XL Fleet Corp. (NYSE: XL) (“XL Fleet” or the “Company”), a
leading provider of fleet electrification solutions, today
announced first quarter 2022 financial results.
First Quarter 2022 and Recent Highlights
- Generated revenue for first quarter of 2022 of $4.8 million,
compared to $0.7 million in the prior year
- Realized gross loss for the first quarter of 2022 of $0.4
million versus gross loss of $0.7 million in the prior year
- Exited first quarter of 2022 with cash and cash equivalents of
approximately $333 million
- Appointed Donald P. Klein as CFO of XL Fleet; seasoned
executive with 25+ years of public company experience
- Unveiled pre-series Curbtender Quantum refuse truck at
WasteExpo 2022; the Company’s first all-electric vehicle
Management Commentary & Outlook
“We remain focused on making the decisions and investments
necessary to best position XL Fleet for long-term success and value
creation,” said Eric Tech, Chief Executive Officer of XL Fleet. “We
are already seeing the benefits of more streamlined operations in
parts of our business following the actions taken earlier this year
to better align our team and resources.”
“During the first quarter, our World Energy business continued
to perform well as the team executed on a diverse base of
efficiency and electrification projects, while targeting new growth
opportunities and customer channels, and exiting the quarter with a
strong project backlog,” added Mr. Tech. “We saw signs of market
improvement in supply chain and demand, and continued to make
progress on large opportunities and initiatives in our Drivetrain
segment including our Curbtender all-electric refuse truck where we
expect to deliver completed units to customers later this year, and
the Department of Defense pilot program.”
“In addition to organic growth, we remain well-positioned to
pursue inorganic growth given significant cash on our balance
sheet,” continued Mr. Tech. “We have recently implemented a process
to institutionalize the M&A effort introduced last quarter
including the formation of an investment committee comprised of
senior members of our team and members of the Board. We are
invigorated by the process and continue to explore for
value-generative opportunities in the decarbonization and energy
transition ecosystem.”
Consolidated Financial Results
Revenue totaled $4.8 million in the first quarter of 2022
compared to $8.0 million in the fourth quarter of 2021 and $0.7
million in the first quarter of 2021.
Gross loss was $0.4 million for the first quarter of 2022,
compared to a gross loss of $1.6 million in the fourth quarter of
2021 and gross loss of $0.7 million in the first quarter of 2021.
Gross margins for the first quarter of 2022 were negative 9%,
compared to gross margins for the fourth quarter of 2021 of
negative 20%.
Selling, general & administrative expenses for the first
quarter of 2022 totaled $11.7 million, compared to $15.9 million in
the fourth quarter of 2021 and $8.0 million in the first quarter of
2021. SG&A expenses for the first quarter of 2022 include
approximately $0.5 million in legal fees related to previously
disclosed class action complaints and Securities and Exchange
Commission investigation.
Adjusted EBITDA totaled ($10.8) million for the first quarter of
2022, compared to ($14.6) million for the fourth quarter of 2021
and ($9.9) million in the first quarter of 2021.
Net loss was $16.1 million for the first quarter of 2022,
compared to net loss of $15.1 million in the fourth quarter of 2021
and net income of $61.9 million in the first quarter of 2021. Net
loss for the first quarter of 2022 includes a non-cash gain from
the change in fair value of warrant liability of $2.7 million,
compared to a non-cash gain of $8.2 million in the fourth quarter
of 2021. Adjusted net loss was $11.4 million for the first quarter
of 2022, compared to adjusted net loss of $15.3 million in the
fourth quarter of 2021 and adjusted net loss of $10.1 million in
the first quarter of 2021. A reconciliation of net loss to adjusted
net loss and adjusted EBITDA to adjusted net loss is set out in the
tables below.
Segment Financial Results
Drivetrain: Revenues totaled $0.6
million for the first quarter of 2022, compared with $0.3 million
in the fourth quarter of 2021 and $0.7 million in the first quarter
of 2021. The sequential decrease in revenue for the first quarter
of 2022 was due to the seasonality of the business driven by sales
cycles and other dynamics. Segment loss was $5.9 million dollars,
compared with a segment loss of $8.8 million in the fourth quarter
of 2021 and a segment loss of $3.6 million in the first quarter of
2021. Segment loss for the first quarter of 2022 included a
non-cash charge of $1.5 million for the write-down of kit inventory
for systems no longer sold.
XL Grid: Revenues totaled $4.2
million for the first quarter of 2022, compared with $7.7 million
in the fourth quarter of 2021. The sequential decrease in revenue
for the first quarter of 2022 was primarily driven by seasonality
related to utility based programs which experience higher volumes
in the fourth quarter. Segment loss was $1.4 million dollars,
compared with a segment loss of $0.1 million in the fourth quarter
of 2021.
Balance Sheet and Capital
Cash and cash equivalents as of March 31, 2021 totaled $333.5
million compared to $351.7 million as of December 31, 2021. Total
debt outstanding as of March 31, 2021 was approximately $0.1
million. XL Fleet had 142 million shares of Common Stock
outstanding as of March 31, 2021.
Cash flow used in operations for the first quarter of 2022
totaled $19.1 million, which included $7.7 million of items that
are not reflective of expected cash flow for the remainder of the
year, including $2.7 million for annual insurance payments and
certain bonus payments, $2.3 million of contingent considerations
for previously completed acquisitions, $0.7 million of cash
payments for previously discussed right-sizing actions, $1.5
million of incremental payroll prior to our right-sizing actions
and certain retention payments, and $0.5 million of severance
payments for executive turnover.
First Quarter 2022 and Recent Operational & Business
Updates
- In May 2022, XL Fleet announced the unveiling of its pre-series
Curbtender Quantum refuse truck at WasteExpo 2022. The vehicle is
being jointly developed in collaboration with Curtender, Inc. and
represents the company’s first all-electric refuse vehicle.
- In April 2022, XL Fleet announced that it appointed Donald P.
Klein as Chief Financial Officer of XL Fleet. Mr. Klein is an
accomplished senior executive with over 25 years of public company
finance & accounting experience. Mr. Klein has strong industry
experience and a track-record of execution in complex operating
environments.
- In March 2022, XL Fleet announced that Tod Hynes stepped down
as President and member of its Board of Directors and was appointed
Chair of XL Fleet’s Board of Advisors.
- In March 2022, XL Fleet announced that it appointed John Miller
to its Board of Directors. Mr. Miller has more than 40 years of
executive management experience in the transportation,
manufacturing and distribution industries, including operations and
finance leadership positions at public companies.
Conference Call Information
The XL Fleet management team will host a conference call to
discuss its first quarter 2022 financial results today at 5:00 p.m.
Eastern Time. The call can be accessed live over the telephone by
dialing (844) 826-3033, or for international callers, (412)
317-5185 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 10166231. The replay will be available
until May 24, 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 170 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; supply chain issues
including the lack of available components and/or inflationated
component prices, including with respect to batteries, solar
panels, and other critical components, 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 certain
non-GAAP financial information which have been reconciled to the
nearest GAAP measures in the tables within this press release. 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.
Earnings (loss) Before Interest, Income Taxes, Depreciation,
and Amortization (“EBITDA”): We define EBITDA as our
consolidated net income (loss) and adding interest expense, income
taxes, and depreciation and amortization. We believe EBITDA
provides meaningful information to the performance of our business
and therefore we use it to supplement our GAAP reporting. We have
chosen to provide this supplemental information to investors,
analysts and other interested parties to enable them to perform
additional analyses of operating results.
Adjusted EBITDA and Adjusted Net Income (Loss): We
believe that adjusted EBITDA and Adjusted Net Income (loss), which
excludes certain identified items that we do not consider to be
part of our ongoing business, improves the comparability of year to
year results, and is representative of our underlying performance.
Management uses this information to assess and measure the
performance of our operating segments. We have chosen to provide
this supplemental information to investors, analysts and other
interested parties to enable them to perform additional analyses of
operating results, to illustrate the results of operations giving
effect to the non-GAAP adjustments shown in the below
reconciliations, and to provide an additional measure of
performance.
XL Fleet Corp.
Unaudited Consolidated
Statements of Operations
For the Three Months Ended
March 31, 2022 and March 31, 2021
Three Months Ended March 31, (In thousands, except per share and share amounts)
2022
2021
Revenues
4,763
675
Cost of revenues
5,196
1,391
Gross profit (Loss)
(433
)
(716
)
Operating expenses: Research and development
2,989
1,412
Selling, general, and administrative expenses
11,658
7,958
Impairment of Goodwill
8,606
-
Loss from operations
(23,686
)
(10,086
)
Other (income) expense: Interest expense, net
12
11
Gain on extinguishment of debt
(4,527
)
-
Loss on asset disposal
(9
)
-
Change in fair value of obligation to issue shares of common stock
(361
)
-
Change in fair value of warrant liability
(2,717
)
(72,005
)
Other Income
(7
)
(6
)
Net (Loss) Income
$
(16,077
)
$
61,914
Net (loss) income per share, basic
$
(0.11
)
$
0.46
Net loss per share, diluted
$
(0.11
)
$
0.42
Weighted-average shares outstanding, basic
141,274,249
135,575,145
Weighted-average shares outstanding, diluted
141,274,249
148,571,379
XL Fleet Corp.
Segment Results
For the Three Months Ended
March 31, 2022 and March 31, 2021
Three Months Ended March 31, (In thousands)
2022
2021
As Reported DriveTrain Revenues
$
598
$
675
Loss from Operation
(5,905
)
(3,562
)
XL Grid Revenues
$
4,165
$
-
Loss from Operation
(1,441
)
(51
)
Corporate Revenues
$
-
$
-
Loss from Operation
(16,340
)
(6,473
)
As Adjusted (1)
DriveTrain Revenues
$
598
$
675
Loss from Operation
(4,387
)
(3,562
)
XL Grid Revenues
$
4,165
$
-
Loss from Operation
(1,441
)
(51
)
Corporate Revenues
$
-
$
-
Loss from Operation
(5,695
)
(6,523
)
(1) Adjusts for the following one-time charges (in $000s):
Severance charges (including benefits) included in Corporate of
$1,545; Inventory charge for obsolete inventory included in
Drivetrain of $1,518; Goodwill impairment charge included in
Corporate of $8,606; Legal charges related to SEC investigation and
shareholder lawsuits included in Corporate of $576; and Accelerated
amortization of right-of-use asset included in Corporate of
$122.
XL Fleet Corp.
Reconciliation of Non-GAAP
Financial Measures
For the Three Months Ended
March 31, 2022 and March 31, 2021
Three Months Ended March 31, (In thousands)
2022
2021
Reconciliation of Net (Loss) Income to EBITDA and Adjusted
EBITDA Net (Loss) Income
$
(16,077
)
$
61,914
Interest Expense, net
4
11
Impairment of Goodwill
8,606
-
Depreciation and Amortization
556
219
EBITDA
(6,911
)
62,144
Gain on extinguishment of debt
(4,527
)
-
Restructuring charges (1)
2,480
-
Severance charges related to former President and Chief Financial
Officer (2)
705
-
Legal charges related to SEC investigation and shareholder lawsuits
576
-
Accreted contingent compensation obligation to sellers of World
Energy
(44
)
-
Change in fair value of obligation to issue shares of common stock
(361
)
-
Change in fair value warrant liabilities
(2,717
)
(72,005
)
Adjusted EBITDA
$
(10,799
)
$
(9,861
)
XL Fleet Corp.
Reconciliation of Non-GAAP
Financial Measures
For the Three Months Ended
March 31, 2022 and March 31, 2021
Three Months Ended March 31, (In thousands)
2022
2021
Reconciliation of Net (Loss) Income to Adjusted Net Loss Net
(Loss) Income
$
(16,077
)
$
61,914
Gain on extinguishment of debt
(4,527
)
-
Impairment of goodwill
8,606
-
Restructuring charges (1)
2,480
-
Severance charges related to former President and Chief Financial
Officer (2)
705
-
Legal charges related to SEC investigation and shareholder lawsuits
576
-
Accreted contingent compensation obligation to sellers of World
Energy
(44
)
-
Change in fair value of obligation to issue shares of common stock
(361
)
-
Change in fair value warrant liabilities
(2,717
)
(72,005
)
Adjusted Net Loss
$
(11,359
)
$
(10,091
)
(1) Amount consists of (i) severance charges (including
benefits) of $840 relating to the termination of 51 employees
relating to the restructuring of the business; (ii) an inventory
obsolescence charge of $1,518 relating to the Company's decision to
discontinue the production and sale of certain vehicle kits; and
(iii) $112 of accelerated amortization of the right of use asset
relating to the Company's Quincy, IL facility that it plans to
close as of May 31, 2022.
(2) Amount consists of severance charges incurred with the
departure of the former president of $479 in March 2022 and the
departure of the former Chief Financial Officer of $226 in January
2022
XL Fleet Corp.
Unaudited Condensed
Consolidated Balance Sheets
As of March 31, 2022 and
December 31, 2021
March 31
December 31,
(In thousands, except share and per share amounts)
2022
2021
(audited) (audited)
Assets Current assets: Cash and cash
equivalents
$
333,461
$
351,676
Restricted cash
150
150
Accounts receivable
7,508
6,477
Inventory, net
14,115
15,262
Prepaid expenses and other current assets
1,992
1,040
Total current assets
357,226
374,605
Property and equipment, net
2,425
3,495
Intangible assets, net
1,637
1,863
Right-of-use asset
4,194
4,564
Goodwill
-
8,606
Other assets
115
88
Total assets
$
365,597
$
393,221
Liabilities and stockholders' equity (deficit) Current
liabilities: Current portion of long-term debt, net of debt
discount and issuance costs
$
67
$
78
Accounts payable
2,689
3,799
Lease liability, current
1,092
900
Accrued expenses and other current liabilities
8,143
11,856
Total current liabilities
11,991
16,633
Long-term debt, net of current portion
9
21
Deferred revenue
864
691
Lease liability, non-current
3,169
3,599
Warrant liabilities
2,687
5,405
Contingent consideration
319
541
New market tax credit obligation
-
4,521
Total liabilities
19,039
31,411
Stockholders' equity Common stock, $0.0001 par value;
350,000,000 shares authorized at March 31, 2022 and December 31,
2021; 141,681,020 and 140,540,671 issued and outstanding at March
31, 2022 and December 31, 2021, respectively.
14
14
Additional paid-in capital
462,032
461,207
Accumulated deficit
(115,488
)
(99,411
)
Total stockholders' equity
346,558
361,810
Total liabilities and stockholders' equity
$
365,597
$
393,221
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version on businesswire.com: https://www.businesswire.com/news/home/20220510006010/en/
Investor: xlfleetIR@icrinc.com
Media: PR@xlfleet.com
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