XL Fleet Corp. (NYSE: XL) (“XL Fleet” or the “Company”), a
leading provider of fleet electrification solutions, today
announced fourth quarter and full-year 2021 financial results.
Fourth Quarter, Full-Year 2021 and Recent Highlights
- Generated revenue for fourth quarter of 2021 of $8.0 million,
compared to $10.9 million in the prior year
- Realized gross loss for the fourth quarter of 2021 of $1.6
million, compared to gross profit of $2.0 million in the prior
year
- Exited fourth quarter of 2021 with cash and cash equivalents of
approximately $352 million
- Appointed automotive and mobility sector veteran Eric Tech as
new CEO of XL Fleet, effective December 1, 2021
- Appointed Chris Goldner as Interim CFO, effective February 1,
2022, following departure of Cielo Hernandez
- Announced pilot program award with Department of Defense to
prototype fuel-savings technology for tactical vehicles
- Received CARB executive order approval to sell electric refuse
vehicles co-developed with Curbtender, Inc.
- Initiated Strategic Review, focused on narrowing business
offering to most profitable business areas and opportunities
Management Commentary & Outlook
“XL Fleet continued to diversify its solutions portfolio in
2021, most notably with the May acquisition of World Energy
Efficiency Services, which helped to offset demand and supply chain
issues continuing to face the drivetrain business,” said Eric Tech,
CEO of XL Fleet. “World Energy generated $7.7 million of revenue
for the fourth quarter of 2021 and over $20 million for the
full-year 2021, which was ahead of the forecast set at the time of
the acquisition. We exited the year with $352 million in cash on
the balance sheet, positioning us offensively and defensively in
the road ahead.”
“Since joining XL Fleet, I have taken a comprehensive review of
all aspects of our business to assess the offerings, strategy, and
growth opportunities,” added Mr. Tech. “While our Strategic Review
remains ongoing, I have identified several near-term opportunities
and actions that align our talent, technology and resources, while
best positioning XL Fleet over the long-term.”
“First, we will focus on organizing our leadership and talent in
a way that maximizes synergies across our business,” continued Mr.
Tech. “Second, we will narrow focus of our hybrid offering to
platforms and applications that are most scalable and provide the
most substantial return on investment. And third, we will continue
to preserve our strong cash position, with an intent on identifying
transformational M&A that enhances shareholder value while
setting the state for long-term growth resulting from the global
needs for decarbonization. I am invigorated by the work that
remains ahead, and stand confident in XL Fleet’s ability to
leverage its platform, experience and resources to help drive
decarbonization for the benefit of all.”
Fourth Quarter 2021 Financial Results
Revenue totaled $8.0 million in the fourth quarter of 2021
compared to $3.2 million in the third quarter of 2021 and $10.9
million in the fourth quarter of 2020. Revenue from the sale of
drive systems in the fourth quarter of 2021 totaled $0.3 million
compared with $0.6 million in the third quarter of 2021, and $10.9
million in the fourth quarter of 2020, due to negative impacts from
ongoing supply chain issues including microchip shortages that have
led to a lack of new fleet chassis. Revenue from XL Grid in the
fourth quarter of 2021 totaled $7.7 million, compared to $2.6
million in the third quarter of 2021 and $6.4 million in the fourth
quarter of 2020 on a pro forma basis. The increase from the third
quarter of 2021 was due to the seasonality of the business driven
by sales cycles and other dynamics in the business.
Gross loss was $1.6 million for the fourth quarter of 2021,
compared to a gross profit of $0.7 million in the third quarter of
2021 and gross profit of $2.0 million in the fourth quarter of
2020. Gross margins for the fourth quarter of 2021 were negative
(20%), compared to gross margins for the third quarter of 2021 of
positive 22%. The decrease in gross margins was primarily driven by
increased inventory reserves. Adjusted EBITDA was ($14.6) million
for the fourth quarter of 2021, compared to ($14.2) million for the
third quarter of 2021 and ($1.8) million in the fourth quarter of
2020.
Net loss was ($15.1) million for the fourth quarter of 2021,
compared to net loss of ($7.5) million in the third quarter of 2021
and ($38.4) million in the fourth quarter of 2020. Net loss for the
fourth quarter of 2021 includes a non-cash gain from the change in
fair value of warrant liability of $8.2 million, compared to a
non-cash loss of ($35.0) million in the fourth quarter of 2020.
Adjusted net loss was $15.3 million for the fourth quarter of 2021,
compared to adjusted net loss of ($14.7) million in the third
quarter of 2021. A reconciliation of EBITDA to adjusted EBITDA and
net loss to adjusted net loss is set out in the tables below.
Full-Year 2021 Financial Results
Revenue totaled $15.6 million for full-year 2021, compared to
$20.3 million for full-year 2020. Gross loss totaled ($0.7) million
for full-year 2021, compared to a gross profit of $2.7 million for
the full-year 2020. Adjusted EBITDA for full-year 2021 totaled
($50.0) million, compared to ($14.7) million for the full-year
2020.
Balance Sheet and Capital
Cash and cash equivalents as of December 31, 2021 totaled $351.7
million compared to $329.6 million as of December 31, 2020. Total
debt outstanding as of December 31, 2021 was approximately $0.1
million. XL Fleet has approximately 140.5 million shares of Common
Stock outstanding as of December 31, 2021.
Fourth Quarter 2021 and Recent Operational & Business
Updates
- In February 2022, XL Fleet announced that it appointed Chris
Goldner to serve as Interim Chief Financial Officer, effective
February 1, 2022, following the resignation of Cielo Hernandez from
her position as Chief Financial Officer. The Company is undertaking
a search for a permanent successor.
- In December 2021, XL Fleet received an Executive Order from the
California Air Resources Board (“CARB”) for the sale of its battery
electric Ford F-600 platform for the zero emission refuse vehicle
being co-developed with Curbtender, Inc. The development of the
battery electric Curbtender Quantum is expected to be completed for
production before the end of 2022, and will be XL Fleet’s first
all-electric, zero emission vehicle platform.
- In December 2021, XL Fleet announced the installation of
charging infrastructure to power Apex Clean Energy’s electrified
vehicle deployments. Apex Clean Energy, a leading clean energy
company, electrified its work truck fleet with XL Fleet plug-in
hybrid and hybrid systems on its F-Series pickup trucks earlier in
2021.
- In November 2021, XL Fleet announced that it was awarded a
pilot project with Department of Defense to prototype fuel-saving
technology for tactical vehicles. The Department of Defense pilot
program is part of a future contract opportunity to leverage the
hybrid conversion technology for tens of thousands of vehicles in a
variety of U.S. military applications.
- In November 2021, XL Fleet announced that its Board of
Directors appointed Eric Tech as Chief Executive Officer of XL
Fleet, effective December 1, 2021, following the resignation of
Dimitri Kazarinoff from his position as Chief Executive Officer to
pursue other career opportunities.
Conference Call Information
The XL Fleet management team will host a conference call to
discuss its fourth quarter 2021 financial results today at 5:00
p.m. Eastern Time. The call can be accessed live over the telephone
by dialing 877-407-3982, or for international callers, 201-493-6780
and referencing XL Fleet. Alternatively, the call can be accessed
via a live webcast accessible on the Events & Presentations
page in the Investor Relations section of the Company’s website at
www.xlfleet.com. A replay will be available shortly after the call
and can be accessed by dialing 844-512-2921, or for international
callers, 412-317-6671. The passcode for the replay is 13726640. The
replay will be available until March 15, 2022. An archive of the
webcast will be available for a period of time shortly after the
call on the Investor Relations section of The Company’s website at
www.xlfleet.com.
About XL Fleet
XL Fleet is a leading provider of vehicle electrification
solutions for commercial and municipal fleets in North America,
with more than 180 million miles driven by customers such as The
Coca-Cola Company, Verizon, Yale University and the City of Boston.
XL Fleet’s hybrid and plug-in hybrid electric drive systems can
significantly increase fuel economy and reduce carbon dioxide
emissions, decreasing operating costs and meeting sustainability
goals while enhancing fleet operations. For additional information,
please visit www.xlfleet.com.
Forward Looking Statements
Certain statements in this press release may constitute
“forward-looking statements” within the meaning of the federal
securities laws. Forward-looking statements generally are
accompanied by words such as “believe,” “may,” “will,” “estimate,”
“continue,” “anticipate,” “intend,” “expect,” “should,” “would,”
“plan,” “predict,” “potential,” “seem,” “seek,” “future,”
“outlook,” and similar expressions that predict or indicate future
events or trends or that are not statements of historical matters.
These statements are based on various assumptions, whether or not
identified in this press release, and on the current expectations
of management and are not predictions of actual performance.
Forward-looking statements are subject to a number of risks and
uncertainties that could cause actual results to differ materially
from the forward-looking statements, including but not limited to;
the effects of pending and future legislation; the highly
competitive nature of the Company’s business and the commercial
vehicle electrification market; litigation, complaints, product
liability claims and/or adverse publicity; cost increases or
shortages in the components or chassis necessary to support the
Company’s products and services; the introduction of new
technologies; the impact of the COVID-19 pandemic on the Company’s
business, results of operations, financial condition, regulatory
compliance and customer experience; the potential loss of certain
significant customers; privacy and data protection laws, privacy or
data breaches, or the loss of data; general economic, financial,
legal, political and business conditions and changes in domestic
and foreign markets; the inability to convert its sales opportunity
pipeline into binding orders; risks related to the rollout of the
Company’s business and the timing of expected business milestones,
including the ongoing global microchip shortage and limited
availability of chassis from vehicle OEMs and our reliance on our
suppliers; the effects of competition on the Company’s future
business; the availability of capital; changes in the preliminary
financial results for the quarter ended September 30, 2021 upon
completion of the Company’s financial closing procedures or upon
review and completion of procedures by the Company’s independent
registered public accounting firm, and the other risks discussed
under the heading “Risk Factors” in the Company’s current report on
Form 10-K filed on March 1, 2022, and other documents that the
Company files with the SEC in the future. If any of these risks
materialize or our assumptions prove incorrect, actual results
could differ materially from the results implied by these
forward-looking statements. These forward-looking statements speak
only as of the date hereof and the Company specifically disclaims
any obligation to update these forward-looking statements.
Use of Non-GAAP Financial Information
To supplement its consolidated financial statements, which are
prepared and presented in accordance with U.S. generally accepted
accounting principles (“GAAP”), XL Fleet Corp. reports EBITDA,
Adjusted EBITDA, and Adjusted Net Income (Loss) which are non-GAAP
financial measures. EBITDA is determined by taking net income and
adding interest, depreciation and amortization. Adjusted EBITDA is
determined by taking EBITDA and adding change in fair value of
obligation to issue shares of common stock to sellers of World
Energy, non-recurring World Energy acquisition expenses and
accreted contingent compensation obligation to sellers of World
Energy, change in fair value of warrant liability, change in fair
value of convertible notes payable derivative liabilities and loss
on extinguishment of debt. Adjusted Net Income (Loss) is determined
by taking Net Income (Loss) and adding change in fair value of
obligation to issue shares of common stock to sellers of World
Energy, non-recurring World Energy acquisition expenses, accreted
contingent compensation obligation to sellers of World Energy,
change in fair value of warrant liability, and change in fair value
of convertible notes payable derivative liabilities and loss on
extinguishment of debt. This prospective financial information was
not prepared with a view toward compliance with published
guidelines of the SEC or the guidelines established by the American
Institute of Certified Public Accountants for preparation and
presentation of prospective financial information or U.S. GAAP with
respect to forward looking financial information. We believe that
these non-GAAP measures, viewed in addition to and not in lieu of
our reported GAAP results, provides useful information to investors
by providing a more focused measure of operating results, enhances
the overall understanding of past financial performance and future
prospects, and allows for greater transparency with respect to key
metrics used by management in its financial and operational
decision making. The non-GAAP measures presented herein may not be
comparable to similarly titled measures presented by other
companies. EBITDA, Adjusted EBITDA and Adjusted Net Income (Loss)
have been reconciled to the nearest GAAP measures in the tables
within these this press release.
XL Fleet Corp. Audited Consolidated Statements of
Operations For the Three and Twelve Months Ended December
31, 2021 and December 31, 2020 Three Months
EndedDecember 31, Twelve Months EndedDecember 31,
(In thousands, except per share and share
amounts)
2021
2020
2021
2020
Revenues
8,031
10,866
15,600
20,338
Cost of revenues
9,663
8,881
16,296
17,594
Gross profit (loss)
(1,632
)
1,985
(696
)
2,744
Operating expenses: Research and development
3,337
1,148
10,775
4,445
Selling, general, and administrative expenses
15,913
2,796
47,435
13,593
Loss from operations
(20,882
)
(1,958
)
(58,906
)
(15,294
)
Other (income) expense: Interest expense, net
4
2,079
39
6,370
Loss on extinguishment of debt
-
-
-
1,038
Loss on impairment of Investment
3,000
-
3,000
-
Loss on asset disposal
(19
)
-
26
-
Change in fair value of obligation to issue shares of common stock
to sellers of World Energy
(547
)
-
(565
)
-
Change in fair value warrant liability
(8,178
)
35,015
(90,138
)
35,015
Change in fair value of convertible notes payable derivative
liability
-
(676
)
-
2,889
Other Income
(18
)
-
(58
)
-
Net (Loss) Income
$
(15,124
)
$
(38,376
)
$
28,790
$
(60,606
)
Net (loss) income per share, basic
$
(0.11
)
$
(0.43
)
$
0.21
$
(0.72
)
Net loss per share, diluted
$
(0.11
)
$
(0.43
)
$
0.19
$
(0.72
)
Weighted-average shares outstanding, basic
139,570,367
89,763,295
138,457,416
84,565,448
Weighted-average shares outstanding, diluted
139,570,367
89,763,295
148,510,351
84,565,448
XL Fleet Corp. Reconciliation of Non-GAAP
Financial Measures For the Three and Twelve Months Ended
December 31, 2021 and December 31, 2020 Three
Months EndedDecember 31, Twelve MonthsEnded December 31,
(In thousands)
2021
2020
2021
2020
Reconciliation of Net (Loss) Income to EBITDA and Adjusted
EBITDA Net (Loss) Income
$
(15,124
)
$
(38,376
)
$
28,790
$
(60,606
)
Interest Expense, net
4
2,078
39
6,370
Depreciation and Amortization
682
148
1,756
622
EBITDA
(14,438
)
(36,150
)
30,585
(53,614
)
Loss on extinguishment of debt
-
-
-
1,038
Loss on impairment of Investment
3,000
-
3,000
-
Charges related to Chief Executive Officer leadership transition
(1)
5,534
5,534
Non-recurring World Energy acquisition expenses
-
-
498
-
Accreted contingent compensation obligation to sellers of World
Energy
49
-
1,049
-
Change in fair value of obligation to issue shares of common stock
to sellers of World Energy
(547
)
-
(565
)
-
Change in fair value warrant liabilities
(8,178
)
35,015
(90,138
)
35,015
Change in fair value of convertible notes payable derivative
liabilities
-
(676
)
-
2,889
Adjusted EBITDA
$
(14,580
)
$
(1,811
)
$
(50,037
)
$
(14,672
)
XL Fleet Corp. Reconciliation of Non-GAAP
Financial Measures For the Three and Twelve Months Ended
December 31, 2021 and December 31, 2020 Three
Months EndedDecember 31, Twelve MonthsEnded December 31,
(In thousands)
2021
2020
2021
2020
Reconciliation of Net (Loss) Income to Adjusted Net Loss Net
(Loss) Income
$
(15,124
)
$
(38,376
)
$
28,790
$
(60,606
)
Loss on extinguishment of debt
-
-
-
1,038
Loss on impairment of Investment
3,000
-
3,000
-
Charges related to Chief Executive Officer leadership transition
(1)
5,534
-
5,534
-
Non-recurring World Energy acquisition expenses
-
-
498
-
Accreted contingent compensation obligation to sellers of World
Energy
49
-
1,049
-
Change in fair value of obligation to issue shares of common stock
to sellers of World Energy
(547
)
-
(565
)
-
Change in fair value warrant liabilities
(8,178
)
35,015
(90,138
)
35,015
Change in fair value of convertible notes payable derivative
liabilities
-
(676
)
-
2,889
Adjusted Net Loss
$
(15,266
)
$
(4,037
)
$
(51,832
)
$
(21,664
)
(1) Amount consists of severance charges incurred with the
departure of the former CEO of $4,866, sign on bonus of new CEO of
$250k and a charge of $418 related to the reimbursement of
retirement benefits that the new CEO would have received had he
remained retired.
XL Fleet Corp. Audited Condensed Consolidated Balance
Sheets As of December 31, 2021 and December 31, 2020
December 31, December 31, (In thousands,
except share and per share amounts)
2021
2020
Assets Current assets: Cash and cash equivalents
351,676
329,641
Restricted cash
150
150
Accounts receivable
6,477
10,559
Inventory, net
15,262
3,574
Prepaid expenses and other current assets
1,040
1,396
Total current assets
374,605
345,320
Property and equipment, net
3,495
579
Intangible assets, net
1,863
593
Right-of-use asset
4,564
-
Investment in Convertible Note
-
-
Goodwill
8,606
489
Other assets
88
32
Total assets
393,221
347,013
Liabilities and stockholders' equity (deficit) Current
liabilities:
-
Current portion of long-term debt, net of debt discount and
issuance costs
78
110
Accounts payable
3,799
4,372
Lease liability, current
900
-
Accrued expenses and other current liabilities
11,856
4,601
Total current liabilities
16,633
9,083
Long-term debt, net of current portion
21
98
Deferred revenue
691
305
Lease liability, non-current
3,599
-
Warrant liabilities
5,405
143,295
Contingent consideration
541
924
New market tax credit obligation
4,521
4,412
Total liabilities
31,411
158,117
Commitments and contingencies Stockholders' equity
(deficit) Common stock, $0.0001 par value; 350,000,000 shares
authorized at December 31, 2021 and December 31, 2020; 140,540,671
and 131,365,254 issued and outstanding at December 31, 2021 and
December 31, 2020, respectively.
14
13
Additional paid-in capital
461,207
317,084
Accumulated deficit
(99,411
)
(128,201
)
Total stockholders' equity (deficit)
361,810
188,896
Total liabilities and stockholders' equity (deficit)
393,221
347,013
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version on businesswire.com: https://www.businesswire.com/news/home/20220301005983/en/
Investor Contact: xlfleetIR@icrinc.com
Media Contact: PR@xlfleet.com
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