ELMS Announces Second Quarter 2021 Financial Results
August 12 2021 - 4:05PM
Electric Last Mile Solutions, Inc. (NASDAQ: ELMS; ELMSW) (“ELMS” or
the “Company”), a commercial electric vehicle (“EV”) company
focused on creating intelligent, e-mobility workstations for last
mile customers, today announced financial and operating results for
the quarter ended June 30, 2021.
“We made great strides in the second quarter,
achieving multiple key milestones in our mission to redefine
productivity for the last mile. We are affirming our intentions to
launch production of the U.S. market’s first Class 1 commercial EV,
the Urban Delivery, by the end of the third quarter,” said James
Taylor, Co-Founder and CEO of ELMS. “In the second quarter, we
successfully closed our business combination, providing us with
sufficient funds to execute our business plan. We also acquired our
EV factory and are progressing towards production readiness. From
an engineering perspective, we are on schedule to finalize our
testing. Reception of the Urban Delivery has been positive, and we
are now actively working to finalize order commitments. Meanwhile,
we have scheduled pilots for our EVs, including our second product,
the all-electric medium duty Urban Utility, with potential
customers across industry verticals.”
“We believe ELMS is well-positioned to seize a
first-mover opportunity in the Class 1 commercial EV segment at
scale and provide customers with sustainable and efficient EV
solutions that are profit drivers, not cost-centers.”
Second Quarter 2021
Highlights
- Net loss for the second quarter was
$8.6 million, or $0.10 per share.
- The Company had a cash balance of
$217.4 million as of June 30, 2021.
- Completed business combination with
Forum Merger III Corporation resulting in ELMS becoming a publicly
traded company.
- Acquired EV manufacturing facility
in Mishawaka, Indiana to produce next-generation commercial
EVs.
- Announced proposed strategic
distribution partnership with Randy Marion Automotive Group, one of
the largest commercial dealers in the U.S.
- Launched collaboration with Cox
Automotive Inc. to define the future of commercial EV fleet service
and provide ELMS customers access to Cox Automotive’s more than
6,000 service centers and 3,000 partner locations, as well as
Dickinson Fleet Services’ network of more than 800 mobile
technicians.
- Revealed the design of ELMS’ second
segment-defining vehicle, the all-electric medium duty Urban
Utility.
Recent Business Highlights
- Accelerated organizational
capabilities by expanding the global leadership team with key
personnel across digital solutions, engineering, operations and
manufacturing, marketing, business development and sales. Executive
hires include Chief Strategy and Digital Officer, Jonathan Ballon;
Deputy CFO, Treasurer and Controller, Rob Song; Chief Revenue
Officer, Ron Feldeisen; VP of Engineering Praveen Cherian; and Adam
Du, Director of China Operations. Plans in place to expand office
locations to Shanghai and San Francisco to access talent and global
suppliers.
- Broadened supply base for
market-proven components through binding agreements with Liuzhou
Wuling Automobile Industry Co. Ltd., a leading manufacturers of
electric cargo vans. ELMS driving vehicle design based on customer
requirements and U.S. engineering specifications. Continued
engagement with other potential OEM partners for additional
supply.
- Expanded and protected the
Company’s IP portfolio, including the filing of a patent for a
Class 1 commercial EV frontal impact-absorption design as part of
ELMS’ proprietary EV crash protection system.
- Announced partnership with Trane
Technologies plc’s Thermo King unit to build first-of-its-kind
all-electric refrigerated delivery vehicle prototype and test with
potential customers.
- Customer evaluations and pilots of
the Urban Utility scheduled, with production on track to commence
in the second half of 2022.
Business Outlook
- Affirmed start of production for
the ELMS Urban Delivery by the end of third quarter of 2021 and set
2021 production target of 1,000 vehicles.
- On track for 2022 production volume
target laid out in business plan.
- 2021 total operating expenses are
expected to be in the range of $75 million to $80 million.
- 2021 capital expenditures are
expected to be in the range of $25 million to $30 million.
Conference Call and WebcastELMS will host a
conference call and webcast to discuss its second quarter results
at 5:00 p.m. Eastern Time today, August 12, 2021. To listen to the
live webcast, go to the Investors section of the Company’s website
at www.electriclastmile.com at least 15 minutes prior to the
scheduled start time in order to register.
To Participate in the Telephone Conference
Call: Dial in at least 15 minutes prior to start time.
Domestic: 1-877-300-8521International: 1-412-317-6026
A replay of the call will be available via webcast at
www.electriclastmile.com.
About Electric Last Mile Solutions,
Inc.Electric Last Mile Solutions, Inc. (NASDAQ: ELMS;
ELMSW) is focused on defining a new era in which commercial
vehicles run clean as connected and customized solutions that make
our customers’ businesses more efficient and profitable. ELMS’
first vehicle, the Urban Delivery, is anticipated to be the first
Class 1 commercial electric vehicle in the U.S. market. The company
is headquartered in Troy, Michigan. For more information, please
visit www.electriclastmile.com.
Forward-Looking StatementsThis
press release includes “forward-looking statements” within the
meaning of the “safe harbor” provisions of the Private Securities
Litigation Reform Act of 1995. The Company’s actual results may
differ from its expectations, estimates and projections and
consequently, you should not rely on these forward-looking
statements as predictions of future events. Words such as “expect,”
“estimate,” “project,” “budget,” “forecast,” “anticipate,”
“intend,” “plan,” “may,” “will,” “could,” “should,” “believes,”
“predicts,” “potential,” “continue,” and similar expressions are
intended to identify such forward-looking statements. These
forward-looking statements include, without limitation, the
Company’s expectations with respect to future performance of the
business, the size, demands and growth potential of the markets for
the Company’s products and the Company’s ability to serve those
markets, the Company’s ability to develop innovative products and
compete with other companies engaged in the commercial delivery
vehicle industry and/or the electric vehicle industry, the
Company’s ability to attract and retain customers, the estimated go
to market timing and cost for the Company’s products, and the
implied valuation of the Company. These forward-looking statements
involve significant risks and uncertainties that could cause the
actual results to differ materially from the expected results. Most
of these factors are outside the Company’s control and are
difficult to predict. Factors that may cause such differences
include, but are not limited to: (1) the inability to recognize the
anticipated benefits of the business combination, which may be
affected by, among other things, competition and the ability of the
Company to grow and manage growth profitably and retain its key
employees; (2) changes in applicable laws or regulations; (3) the
possibility that the Company may be adversely affected by other
economic, business, and/or competitive factors; (4) the impact of
COVID-19 on the Company’s business; (5) any delays the Company may
experience in realizing its projected timelines and cost and volume
targets for the production, launch and ramp up of production of the
Company’s vehicles and the modification of its manufacturing
facility; (6) the ability of the Company to obtain customers,
obtain product orders, and convert its non-binding pre-orders into
binding orders or sales; (7) the Company’s ability to implement its
business plans and strategies; and (8) other risks and
uncertainties described in the “Risk Factors” section of the
Company’s Quarterly Report on Form 10-Q for the quarter ended June
30, 2021 and in the Company’s future filings with the Securities
and Exchange Commission. Some of these risks and uncertainties may
in the future be amplified by the COVID-19 outbreak and there may
be additional risks that the Company considers immaterial or which
are unknown. The Company cautions that the foregoing list of
factors is not exclusive. The Company cautions readers not to place
undue reliance upon any forward-looking statements, which speak
only as of the date made. The Company does not undertake or accept
any obligation or undertaking to release publicly any updates or
revisions to any forward-looking statements to reflect any change
in its expectations or any change in events, conditions or
circumstances on which any such statement is based.
|
Electric Last Mile Solutions,
Inc.Condensed Consolidated Statement of Operations
and Comprehensive Loss (Unaudited)(Amounts in thousands,
except par value and share data) |
|
|
|
|
Three Months Ended June 30, 2021 |
OPERATING EXPENSES: |
|
Research and development expense |
$ |
2,410 |
|
General and administrative
expense |
5,060 |
|
Total operating expense |
7,470 |
|
LOSS FROM OPERATIONS |
(7,470 |
) |
Interest expense |
(2,063 |
) |
Gain on change in fair value of
warrant liabilities |
945 |
|
Other income (expense), net |
2 |
|
LOSS BEFORE INCOME TAXES |
(8,586 |
) |
Income tax benefit |
— |
|
NET LOSS AND COMPREHENSIVE
LOSS |
$ |
(8,586 |
) |
|
|
|
|
LOSS PER SHARE: |
|
|
|
Basic and diluted loss per
share |
$ |
(0.10 |
) |
Basic and diluted weighted shares
outstanding |
84,042,680 |
|
|
|
|
Electric Last Mile Solutions,
Inc.Condensed Consolidated Balance
Sheets(Amounts in thousands, except per share data) |
|
|
Successor |
|
June 30,2021 |
|
December 31,2020 |
ASSETS |
(Unaudited) |
|
|
CURRENT
ASSETS: |
|
|
|
Cash and cash equivalents |
$ |
171,529 |
|
|
$ |
25,205 |
|
Restricted cash |
45,902 |
|
|
— |
|
Prepaid
expenses and other current assets |
3,809 |
|
|
— |
|
Inventories |
824 |
|
|
— |
|
Total
current assets |
222,064 |
|
|
25,205 |
|
Property, plant and equipment, net |
191,966 |
|
|
— |
|
Intangibles and other assets, net |
6,802 |
|
|
38 |
|
TOTAL ASSETS |
$ |
420,832 |
|
|
$ |
25,243 |
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT) |
|
|
|
CURRENT LIABILITIES: |
|
|
|
Accounts
payable |
$ |
7,076 |
|
|
$ |
1,345 |
|
Accrued
expenses |
2,741 |
|
|
5,532 |
|
Current
portion of land contract and promissory note |
66,658 |
|
|
— |
|
Total
current liabilities |
76,475 |
|
|
6,877 |
|
Convertible promissory notes |
— |
|
|
25,094 |
|
Land
contract and promissory note obligations, net of current
portion |
42,716 |
|
|
— |
|
Warrant
liabilities |
19,447 |
|
|
— |
|
Pension
benefit obligation |
114 |
|
|
— |
|
Other
long-term liabilities |
443 |
|
|
— |
|
Total
liabilities |
139,195 |
|
|
31,971 |
|
COMMITMENTS AND CONTINGENCIES |
|
|
|
Predecessor parent's net investment |
— |
|
|
— |
|
Preferred stock, $0.0001 par value; 100 million shares
authorized; none issued or outstanding. |
— |
|
|
— |
|
Common
stock, $0.0001 par value; 1 billion shares authorized;
124,027,012 issued and 118,777,012 outstanding at June 30,
2021 and 82,117,288 issued and outstanding at December 31,
2020. |
12 |
|
|
8 |
|
Additional paid-in capital |
301,467 |
|
|
992 |
|
Accumulated deficit |
(19,842 |
) |
|
(7,728 |
) |
Total
shareholders' equity (deficit) |
281,637 |
|
|
(6,728 |
) |
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY |
$ |
420,832 |
|
|
$ |
25,243 |
|
|
|
|
|
|
|
|
|
ContactsMedia:
elms-svc@sardverb.com Investor Relations:
IR@electriclastmile.com
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