- Midnight’s Flight Test Campaign Accelerates – Closing In On
Transition Milestone. In Q1, Archer flew 100+ flights, keeping
us on track to exceed our goal of 400 flights this year. Midnight
is closing in on its transition milestone, meaning it would take
off vertically, accelerate until it transitions from thrust-born to
wing-borne flight and then land again vertically. From there, we
intend to fly the aircraft as much as 10-15 times per day getting
closer to our commercial mission tempo.
- Midnight’s Key Systems Pass Rigorous Testing Ahead of “For
Credit” Testing. This is a part of Midnight’s safety of flight
readiness for its upcoming piloted flight tests later this year and
in support of our ongoing FAA certification program.
- Final Assembly of First Conforming Midnight Aircraft Rapidly
Progressing. We have made significant progress on final
assembly and integration of the aircraft’s components and systems
and are on track to begin piloted flight tests of this aircraft
later this year. Yesterday we announced the completion of our new
battery pack manufacturing line, here is a behind-the-scenes first
look tour of our Integrated Test Lab and Manufacturing Facility
where these aircraft are being built.
- Multi-Hundred Million Dollar Framework Agreement To Build
the Future Of Air Travel in the UAE. We recently announced that
we signed a framework agreement with the Abu Dhabi Investment
Office for multi-hundred-million dollars to accelerate commercial
air taxi operations across the UAE.
- Continuing To Maintain Our Strong Liquidity Position. We
have maintained greater than $520 million of liquidity at the end
of each of our past four quarters while continuing to make
investments across the aircraft development program in support of
our planned commercial launch.
Archer Aviation Inc. (“Archer” or the “Company”) (NYSE: ACHR)
today announced operating and financial results for the first
quarter ended March 31, 2024. The Company issued a shareholder
letter discussing those results, as well as its second quarter 2024
estimates. The shareholder letter may be accessed on the Company’s
investor relations website here.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20240509910318/en/
Archer's Midnight aircraft in flight.
(Photo: Business Wire)
Commenting on first quarter 2024 results, Adam Goldstein,
Archer’s CEO said:
“The electrification of aviation continues to increasingly
emerge into the mainstream every day. From the outset, we’ve been
clear that our strategy is to keep the design of our first electric
aircraft, Midnight, as simple as possible while delivering
industry-leading performance balanced with safety. We are
accomplishing this by partnering with what we believe to be the
best suppliers in the aerospace industry, rather than take on the
cost and risk of vertically integrating every aspect of a novel
aircraft program. This capital-light strategy continues to pay
dividends that are more clear today than ever, as we continue to
make rapid progress towards commercializing electric aviation.”
Here is a behind-the-scenes first look tour of our Integrated
Test Lab and Manufacturing Facility where these aircraft are being
built.
Archer will be conducting its earnings conference call at 2:00
p.m. Pacific Time (5:00 p.m. Eastern Time) today. You can access a
live webcast on our investor relations website at
investors.archer.com or the conference call by dialing 404-975-4839
(domestic) or +1 833-470-1428 (international) and entering the
access code 781391.
A replay of the webcast will be available on our investor
relations website. In addition, a telephonic replay of the
conference call will be accessible for one week following the call
by dialing 866-813-9403 (domestic) or +44 204-525-0658
(international), and entering the access code 792154.
First Quarter 2024 Financial Results
Q1 2024 (GAAP)
Q1 20241 (Non-GAAP)
Total Operating Expenses
$
142.2M
$
89.1M
Net Loss
$
(116.5M)
NA
Adjusted EBITDA
NA
$
(86.8M)
Cash and Cash Equivalents
$
405.8M
NA
1. A reconciliation of non-GAAP financial measures to the most
comparable GAAP measures is provided below in the section titled
“Reconciliation of Selected GAAP To Non-GAAP Results for Q1 2024.”
Second Quarter 2024 Financial Estimates
Archer’s financial estimates for second quarter of 2024 are as
follows:
- Non-GAAP total operating expenses of $80M to $95M
We have not reconciled our non-GAAP total operating expense
estimates because certain items that impact non-GAAP total
operating expense are uncertain or out of our control and cannot be
reasonably predicted. In particular, stock-based compensation
expense is impacted by the future fair market value of our common
stock and other factors, all of which are difficult to predict,
subject to frequent change, or not within our control. The actual
amount of these expenses during 2024 will have a significant impact
on our future GAAP financials. Accordingly, a reconciliation of
non-GAAP total operating expenses is not available without
unreasonable effort.
About Archer
Archer is designing and developing electric vertical takeoff and
landing aircraft for use in urban air mobility networks. Archer’s
mission is to unlock the skies, freeing everyone to reimagine how
they move and spend time. Archer's team is based in Santa Clara,
CA.
To learn more, visit www.archer.com.
Source: Archer Text: ArcherIR
Forward-Looking Statements
This press release contains forward-looking statements regarding
Archer’s future business plans and expectations, including
statements regarding our expected financial results for the second
quarter of 2024, our business strategy and plans, aircraft
performance, the pace at which we intend to design, develop,
certify, conduct test flights, manufacture and commercialize our
planned eVTOL aircraft, business opportunities, government
incentives and expansion of Archer’s business internationally. In
addition, this press release refers to a framework agreement that
is conditioned on the future execution by the parties of additional
binding definitive agreements incorporating the terms outlined in
the framework agreement, which definitive agreements may not be
completed or may contain different terms than those set forth in
the framework agreement. These forward-looking statements are only
predictions and may differ materially from actual results due to a
variety of factors. The risks and uncertainties that could cause
actual results to differ from the results predicted are more fully
detailed in our filings with the Securities and Exchange Commission
(SEC), including our most recent Annual Report on Form 10-K and
most recent Quarterly Report on Form 10-Q, which are or will be
available on our investor relations website at investors.archer.com
and on the SEC website at www.sec.gov. In addition, please note
that any forward-looking statements contained herein are based on
assumptions that we believe to be reasonable as of the date of this
press release. We undertake no obligation to update these
statements as a result of new information or future events.
Reconciliation of Selected GAAP To Non-GAAP Results for Q1
2024
Reconciliation of Total Operating Expenses (in millions;
unaudited): A reconciliation of total operating expenses to
non-GAAP total operating expenses for the three months ended March
31, 2024 is set forth below.
Three Months Ended
March 31, 2024
Total operating expenses
$
142.2
Adjusted to exclude the following:
Stellantis warrant expense (1)
(2.1)
Stock-based compensation (2)
(40.7)
Technology and dispute resolution
agreements (3)
(10.3)
Non-GAAP total operating expenses
$
89.1
(1)
Amount includes non-cash warrant costs, classified as research and
development expenses, for the warrants issued to Stellantis in
connection with certain services they are providing to the Company.
(2)
Amounts include stock-based compensation for options and restricted
stock units issued to both employees and non-employees, including
the grants issued to our founders in connection with the closing of
the business combination.
(3)
Amounts reflect charges relating to the Boeing Wisk Agreements (as
defined in our shareholder letter).
Reconciliation of Adjusted EBITDA (in millions; unaudited): A
reconciliation of net loss to Adjusted EBITDA for the three months
ended March 31, 2024 is set forth below.
Three Months Ended
March 31, 2024
Net loss
$
(116.5)
Adjusted to exclude the following:
Other (income) expense, net (1)
(20.6)
Interest income, net
(5.3)
Income tax expense
0.2
Depreciation and amortization expense
2.3
Stellantis warrant expense (2)
2.1
Stock-based compensation (3)
40.7
Technology and dispute resolution
agreements (4)
10.3
Adjusted EBITDA
$
(86.8)
(1)
Amount includes changes in fair value of the public and private
warrants, which are classified as warrant liabilities.
(2)
Amount includes non-cash warrant costs, classified as research and
development expenses, for the warrants issued to Stellantis in
connection with certain services they are providing to the Company.
(3)
Amount includes stock-based compensation for options and restricted
stock units issued to both employees and non-employees, including
the grants issued to our founders in connection with the closing of
the business combination.
(4)
Amounts reflect charges relating to the Boeing Wisk Agreements.
Non-GAAP Financial Measures
To supplement our condensed consolidated financial results
prepared in accordance with GAAP, we use a number of non-GAAP
financial measures to help us in analyzing and assessing our
overall business performance, for making operating decisions and
for forecasting and planning future periods. We consider the use of
non-GAAP financial measures helpful in assessing our current
financial performance, ongoing operations and prospects for the
future as well as understanding financial and business trends
relating to our financial condition and results of operations.
While we use non-GAAP financial measures as a tool to enhance
our understanding of certain aspects of our financial performance
and to provide incremental insight into the underlying factors and
trends affecting our performance, we do not consider these measures
to be a substitute for, or superior to, the information provided by
GAAP financial measures. Consistent with this approach, we believe
that disclosing non-GAAP financial measures to the readers of our
financial statements provides useful supplemental data that, while
not a substitute for GAAP financial measures, can offer insight in
the review of our financial and operational performance and enables
investors to more fully understand trends in our current and future
performance.
In assessing our business during the quarter ended March 31,
2024, we excluded items in the following general categories from
one or more of our non-GAAP financial measures, certain of which
are described below:
Stock-Based Compensation Expense:
We believe that providing non-GAAP measures excluding stock-based
compensation expense, in addition to the GAAP measures, allows for
better comparability of our financial results from period to
period. We prepare and maintain our budgets and forecasts for
future periods on a basis consistent with this non-GAAP financial
measure. Further, companies use a variety of types of equity awards
as well as a variety of methodologies, assumptions and estimates to
determine stock-based compensation expense. We believe that
excluding stock-based compensation expenses enhances our ability
and the ability of investors to understand the impact of non-cash
stock-based compensation on our operating results and to compare
our results against the results of other companies.
Warrant Expense and Gains or Losses from
Revaluation of Warrants: Expense from our common stock
warrants issued to United Airlines and Stellantis, which is
recurring (but non-cash) and gains or losses from change in fair
value of public and private warrants from revaluation will be
reflected in our financial results for the foreseeable future. We
exclude warrant expense and gains or losses from change in fair
value for similar reasons to our stock-based compensation
expense.
Technology and Dispute Resolution
Agreements: Amounts reflect non-cash charges relating to the
Boeing Wisk Agreements.
Each of the non-GAAP financial measures presented in this
release should not be considered in isolation from, or as a
substitute for, a measure of financial performance prepared in
accordance with GAAP and are presented for supplemental
informational purposes only. Further, investors are cautioned that
there are inherent limitations associated with the use of each of
these non-GAAP financial measures as an analytical tool. In
particular, these non-GAAP financial measures have no standardized
meaning prescribed by GAAP and are not based on a comprehensive set
of accounting rules or principles and many of the adjustments to
the GAAP financial measures reflect the exclusion of items that are
recurring and may be reflected in our financial results for the
foreseeable future. In addition, the non-GAAP measures we use may
be different from non-GAAP measures used by other companies,
limiting their usefulness for comparison purposes. We compensate
for these limitations by providing specific information in the
reconciliation included in this release regarding the GAAP amounts
excluded from the non-GAAP financial measures. In addition, as
noted above, we evaluate the non-GAAP financial measures together
with the most directly comparable GAAP financial information.
Investors are encouraged to review the reconciliations of these
non-GAAP measures to their most directly comparable GAAP financial
measures included in this release.
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version on businesswire.com: https://www.businesswire.com/news/home/20240509910318/en/
For Investors investors@archer.com
For Media The Brand Amp Archer@TheBrandAmp.com
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