Tritium DCFC Limited (“Tritium” or the “Company”) (Nasdaq: DCFC), a
global leader in direct current (“DC”) fast chargers for electric
vehicles (“EVs”), today provided an update on its business. Today’s
announcement will be followed by a conference call for investors at
10:30 AM Eastern time.
“We are very pleased to deliver these excellent
revenue and margin results for our shareholders,” said Tritium CEO
Jane Hunter. “Our commitment to product quality, spanning our
hardware, software, and service offerings, is a key differentiator
and competitive advantage for Tritium. In recent months, we’ve been
proud to see our EV charging customer bp pulse achieving over 97%
uptime across their Tritium charger networks in Australia and New
Zealand. UK customer Evyve also recently published their
achievement of 98% uptime across their fleet of Tritium fast
chargers, and Australia’s largest public fast charging network,
Evie Networks, reports uptime of 97% across their Tritium fleet.
These high uptime achievements are a major strategic objective for
the business and verification of our world-leading technology –
beyond those named customers, our global fleet data shows a growing
number of customers across the fuel, fleet, and charging network
segments achieving between 97% and 99% uptime across their Tritium
charger networks.”
Financial Results
Tritium achieved record revenue of $112 million for the
six-month period ended June 30, 2023, a year-over-year growth rate
of over 286% over the $29 million in revenue for the comparative
prior six-month period. The Company also achieved record revenue of
$185 million for the fiscal year ended June 30, 2023, a
year-over-year growth rate of over 115% over the $86 million for
the prior fiscal year.
Significant increases in production capacity throughout the
fiscal year, including in the first half of the 2023 calendar year,
have occurred as Tritium’s Tennessee facility scales, enabling
Tritium to convert its backlog into revenue and expand its gross
margin as the benefits of operating leverage materialize. The
Company still maintains an order backlog valued at approximately
$99 million at June 30, 2023, which compares to $149 million for
the same timeframe at the end of the previous fiscal year.
Sales orders for the six-month period ended June 30, 2023
amounted to $56 million, compared to $105 million for the
comparative prior six-month period; the Company also reported sales
orders of $146 million for the fiscal year ended June 30, 2023,
compared to $224 million for the comparative prior fiscal year. The
Company expects strong order growth in the second half of the 2023
calendar year as customer forecasts for 2024 deployments are
anticipated to translate into purchases. These expectations are
substantiated by recent large purchase orders across Tritium’s
primary product offerings, which were secured following the June
30, 2023 reporting period from a number of leading industry
players, including a major global fuel retailer and independent
charge point operators.
Business Update
Tritium continues to expand its working capital investments to
meet the continued growth in demand across its customer base.
Tritium has inventory assets valued at $140 million at June 30,
2023, comprised of finished goods, raw materials, and
work-in-progress, compared to total inventory assets valued at $54
million for the same timeframe in the previous year. The Company
also maintained cash and cash equivalents of approximately $29
million at June 30, 2023, compared to $71 million for the same
timeframe in the previous year. The Company maintained
approximately 160 million common shares outstanding and total
borrowings of $195 million at June 30, 2023, of which $127 million
consisted external borrowings and $68 million consisted of related
party borrowings from shareholders. This compares to cash and cash
equivalents, common shares outstanding, and total borrowings of $71
million, 127 million, and $88 million at June 30, 2022,
respectively.
The Company maintains its previously issued 2023 revenue and
gross margin guidance. Given the Company’s higher focus on its path
to profitability versus growth, the Company now expects an
advantaged sales mix of higher price and margin products than
originally contemplated to drive its revenue and gross margin
targets, thereby requiring a lower unit production profile than the
previous guidance of 11,000 units.
Gross Margin
The Company reported gross margin of 4% for the six-month period
ended June 30, 2023, compared to -18% for the comparative prior
six-month period; the Company also reported gross margin of -2% for
the fiscal year ended June 30, 2023, compared to -2% for the
comparative period. The 4% gross margin achieved in the first half
of calendar year 2023 represents a nearly 2,200 basis point
improvement over the comparable previous period and was underpinned
by continued improvement throughout the six-month period, with
record corporate-wide gross margins being achieved as the reporting
period concluded. Investors should note that Tritium reports gross
margin in accordance with U.S. generally accepted accounting
principles (“GAAP”), while certain other publicly traded electric
vehicle charging manufacturers report gross margin as revenue less
only materials cost of goods sold, excluding costs associated with
labor and/or other variable expenses.
Throughout the fiscal year, Tritium saw a number of improvements
across its business that contributed to gross margin performance in
the second half of the fiscal year, despite the opening of its new
Tennessee factory in July 2022 and ramping the factory to full
production over the course of the first half, which was expected to
dilute overall gross margins. Tritium has seen gross margins
benefit from recent order fulfillments, which include price
increases negotiated to address components and freight cost
inflation driven by the pandemic. Finally, with an increasing
proportion of the Company’s production originating from Tennessee
rather than Brisbane, the Company is seeing a reduction in freight
out costs which contributes to margin expansion.
Easing conditions across global supply chains during the fiscal
year compared to the same period last year have been noticeable,
with shortening delivery and lead times for certain key product
inputs and an easing of the disruption to sea and air freight.
Capital Raise
In September 2023, following this reporting period, the Company
secured a financing commitment of up to $75 million, with an
initial funding of $25 million. The Company intends to use the
proceeds to continue its investment in working capital to meet
expected continued strong customer demand in the 2024 calendar
year. The Company is engaged with several parties, both financial
and strategic, around supporting Tritium’s business. Tritium
believes the appetite for its solutions and demand in the
marketplace for its offerings remains very strong and growing,
although the market for capital for growth and cleantech platforms
remains constrained. As such, the Company will continue to
prioritize deepening and broadening both existing and new strategic
customer relationships with particular emphasis on its path to
profitability.
Tennessee Factory and Production Update
Tritium continues to believe that it has the largest published
global production plans for DC fast chargers outside China and the
largest published planned production capacity onshore in America.
Tritium further believes that this production capacity places the
Company in a strong position to capitalize on the anticipated surge
in demand for Buy America-compliant EV fast chargers over the next
five years, due to funding programs like the National Electric
Vehicle Incentive (“NEVI”) Formula Program, Charging and Fueling
Infrastructure Discretionary Grant Program, and the Inflation
Reduction Act.
In March 2023, Tritium began accepting orders for the Company’s
first product offering for the NEVI program. Tritium’s NEVI system
is expected to achieve the Build America, Buy America Act waiver
milestones set by the Federal Highway Administration. In July,
Tritium made an announcement that it will provide all fast chargers
for the State of Hawai’i’s first round of NEVI funding. Tritium
believes that as US states deploy their NEVI funding allocations,
the Company will see measurable growth in US orders, particularly
in 2024 and 2025.
Several US states have begun to require or propose to require
the North American Charging Standard (“NACS”) for NEVI-funded
projects. Tritium is prepared to meet this demand and has committed
to providing NACS connectors on Tritium chargers in late 2023 or
early 2024, both at the point of manufacture and as a retrofit kit
post-manufacture. Tritium offers a highly competitive NEVI charging
system with four dual-cable 150kW fast chargers, meeting the
federal requirement for four Combined Charging Standard (“CCS”)
connectors with four NACS connectors to meet customer and driver
demand and certain state requirements.
Reporting Schedule
Tritium announces that it has changed its fiscal year end from
June 30 to December 31, beginning in the 2024 calendar year. As a
result, Tritium expects to file its last report for the fiscal year
ended June 30 on Form 20-F and intends to subsequently file interim
financials for the six-month period ending December 31, 2023,
before beginning an annual reporting cycle of January 1 through
December 31 beginning in the 2024 calendar year and beyond.
About Tritium
Founded in 2001, Tritium (NASDAQ: DCFC) designs and manufactures
proprietary hardware and software to create advanced and reliable
DC fast chargers for electric vehicles. Tritium’s compact and
robust chargers are designed to look great on Main Street and
thrive in harsh conditions, through technology engineered to be
easy to install, own, and use. Tritium is focused on continuous
innovation in support of our customers around the world.
For more information, visit tritiumcharging.com.
Forward Looking Statements
This press release includes “forward-looking statements.” 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,” “believe,” “predict,” “potential,” “continue,” “aim,” and
similar expressions are intended to identify such forward-looking
statements. These forward-looking statements include, without
limitation, the Company’s expectations, hopes, beliefs, intentions,
or strategies for the future. These forward-looking statements
involve significant risks and uncertainties that could cause the
actual results to differ materially from the expected results,
including, but not limited to: our history of losses; the ability
to successfully manage our growth; the adoption and demand for
electronic vehicles including the success of alternative fuels,
changes to rebates, tax credits, and the impact of government
incentives; the accuracy of our forecasts and projections including
those regarding our market opportunity; competition; our ability to
secure financing; delays in our manufacturing plans; losses or
disruptions in supply or manufacturing partners; risks related to
our technology, intellectual property and infrastructure;
exemptions to certain U.S. securities laws as a result of our
status as a foreign private issuer; and other important risks and
uncertainties described in the documents filed by the Company from
time to time with the U.S. Securities and Exchange Commission.
These filings identify and address other important risks and
uncertainties that could cause actual events and results to differ
materially from those contained in the forward-looking statements.
Most of these factors are outside the Company’s control and are
difficult to predict. The Company cautions not to place undue
reliance upon any forward-looking statements, including
projections, which speak only as of the date made. The Company does
not undertake or accept any obligation 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.
*Non-GAAP Measures
Tritium prepares audited financial statements in accordance with
U.S. GAAP. Tritium also discloses certain non-GAAP measures such as
EBITDA, as we believe that such non-GAAP measures are useful to
investors in evaluating our performance by providing an additional
tool for investors to use in comparing our financial performance
over multiple periods. Additionally, these figures provide an
understanding and evaluation of our trends when comparing our
operating results against those of our competitors and over time by
excluding items that we do not believe are indicative of our core
operating performance. These non-GAAP financial measures have
limitations as analytical tools and should not be considered in
isolation or as substitutes for an analysis of our results as
reported under GAAP.
We calculate forward-looking EBITDA based on internal forecasts
that omit certain amounts that would be included in forward-looking
GAAP net income (loss). We do not attempt to provide a
reconciliation of forward-looking EBITDA guidance and targets to
forward looking GAAP net income (loss) because forecasting the
timing or amount of items that have not yet occurred and are out of
our control is inherently uncertain and unavailable without
unreasonable efforts. Further, we believe that such reconciliations
would imply a degree of precision and certainty that could be
confusing to investors. Such items could have a substantial impact
on GAAP measures of financial performance.
Consolidated Statements of Operations and Comprehensive
Loss For the years ended June 30, 2023, 2022 and
2021
| |
Year Ended |
|
Year Ended |
|
Year Ended |
|
|
June 30, 2023 |
|
June 30, 2022 |
|
June 30, 2021 |
|
|
$’000 |
|
$’000 |
|
$’000 |
| Revenue |
|
|
|
|
|
|
Hardware revenue – external parties |
167,965 |
|
|
69,243 |
|
|
32,299 |
|
| Hardware revenue – related
parties |
7,203 |
|
|
11,589 |
|
|
21,263 |
|
| Service and maintenance
revenue – external parties |
9,267 |
|
|
4,979 |
|
|
2,590 |
|
| Software Revenue |
109 |
|
|
10 |
|
|
5 |
|
| Total revenue |
184,544 |
|
|
85,821 |
|
|
56,157 |
|
| Cost of goods
sold |
|
|
|
|
|
| Hardware – cost of goods
sold |
(182,986 |
) |
|
(83,740 |
) |
|
(55,188 |
) |
| Service and maintenance -
costs of goods sold |
(5,641 |
) |
|
(3,778 |
) |
|
(2,873 |
) |
| Total cost of goods sold |
(188,627 |
) |
|
(87,518 |
) |
|
(58,061 |
) |
| Selling, general and
administration expense |
(79,571 |
) |
|
(74,323 |
) |
|
(31,624 |
) |
| Product development
expense |
(15,466 |
) |
|
(14,031 |
) |
|
(10,521 |
) |
| Foreign exchange
gain/(loss) |
(4,344 |
) |
|
(4,208 |
) |
|
(1,436 |
) |
| Total operating costs and
expenses |
(99,381 |
) |
|
(92,562 |
) |
|
(43,581 |
) |
| Loss from operations |
(103,464 |
) |
|
(94,259 |
) |
|
(45,485 |
) |
| Other income
(expense), net |
|
|
|
|
|
| Finance costs |
(27,867 |
) |
|
(18,136 |
) |
|
(8,795 |
) |
| Finance costs - related
parties |
(7,181 |
) |
|
- |
|
|
- |
|
| Transaction and offering
related fees |
- |
|
|
(6,783 |
) |
|
(4,794 |
) |
| Fair value movements -
derivatives and warrants |
16,977 |
|
|
(9,782 |
) |
|
(5,947 |
) |
| Other income |
165 |
|
|
61 |
|
|
1,940 |
|
| Total other expenses |
(17,906 |
) |
|
(34,640 |
) |
|
(17,596 |
) |
| (Loss) before income
taxes |
(121,370 |
) |
|
(128,899 |
) |
|
(63,081 |
) |
| Income tax benefit
expense |
- |
|
|
(20 |
) |
|
(11 |
) |
| Net
(loss) |
(121,370 |
) |
|
(128,919 |
) |
|
(63,092 |
) |
| Net (loss) per common
share |
|
|
|
|
|
| Net (loss) per common share
attributable to common shareholders |
(121,370 |
) |
|
(128,919 |
) |
|
(63,092 |
) |
| Basic and diluted – common
stock |
(0.78 |
) |
|
(1.02 |
) |
|
(0.58 |
) |
| Basic and diluted – C
shares |
- |
|
|
- |
|
|
(0.58 |
) |
| Weighted average
shares outstanding |
|
|
|
|
|
| Basic and diluted – common
stock |
155,401,121 |
|
|
126,814,171 |
|
|
99,915,563 |
|
| Basic and diluted – C
shares |
- |
|
|
- |
|
|
8,047,417 |
|
| Comprehensive
(Loss) |
|
|
|
|
|
| Net (loss) |
(121,370 |
) |
|
(128,919 |
) |
|
(63,092 |
) |
| Other comprehensive
income / (loss) (net of tax) |
|
|
|
|
|
| Change in foreign currency
translation adjustment |
2,780 |
|
|
7,336 |
|
|
(136 |
) |
| Total other
comprehensive income / (loss) (net of tax) |
2,780 |
|
|
7,336 |
|
|
(136 |
) |
| Total comprehensive
(loss) |
(118,590 |
) |
|
(121,583 |
) |
|
(63,228 |
) |
| |
Consolidated Statements of Financial Position
As of June 30, 2023 and 2022
| |
|
As of |
|
As of |
|
|
|
June 30, 2023 |
|
June 30, 2022 |
|
|
|
$’000 |
|
$’000 |
| Assets |
|
|
|
|
|
Cash and cash equivalents |
|
29,421 |
|
|
70,753 |
|
| Accounts receivable - related
parties |
|
237 |
|
|
16 |
|
| Accounts receivable - external
parties, net |
|
43,389 |
|
|
30,541 |
|
| Inventory |
|
140,291 |
|
|
54,349 |
|
| Prepaid expenses |
|
3,745 |
|
|
4,873 |
|
| Deposits |
|
17,437 |
|
|
15,675 |
|
| Total current assets |
|
234,520 |
|
|
176,207 |
|
| Property, plant and equipment,
net |
|
17,833 |
|
|
11,151 |
|
| Operating lease right of use
assets, net |
|
22,823 |
|
|
24,640 |
|
| Total non-current assets |
|
40,656 |
|
|
35,791 |
|
| Total
assets |
|
275,176 |
|
|
211,998 |
|
| |
|
|
|
|
| Liabilities and
Shareholders’ Deficit |
|
|
|
|
| Accounts Payable |
|
71,050 |
|
|
27,049 |
|
| Transaction and offer related
fees |
|
42,593 |
|
|
20,554 |
|
| Borrowings |
|
11,294 |
|
|
74 |
|
| Related party borrowings |
|
51,136 |
|
|
- |
|
| Contract liabilities |
|
47,127 |
|
|
37,727 |
|
| Employee benefits |
|
2,997 |
|
|
2,653 |
|
| Other provisions |
|
3,343 |
|
|
27,623 |
|
| Obligations under operating
leases |
|
3,770 |
|
|
4,020 |
|
| Financial instruments –
derivative |
|
8,399 |
|
|
- |
|
| Other current liabilities |
|
1,694 |
|
|
2,939 |
|
| Warrants |
|
11,627 |
|
|
12,340 |
|
| Total current liabilities |
|
255,030 |
|
|
134,979 |
|
| Obligations under operating
leases |
|
22,588 |
|
|
25,556 |
|
| Contract liabilities |
|
5,798 |
|
|
2,231 |
|
| Employee benefits |
|
317 |
|
|
217 |
|
| Borrowings |
|
115,744 |
|
|
88,269 |
|
| Related party borrowings |
|
16,465 |
|
|
- |
|
| Other provisions |
|
2,889 |
|
|
2,652 |
|
| Total non-current
liabilities |
|
163,801 |
|
|
118,925 |
|
| Total
liabilities |
|
418,831 |
|
|
253,904 |
|
| |
|
|
|
|
| Commitments and Contingent
liabilities |
|
|
|
|
| Shareholders’
Deficit |
|
|
|
|
| Common stock, no
par value, unlimited stock authorized at June 30, 2023, 160,036,639
shares issued (153,094,269 as of June 30, 2022); 142,007,286 shares
outstanding as of June 30, 2023 (148,893,898 as of June 30,
2022) |
243,065 |
|
|
227,268 |
|
| Treasury shares, 3,419,009 as
of June 30, 2023 (4,200,371 as of June 30, 2022) |
|
- |
|
|
- |
|
| |
|
|
|
|
| Additional paid in
capital |
|
20,254 |
|
|
19,210 |
|
| Accumulated other
comprehensive income (loss) |
|
6,420 |
|
|
3,640 |
|
| Accumulated deficit |
|
(413,394 |
) |
|
(292,024 |
) |
| Total Shareholders’
deficit |
|
(143,655 |
) |
|
(41,906 |
) |
| |
|
|
|
|
| Total Liabilities, and
Shareholders’ deficit |
|
275,176 |
|
|
211,998 |
|
| |
Consolidated Statements of Cash Flows For the
years ended June 30, 2023, 2022 and 2021
| |
Year Ended |
|
Year Ended |
|
Year Ended |
|
|
June 30, 2023 |
|
June 30, 2022 |
|
June 30, 2021 |
|
|
$’000 |
|
$’000 |
|
$’000 |
| Cash flows from
operating activities |
|
|
|
|
|
|
Net loss |
(121,370 |
) |
|
(128,919 |
) |
|
(63,092 |
) |
| Reconciliation of net loss to
net cash used in operating activities |
|
|
|
|
|
| Share-based compensation
expense |
8,981 |
|
|
28,188 |
|
|
8,371 |
|
| Foreign exchange gains or
losses |
86 |
|
|
- |
|
|
1,436 |
|
| Transaction costs related to
Common Stock purchase agreement |
741 |
|
|
- |
|
|
- |
|
| Depreciation expense |
2,433 |
|
|
2,198 |
|
|
2,312 |
|
| Loss on disposal of property,
plant and equipment |
47 |
|
|
- |
|
|
- |
|
| Borrowing costs |
- |
|
|
1,518 |
|
|
- |
|
| Fair value movements –
derivatives and warrants |
(16,977 |
) |
|
9,782 |
|
|
5,947 |
|
| Adjustment for capitalized
interest |
12,130 |
|
|
12,761 |
|
|
8,559 |
|
| Changes in operating assets
and liabilities |
|
|
|
|
|
| Accounts receivable |
(13,069 |
) |
|
(16,475 |
) |
|
(1,063 |
) |
| Inventory |
(85,942 |
) |
|
(17,919 |
) |
|
(8,771 |
) |
| Accounts payable |
64,420 |
|
|
3,263 |
|
|
6,619 |
|
| Employee benefits |
444 |
|
|
708 |
|
|
720 |
|
| Other liabilities |
(15,537 |
) |
|
37,020 |
|
|
9,069 |
|
| Other assets |
1,183 |
|
|
(18,965 |
) |
|
(2,567 |
) |
| Net cash used in operating
activities |
(162,430 |
) |
|
(86,840 |
) |
|
(32,460 |
) |
| |
|
|
|
|
|
| Cash flows from
investing activities |
|
|
|
|
|
| Payments for property, plant
and equipment |
(8,007 |
) |
|
(7,023 |
) |
|
(2,572 |
) |
| Proceeds from disposals of
property, plant and equipment |
56 |
|
|
- |
|
|
- |
|
| Net cash used in investing
activities |
(7,951 |
) |
|
(7,023 |
) |
|
(2,572 |
) |
| |
|
|
|
|
|
| Cash flows from
financing activities |
|
|
|
|
|
| Proceeds from issuance of
Common Stock in the Business Combination |
- |
|
|
53,182 |
|
|
- |
|
| Proceeds from issuance of
Common Stock |
1,672 |
|
|
- |
|
|
- |
|
| Transaction costs |
- |
|
|
(3,808 |
) |
|
- |
|
| Proceeds from sold Loan Funded
Share Plan |
690 |
|
|
- |
|
|
- |
|
| Proceeds from the exercise of
warrants |
- |
|
|
26,572 |
|
|
- |
|
| Proceeds from issuance of
Common Stock pursuant to the PIPE Financing |
- |
|
|
15,000 |
|
|
- |
|
| Proceeds from issuance of
Common Stock pursuant to the Option Agreements |
- |
|
|
45,000 |
|
|
- |
|
| Proceeds from borrowings –
external parties |
56,705 |
|
|
117,527 |
|
|
- |
|
| Proceeds from borrowings –
related parties |
75,423 |
|
|
- |
|
|
- |
|
| Proceeds from convertible
notes including derivative |
- |
|
|
- |
|
|
33,367 |
|
| Transaction costs for
borrowings |
(8,178 |
) |
|
(3,888 |
) |
|
- |
|
| Repayment of borrowings –
external parties |
- |
|
|
(77,351 |
) |
|
- |
|
| Repayment of borrowings –
related parties |
- |
|
|
(6,414 |
) |
|
- |
|
| Waiver of related party’s
option to acquire Tritium |
- |
|
|
(6,816 |
) |
|
- |
|
| Net cash provided by financing
activities |
126,312 |
|
|
159,004 |
|
|
33,367 |
|
| |
|
|
|
|
|
| Effects of exchange rate
changes on cash and cash equivalents |
2,737 |
|
|
(545 |
) |
|
120 |
|
| Net increase / (decrease) in
cash and cash equivalents |
(44,069 |
) |
|
65,141 |
|
|
(1,665 |
) |
| Cash and cash equivalents at
the beginning of the period |
70,753 |
|
|
6,157 |
|
|
7,702 |
|
| Cash and cash equivalents end
of the period |
29,421 |
|
|
70,753 |
|
|
6,157 |
|
| |
Media ContactJack
Ulrichmedia@tritiumcharging.com
Investor ContactCary
Segallir@tritiumcharging.com
Tritium DCFC (NASDAQ:DCFC)
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From Mar 2024 to Apr 2024
Tritium DCFC (NASDAQ:DCFC)
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From Apr 2023 to Apr 2024
