 14, 2023
Link to Press Release https://ir.lightningemotors.com/news-events/press-releases/detail/115/lightning-emotors-reports-financial-results-for-second
Link to Presentation https://d1io3yog0oux5.cloudfront.net/_af835d8b13690450c4cdaee37e8a9b46/lightningemotors/db/1111/9848/earnings_presentation/Q2+2023+Earnings+Presentation+vFinal.pdf
Link to Webcast https://event.choruscall.com/mediaframe/webcast.html?webcastid=QKMFpnc5

Highlights
- GAAP revenue of $7.9 million, the second highest quarterly revenue in company history
- Adjusted revenue of $8.2 million from sales of 70 units, excluding $0.3 million of recall-related costs
- Produced 46 units during the quarter, consisting of vehicles, powertrains, and mobile DC fast chargers
- Nearly 5 million driven miles, compared to 2.2 million a year ago
- Full year revenue guidance of $35-45 million

LOVELAND, Colo.--(BUSINESS WIRE)-- Lightning eMotors, 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, 2023.

“The second quarter represented the second highest quarterly revenue in our history,” stated Tim Reeser, Lightning Co-founder and CEO. “With the supply issues and associated disruption from the Romeo battery issue now behind us, we are ramping production of our new ZEV4 trucks and buses to meet the growing demand and charting a path towards positive gross margin. We also delivered the first customer units of our Mobile DC Fast Charger and are seeing strong interest in this product.”

Continued Reeser, “During the end of Q2 and into the second half of 2023, we have seen our cash needs reduce materially as we sell through the finished goods inventory built over the last several quarters and use the existing raw materials inventory to build to meet new orders. In addition, we continue to see the benefits of previous cost reduction actions and are well positioned from an inventory perspective to meet our full-year guidance with minimal incremental purchases. While we convert our inventory to cash, we will also continue to seek additional sources of capital in order to strengthen our overall liquidity outlook.”

GAAP revenue was impacted by $0.3 million from the booking of apportioned cost of an accommodation we made to support our customers, as we bought back vehicles with defective Romeo batteries.

Second Quarter 2023 Financial Results

Second quarter production was 46 units, down from 74 units in the first quarter of 2022. Unit sales were 70, compared to 36 in the year-ago quarter. Second quarter revenue was $7.9 million, compared to $3.5 million for the prior year quarter. Excluding customer refunds related to the Romeo battery recall, adjusted revenue was $8.2 million.

Second quarter net loss was $21.4 million, or $3.70 per share, compared to net income of $35.7 million, or $6.94 per diluted share, during the second quarter of last year.

Second quarter adjusted EBITDA loss was $17.1 million, compared to a loss of $13.9 million during the same period in the prior year. Adjusted revenue and adjusted EBITDA 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:

- 2023 revenue to be in the range of $35 million to $45 million
- 2023 unit sales to be in the range of 300 to 350 units
- 2023 unit production to be in the range of 200 to 230 units

We have reduced the top end of our annual revenue guidance from $50 million to $45 million and also lowered the top end of the unit sales accordingly. We reduced the top end of the revenue and unit sales to reflect a change made to conserve cash. We are now only ordering inventory for firm orders, and while we may receive additional orders during the second half of this year we may not be able to obtain the inventory needed to complete the builds in the fourth quarter. We also lowered the unit production range to reflect both the change to a build-to-order model and because we still have a material amount of finished goods inventory to sell.

Webcast and Conference Call Information

Company management will host a conference call on Monday, August 14, 2023, at 4:30 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 [phone] (domestic) or [phone] (international).