Eos Energy Enterprises, Inc. (NASDAQ: EOSE) (“Eos”), a leading
provider of safe, scalable, efficient, and sustainable zinc-based
energy storage systems, today announced financial results for the
second quarter ended June 30, 2022.
Second Quarter Highlights
- $5.9 million in revenue, a 79 percent sequential increase and
28 percent higher compared to full year 2021 revenue.
- Booked orders in second quarter of $257.5 million, almost 4x
higher than first quarter; year-to-date booked orders now stands at
$324.7 million.
- Orders backlog more than doubled in the quarter to $457.3
million.
- Accelerating commercial pipeline with current opportunities of
approximately $7 billion.
- Annualized manufacturing capacity as of June 30, 2022 of
approximately 536 MWh, a 70 percent increase versus March 31,
2022.
- Cost of goods sold of $36.9 million, relatively flat versus
last quarter with a 66 percent increase in energy block
shipments.
- Second quarter ending energy block bill of material cost
reduced by approximately 24% vs year-end 2021.
- SG&A of $19.1 million, of which $3.2 million is
non-cash.
- Invested $5.5 million in R&D as the Company continues to
design and develop Z3, a smaller, more powerful battery energy
storage system.
- Cash balance of $16.3 million as of June 30, 2022.
Recent Business Highlights
- On August 1, 2022, the Company announced an $85 million senior
secured term loan credit facility. The Company is permitted to make
a one-time request for up to an additional $15 million, subject to
lender consent.
- On July 25, 2022, Congressman Frank Pallone, Jr., Chairman of
the House Energy and Commerce Committee, attended the unveiling of
the Eos Ingenuity Lab which will expand the Company’s R&D
capacity as it designs future generations of its Znyth™ aqueous
battery.
- On June 30, 2022, signed two significant orders with Bridgelink
Commodities, LLC and a leading Northeast solar developer totaling
1.1 GWh of energy storage capacity to be delivered over the next
three years.
- On June 24, 2022, surpassed 500 MWh of cumulative energy
discharged from Eos battery energy storage systems.
- On June 3, 2022, completed production of the 20,000th Eos
Znyth™ battery in Turtle Creek, PA.
- On May 12, 2022, submitted Part II application for the U.S.
Department of Energy’s (“DOE”) Renewable Energy and Efficient
Energy Loan Program.
Eos Chief Executive Officer Joe Mastrangelo said, “Across the
Company, the team continues to execute and deliver strong operating
results consistent with our strategic plan. Our orders backlog has
more than doubled, we achieved significant quarterly revenue
growth, we surpassed a half gigawatt hour of production capacity,
all while reducing product cost in a very challenging
environment.”
Mastrangelo concluded, “The world needs clean energy and we
expect Eos to play a critical role in the energy transition.”
Earnings Conference Call and Audio Webcast
Eos will host a conference call to discuss its second quarter
2022 financial results on August 2, 2022, at 8:30 a.m. ET. The
conference call can be accessed live over the phone by dialing
(877) 704-4453, or for international callers (201) 389-0920. The
call will also be webcast live from Eos’s investor relations
website at https://investors.eose.com.
The conference call replay will be available via webcast through
Eos’s investor relations website. A telephone replay will be
available from 11:30 a.m. ET on August 2, 2022, through August 9,
2022, by dialing (844) 512-2921 or for international callers (412)
317-6671. The replay passcode will be
13731532.
About Eos
Eos Energy Enterprises, Inc. is accelerating the shift to clean
energy with positively ingenious solutions that transform how the
world stores power. Our breakthrough Znyth™ aqueous zinc battery
was designed to overcome the limitations of conventional
lithium-ion technology. Safe, scalable, efficient, sustainable—and
manufactured in the U.S.—it’s the core of our innovative systems
that today provide utility, industrial, commercial, and residential
customers with a proven, reliable energy storage alternative for 3-
to 12-hour applications. Eos was founded in 2008 and is
headquartered in Edison, New Jersey. For more information about Eos
(NASDAQ: EOSE), visit eose.com.
Contacts Investors:
ir@eose.comMedia:
media@eose.com
Forward Looking Statements
Except for the historical information contained herein, the
matters set forth in this press release are forward-looking
statements within the meaning of the “safe harbor” provisions of
the Private Securities Litigation Reform Act of 1995. The words
“anticipate,” “believe,” “estimate,” “project,” “expect,” “intend,”
“plan,” “should,” and similar expressions, as they relate to us,
are intended to identify forward-looking statements.
Forward-looking statements are based on our management’s beliefs,
as well as assumptions made by, and information currently available
to, them. Because such statements are based on expectations as to
future financial and operating results and are not statements of
fact, actual results may differ materially from those
projected.
Factors which may cause actual results to differ materially from
current expectations include, but are not limited to: changes
adversely affecting the business in which we are engaged; our
ability to forecast trends accurately; our ability to generate
cash, service indebtedness and incur additional indebtedness; our
ability to raise financing in the future; our ability to develop
efficient manufacturing processes to scale and to forecast related
costs and efficiencies accurately; fluctuations in our revenue and
operating results; competition from existing or new competitors;
the failure to convert firm order backlog to revenue;
risks associated with security breaches in our information
technology systems; risks related to legal proceedings or claims;
risks associated with evolving energy policies in the United States
and other countries and the potential costs of regulatory
compliance; risks associated with changes to U.S. trade
environment; risks resulting from the impact of global pandemics,
including the novel coronavirus, Covid-19; and risks related to
adverse changes in general economic conditions.
The forward-looking statements contained in this press release
are also subject to additional risks, uncertainties, and factors,
including those more fully described in the Company’s most recent
filings with the Securities and Exchange Commission, including the
Company’s most recent Annual Report on Form 10-K and subsequent
reports on Forms 10-Q and 8-K. Further information on potential
risks that could affect actual results will be included in the
subsequent periodic and current reports and other filings that the
Company makes with the Securities and Exchange Commission from time
to time. Moreover, the Company operates in a very competitive and
rapidly changing environment, and new risks and uncertainties may
emerge that could have an impact on the forward-looking statements
contained in this press release.
Forward-looking statements speak only as of the date they are
made. Readers are cautioned not to put undue reliance on
forward-looking statements, and, except as required by law, the
Company assumes no obligation and does not intend to update or
revise these forward-looking statements, whether as a result of new
information, future events, or otherwise.
Key Metrics
Backlog. Our backlog represents the amount of
revenue that we expect to realize from existing agreements with our
customers for the sale of our battery energy storage
systems and performance of services. The backlog is calculated
by adding new orders in the current fiscal period to the
backlog as of the end of the prior fiscal period and then
subtracting the shipments in the current fiscal period. If the
amount of an order is modified or cancelled, we adjust orders in
the current period and our backlog accordingly, but do not
retroactively adjust previously published backlogs. There is no
comparable US-GAAP financial measure for backlog. We believe that
the backlog is a useful indicator regarding the future revenue of
our Company.
Pipeline. Our pipeline represents projects for
which we have submitted technical proposals or non-binding quotes
plus letters of intent (“LOI”) or firm commitments from customers.
Pipeline does not include lead generation projects.
Booked Orders. Booked orders are orders where
we have legally binding agreements with a Purchase Order (“PO”) or
Master Supply Agreement (“MSA”) executed by both parties.
EOS ENERGY ENTERPRISES,
INC.EARNINGS RELEASE
TABLESCONSOLIDATED STATEMENTS OF
OPERATIONS(Unaudited, in thousands, except share and per
share data)
|
For the three months ended |
|
For the six months ended |
|
June 30,2022 |
|
June 30,2021 |
|
June 30,2022 |
|
June 30,2021 |
Revenue |
|
|
|
|
|
|
|
Total revenue |
$ |
5,895 |
|
|
$ |
612 |
|
|
$ |
9,193 |
|
|
$ |
776 |
|
|
|
|
|
|
|
|
|
Costs and
expenses |
|
|
|
|
|
|
|
Cost of goods sold |
|
36,866 |
|
|
|
12,364 |
|
|
|
72,443 |
|
|
|
12,453 |
|
Research and development expenses |
|
5,464 |
|
|
|
3,647 |
|
|
|
10,427 |
|
|
|
8,700 |
|
Selling, general and administrative expenses |
|
19,115 |
|
|
|
11,325 |
|
|
|
33,394 |
|
|
|
20,127 |
|
Loss on pre-existing agreement |
|
- |
|
|
|
22,516 |
|
|
|
- |
|
|
|
30,368 |
|
Loss from write-down of property, plant and equipment |
|
1,997 |
|
|
|
- |
|
|
|
2,005 |
|
|
|
11 |
|
Grant (income) expense, net |
|
(169 |
) |
|
|
(52 |
) |
|
|
4 |
|
|
|
(44 |
) |
Total costs and
expenses |
|
63,273 |
|
|
|
49,800 |
|
|
|
118,273 |
|
|
|
71,615 |
|
|
|
|
|
|
|
|
|
Operating
loss |
|
(57,378 |
) |
|
|
(49,188 |
) |
|
|
(109,080 |
) |
|
|
(70,839 |
) |
|
|
|
|
|
|
|
|
Interest expense, net |
|
284 |
|
|
|
154 |
|
|
|
622 |
|
|
|
175 |
|
Interest expense, related
party |
|
2,664 |
|
|
|
- |
|
|
|
4,838 |
|
|
|
- |
|
Other expense (income) |
|
(3,616 |
) |
|
|
4,701 |
|
|
|
(11,997 |
) |
|
|
4,485 |
|
Loss before income
taxes |
$ |
(56,710 |
) |
|
$ |
(54,043 |
) |
|
$ |
(102,543 |
) |
|
$ |
(75,499 |
) |
Income tax benefit |
|
23 |
|
|
|
- |
|
|
|
65 |
|
|
|
- |
|
Net loss |
$ |
(56,687 |
) |
|
$ |
(54,043 |
) |
|
$ |
(102,478 |
) |
|
$ |
(75,499 |
) |
|
|
|
|
|
|
|
|
Basic and diluted loss
per share attributable to common shareholders |
|
|
|
|
|
|
|
Basic |
$ |
(1.01 |
) |
|
$ |
(1.04 |
) |
|
$ |
(1.86 |
) |
|
$ |
(1.46 |
) |
Diluted |
$ |
(1.01 |
) |
|
$ |
(1.04 |
) |
|
$ |
(1.86 |
) |
|
$ |
(1.46 |
) |
|
|
|
|
|
|
|
|
Weighted average
shares of common stock |
|
|
|
|
|
|
|
Basic |
|
56,021,185 |
|
|
|
51,792,365 |
|
|
|
54,991,475 |
|
|
|
51,630,088 |
|
Diluted |
|
56,021,185 |
|
|
|
51,792,365 |
|
|
|
54,991,475 |
|
|
|
51,630,088 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EOS ENERGY ENTERPRISES,
INC.EARNINGS RELEASE TABLES
CONSOLIDATED BALANCE SHEET DATA(Unaudited, in
thousands)
|
June 30,2022 |
|
|
December 31,2021 |
Balance sheet
data |
|
|
|
|
Cash and cash equivalents |
$ |
16,273 |
|
|
|
$ |
104,831 |
Other current assets |
44,183 |
|
|
|
37,741 |
Property and equipment, net |
20,992 |
|
|
|
12,890 |
Other assets |
16,292 |
|
|
|
13,713 |
Total assets |
97,740 |
|
|
|
169,175 |
Total liabilities |
155,569 |
|
|
|
136,728 |
Total equity (deficit) |
(57,829 |
) |
|
|
32,447 |
SUMMARIZED STATEMENT OF CASH FLOW
DATA(Unaudited, in thousands)
|
For the six months ended |
|
June 30,2022 |
|
|
June 30,2021 |
Cash used in operating activities |
|
(86,992 |
) |
|
|
|
(48,887 |
) |
Cash used in investing activities |
|
(11,758 |
) |
|
|
|
(15,784 |
) |
Cash provided by financing activities |
|
10,584 |
|
|
|
|
17,508 |
|
Net decrease in cash, cash equivalents and restricted cash |
|
(88,164 |
) |
|
|
|
(47,163 |
) |
Cash, cash equivalents and
restricted cash, beginning of the period |
|
105,692 |
|
|
|
|
121,853 |
|
Cash, cash equivalents and
restricted cash, end of the period |
$ |
17,528 |
|
|
|
$ |
74,690 |
|
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