LiveWire Group, Inc. (“LiveWire” or the “Company”) (NYSE: LVWR)
today reported first quarter 2024 results.
“We are pleased with the successful launch of the S2 Mulholland,
and with three bikes in market, we are proud that LiveWire is now
the #1 on-road electric motorcycle retailer in the U.S. As part of
our plans to expand our market leadership, our teams are working on
design, engineering and sourcing initiatives to reduce the cost of
our vehicles and manage spend across the business to get the most
out of our strategic investments. We expect the consolidation of
our operations in Milwaukee at Harley-Davidson’s historic
headquarters at Juneau Avenue to bring synergies and efficiencies,
as well as a closer connection to our heritage,” said Karim Donnez,
CEO, LiveWire.
First Quarter 2024 Summary of Results
- Successful launch of S2 Mulholland in March
- Unit sales of 117 electric motorcycles, an increase of 86% over
first quarter 2023
- Consolidated operating loss of $30.4 million in line with
expectations, driven by investment in new motorcycle models and
actioned initiatives to reduce EV costs
LiveWire Group, Inc. – Consolidated
Results
$ in millions*
1st quarter
2024
2023
Change
Revenue
$5.0
$7.8
(36
%)
Operating (Loss)
($30.4
)
($24.9
)
22
%
Net Loss
($23.6
)
($21.1
)
12
%
LiveWire Group, Inc. – Segment
Results
$ in millions*, except units
1st quarter
2024
2023
Change
Electric Motorcycles
LiveWire (units)
117
63
86
%
Revenue
$1.2
$1.5
(16
%)
Operating (Loss)
($29.0
)
($24.8
)
17
%
$ in millions*
1st quarter
2024
2023
Change
STACYC Segment
Revenue
$3.7
$6.3
(41
%)
Operating (Loss)
($1.4
)
($0.1
)
925
%
*Amounts may not add or recalculate due to
rounding
The Company’s consolidated net loss was $23.6 million for the
first quarter of 2024 compared to $21.1 million in the same period
prior year driven by the segment results noted below, a decrease of
$676 thousand in interest income offset by an increase of $3.7
million of non-operating income related to the decrease in fair
value of the outstanding warrants as of March 31, 2024, as compared
to prior year.
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 Motorcycles revenue decreased in the first quarter of
2024 compared to the prior year period, despite higher unit sales
in the quarter. The lower revenue was due primarily to product mix
and a one-time adjustment related to a change in our retail partner
strategy. Selling, engineering and administrative expenses remained
relatively flat compared to the prior year. An increased operating
loss of $4.2 million compared to the first quarter of 2023 was in
line with expectations, due to the decrease in revenue, costs
associated with increased volumes and adjustments to net realizable
value.
STACYC
As expected, STACYC revenue and operating income were down
compared to same quarter 2023 primarily due to a reduction in third
party branded distributor volumes.
2024 Financial Outlook
For the full year 2024, the Company continues to expect:
- Electric Motorcycle sales of 1,000 to 1,500 revenue units
For the full year 2024, LiveWire is revising its operating loss
guidance and now expects:
- An improved operating loss of $105 to $115 million, from
previous guidance of an operating loss of $115 to $125 million
Webcast
The public is invited to attend an audio webcast from 8-9 a.m.
CDT. 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.
CDT.
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, including our ability
to effectively execute the Company’s relocation and streamlined
headcount plan within expected costs and time and our ability to
realize the expected savings in 2024 and on an ongoing annual
basis; 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)
Three months ended
March 31, 2024
March 31, 2023
Revenue, net
$
4,978
$
7,762
Costs and expenses:
Cost of goods sold
9,105
6,498
Selling, administrative and engineering
expense
26,295
26,171
Total operating costs and expenses
35,400
32,669
Operating loss
(30,422
)
(24,907
)
Interest income
2,016
2,692
Change in fair value of warrant
liabilities
4,758
1,068
Loss before income taxes
(23,648
)
(21,147
)
Income tax benefit
(4
)
—
Net loss
$
(23,644
)
$
(21,147
)
Net loss per share, basic and diluted
$
(0.12
)
$
(0.10
)
Weighted-average shares, basic and
diluted
203,100
202,404
LiveWire Group, Inc.
Consolidated Balance
Sheets
(In thousands)
(Unaudited)
March 31, 2024
December 31,
2023
ASSETS
Current assets:
Cash and cash equivalents
$
141,033
$
167,904
Accounts receivable, net
2,086
4,295
Accounts receivable from related party
1,051
3,402
Inventories, net
35,105
32,122
Other current assets
3,129
3,004
Total current assets
182,404
210,727
Property, plant and equipment, net
37,718
37,682
Goodwill
8,327
8,327
Deferred tax assets
11
4
Lease assets
1,527
1,868
Intangible assets, net
1,249
1,347
Other long-term assets
5,852
6,192
Total assets
$
237,088
$
266,147
LIABILITIES AND
SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$
1,770
$
3,554
Accounts payable to related party
25,687
20,371
Accrued liabilities
15,762
21,189
Current portion of lease liabilities
914
1,152
Total current liabilities
44,133
46,266
Long-term portion of lease liabilities
677
792
Deferred tax liabilities
93
93
Warrant liabilities
7,561
12,319
Other long-term liabilities
847
814
Total liabilities
53,311
60,284
Shareholders' equity:
Preferred Stock
—
—
Common Stock
20
20
Treasury Stock
(2,675
)
(1,969
)
Additional paid-in-capital
342,065
339,783
Accumulated deficit
(155,632
)
(131,988
)
Accumulated other comprehensive income
(1
)
17
Total shareholders' equity
183,777
205,863
Total liabilities and shareholders'
equity
$
237,088
$
266,147
LiveWire Group, Inc.
Consolidated Statements of
Cash Flows
(In thousands)
(Unaudited)
Three months ended
March 31, 2024
March 31, 2023
Cash flows from operating activities:
Net loss
$
(23,644
)
$
(21,147
)
Adjustments to reconcile net loss to net
cash used in operating activities
Depreciation and amortization
2,326
667
Change in fair value of warrant
liabilities
(4,758
)
(1,068
)
Stock compensation expense
2,282
1,824
Provision for doubtful accounts
3
39
Deferred income taxes
(7
)
—
Inventory write-down
2,522
673
Cloud computing arrangements development
costs
—
(967
)
Other, net
4
(779
)
Changes in current assets and
liabilities:
Accounts receivable, net
2,206
1,356
Accounts receivable from related party
2,351
(317
)
Inventories
(5,505
)
(2,560
)
Other current assets
24
731
Accounts payable and accrued
liabilities
(6,046
)
(4,894
)
Accounts payable to related party
5,316
1,892
Net cash used by operating activities
(22,926
)
(24,550
)
Cash flows from investing activities:
Capital expenditures
(3,239
)
(4,648
)
Net cash used by investing activities
(3,239
)
(4,648
)
Cash flows from financing activities:
Repurchase of common stock
(706
)
—
Net cash used by financing activities
(706
)
—
Net decrease in cash and cash
equivalents
$
(26,871
)
$
(29,198
)
Cash and cash equivalents:
Cash and cash equivalents—beginning of
period
$
167,904
$
265,240
Net decrease in cash and cash
equivalents
(26,871
)
(29,198
)
Cash and cash equivalents—end of
period
$
141,033
$
236,042
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240425210152/en/
Media Contact: Jenni Coats (414) 343-7902 Financial
Contact: Shawn Collins (414) 343-8002
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