JUSTIN, Texas, Nov. 15, 2021 /PRNewswire/ -- Canoo
Inc. (Nasdaq: GOEV) ("Canoo"), a company developing
breakthrough electric vehicles ("EV") with a proprietary and highly
versatile EV platform for personal and business use, today
announced its financial results for the third quarter of 2021.
"Our discipline continues to be Big News or No News. Therefore,
we will accelerate our advanced manufacturing production in the
U.S. to begin before Q4 2022," stated Tony Aquila, Investor,
Chairman & CEO at Canoo Inc. "In June we announced Pryor, Oklahoma as the location for our owned
manufacturing facility. We have expanded this partnership to
include Arkansas and additional
locations in Oklahoma. We will now
focus on completing the definitive agreements with each state,
which will include approximately $100
million in additional non-dilutive financial incentives,
making the total approximately $400
million. In addition, with these agreements, we are
targeting approximately $100 million in vehicle orders with
the states and universities where we are locating these
facilities."
Recent Updates:
- Selected Bentonville, Arkansas
as location for Corporate Headquarters and Advanced
Industrialization Facility
- Fayetteville, Arkansas for
R&D Center
- Expanded Our Oklahoma Partnership to Include R&D, Software
Development, Customer Support & Finance Centers
- Approximately $100 million of
Anticipated Additional Non-Dilutive State and Local Financial
Incentives
- Accelerated Our Timeline for Production in the U.S.
- Selected Panasonic as battery supply partner
Third Quarter Business Highlights:
- Engineering design is complete and sourced for LV Gamma
builds
- Grew workforce by 22% sequentially to approximately 800 at
close of Q3
Third Quarter Financial Highlights:
- Cash and cash equivalents of $414.9
million as of September 30,
2021.
- GAAP net loss and comprehensive loss of $80.9 million and $208.7
million for the three and nine months ended September 30, 2021, compared to a GAAP net loss
and comprehensive loss of $23.4
million and $77.5 million for
the three and nine months ended September
30, 2020, respectively. The GAAP net loss and comprehensive
loss for the three and nine months ended September 30, 2021, included a gain of
$25.8 million and $101.2 million on the fair value change of the
contingent earnout shares liability, respectively.
- Adjusted EBITDA of $(85.8)
million and $(212.3) million
for the three and nine months ended September 30, 2021, compared to $(20.1) million and $(60.8) million for the three and nine months
ended September 30, 2020,
respectively.
- Net cash used in operating activities totaled $180.6 million for the nine months ended
September 30, 2021, compared to
$65.1 million for the nine months
ended September 30, 2020.
- Net cash used in investing activities was $100.1 million during the nine months ended
September 30, 2021, compared to
$1.2 million during the nine months
ended September 30, 2020.
Fourth Quarter 2021 Business Outlook
Based upon our current projections, Canoo expects:
- Operating Expenses (excluding stock-based compensation and
depreciation) of: $95 million to
$115 million
- Capital Expenditures of: $60
million to $80 million
Conference Call Information
Canoo will host a conference call to discuss the results today,
November 15, 2021, at 5:00 PM ET.
To listen to the conference call via telephone dial (866)
682-6100 (U.S.) and (862) 298-0702 (international callers/U.S.
toll) and enter the conference ID number 13724844. To listen to the
webcast, please click here. A telephone replay will be available
until November 29, 2021, at (877)
660-6853 (U.S.) and (201) 612-7415 (international callers/U.S.
toll), with Conference ID number 13724844. To listen to the webcast
replay, please click here.
About Canoo
Canoo's mission is to bring EVs to Everyone. The company has
developed breakthrough electric vehicles that are reinventing the
automotive landscape with bold innovations in design, pioneering
technologies, and a unique business model that spans the full
lifecycle of the vehicle. Distinguished by its experienced team
from leading technology and automotive companies – Canoo has
designed a modular electric platform purpose-built to deliver
maximum vehicle interior space that is customizable across all
owners in the vehicle lifecycle to support a wide range of vehicle
applications for consumers and businesses.
Canoo has offices in California
and Texas. For more information,
please visit www.canoo.com. For Canoo press materials, including
photos, please visit press.canoo.com. For investors, please visit
investors.canoo.com.
Non-GAAP Financial Measures
EBITDA and Adjusted EBITDA
"EBITDA" is defined as net loss before interest expense, income
tax expense or benefit, and depreciation and amortization.
"Adjusted EBITDA" is defined as EBITDA adjusted for stock-based
compensation, restructuring charges, asset impairments, and other
costs associated with exit and disposal activities, acquisition and
related costs, changes to the fair value of contingent earnout
shares liability, and any other one-time non-recurring transaction
amounts impacting the statement of operations during the year.
Adjusted EBITDA is intended as a supplemental measure of our
performance that is neither required by, nor presented in
accordance with, GAAP. We believe Adjusted EBITDA, when combined
with net loss, and EBITDA, is beneficial to an investor's complete
understanding of our operating performance. We believe that the use
of EBITDA and Adjusted EBITDA provides an additional tool for
investors to use in evaluating ongoing operating results and trends
and in comparing our financial measures with those of comparable
companies, which may present similar non-GAAP financial measures to
investors. However, you should be aware that when evaluating EBITDA
and Adjusted EBITDA we may incur future expenses similar to those
excluded when calculating these measures. In addition, our
presentation of these measures should not be construed as an
inference that our future results will be unaffected by unusual or
non-recurring items. Our computation of EBITDA and Adjusted EBITDA
may not be comparable to other similarly titled measures computed
by other companies, because all companies may not calculate EBITDA
and Adjusted EBITDA in the same fashion.
Because of these limitations, EBITDA and Adjusted EBITDA should
not be considered in isolation or as a substitute for performance
measures calculated in accordance with GAAP. We manage our business
utilizing EBITDA and Adjusted EBITDA as supplemental performance
measures.
|
Third Quarter 2021
Financial Results
CANOO INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS
(in thousands, except
par values)
UNAUDITED
|
|
|
|
September 30,
|
|
December 31,
|
|
|
2021
|
|
2020
|
|
Assets
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
414,904
|
|
$
|
702,422
|
|
Restricted
cash
|
|
|
1,410
|
|
|
—
|
|
Prepaids and other
current assets
|
|
|
14,546
|
|
|
6,463
|
|
Total current
assets
|
|
|
430,860
|
|
|
708,885
|
|
Property and equipment,
net
|
|
|
140,867
|
|
|
30,426
|
|
Operating lease
right-of-use assets
|
|
|
14,501
|
|
|
12,913
|
|
Other assets
|
|
|
28,319
|
|
|
1,246
|
|
Total
assets
|
|
$
|
614,547
|
|
$
|
753,470
|
|
|
|
|
|
|
|
|
Liabilities and
stockholders' equity
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
63,322
|
|
$
|
17,243
|
|
Accrued expenses and
other current liabilities
|
|
|
43,388
|
|
|
10,625
|
|
Total current
liabilities
|
|
|
106,710
|
|
|
27,868
|
|
Contingent earnout
shares liability
|
|
|
32,337
|
|
|
133,503
|
|
Private placement
warrants liability
|
|
|
—
|
|
|
6,613
|
|
Operating lease
liabilities
|
|
|
14,032
|
|
|
13,262
|
|
Long-term
debt
|
|
|
—
|
|
|
6,943
|
|
Other long-term
liabilities
|
|
|
—
|
|
|
39
|
|
Total
liabilities
|
|
|
153,079
|
|
|
188,228
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
|
|
|
Preferred stock,
$0.0001 par value; 10,000 authorized, no shares issued and
outstanding at
September 30, 2021 and December 31, 2020
|
|
|
—
|
|
|
—
|
|
Common stock, $0.0001
par value; 500,000 authorized; 237,603 and 235,753 issued and
outstanding at
September 30, 2021 and December 31, 2020,
respectively
|
|
|
24
|
|
|
24
|
|
Additional paid-in
capital
|
|
|
1,015,461
|
|
|
910,579
|
|
Accumulated
deficit
|
|
|
(554,017)
|
|
|
(345,361)
|
|
Total stockholders'
equity
|
|
|
461,468
|
|
|
565,242
|
|
Total liabilities
and stockholders' equity
|
|
$
|
614,547
|
|
$
|
753,470
|
|
CANOO INC.
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except
per share values)
UNAUDITED
|
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
—
|
|
$
|
2,550
|
|
$
|
—
|
|
$
|
2,550
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
Operating Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue,
excluding depreciation
|
|
|
—
|
|
|
670
|
|
|
—
|
|
|
670
|
|
|
Research and
development expenses, excluding depreciation
|
|
|
59,387
|
|
|
18,923
|
|
|
158,033
|
|
|
52,858
|
|
|
Selling, general and
administrative expenses, excluding depreciation
|
|
|
45,510
|
|
|
8,405
|
|
|
144,072
|
|
|
15,897
|
|
|
Depreciation
|
|
|
2,109
|
|
|
1,738
|
|
|
6,317
|
|
|
5,179
|
|
|
Total costs and
operating expenses
|
|
|
107,006
|
|
|
29,736
|
|
|
308,422
|
|
|
74,604
|
|
|
Loss from
operations
|
|
|
(107,006)
|
|
|
(27,186)
|
|
|
(308,422)
|
|
|
(72,054)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (expense)
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
(expense)
|
|
|
33
|
|
|
(1,094)
|
|
|
79
|
|
|
(10,465)
|
|
|
Gain on extinguishment
of debt
|
|
|
—
|
|
|
5,045
|
|
|
—
|
|
|
5,045
|
|
|
Gain on fair value
change in contingent earnout shares liability
|
|
|
25,764
|
|
|
—
|
|
|
101,166
|
|
|
—
|
|
|
Loss on fair value
change in private placement warrants liability
|
|
|
—
|
|
|
—
|
|
|
(1,639)
|
|
|
—
|
|
|
Other income (expense),
net
|
|
|
334
|
|
|
(155)
|
|
|
160
|
|
|
(47)
|
|
|
Loss before income
taxes
|
|
|
(80,875)
|
|
|
(23,390)
|
|
|
(208,656)
|
|
|
(77,521)
|
|
|
Provision for income
taxes
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Net loss and
comprehensive loss
|
|
$
|
(80,875)
|
|
$
|
(23,390)
|
|
$
|
(208,656)
|
|
$
|
(77,521)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share
Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per
share, basic and diluted
|
|
$
|
(0.35)
|
|
$
|
(0.20)
|
|
$
|
(0.92)
|
|
$
|
(0.82)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares outstanding, basic and diluted
|
|
|
228,477
|
|
|
116,293
|
|
|
226,747
|
|
|
94,058
|
|
|
CANOO INC.
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in
thousands)
UNAUDITED
|
|
|
|
Nine months
ended
|
|
|
September 30,
|
|
|
2021
|
|
2020
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(208,656)
|
|
$
|
(77,521)
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
|
Depreciation
|
|
|
6,317
|
|
|
5,179
|
|
Non-cash operating
lease expense
|
|
|
774
|
|
|
471
|
|
Loss on the disposal of
property and equipment
|
|
|
—
|
|
|
9
|
|
Debt discount
amortization
|
|
|
—
|
|
|
2,590
|
|
Gain on extinguishment
of debt
|
|
|
—
|
|
|
(5,045)
|
|
Stock-based
compensation
|
|
|
89,758
|
|
|
1,059
|
|
Gain on fair value in
contingent earnout shares liability
|
|
|
(101,166)
|
|
|
—
|
|
Loss on fair value
change in private placement warrants liability
|
|
|
1,639
|
|
|
—
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
Prepaids and other
current assets
|
|
|
(8,915)
|
|
|
(3,186)
|
|
Other assets
|
|
|
(939)
|
|
|
726
|
|
Accounts
payable
|
|
|
23,920
|
|
|
1,082
|
|
Accrued interest
expense
|
|
|
—
|
|
|
7,927
|
|
Accrued expenses and
other current liabilities
|
|
|
16,647
|
|
|
1,618
|
|
Net cash used in
operating activities
|
|
|
(180,621)
|
|
|
(65,091)
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
Purchases of property
and equipment
|
|
|
(73,976)
|
|
|
(1,209)
|
|
Prepayment to VDL
Nedcar
|
|
|
(26,134)
|
|
|
—
|
|
Net cash used in
investing activities
|
|
|
(100,110)
|
|
|
(1,209)
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
Proceeds from related
party convertible debt
|
|
|
—
|
|
|
90,000
|
|
Proceeds from
convertible debt
|
|
|
—
|
|
|
90,500
|
|
Loan advance
|
|
|
—
|
|
|
7,017
|
|
Repayments on loan
advance
|
|
|
—
|
|
|
(57)
|
|
Proceeds from issuance
of shares
|
|
|
—
|
|
|
3
|
|
Repurchase of
restricted shares
|
|
|
—
|
|
|
(27)
|
|
Proceeds from exercise
of public warrants
|
|
|
6,879
|
|
|
—
|
|
Repurchase of unvested
shares
|
|
|
(7)
|
|
|
—
|
|
Payment of offering
costs
|
|
|
(5,306)
|
|
|
(1,307)
|
|
Repayment of PPP
loan
|
|
|
(6,943)
|
|
|
—
|
|
Net cash (used in)
provided by financing activities
|
|
|
(5,377)
|
|
|
186,129
|
|
Net (decrease)
increase in cash, cash equivalents, and restricted cash
|
|
|
(286,108)
|
|
|
119,829
|
|
|
|
|
|
|
|
|
Cash, cash
equivalents, and restricted cash
|
|
|
|
|
|
|
|
Cash, cash
equivalents, and restricted cash, beginning of period
|
|
|
702,422
|
|
|
29,507
|
|
Cash, cash
equivalents, and restricted cash, end of period
|
|
$
|
416,314
|
|
$
|
149,336
|
|
|
|
|
|
|
|
|
Reconciliation of
cash, cash equivalents, and restricted cash to the condensed
consolidated balance sheets
|
|
|
|
|
|
|
|
Cash and cash
equivalents at end of period
|
|
$
|
414,904
|
|
$
|
148,836
|
|
Restricted cash at
end of period
|
|
|
1,410
|
|
|
500
|
|
Total cash, cash
equivalents, and restricted cash at end of period shown in the
condensed consolidated statements of
cash flows
|
|
$
|
416,314
|
|
$
|
149,336
|
|
|
|
|
|
|
|
|
Supplemental
non-cash investing and financing activities
|
|
|
|
|
|
|
|
Acquisition of property
and equipment included in current liabilities
|
|
$
|
46,774
|
|
$
|
4,137
|
|
Offering costs included
in accounts payable
|
|
$
|
8,001
|
|
$
|
—
|
|
Offering costs included
in accrued and other current liabilities
|
|
$
|
—
|
|
$
|
2,254
|
|
Recognition of
operating lease right-of-use asset
|
|
$
|
2,362
|
|
$
|
—
|
|
Conversion of private
placement warrants to public warrants
|
|
$
|
8,252
|
|
$
|
—
|
|
Exchange of convertible
debt
|
|
$
|
—
|
|
$
|
291,309
|
|
Gain on extinguishment
of related party convertible debt recorded in additional paid-in
capital
|
|
$
|
—
|
|
$
|
44,785
|
|
Issuance of long-term
debt in exchange for loan advance
|
|
$
|
—
|
|
$
|
7,017
|
|
Supplemental
disclosures of cash flow information
|
|
|
|
|
|
|
|
Cash paid for
interest
|
|
$
|
60
|
|
$
|
—
|
|
CANOO INC.
ADJUSTED EBITDA
RECONCILIATION TABLE
The following table
reconciles Net loss to EBITDA and Adjusted EBITDA:
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September 30,
|
|
September 30,
|
|
(in
thousands)
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
Net loss
|
|
$
|
(80,875)
|
|
$
|
(23,390)
|
|
$
|
(208,656)
|
|
$
|
(77,521)
|
|
Interest (income)
expense
|
|
|
(33)
|
|
|
1,094
|
|
|
(79)
|
|
|
10,465
|
|
Provision for income
taxes
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Depreciation
|
|
|
2,109
|
|
|
1,738
|
|
|
6,317
|
|
|
5,179
|
|
EBITDA
|
|
|
(78,799)
|
|
|
(20,558)
|
|
|
(202,418)
|
|
|
(61,877)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on fair value
change in contingent earnout shares liability
|
|
|
(25,764)
|
|
|
—
|
|
|
(101,166)
|
|
|
—
|
|
Loss on fair value
change in private placement warrants liability
|
|
|
—
|
|
|
—
|
|
|
1,639
|
|
|
—
|
|
Other (income)
expense, net
|
|
|
(334)
|
|
|
155
|
|
|
(160)
|
|
|
47
|
|
Stock-based
compensation
|
|
|
19,098
|
|
|
319
|
|
|
89,758
|
|
|
1,059
|
|
Adjusted
EBITDA
|
|
$
|
(85,799)
|
|
$
|
(20,084)
|
|
$
|
(212,347)
|
|
$
|
(60,771)
|
Forward-Looking Statements
The information in this press release includes "forward-looking
statements" within the meaning of the "safe harbor" provisions of
the United States Private Securities Litigation Reform Act of 1995.
Forward-looking statements may be identified by the use of words
such as "estimate," "plan," "project," "forecast," "intend,"
"will," "expect," "anticipate," "believe," "seek," "target" or
other similar expressions that predict or indicate future events or
trends or that are not statements of historical matters. These
forward-looking statements include, but are not limited to,
statements regarding estimates and forecasts of financial and
performance metrics, projections of market opportunity and market
share, expectations and timing related to commercial product
launches and achievement of other operational milestones, including
the ability to meet and/or accelerate anticipated production
timelines, Canoo's ability to capitalize on commercial
opportunities, anticipated customer orders, and expectations
regarding development of facilities and the negotiation,
availability or receipt of state incentives. These statements are
based on various assumptions, whether or not identified in this
press release, and on the current expectations of Canoo's
management and are not predictions of actual performance. These
forward-looking statements are provided for illustrative purposes
only and are not intended to serve as, and must not be relied on by
any investor as, a guarantee, an assurance, a prediction or a
definitive statement of fact or probability. Actual events and
circumstances are difficult or impossible to predict and will
differ from assumptions. Many actual events and circumstances are
beyond the control of Canoo. These forward-looking statements are
subject to a number of risks and uncertainties, including changes
in domestic and foreign business, market, financial, political and
legal conditions; failure to realize the anticipated benefits of
the business combination with Hennessy Capital Acquisition Corp.
IV; the rollout of Canoo's business and the timing of expected
business milestones and commercial launch; future market adoption
of Canoo's offerings; risks related to Canoo's go-to-market
strategy and manufacturing strategy; the effects of competition on
Canoo's future business; the ability to issue equity or
equity-linked securities, and those factors discussed under
the captions "Risk Factors" and "Management's Discussion and
Analysis of Financial Condition and Results of Operations" in
Canoo's Annual Report on Form 10-K for the fiscal year ended
December 31, 2020 filed with the U.S.
Securities and Exchange Commission (the "SEC") on March 31, 2021, as well as its Quarterly Reports
on Form 10-Q and other filings with the SEC, copies of which may be
obtained by visiting Canoo's Investors Relations website at
investors.canoo.com or the SEC's website at www.sec.gov. 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. There may be additional risks
that Canoo does not presently know or that Canoo currently believes
are immaterial that could also cause actual results to differ from
those contained in the forward-looking statements. In addition,
forward-looking statements reflect Canoo's expectations, plans or
forecasts of future events and views as of the date of this press
release. Canoo anticipates that subsequent events and developments
will cause Canoo's assessments to change. However, while Canoo may
elect to update these forward-looking statements at some point in
the future, Canoo specifically disclaims any obligation to do so.
These forward-looking statements should not be relied upon as
representing Canoo's assessments as of any date subsequent to the
date of this press release. Accordingly, undue reliance should not
be placed upon the forward-looking statements.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/canoo-inc-announces-third-quarter-2021-results-301424557.html
SOURCE Canoo