- Produced 50 Nikola Tre BEVs in Coolidge, Arizona, and delivered 48 to
dealers
- Reported revenues of $18.1
million and adjusted net loss per share of $0.25
- Cash & Restricted Cash of $529.2
million and $312.5 million
remaining ELOC commitment totaling $841.8
million in total liquidity at the end of Q2, up from
$794.0 million in Q1
- Announced station progress in California in the cities of Ontario, Colton, and a location servicing the Port of
Long Beach
- Stockholders approved proposal 2 increasing authorized shares
from 600 million to 800 million
PHOENIX, Aug. 4, 2022
/PRNewswire/ -- Nikola Corporation (Nasdaq: NKLA), a global leader
in zero-emissions transportation solutions, today reported
financial results for the quarter ended June
30, 2022.
"Our momentum continued during the second quarter as we began
delivering production vehicles to dealers and recognizing revenue
from the sale of our Nikola Tre BEVs," said Mark Russell, Nikola's Chief Executive Officer.
"We are committed to executing on our second half milestones."
Financial Overview
|
Q2 2022
Actual
|
Q2 2022
Guidance
|
|
Production
|
Deliveries
|
Production
|
Deliveries
|
Tre BEV
|
50
|
48
|
50 - 60
|
50 - 60
|
MCT*
|
NA
|
4
|
NA
|
NA
|
Total
|
50
|
52
|
50 -
60
|
50 -
60
|
|
We reported $18.1 million in
revenues on deliveries of 48 Tre BEVs and four (4) Mobile Charging
Trailers (MCT) in Q2. Two (2) additional Tre BEVs were delivered in
the first week of July, which will be reported as part of Q3
revenues. We increased our total liquidity to $841.8 million in Q2 from $794.0 million at the end of Q1. As mentioned in
May, we also successfully raised $200
million in a private placement of convertible notes during
the quarter.
Nikola Tre BEV Update
During the second quarter, we produced 50 Nikola Tre BEVs and
delivered 48 of those to dealers. We also continued pilot testing
with a number of fleets to help facilitate additional orders and
build our backlog. Pilots completed / ongoing include:
- TTSI (Complete) – 106 days / 11,752 miles / 93% uptime
- Univar Solutions (Complete) – 14 days / 858 miles / 100%
uptime
- Covenant Logistics (Extended & Ongoing) – 111 days / 3,423
miles / 94% uptime
- RoadOne / IKEA (Complete) – 36 days / 3,285 miles / 91%
- Benore Logistics Systems (Complete) – 30 days / 2,296 miles /
100% uptime
*MCTs are
merchandised goods sourced from external suppliers and therefore
are not a part of our manufacturing costs.
|
|
Nikola Tre FCEV Program Update
In the second quarter, we began Tre FCEV alpha pilot testing
with TTSI in Southern California.
As of today, the trucks have accumulated over 3,800 miles. We
expect to begin FCEV pilot testing with Walmart in Southern California on August 22.
During the second quarter, we began building the first Tre FCEV
betas. The first batch of betas are scheduled to be complete by the
end of August. We expect to build two additional batches of Tre
FCEV betas by the end of the fourth quarter. Beta trucks
incorporate learnings from the alpha trials and will be used for
engineering and product development.
Coolidge, Arizona
Manufacturing Facility Update
We are ramping up production capacity in Coolidge, Arizona. We expect to increase our
throughput to five units per shift by November of this year. Phase
2 expansion is underway and on track to be completed by Q1
2023.
H2 Dispensing Station Updates
On August 3, we announced we had
made significant progress in partnership with TravelCenters of
America on the first hydrogen dispensing station in Ontario, California. We have executed the definitive
agreement, agreed on the station design, and have ordered key
equipment.
We also executed a land lease in Colton, California to build a greenfield
hydrogen dispensing station, and entered into an agreement to lease
a parcel servicing the Port of Long
Beach to build a greenfield hydrogen dispensing station. We
anticipate the stations will be complete by Q4 2023.
Nikola - IVECO European JV
In June, together with IVECO, we agreed to expand our 50/50
European JV to include engineering and product development. During
the second quarter, the JV entity began building the first EU Tre
4x2 BEV alphas. Production for EU Tre BEV is expected to commence
in the second half of 2023. The JV also started building EU Tre
FCEV betas, which are expected to begin production in the first
half of 2024.
Second Quarter Financial Highlights
(In thousands, except
share and per share data)
|
Q2
2022
|
|
Q2
2021
|
|
Q2 2022
YTD
|
|
Q2 2021
YTD
|
Gross loss
|
$
(29,257)
|
|
$
—
|
|
$
(28,826)
|
|
$
—
|
Loss from
operations
|
$ (172,231)
|
|
$ (138,398)
|
|
$ (323,540)
|
|
$ (258,988)
|
Net loss
|
$ (172,997)
|
|
$ (143,231)
|
|
$ (325,938)
|
|
$ (263,455)
|
Adjusted EBITDA
(1)
|
$
(94,345)
|
|
$
(73,906)
|
|
$ (173,498)
|
|
$ (127,340)
|
Net loss per share,
basic
|
$
(0.41)
|
|
$
(0.36)
|
|
$
(0.78)
|
|
$
(0.67)
|
Net loss per share,
diluted
|
$
(0.41)
|
|
$
(0.36)
|
|
$
(0.78)
|
|
$
(0.67)
|
Non-GAAP net loss per
share, basic(1)
|
$
(0.25)
|
|
$
(0.20)
|
|
$
(0.45)
|
|
$
(0.34)
|
Non-GAAP net loss per
share, diluted(1)
|
$
(0.25)
|
|
$
(0.20)
|
|
$
(0.45)
|
|
$
(0.34)
|
Weighted-average shares
outstanding, basic
|
425,323,391
|
|
394,577,711
|
|
420,266,181
|
|
393,390,377
|
Weighted-average shares
outstanding, diluted
|
425,323,391
|
|
394,577,711
|
|
420,266,181
|
|
393,390,377
|
(1) A reconciliation of
the non-GAAP versus GAAP information is provided below in the
financial statement tables in this press release.
|
|
Business Outlook
We remain on track to achieve the following milestones in
2022:
- Deliver 300 to 500 production Tre BEV trucks
- Successful FCEV alpha pilot testing with Anheuser-Busch and
TTSI
- Build, validate and test Tre FCEV beta trucks
- Announce location, break ground, and commence construction of
the first hydrogen production hub in Arizona
- Announce two or more dispensing station partners in
California
Webcast and Conference Call Information
Nikola will host a webcast to discuss its second-quarter results
at 6:30 a.m. Pacific Time
(9:30 a.m. Eastern Time) on
August 4, 2022. To access the
webcast, parties in the United
States should follow this
link: https://www.webcast-eqs.com/register/nikola20220804/en.
The live audio webcast, along with supplemental information,
will be accessible on the Company's Investor Relations website at
https://nikolamotor.com/investors/news?active=events. A recording
of the webcast will also be available following the earnings
call.
About Nikola Corporation
Nikola Corporation is globally transforming the transportation
industry. As a designer and manufacturer of zero-emission
battery-electric and hydrogen-electric vehicles, electric vehicle
drivetrains, vehicle components, energy storage systems, and
hydrogen station infrastructure, Nikola is driven to revolutionize
the economic and environmental impact of commerce as we know it
today. Founded in 2015, Nikola Corporation is headquartered in
Phoenix, Arizona. For more
information, visit www.nikolamotor.com or Twitter @nikolamotor.
Forward-Looking Statements
This press release contains certain forward-looking statements
within the meaning of federal securities laws with respect to
Nikola Corporation (the "Company"), including statements relating
to the Company's future performance and milestones; expected timing
of manufacturing facility expansion and production capacity;
expectations regarding hydrogen dispensing stations, our joint
venture, and our pilot programs; timing of completion of testing,
production, as well as other milestones; the Company's business
outlook; and terms and potential benefits of planned
collaborations with strategic partners. These forward-looking
statements generally are identified by words such as "believe,"
"project," "expect," "anticipate," "estimate," "intend,"
"strategy," "future," "opportunity," "plan," "may," "should,"
"will," "would," and similar expressions. Forward-looking
statements are predictions, projections, and other statements about
future events based on current expectations and assumptions and, as
a result, are subject to risks and uncertainties. Many factors
could cause actual future events to differ materially from the
forward-looking statements in this press release, including but not
limited to: design and manufacturing changes and delays, including
global shortages in parts and materials; general economic,
financial, legal, regulatory, political and business conditions and
changes in domestic and foreign markets; the potential effects of
COVID-19; the outcome of legal, regulatory and judicial proceedings
to which the Company is, or may become a party; demand for and
customer acceptance of the Company's trucks; the results of
customer pilot testing; the execution and terms of definitive
agreements; risks associated with development and testing of
fuel-cell power modules and hydrogen storage systems; risks related
to the rollout of the Company's business and the timing of expected
business milestones; the effects of competition on the Company's
future business; the availability of and need for capital; the
impact of our recently-announced planned acquisition; and the
factors, risks and uncertainties regarding the Company's business
described in the "Risk Factors" section of the Company's quarterly
report on Form 10-Q for the quarter ended March 31, 2022 filed with the SEC, in addition to
the Company's subsequent filings with the SEC. These filings
identify and address other important risks and uncertainties that
could cause the Company's actual events and results to differ
materially from those contained in the forward-looking statements.
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.
Use of Non-GAAP Financial Measures
This press release references Adjusted EBITDA, non-GAAP net
loss, and non-GAAP net loss per share, basic and diluted, all of
which are non-GAAP financial measures and are presented as
supplemental measures of the Company's performance. The Company
defines Adjusted EBITDA as earnings before interest expense, taxes,
depreciation and amortization, stock-based compensation expense,
and certain other items determined by the Company. Non-GAAP net
loss is defined as net loss adjusted for stock-based compensation
expense and certain other items determined by the Company. Non-GAAP
net loss per share basic and diluted is defined as non-GAAP net
loss divided by weighted average basic and diluted shares
outstanding. These non-GAAP measures are not substitutes for or
superior to measures of financial performance prepared in
accordance with generally accepted accounting principles in
the United States (GAAP) and
should not be considered as an alternative to any other performance
measures derived in accordance with GAAP.
The Company believes that presenting these non-GAAP measures
provides useful supplemental information to investors about the
Company in understanding and evaluating its operating results,
enhancing the overall understanding of its past performance and
future prospects, and allowing for greater transparency with
respect to key financial metrics used by its management in
financial and operational-decision making. However, there are a
number of limitations related to the use of non-GAAP measures and
their nearest GAAP equivalents. For example, other companies may
calculate non-GAAP measures differently or may use other measures
to calculate their financial performance, and therefore any
non-GAAP measures the Company uses may not be directly comparable
to similarly titled measures of other companies.
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(In thousands, except
share and per share data)
|
(Unaudited)
|
|
|
Three Months Ended
June 30,
|
|
Six Months
Ended June 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Revenues:
|
|
|
|
|
|
|
|
Truck sales
|
$
17,383
|
|
$
—
|
|
$
17,383
|
|
$
—
|
Service and
other
|
751
|
|
—
|
|
2,638
|
|
—
|
Total
revenues
|
18,134
|
|
—
|
|
20,021
|
|
—
|
Cost of
revenues:
|
|
|
|
|
|
|
|
Truck sales
|
46,781
|
|
—
|
|
46,781
|
|
—
|
Service and
other
|
610
|
|
—
|
|
2,066
|
|
—
|
Total cost of
revenues
|
47,391
|
|
—
|
|
48,847
|
|
—
|
Gross
loss
|
(29,257)
|
|
—
|
|
(28,826)
|
|
—
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development(1)
|
63,106
|
|
67,726
|
|
137,663
|
|
122,889
|
Selling, general, and
administrative(1)
|
79,868
|
|
70,672
|
|
157,051
|
|
136,099
|
Total operating
expenses
|
142,974
|
|
138,398
|
|
294,714
|
|
258,988
|
Loss from
operations
|
(172,231)
|
|
(138,398)
|
|
(323,540)
|
|
(258,988)
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest expense,
net
|
(2,808)
|
|
(92)
|
|
(3,019)
|
|
(101)
|
Revaluation of warrant
liability
|
3,341
|
|
(2,511)
|
|
2,907
|
|
(1,560)
|
Other income
(expense), net
|
(27)
|
|
(1,102)
|
|
1,806
|
|
(883)
|
Loss before income
taxes and equity in net loss of affiliates
|
(171,725)
|
|
(142,103)
|
|
(321,846)
|
|
(261,532)
|
Income tax
expense
|
2
|
|
2
|
|
2
|
|
3
|
Loss before equity
in net loss of affiliates
|
(171,727)
|
|
(142,105)
|
|
(321,848)
|
|
(261,535)
|
Equity in net loss of
affiliates
|
(1,270)
|
|
(1,126)
|
|
(4,090)
|
|
(1,920)
|
Net
loss
|
$
(172,997)
|
|
$
(143,231)
|
|
$
(325,938)
|
|
$
(263,455)
|
|
|
|
|
|
|
|
|
Net loss per
share:
|
|
|
|
|
|
|
|
Basic
|
$
(0.41)
|
|
$
(0.36)
|
|
$
(0.78)
|
|
$
(0.67)
|
Diluted
|
$
(0.41)
|
|
$
(0.36)
|
|
$
(0.78)
|
|
$
(0.67)
|
Weighted average shares
outstanding:
|
|
|
|
|
|
|
|
Basic
|
425,323,391
|
|
394,577,711
|
|
420,266,181
|
|
393,390,377
|
Diluted
|
425,323,391
|
|
394,577,711
|
|
420,266,181
|
|
393,390,377
|
(1) Includes
stock-based compensation as follows:
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Research and
development
|
$
9,300
|
|
$
10,228
|
|
$
18,007
|
|
$
20,550
|
Selling, general, and
administrative
|
45,541
|
|
42,442
|
|
90,362
|
|
82,386
|
Total stock-based
compensation expense
|
$
54,841
|
|
$
52,670
|
|
$
108,369
|
|
$
102,936
|
CONSOLIDATED BALANCE
SHEETS
|
(In thousands, except
share and per share data)
|
|
|
June
30,
|
|
December
31,
|
|
2022
|
|
2021
|
|
(Unaudited)
|
|
|
Assets
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
441,765
|
|
$
497,241
|
Accounts receivable,
net
|
16,726
|
|
—
|
Inventory
|
52,105
|
|
11,597
|
Prepaid expenses and
other current assets
|
34,802
|
|
15,891
|
Total current
assets
|
545,398
|
|
524,729
|
Restricted cash and
cash equivalents
|
87,459
|
|
25,000
|
Long-term
deposits
|
37,740
|
|
27,620
|
Property, plant and
equipment, net
|
311,732
|
|
244,377
|
Intangible assets,
net
|
95,395
|
|
97,181
|
Investment in
affiliates
|
79,726
|
|
61,778
|
Goodwill
|
5,238
|
|
5,238
|
Other assets
|
4,287
|
|
3,896
|
Total
assets
|
$
1,166,975
|
|
$
989,819
|
Liabilities and
stockholders' equity
|
|
|
|
Current
liabilities
|
|
|
|
Accounts
payable
|
$
87,479
|
|
$
86,982
|
Accrued expenses and
other current liabilities
|
156,610
|
|
93,487
|
Debt and finance lease
liabilities, current
|
9,518
|
|
140
|
Total current
liabilities
|
253,607
|
|
180,609
|
Long-term debt and
finance lease liabilities, net of current portion
|
273,309
|
|
25,047
|
Operating lease
liabilities
|
2,349
|
|
2,263
|
Warrant
liability
|
1,377
|
|
4,284
|
Other long-term
liabilities
|
37,070
|
|
84,033
|
Deferred tax
liabilities, net
|
12
|
|
11
|
Total
liabilities
|
567,724
|
|
296,247
|
Commitments and
contingencies (Note 9)
|
|
|
|
Stockholders'
equity
|
|
|
|
Preferred
stock
|
—
|
|
—
|
Common
stock
|
43
|
|
41
|
Additional paid-in
capital
|
2,176,945
|
|
1,944,341
|
Accumulated
deficit
|
(1,576,550)
|
|
(1,250,612)
|
Accumulated other
comprehensive loss
|
(1,187)
|
|
(198)
|
Total stockholders'
equity
|
599,251
|
|
693,572
|
Total liabilities
and stockholders' equity
|
$
1,166,975
|
|
$
989,819
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
(Unaudited)
|
|
|
Six Months Ended
June 30,
|
|
2022
|
|
2021
|
Cash flows from
operating activities
|
|
|
|
Net loss
|
$
(325,938)
|
|
$
(263,455)
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
Depreciation and
amortization
|
9,676
|
|
3,710
|
Stock-based
compensation
|
108,369
|
|
102,936
|
Non-cash in-kind
services
|
—
|
|
27,723
|
Equity in net loss of
affiliates
|
4,090
|
|
1,920
|
Revaluation of
financial instruments
|
192
|
|
1,560
|
Issuance of common
stock for commitment shares
|
—
|
|
2,625
|
Inventory
write-downs
|
10,890
|
|
—
|
Non-cash interest
expense
|
2,457
|
|
—
|
Other non-cash
activity
|
273
|
|
1,010
|
Changes in operating
assets and liabilities:
|
|
|
|
Accounts receivable,
net
|
(16,726)
|
|
—
|
Inventory
|
(60,468)
|
|
(2,267)
|
Prepaid expenses and
other current assets
|
(12,631)
|
|
(4,024)
|
Accounts payable,
accrued expenses and other current liabilities
|
15,395
|
|
9,535
|
Long-term
deposits
|
(8,281)
|
|
(7,247)
|
Other
assets
|
(608)
|
|
—
|
Operating lease
liabilities
|
(277)
|
|
—
|
Other long-term
liabilities
|
(224)
|
|
—
|
Net cash used in
operating activities
|
(273,811)
|
|
(125,974)
|
Cash flows from
investing activities
|
|
|
|
Purchases and deposits
of property, plant and equipment
|
(67,316)
|
|
(64,787)
|
Investments in
affiliates
|
(23,027)
|
|
(25,000)
|
Proceeds from sale of
equipment
|
—
|
|
200
|
Net cash used in
investing activities
|
(90,343)
|
|
(89,587)
|
Cash flows from
financing activities
|
|
|
|
Proceeds from the
exercise of stock options
|
565
|
|
3,839
|
Proceeds from issuance
of shares under the Tumim Purchase Agreements
|
123,672
|
|
—
|
Proceeds from issuance
of Convertible Notes, net of discount and issuance costs
|
183,510
|
|
—
|
Proceeds from issuance
of Collateralized Promissory Note
|
50,000
|
|
—
|
Proceeds from issuance
of financing obligation, net of issuance costs
|
38,582
|
|
—
|
Repayment of Promissory
Note
|
(25,000)
|
|
(4,100)
|
Payments on finance
lease liabilities and financing obligation
|
(192)
|
|
(518)
|
Payments for issuance
costs
|
—
|
|
(244)
|
Net cash provided by
(used in) financing activities
|
371,137
|
|
(1,023)
|
Net increase (decrease)
in cash and cash equivalents, including restricted cash
|
6,983
|
|
(216,584)
|
Cash and cash
equivalents, including restricted cash, beginning of
period
|
522,241
|
|
849,278
|
Cash and cash
equivalents, including restricted cash, end of period
|
$
529,224
|
|
$
632,694
|
Reconciliation of
GAAP Financial Metrics to Non-GAAP
|
(In thousands, except
share and per share data)
|
(Unaudited)
|
|
Reconciliation of
Net Loss to EBITDA and Adjusted EBITDA
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Net loss
|
|
$
(172,997)
|
|
$
(143,231)
|
|
$
(325,938)
|
|
$
(263,455)
|
Interest expense,
net
|
|
2,808
|
|
92
|
|
3,019
|
|
101
|
Income tax
expense
|
|
2
|
|
2
|
|
2
|
|
3
|
Depreciation and
amortization
|
|
6,565
|
|
1,905
|
|
9,676
|
|
3,710
|
EBITDA
|
|
(163,622)
|
|
(141,232)
|
|
(313,241)
|
|
(259,641)
|
Stock-based
compensation
|
|
54,841
|
|
52,670
|
|
108,369
|
|
102,936
|
Revaluation of
financial instruments
|
|
196
|
|
2,511
|
|
192
|
|
1,560
|
Equity in net loss of
affiliates
|
|
1,270
|
|
1,126
|
|
4,090
|
|
1,920
|
Regulatory and legal
matters (1)
|
|
12,970
|
|
11,019
|
|
27,092
|
|
25,885
|
Adjusted
EBITDA
|
|
$
(94,345)
|
|
$
(73,906)
|
|
$
(173,498)
|
|
$
(127,340)
|
(1)
Regulatory and legal matters include legal, advisory, and other
professional service fees incurred in connection with the
short-seller article from September 2020, and investigations and
litigation related thereto.
|
Reconciliation of
GAAP to Non-GAAP Net Loss, and GAAP to Non-GAAP Net Loss per Share,
basic and diluted
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Net loss
|
|
$
(172,997)
|
|
$
(143,231)
|
|
$
(325,938)
|
|
$
(263,455)
|
Stock-based
compensation
|
|
54,841
|
|
52,670
|
|
108,369
|
|
102,936
|
Revaluation of
financial instruments
|
|
196
|
|
2,511
|
|
192
|
|
1,560
|
Regulatory and legal
matters(1)
|
|
12,970
|
|
11,019
|
|
27,092
|
|
25,885
|
Non-GAAP net
loss
|
|
$
(104,990)
|
|
$
(77,031)
|
|
$
(190,285)
|
|
$
(133,074)
|
Non-GAAP net loss per
share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
(0.25)
|
|
$
(0.20)
|
|
$
(0.45)
|
|
$
(0.34)
|
Diluted
|
|
$
(0.25)
|
|
$
(0.20)
|
|
$
(0.45)
|
|
$
(0.34)
|
Weighted average shares
outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
425,323,391
|
|
394,577,711
|
|
420,266,181
|
|
393,390,377
|
Diluted
|
|
425,323,391
|
|
394,577,711
|
|
420,266,181
|
|
393,390,377
|
(1)
Regulatory and legal matters include legal, advisory, and other
professional service fees incurred in connection with the
short-seller article from September 2020, and investigations and
litigation related thereto.
|
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SOURCE Nikola Corporation