- Produced 75 Nikola Tre BEVs in Coolidge, AZ and delivered 63 to dealers
- Reported revenues of $24.2
million, GAAP net loss per share of $0.54, and non-GAAP net loss per share of
$0.28
- Completed purchase of land in Buckeye, AZ for hydrogen production hub
- Signed term sheet for collaboration with E.ON in Europe for hydrogen supply and dispensing
infrastructure
- Announced in November the execution of a Purchase Order for 100
Nikola Tre BEVs by Zeem Solutions
- Unveiled the European Tre BEV and Tre FCEV at IAA in
Hanover, Germany in September
- Raised $100.5 million in gross
proceeds through ATM
- Completed the acquisition of Romeo
Power in October
PHOENIX, Nov. 3, 2022
/PRNewswire/ -- Nikola Corporation (Nasdaq: NKLA), a global
leader in zero-emissions transportation and energy supply and
infrastructure solutions, today reported financial results for the
quarter ended September 30, 2022.
"During the third quarter we continued to produce and deliver
Nikola Tre BEVs to dealers and customers," said Nikola President, Michael Lohscheller. "We also
made significant advancements in developing our energy business,
announcing our intent to develop access of up to 300 metric-tons
per day of hydrogen and up to 60 stations by 2026, and our
collaboration with E.ON in Europe."
Energy Business
Announcements
On October 20, we announced our
intent to develop access of up to 300 metric-tons per day (TPD) of
hydrogen and up to 60 dispensing stations by 2026, and highlighted
the potential benefits to our business model from the Inflation
Reduction Act. This supply is expected to be supported by the
previously announced projects referenced below, which are being
developed with our partners.
- Buckeye, AZ Production Hub –
phased development up to 150 metric-TPD
- Terre Haute, IN Wabash Valley
Resources – 50 metric-TPD
- Crossfield, Alberta TC Energy
– 60 metric-TPD
- Clinton County, PA KeyState –
100 metric-TPD
We are negotiating a robust portfolio of hydrogen supply
opportunities across North
America. Further details will be provided following
execution.
On September 29, we acquired a
parcel of land in Buckeye, AZ with
the intent to build a hydrogen production hub with our partners. We
are undergoing zoning and permitting requirements and have ordered
long lead-time equipment including electrolyzers and liquefaction
equipment.
On August 4, we announced the
locations of three hydrogen dispensing stations in California. The stations will be located in
Colton, Ontario, and a location servicing the Port of
Long Beach. California is a launch
market for Nikola and these stations intend to support key
customers to help advance the state's efforts to decarbonize the
transport sector.
On September 16, we announced our
collaboration with E.ON with the objective to establish hydrogen
supply and related infrastructure to meet the demand of customers
in Europe. E.ON is one of
Europe's largest operators of
energy networks and energy infrastructure. The strategic
partnership is expected to offer customers an integrated mobility
solution to promote the use of hydrogen. Both parties have signed a
term sheet to underpin the collaboration and will be negotiating a
definitive agreement to finalize the terms.
Strong Showing at IAA
On September 19, as a part of our
joint venture with IVECO, we revealed our European version of the
Tre BEV and FCEV beta on the IAA main stage. There was a high level
of interest in our FCEVs, which we believe further validates our
business plan and the role we will play in the global transition to
the hydrogen economy. We plan to begin production of EU version Tre
BEVs in the second half of 2023, and EU version Tre FCEVs in the
second half of 2024.
Tre FCEV Update
During the third quarter, we continued our FCEV pilot with TTSI
and began pilot testing with Walmart. To date the trucks have
logged over 9,700 and 5,500 miles respectively. In Q3 we completed
six beta trucks. Development testing on the beta trucks has begun
at various locations. We expect to complete 17 beta trucks for the
full year by the end of Q4.
Tre BEV Update
During the third quarter, we produced 75 Nikola Tre BEVs
delivering 63 of those to dealers. We began pilot testing with both
SAIA and Walmart logging over 1,600 miles and 2,700 miles to date,
respectively. On November 2, we
announced Zeem Solutions executed a Purchase Order for 100 Nikola
Tre BEVs.
Coolidge, Arizona Manufacturing
Facility
In Coolidge, we are currently
producing three trucks on one shift and have the capability to
produce five trucks per shift. We remain on track to complete the
Phase 2 assembly expansion by the end of Q1 2023, at which time our
production capacity will be up to 20,000 units per year. Upon
completion of Phase 2, the facility will be capable of producing
the BEV and FCEV on the same line, in addition to the Bosch Fuel
Cell Power Module.
Completed Acquisition of
Romeo Power
On October 14, we completed the
acquisition of Romeo Power, further
solidifying our commitment to transforming the transportation
industry.
Third Quarter
Financial Highlights
|
|
(In thousands, except
share and per share data)
|
Q3
2022
|
|
Q3
2021
|
|
Q3 2022
YTD
|
|
Q3 2021
YTD
|
Gross loss
|
$
(30,169)
|
|
$
—
|
|
$
(58,995)
|
|
$
—
|
Loss from
operations
|
$
(229,717)
|
|
$
(271,825)
|
|
$
(553,257)
|
|
$
(530,813)
|
Net loss
|
$
(236,234)
|
|
$
(267,567)
|
|
$
(562,172)
|
|
$
(531,022)
|
Adjusted EBITDA
(1)
|
$
(105,932)
|
|
$
(85,020)
|
|
$
(279,430)
|
|
$
(212,359)
|
Net loss per share,
basic
|
$
(0.54)
|
|
$
(0.67)
|
|
$
(1.32)
|
|
$
(1.34)
|
Net loss per share,
diluted
|
$
(0.54)
|
|
$
(0.68)
|
|
$
(1.32)
|
|
$
(1.35)
|
Non-GAAP net loss per
share, basic(1)
|
$
(0.28)
|
|
$
(0.22)
|
|
$
(0.73)
|
|
$
(0.56)
|
Non-GAAP net loss per
share, diluted(1)
|
$
(0.28)
|
|
$
(0.22)
|
|
$
(0.73)
|
|
$
(0.56)
|
Weighted-average shares
outstanding, basic
|
438,416,393
|
|
400,219,585
|
|
426,382,736
|
|
395,691,795
|
Weighted-average shares
outstanding, diluted
|
438,416,393
|
|
400,230,669
|
|
426,382,736
|
|
395,860,876
|
(1) A reconciliation
of the non-GAAP versus GAAP information is provided below in the
financial statement tables in this press release.
|
Webcast and Conference Call
Information
Nikola will host a webcast to discuss its third quarter results
at 6:30 a.m. Pacific Time
(9:30 a.m. Eastern Time) on
November 3, 2022. To access the
webcast, parties in the United
States should follow this link:
https://www.webcast-eqs.com/register/nikola20221103/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 our website 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, hydrogen
capacity, our joint ventures, 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 effects of inflation
and COVID-19; the outcome of legal, regulatory and judicial
proceedings to which the Company or Romeo 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 business; the availability of and need for
capital; the impact of our recent- acquisition of Romeo; 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
June 30, 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
September 30,
|
|
Nine Months
Ended September 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Revenues:
|
|
|
|
|
|
|
|
Truck sales
|
$
23,853
|
|
$
—
|
|
$
41,236
|
|
$
—
|
Service and
other
|
388
|
|
—
|
|
3,026
|
|
—
|
Total
revenues
|
24,241
|
|
—
|
|
44,262
|
|
—
|
Cost of
revenues:
|
|
|
|
|
|
|
|
Truck sales
|
54,080
|
|
—
|
|
100,861
|
|
—
|
Service and
other
|
330
|
|
—
|
|
2,396
|
|
—
|
Total cost of
revenues
|
54,410
|
|
—
|
|
103,257
|
|
—
|
Gross
loss
|
(30,169)
|
|
—
|
|
(58,995)
|
|
—
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development(1)
|
66,683
|
|
78,896
|
|
204,346
|
|
201,785
|
Selling, general, and
administrative(1)
|
132,865
|
|
192,929
|
|
289,916
|
|
329,028
|
Total operating
expenses
|
199,548
|
|
271,825
|
|
494,262
|
|
530,813
|
Loss from
operations
|
(229,717)
|
|
(271,825)
|
|
(553,257)
|
|
(530,813)
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest expense,
net
|
(7,735)
|
|
(118)
|
|
(10,754)
|
|
(219)
|
Revaluation of warrant
liability
|
586
|
|
4,467
|
|
3,493
|
|
2,907
|
Other income,
net
|
2,617
|
|
1,057
|
|
4,423
|
|
174
|
Loss before income
taxes and equity in net loss of affiliates
|
(234,249)
|
|
(266,419)
|
|
(556,095)
|
|
(527,951)
|
Income tax
expense
|
1
|
|
1
|
|
3
|
|
4
|
Loss before equity
in net loss of affiliates
|
(234,250)
|
|
(266,420)
|
|
(556,098)
|
|
(527,955)
|
Equity in net loss of
affiliates
|
(1,984)
|
|
(1,147)
|
|
(6,074)
|
|
(3,067)
|
Net
loss
|
$
(236,234)
|
|
$
(267,567)
|
|
$
(562,172)
|
|
$
(531,022)
|
|
|
|
|
|
|
|
|
Net loss per
share:
|
|
|
|
|
|
|
|
Basic
|
$
(0.54)
|
|
$
(0.67)
|
|
$
(1.32)
|
|
$
(1.34)
|
Diluted
|
$
(0.54)
|
|
$
(0.68)
|
|
$
(1.32)
|
|
$
(1.35)
|
Weighted average shares
outstanding:
|
|
|
|
|
|
|
|
Basic
|
438,416,393
|
|
400,219,585
|
|
426,382,736
|
|
395,691,795
|
Diluted
|
438,416,393
|
|
400,230,669
|
|
426,382,736
|
|
395,860,876
|
|
(1) Includes
stock-based compensation as follows:
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Research and
development
|
$
10,105
|
|
$
6,418
|
|
$
28,112
|
|
$
26,968
|
Selling, general, and
administrative
|
92,740
|
|
42,629
|
|
183,102
|
|
125,015
|
Total stock-based
compensation expense
|
$
102,845
|
|
$
49,047
|
|
$
211,214
|
|
$
151,983
|
CONSOLIDATED BALANCE
SHEETS
|
(In thousands, except
share and per share data)
|
|
|
September
30,
|
|
December
31,
|
|
2022
|
|
2021
|
|
(Unaudited)
|
|
|
Assets
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
315,731
|
|
$
497,241
|
Restricted cash and
cash equivalents
|
600
|
|
—
|
Accounts receivable,
net
|
37,662
|
|
—
|
Inventory
|
81,069
|
|
11,597
|
Prepaid expenses and
other current assets
|
51,858
|
|
15,891
|
Total current
assets
|
486,920
|
|
524,729
|
Restricted cash and
cash equivalents
|
87,459
|
|
25,000
|
Long-term
deposits
|
37,161
|
|
27,620
|
Property, plant and
equipment, net
|
365,049
|
|
244,377
|
Intangible assets,
net
|
93,609
|
|
97,181
|
Investment in
affiliates
|
76,505
|
|
61,778
|
Goodwill
|
5,238
|
|
5,238
|
Other assets
|
7,484
|
|
3,896
|
Total
assets
|
$
1,159,425
|
|
$
989,819
|
Liabilities and
stockholders' equity
|
|
|
|
Current
liabilities
|
|
|
|
Accounts
payable
|
$
92,511
|
|
$
86,982
|
Accrued expenses and
other current liabilities
|
170,707
|
|
93,487
|
Debt and finance lease
liabilities, current
|
14,357
|
|
140
|
Total current
liabilities
|
277,575
|
|
180,609
|
Long-term debt and
finance lease liabilities, net of current portion
|
283,258
|
|
25,047
|
Operating lease
liabilities
|
5,410
|
|
2,263
|
Warrant
liability
|
791
|
|
4,284
|
Other long-term
liabilities
|
28,349
|
|
84,033
|
Deferred tax
liabilities, net
|
13
|
|
11
|
Total
liabilities
|
595,396
|
|
296,247
|
Commitments and
contingencies (Note 9)
|
|
|
|
Stockholders'
equity
|
|
|
|
Preferred
stock
|
—
|
|
—
|
Common
stock
|
46
|
|
41
|
Additional paid-in
capital
|
2,379,191
|
|
1,944,341
|
Accumulated
deficit
|
(1,812,784)
|
|
(1,250,612)
|
Accumulated other
comprehensive loss
|
(2,424)
|
|
(198)
|
Total stockholders'
equity
|
564,029
|
|
693,572
|
Total liabilities
and stockholders' equity
|
$
1,159,425
|
|
$
989,819
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
(Unaudited)
|
|
|
Nine Months Ended
September 30,
|
|
2022
|
|
2021
|
Cash flows from
operating activities
|
|
|
|
Net loss
|
$
(562,172)
|
|
$
(531,022)
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
Depreciation and
amortization
|
16,472
|
|
5,959
|
Stock-based
compensation
|
211,214
|
|
151,983
|
Non-cash in-kind
services
|
—
|
|
40,230
|
Equity in net loss of
affiliates
|
6,074
|
|
3,067
|
Revaluation of
financial instruments
|
(94)
|
|
(3,226)
|
Issuance of common
stock for commitment shares
|
—
|
|
5,564
|
Inventory
write-downs
|
16,617
|
|
—
|
Non-cash interest
expense
|
8,890
|
|
—
|
Other non-cash
activity
|
476
|
|
1,010
|
Changes in operating
assets and liabilities:
|
|
|
|
Accounts receivable,
net
|
(37,662)
|
|
—
|
Inventory
|
(97,952)
|
|
(3,644)
|
Prepaid expenses and
other current assets
|
(10,371)
|
|
(7,090)
|
Accounts payable,
accrued expenses and other current liabilities
|
25,128
|
|
147,160
|
Long-term
deposits
|
(8,356)
|
|
(4,705)
|
Other
assets
|
(912)
|
|
—
|
Operating lease
liabilities
|
(416)
|
|
—
|
Other long-term
liabilities
|
1,605
|
|
(655)
|
Net cash used in
operating activities
|
(431,459)
|
|
(195,369)
|
Cash flows from
investing activities
|
|
|
|
Purchases and deposits
of property, plant and equipment
|
(118,436)
|
|
(113,680)
|
Investments in
affiliates
|
(23,027)
|
|
(25,000)
|
Issuance of senior
secured note receivable and prepaid acquisition-related
consideration
|
(21,910)
|
|
—
|
Settlement of Second
Price Differential
|
(6,588)
|
|
—
|
Proceeds from sale of
equipment
|
18
|
|
200
|
Net cash used in
investing activities
|
(169,943)
|
|
(138,480)
|
Cash flows from
financing activities
|
|
|
|
Proceeds from the
exercise of stock options
|
1,645
|
|
4,194
|
Proceeds from issuance
of shares under the Tumim Purchase Agreements
|
123,672
|
|
72,866
|
Proceeds from issuance
of Convertible Notes, net of discount and issuance costs
|
183,504
|
|
—
|
Proceeds from issuance
of common stock under Equity Distribution Agreement, net of
commissions paid
|
100,512
|
|
—
|
Proceeds from issuance
of Collateralized Promissory Notes
|
54,000
|
|
—
|
Proceeds from issuance
of financing obligation, net of issuance costs
|
44,007
|
|
—
|
Proceeds from insurance
premium financing
|
6,637
|
|
—
|
Repayment of debt and
notes
|
(28,125)
|
|
(4,100)
|
Payment on insurance
premium financing
|
(2,635)
|
|
—
|
Payments on finance
lease liabilities and financing obligation
|
(266)
|
|
(759)
|
Payments for issuance
costs
|
—
|
|
(644)
|
Net cash provided by
financing activities
|
482,951
|
|
71,557
|
Net decrease in cash
and cash equivalents, including restricted cash
|
(118,451)
|
|
(262,292)
|
Cash and cash
equivalents, including restricted cash, beginning of
period
|
522,241
|
|
849,278
|
Cash and cash
equivalents, including restricted cash, end of period
|
$
403,790
|
|
$
586,986
|
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
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Net loss
|
|
$
(236,234)
|
|
$
(267,567)
|
|
$
(562,172)
|
|
$
(531,022)
|
Interest expense,
net
|
|
7,735
|
|
118
|
|
10,754
|
|
219
|
Income tax
expense
|
|
1
|
|
1
|
|
3
|
|
4
|
Depreciation and
amortization
|
|
6,796
|
|
2,249
|
|
16,472
|
|
5,959
|
EBITDA
|
|
(221,702)
|
|
(265,199)
|
|
(534,943)
|
|
(524,840)
|
Stock-based
compensation
|
|
102,845
|
|
49,047
|
|
211,214
|
|
151,983
|
Revaluation of
financial instruments
|
|
(286)
|
|
(4,786)
|
|
(94)
|
|
(3,226)
|
Equity in net loss of
affiliates
|
|
1,984
|
|
1,147
|
|
6,074
|
|
3,067
|
Regulatory and legal
matters (1)
|
|
11,227
|
|
9,771
|
|
38,319
|
|
35,657
|
SEC
settlement
|
|
—
|
|
125,000
|
|
—
|
|
125,000
|
Adjusted
EBITDA
|
|
$
(105,932)
|
|
$
(85,020)
|
|
$
(279,430)
|
|
$
(212,359)
|
(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
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Net loss
|
|
$
(236,234)
|
|
$
(267,567)
|
|
$
(562,172)
|
|
$
(531,022)
|
Stock-based
compensation
|
|
102,845
|
|
49,047
|
|
211,214
|
|
151,983
|
Revaluation of
financial instruments
|
|
(286)
|
|
(4,786)
|
|
(94)
|
|
(3,226)
|
Regulatory and legal
matters(1)
|
|
11,227
|
|
9,771
|
|
38,319
|
|
35,657
|
SEC
settlement
|
|
—
|
|
125,000
|
|
—
|
|
125,000
|
Non-GAAP net
loss
|
|
$
(122,448)
|
|
$
(88,535)
|
|
$
(312,733)
|
|
$
(221,608)
|
Non-GAAP net loss per
share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
(0.28)
|
|
$
(0.22)
|
|
$
(0.73)
|
|
$
(0.56)
|
Diluted
|
|
$
(0.28)
|
|
$
(0.22)
|
|
$
(0.73)
|
|
$
(0.56)
|
Weighted average shares
outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
438,416,393
|
|
400,219,585
|
|
426,382,736
|
|
395,691,795
|
Diluted
|
|
438,416,393
|
|
400,230,669
|
|
426,382,736
|
|
395,860,876
|
(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