Lordstown Motors Reports Second Quarter 2021 Financial Results
August 11 2021 - 4:01PM
Lordstown Motors Corp. (Nasdaq: RIDE), (“Lordstown Motors”), a
leader in electric light duty trucks focused on the commercial
fleet market, today released its second quarter 2021 financial
results and provided a business outlook.
Key Business Highlights
- Reported second quarter 2021 net loss of $108 million, capex of
$121 million and cash of $366 million on June 30, 2021.
- Beginning limited vehicle production in late September.
- Lordstown plant is production ready with retooling of stamping,
assembly, body, and paint shops completed.
- Battery line is fully commissioned and first electric hub motor
line has been site commissioned and is currently being
installed.
- Strengthened leadership is unlocking the value of Lordstown
Motors by introducing five strategic priorities to expand go
forward commercial strategy.
- Recently secured an equity purchase agreement for access to
$400 million in capital; due diligence underway with multiple
strategic partners that come with potential capital infusion as
well as pursuing external capital sources including debt and
equity-linked securities.
Executive Commentary
“In the second quarter, we continued to make great strides
towards our objective of delivering a revolutionary electric pickup
truck,” stated Lordstown Motors’ Executive Chairwoman Angela
Strand. “This included completing retooling of several critical
areas of our Lordstown facility and concluding our beta build
program. Beta builds have successfully completed numerous
independent third-party crash tests and are achieving the standard
requirements to meet FVMSS and plan for a five-star crash rating. A
particular highlight during the quarter was Lordstown Week. During
this week-long period, we proudly opened our doors and showcased
our great team and technology, demonstrating the capacity and
flexibility of our plant, our capable team and our innovative
technologies.”
“We are also evaluating potential strategic partners, with
multiple industry participants recognizing the tremendous
advantages available to them from utilizing our well situated, 6.2
million square foot manufacturing plant and 650 acre campus. The
size and scope of our facility is such that we could easily
accommodate additional manufacturing partners while still affording
us the ability to build a successful Endurance program and leverage
its skateboard for additional models in the years ahead.”
“We are launching the Endurance with a prudent ramp of
production given a challenging industry and supply chain landscape.
We are on track to begin limited production at the end of September
and through the fourth quarter and complete vehicle validation and
regulatory approvals in December and January. This will be followed
by deployments with selected early customers in Q1 in advance of
commercial deliveries in early Q2, with the ramp steepening the
second half of next year.”
2021 Objectives and Financial Outlook
We are updating the financial outlook for 2021 that we
previously provided with our first quarter 2021 earnings release.
Revised guidance is as follows:
- Expected Endurance production in 2021 will be limited to
coincide with commercialization roadmap.
- Expected capital expenditures of between $375 and $400 million,
largely related to prepayments for hard tool purchases.
- Expected operating expenses of between $95 and $105 million in
selling, general and administrative (SG&A) costs and between
$310 and $320 million in research and development (R&D)
costs.
- Expected end of 3Q21 liquidity of between $225 and $275 million
in cash and cash equivalents without including any funds from a
capital raise.
Conference call InformationLordstown Motors
will host a conference call at 4:30 p.m. Eastern Time today
(Wednesday, August 11, 2021). The call can be accessed via a live
webcast that is accessible on the Events page of Lordstown Motors’
Investor Relations website at
https://investor.lordstownmotors.com/. An archive of the webcast
will be available shortly after the call.
Financial Results
Lordstown
Motors Corp.Consolidated Statement of
Operations(Amounts in thousands, except per share data --
Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended |
|
Three months
ended |
|
Six months
ended |
|
Six months
ended |
|
|
June 30, 2021 |
|
June 30, 2020 |
|
June 30, 2021 |
|
June 30, 2020 |
Net sales |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Operating
expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Selling and
administrative expenses |
|
|
33,793 |
|
|
|
5,155 |
|
|
|
48,187 |
|
|
|
8,677 |
|
Research and
development expenses |
|
|
76,544 |
|
|
|
4,786 |
|
|
|
168,356 |
|
|
|
13,254 |
|
Total
operating expenses |
|
$ |
110,337 |
|
|
$ |
9,941 |
|
|
$ |
216,543 |
|
|
$ |
21,931 |
|
Loss from operations |
|
|
(110,337 |
) |
|
|
(9,941 |
) |
|
$ |
(216,543 |
) |
|
$ |
(21,931 |
) |
Other income
(expense) |
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense) |
|
|
1,877 |
|
|
|
2,346 |
|
|
|
-17,255 |
|
|
|
2,472 |
|
Interest income (expense) |
|
|
260 |
|
|
|
(363 |
) |
|
|
387 |
|
|
|
(364 |
) |
Loss before
income taxes |
|
$ |
(108,200 |
) |
|
$ |
(7,958 |
) |
|
$ |
(233,411 |
) |
|
$ |
(19,823 |
) |
Income tax expense |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net loss |
|
$ |
(108,200 |
) |
|
$ |
(7,958 |
) |
|
$ |
(233,411 |
) |
|
$ |
(19,823 |
) |
Loss per
share attributable to common shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
Basic & Diluted |
|
$ |
(0.61 |
) |
|
$ |
(0.11 |
) |
|
$ |
(1.33 |
) |
|
$ |
(0.27 |
) |
Weighted-average number of common shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
Basic & Diluted |
|
|
176,585 |
|
|
|
73,951 |
|
|
|
175,595 |
|
|
|
72,931 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All activity and
balances related to common stock prior to the business combination
have been restated based on the Exchange Ratio in the Merger
Agreement. |
Lordstown
Motors Corp.Consolidated Balance
Sheets(Amounts in thousands except share data --
Unaudited) |
|
|
|
|
|
|
|
|
Restated |
|
June 30, 2021 |
|
December 31, 2020 |
ASSETS: |
|
|
|
|
|
Current
Assets |
|
|
|
|
|
Cash and cash equivalents |
$ |
365,900 |
|
|
$ |
629,761 |
|
Accounts
receivable |
|
2 |
|
|
|
21 |
|
Prepaid
expenses and other current assets |
|
19,188 |
|
|
|
24,663 |
|
Total current assets |
$ |
385,090 |
|
|
$ |
654,445 |
|
Property,
plant and equipment |
|
286,303 |
|
|
|
101,663 |
|
Intangible
assets |
|
11,111 |
|
|
|
11,111 |
|
Other
non-current assets |
|
4,750 |
|
|
|
— |
|
Total Assets |
$ |
687,254 |
|
|
$ |
767,219 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY: |
|
|
|
|
|
Current
Liabilities |
|
|
|
|
|
Accounts
payable |
$ |
48,785 |
|
|
$ |
32,536 |
|
Accrued and
other current liabilities |
|
32,593 |
|
|
|
1,538 |
|
Total current liabilities |
$ |
81,378 |
|
|
$ |
34,074 |
|
Note
payable |
|
— |
|
|
|
1,015 |
|
Warrant
liability |
|
6,873 |
|
|
|
101,392 |
|
Total liabilities |
$ |
88,251 |
|
|
$ |
136,481 |
|
Stockholders’ equity |
|
|
|
|
|
Class A
common stock, $0.0001 par value, 300,000,000 shares authorized;
176,606,440 and 168,007,960 shares issued and outstanding as of
June 30, 2021 and December 31, 2020,
respectively |
$ |
18 |
|
|
$ |
17 |
|
Additional
paid in capital |
|
966,837 |
|
|
|
765,162 |
|
Accumulated
deficit |
|
(367,852 |
) |
|
|
(134,441 |
) |
Total stockholders’ equity |
$ |
599,003 |
|
|
$ |
630,738 |
|
Total liabilities and stockholders' equity |
$ |
687,254 |
|
|
$ |
767,219 |
|
|
|
|
|
|
|
|
|
About Lordstown Motors Corp.Lordstown Motors
Corp. is an Ohio-based original equipment manufacturer of light
duty fleet vehicles, founded with the purpose of transforming
Ohio's Mahoning Valley and Lordstown, Ohio, into the epicenter of
electric-vehicle manufacturing. The company owns the 6.2 million
square foot Lordstown Assembly Plant where it plans to build the
Lordstown Endurance, believed to be the world's first full-size,
all-electric pickup truck designed to serve the commercial fleet
market. For additional information visit
www.lordstownmotors.com.
Forward Looking StatementsThis press release
includes forward-looking statements. These statements are made
under the “safe harbor” provisions of the U.S. Private Securities
Litigation Reform Act of 1995. These statements may be identified
by words such as “feel,” “believes,” expects,” “estimates,”
“projects,” “intends,” “should,” “is to be,” or the negative of
such terms, or other comparable terminology. Forward-looking
statements are statements that are not historical facts. Such
forward-looking statements are not guarantees of future performance
and are subject to risks and uncertainties, which could cause
actual results to differ materially from the forward-looking
statements contained herein due to many factors, including, but not
limited to: our significant projected funding needs; the
availability, timing and terms of any financing that we may pursue;
our limited operating history; risks related to the rollout of our
business and the timing of expected business milestones, including
our ability to complete the engineering of the Endurance, to
establish appropriate supplier relationships, to successfully
complete testing and to start production of the Endurance in
accordance with our projected timeline and budget; risks associated
with the conversion and retooling of our facility and ramp up of
production; our inability to obtain binding purchase orders from
customers and potential customers’ inability to integrate our
electric vehicles into their existing fleets; competition in the
electric pickup truck market; our inability to retain key personnel
and to hire additional personnel; our inability to develop a sales
distribution network; and the ability to protect our intellectual
property rights. Any forward-looking statements speak only as of
the date on which they are made, and Lordstown Motors Corp.
undertakes no obligation to update any forward-looking statement to
reflect events or circumstances after the date of this press
release.
Contacts:
InvestorsCarter W. Driscoll,
CFAlordstownIR@icrinc.com
MediaKimberly
Spellkimberly.spell.ext@lordstownmotors.com
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