LiveWire Group, Inc. (“LiveWire” or the “Company”) (NYSE: LVWR)
today reported fourth quarter and full year 2023 results.
“LiveWire concluded 2023 with a strong Q4 performance,
delivering on units and operating loss guidance for the full year
with the successful delivery to market of S2 Del Mar®, the first
model built on our S2 platform that continues to generate a
positive response from the media, our retailers, and our riders. We
expect 2024 to be a year highlighted by product innovation, market
expansion, and continued cost improvements,” said Karim Donnez,
CEO, LiveWire.
2023 Highlights and Financial Results
- Launched Del Mar, the first model built with an all-new
in-house developed battery pack, power electronics, motor,
telematics, and associated software
- Unit sales of 660 electric motorcycles, up double digits versus
prior year
- Consolidated operating loss in line with our expectations
driven by product development costs relating to S2 platform,
delivery of Del Mar, a provision for an obligation for excess
inventory components, and additional costs to stand up the
organization as a stand-alone public company
- Ended the year with 126 retail partners globally
Fourth Quarter 2023 Summary of Results
- Unit sales of 514 electric motorcycles, with an increase in
consolidated revenue of 64% versus prior year
- Consolidated operating loss increase over prior year of $4.9
million resulting primarily from costs related to increased volume
and a provision for an obligation for excess inventory
components
- Continued investment in developing models on the S2
platform
LiveWire Group, Inc. – Consolidated
Results
$ in millions*
4th quarter
Full Year
2023
2022
Change
2023
2022
Change
Revenue
$15.1
$9.2
64
%
$38.0
$46.8
(19
%)
Operating (Loss)
($33.8
)
($28.9
)
17
%
($116.0
)
($85.0
)
36
%
Net Loss
($33.1
)
($22.4
)
48
%
($109.6
)
($78.9
)
39
%
LiveWire Group, Inc. – Segment
Results
$ in millions*, except units
4th quarter
Full Year
2023
2022
Change
2023
2022
Change
Electric Motorcycles
LiveWire (units)
514
69
645
%
660
547
21
%
Harley-Davidson LiveWire
(units)
—
—
0
%
—
50
(100
%)
Electric Motorcycle Shipments
(units)
514
69
645
%
660
597
11
%
Revenue
$8.0
$1.6
400
%
$11.5
$14.0
(18
%)
Operating (Loss)
($34.2
)
($29.7
)
15
%
($116.6
)
($89.1
)
31
%
$ in millions*
4th quarter
Full Year
2023
2022
Change
2023
2022
Change
STACYC Segment
Revenue
$7.1
$7.6
(7
%)
$26.5
$32.8
(19
%)
Operating Income
$0.4
$0.8
(50
%)
$0.6
$4.2
(86
%)
*Amounts may not add up due to
rounding
The Company’s consolidated net loss was $109.6 million for the
year ended 2023 compared to $78.9 million for the year ended 2022.
The increase of $30.7 million was in line with our expectations
driven by a provision for an obligation for excess inventory
components, increased selling, administrative and engineering
expense for product development costs relating to the S2 platform,
delivery of Del Mar and additional costs to stand up the
organization as a stand-alone public company. The Company also had
an increase of $9.1 million of non-operating mark-to-market expense
resulting from the increase in the fair value of warrant
liabilities year-over-year which was offset by an increase of $9.3
million in interest income.
The Company’s consolidated net loss was $33.1 million for the
fourth quarter 2023 as compared to $22.4 million in the same period
prior year driven by the segment results noted below, an increase
of $6.7 million of non-operating mark-to-market expense related to
the increase in fair value of the outstanding warrants as of
December 31, 2023 as compared to December 31, 2022, offset by an
increase of $1.2 million in interest income.
LiveWire Group, Inc. is comprised of two business segments:
- Electric Motorcycles – focused on the sale of electric
motorcycles and related products
- STACYC – focused on the sale of electric balance bikes for kids
and related products
Electric Motorcycles
Electric Motorcycle revenue increased in fourth quarter 2023
compared to the same quarter in the prior year due to sales of Del
Mar units. Increased operating losses compared to the fourth
quarter of 2022 were primarily related to increased costs as a
result of increased volumes and a provision for an obligation for
excess inventory components.
STACYC
STACYC volumes were up in the fourth quarter of 2023 compared to
2022, while revenue and operating income were down due to product
mix and pricing.
2024 Financial Outlook
For the full year 2024, the Company expects:
- Electric Motorcycle sales of 1,000 to 1,500 revenue units
- Operating Loss of $115 million to $125 million
Webcast
The public is invited to attend an audio webcast from 8-9 a.m.
CST. LiveWire leadership will be joining the Harley-Davidson, Inc.
audio webcast to discuss our results, developments in the business,
and updates to the Company’s outlook. The webcast login can be
accessed at
https://investor.livewire.com/news-events-1/events/default.aspx.
The audio replay will be available by approximately 10:00 a.m.
CST.
About LiveWire
LiveWire has a dedicated focus on the electric motorcycle
sector. LiveWire’s majority shareholder is Harley-Davidson, Inc.
LiveWire comes from the lineage of Harley-Davidson and is
capitalizing on a decade of its learnings in the EV sector. With a
dedicated focus on EV, LiveWire plans to develop the technology of
the future and to invest in the capabilities needed to lead the
transformation of motorcycling. www.livewire.com
Cautionary Note Regarding Forward-Looking Statements
The Company intends that certain matters discussed in this press
release are “forward-looking statements” intended to qualify for
the safe harbor from liability established by the Private
Securities Litigation Reform Act of 1995. All statements other than
statements of historical facts contained in this press release,
including statements concerning possible or assumed future actions,
business strategies, events or results of operations, and any
statements that refer to projections, forecasts or other
characterizations of future events or circumstances, including any
underlying assumptions, are forward-looking statements. These
statements involve known and unknown risks, uncertainties and other
important factors that may cause our actual results, performance or
achievements to be materially different from any future results,
performance or achievements expressed or implied by the
forward-looking statements. Words or phrases such as “anticipate,”
“believe,” “continue,” “could,” “estimate,” “expect,” “intend,”
“may,” “might,” “objective,” “ongoing,” “plan,” “potential,”
“predict,” “project,” “should,” “will” and “would,” or similar
words or phrases, or the negatives of those words or phrases, may
identify forward-looking statements, but the absence of these words
does not necessarily mean that a statement is not forward-looking.
The forward-looking statements in this press release are only
predictions. We have based these forward-looking statements largely
on our current expectations and projections about future events and
financial trends that we believe may affect our business, financial
condition and results of operations. These forward-looking
statements speak only as of the date of this press release and are
subject to a number of important factors that could cause actual
results to differ materially from those in the forward-looking
statements, including the risks, uncertainties and assumptions
described in prior public filings titled “Risk Factors.” These
forward-looking statements are subject to numerous risks,
including, without limitation, the following: our history of losses
and expectation to incur significant expenses and continuing losses
for the foreseeable future; our limited operating history, the
rollout of our business and the timing of expected business
milestones, including our ability to develop and manufacture
electric vehicles of sufficient quality and appeal to customers on
schedule and on a large scale; our financial and business
performance, including financial projections and business metrics
and any underlying assumptions thereunder; changes in our strategy,
future operations, financial position, estimated revenues and
losses, projected costs, prospects and plans; our ability to
attract and retain a large number of customers; our future capital
requirements and sources and uses of cash; our ability to obtain
funding for our operations and manage costs; challenges we face as
a pioneer into the highly-competitive and rapidly evolving electric
vehicle industry; our operational and financial risks if we fail to
effectively and appropriately separate the LiveWire business from
the H-D business; H-D making decisions for its overall benefit that
could negatively impact our overall business; our relationship with
H-D and its impact on our other business relationships; our ability
to leverage contract manufacturers, including H-D and Kwang Yang
Motor Co., Ltd., a Taiwanese company (“KYMCO”), to contract
manufacture our electric vehicles; retail partners being unwilling
to participate in our go-to-market business model or their
inability to establish or maintain relationships with customers for
our electric vehicles; potential delays in the design, manufacture,
financing, regulatory approval, launch and delivery of our electric
vehicles; building out our supply chain, including our dependency
on our existing suppliers and our ability to source suppliers, in
each case many of which are single-sourced or limited-source
suppliers, for our critical components such as batteries and
semiconductor chips; our ability to rely on third-party and public
charging networks; our ability to attract and retain key personnel;
our business, expansion plans and opportunities, including our
ability to scale our operations and manage our future growth
effectively; the effects on our future business of competition, the
pace and depth of electric vehicle adoption generally and our
ability to achieve planned competitive advantages with respect to
our electric vehicles and products, including with respect to
reliability, safety and efficiency; our business and H-D’s business
overlapping and being perceived as competitors; our inability to
maintain a strong relationship with H-D or to resolve favorably any
disputes that may arise between us and H-D; our dependency on H-D
for a number of services, including services relating to quality
and safety testing. If those service arrangements terminate, it may
require significant investment for us to build our own safety and
testing facilities, or we may be required to obtain such services
from another third-party at increased costs; any decision by us to
electrify H-D products, or the products of any other company; our
expectations regarding our ability to obtain and maintain
intellectual property protection and not infringe on the rights of
others; potential harm caused by misappropriation of our data and
compromises in cybersecurity; changes in laws, regulatory
requirements, governmental incentives and fuel and energy prices;
the impact of health epidemics, including the COVID-19 pandemic, on
our business, the other risks we face and the actions we may take
in response thereto; litigation, regulatory proceedings,
complaints, product liability claims and/or adverse publicity; and
the possibility that we may be adversely affected by other
economic, business and/or competitive factors. Because
forward-looking statements are inherently subject to risks and
uncertainties, some of which cannot be predicted or quantified and
some of which are beyond our control, you should not rely on these
forward-looking statements as predictions of future events. The
events and circumstances reflected in our forward-looking
statements may not be achieved or occur, and actual results could
differ materially from those projected in the forward-looking
statements. Moreover, we operate in an evolving environment. Some
of these risks and uncertainties may in the future be amplified by
new risk factors and uncertainties that may emerge from time to
time, and it is not possible for management to predict all risk
factors and uncertainties. As a result of these factors, we cannot
assure you that the forward-looking statements in this press
release will prove to be accurate. Except as required by applicable
law, we do not plan to publicly update or revise any
forward-looking statements contained herein, whether as a result of
any new information, future events, changed circumstances, or
otherwise. You should read this earnings release completely and
with the understanding that our actual future results may be
materially different from what we expect. We qualify all of our
forward-looking statements by these cautionary statements.
LiveWire Group, Inc.
Consolidated Statements of
Operations
(In thousands, except per
share amounts)
(Unaudited)
(Unaudited)
(Unaudited)
Three months ended
Twelve months ended
December 31,
2023
December 31,
2022
December 31,
2023
December 31,
2022
Revenue, net
$
15,091
$
9,218
$
38,023
$
46,833
Costs and expenses:
Cost of goods sold
20,279
6,942
43,795
43,929
Selling, administrative and engineering
expense
28,567
31,153
110,217
87,859
Total operating costs and expenses
48,846
38,095
154,012
131,788
Operating loss
(33,755
)
(28,877
)
(115,989
)
(84,955
)
Other income, net
—
—
—
235
Interest expense related party
—
—
—
(475
)
Interest income
2,365
1,214
10,537
1,191
Change in fair value of warrant
liabilities
(1,688
)
5,033
(4,020
)
5,033
Loss before income taxes
(33,078
)
(22,630
)
(109,472
)
(78,971
)
Income tax (benefit) provision
15
(192
)
78
(33
)
Net loss
$
(33,093
)
$
(22,438
)
$
(109,550
)
$
(78,938
)
Net loss per share, basic and diluted
$
(0.16
)
$
(0.11
)
$
(0.54
)
$
(0.46
)
Weighted-average shares, basic and
diluted
202,672
202,404
202,504
172,003
LiveWire Group, Inc.
Consolidated Balance
Sheets
(In thousands)
(Unaudited)
December 31,
2023
December 31,
2022
ASSETS
Current assets:
Cash and cash equivalents
$
167,904
$
265,240
Accounts receivable, net
4,295
2,325
Accounts receivable from related party
3,402
525
Inventories, net
32,122
29,215
Other current assets
3,004
4,625
Total current assets
210,727
301,930
Property, plant and equipment, net
38,483
31,567
Goodwill
8,327
8,327
Deferred tax assets
4
—
Lease assets
1,868
3,128
Intangible assets, net
1,347
1,809
Other long-term assets
6,192
5,044
Total assets
$
266,948
$
351,805
LIABILITIES AND
SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$
3,554
$
7,055
Accounts payable to related party
20,371
5,733
Accrued liabilities
21,990
20,343
Current portion of lease liabilities
1,152
1,312
Total current liabilities
47,067
34,443
Long-term portion of lease liabilities
792
1,913
Deferred tax liabilities
93
15
Warrant liabilities
12,319
8,388
Other long-term liabilities
814
246
Total liabilities
61,085
45,005
Shareholders' equity:
Preferred Stock
—
—
Common Stock
20
20
Treasury Stock
(1,969
)
—
Additional paid-in-capital
339,783
329,218
Accumulated deficit
(131,988
)
(22,438
)
Accumulated other comprehensive income
17
—
Total shareholders' equity
205,863
306,800
Total liabilities and shareholders'
equity
$
266,948
$
351,805
LiveWire Group, Inc.
Consolidated Statements of
Cash Flows
(In thousands)
(Unaudited)
Twelve months ended
December 31,
2023
December 31,
2022
Cash flows from operating activities:
Net loss
$
(109,550
)
$
(78,938
)
Adjustments to reconcile net loss to net
cash used in operating activities
Depreciation and amortization
4,993
4,401
Payment of contingent consideration in
excess of acquisition date fair value
—
(413
)
Change in fair value of warrant
liabilities
4,020
(5,033
)
Stock compensation expense
8,926
394
Provision for doubtful accounts
53
145
Deferred income taxes
74
(125
)
Inventory write-down
2,719
1,074
Cloud computing arrangements development
costs
(473
)
(4,894
)
Other, net
(117
)
(144
)
Changes in current assets and
liabilities:
Accounts receivable, net
(2,023
)
4,156
Accounts receivable from related party
(2,877
)
(593
)
Inventories
(5,626
)
(21,068
)
Other current assets
1,621
(1,283
)
Accounts payable and accrued
liabilities
160
6,371
Accounts payable to related party
14,638
6,269
Net cash used by operating activities
(83,462
)
(89,681
)
Cash flows from investing activities:
Capital expenditures
(13,462
)
(14,081
)
Net cash used by investing activities
(13,462
)
(14,081
)
Cash flows from financing activities:
Repurchase of common stock
(1,969
)
—
Proceeds received from sale of
warrants
1,557
—
Borrowings on notes payable to related
party
—
15,333
Net proceeds from the Business
Combination
—
293,717
Payment of contingent consideration up to
acquisition date fair value
—
(1,767
)
Transfers from Parent
—
59,051
Net cash provided (used) by financing
activities
(412
)
366,334
Cash and cash equivalents:
Cash and cash equivalents—beginning of
period
$
265,240
$
2,668
Net increase (decrease) in cash and cash
equivalents
(97,336
)
262,572
Cash and cash equivalents—end of
period
$
167,904
$
265,240
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240208290699/en/
Media Contact: Jenni Coats (414) 343-7902 Financial
Contact: Shawn Collins (414) 343-8002
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