LiveWire Group, Inc. (“LiveWire” or the “Company”) (NYSE: LVWR)
today reported third quarter 2024 results.
“While the two-wheel industry has been challenging in 2024,
especially for EV products in the U.S., the Company had reasons to
celebrate in Q3, including being awarded best 2024 electric bike by
Motor Cycle News and enjoying a global moment for S2 Del Mar® in
August in Paris. In Q3, the Company continued to retail more
on-road electric motorcycles in the U.S. than any other brand in
the market and plans to announce a new product segment at EICMA in
November, that we believe will meaningfully expand our current
addressable market,” said Karim Donnez, CEO, LiveWire.
Third Quarter 2024 Summary of Results
- Unit sales of 99 electric motorcycles, a double digit increase
over third quarter 2023, which contributed to a triple digit
increase in year-to-date unit sales over same period 2023
- Consolidated selling, administrative and engineering expenses
decreased by $1.4 million compared to the third quarter 2023, while
consolidated operating loss increased by $1.2 million driven by a
decrease in revenue from electric balance bikes
- Completed streamlining of headcount and relocation of LiveWire
Labs to Milwaukee, Wisconsin
LiveWire Group, Inc. – Consolidated
Results
$ in millions*
3rd quarter
2024
2023
Change
Motorcycle Units
99
50
98%
Electric Balance Bike Units
3,442
7,231
(52%)
Consolidated Revenue
$4.4
$8.1
(45%)
Electric Motorcycles
$1.2
$1.3
(10%)
STACYC
$3.2
$6.8
(52%)
Consolidated Operating Income
(Loss)
($26.5)
($25.3)
(5%)
Electric Motorcycles
($25.0)
($25.7)
3%
STACYC
($1.5)
$0.4
(479%)
Net Loss
($22.7)
($14.6)
(56%)
*Amounts may not add or recalculate due to
rounding.
The Company’s consolidated net loss was $22.7 million for the
third quarter of 2024 compared to $14.6 million in the same period
of the prior year driven by the segment results noted below, a
decrease of $1.5 million in interest income and a decrease of $5.5
million in non-operating income related to the decrease in fair
value of the outstanding warrants as of September 30, 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 $129 thousand in the
third quarter of 2024 despite higher unit sales in the quarter
compared to the prior year period. The lower revenue was primarily
due to product mix compared to the prior year period and a reserve
for estimated future returns. Selling, administrative and
engineering expenses, including costs related to streamlining of
headcount and the relocation of LiveWire Labs, decreased $1.6
million compared to the prior year largely as a result of overall
further cost reduction initiatives taken during the year. In line
with our expectations, operating loss decreased by $726 thousand
compared to the third quarter of 2023 driven by decreases in
selling, administrative and engineering expenses.
STACYC
In line with our expectations, STACYC’s operating income was
down compared to same quarter in 2023 primarily due to a reduction
in third party branded distributor volumes. Selling, administrative
and engineering expenses increased by $209 thousand primarily
driven by planned product development costs relating to increased
spend for new models.
2024 Financial Outlook
For the full year 2024, the Company is revising its unit sales
guidance and now expects:
- Electric Motorcycle sales of 600 to 1,000 revenue units
For the full year 2024, the Company reaffirms its previous
revised guidance and continues to expect:
- LiveWire Group operating loss of $105 to $115 million
Webcast
The public is invited to attend an audio webcast from 8-9 a.m.
CT. 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.
CT.
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,” “is
on track,” “may,” “might,” “objective,” “ongoing,” “plan,”
“potential,” “predict,” “project,” “remain committed,” “should,”
“target,” “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; our ability to obtain funding for our
operations and manage costs; our future capital requirements and
sources and uses of cash; 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; 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;
our ability to attract and retain a large number of customers;
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; 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
Nine months ended
September 30,
2024
September 30,
2023
September 30,
2024
September 30,
2023
Revenue, net
$
4,445
$
8,144
$
15,872
$
22,932
Costs and expenses:
Cost of goods sold
5,965
7,052
23,301
23,516
Selling, administrative and engineering
expense
25,005
26,435
77,683
81,650
Total operating costs and expenses
30,970
33,487
100,984
105,166
Operating loss
(26,525
)
(25,343
)
(85,112
)
(82,234
)
Interest income
1,252
2,726
4,864
8,172
Change in fair value of warrant
liabilities
2,581
8,038
9,131
(2,332
)
Loss before income taxes
(22,692
)
(14,579
)
(71,117
)
(76,394
)
Income tax (benefit) provision
2
(1
)
26
63
Net loss
$
(22,694
)
$
(14,578
)
$
(71,143
)
$
(76,457
)
Net loss per share, basic and diluted
$
(0.11
)
$
(0.07
)
$
(0.35
)
$
(0.38
)
Weighted-average shares, basic and
diluted
203,250
202,529
203,174
202,448
LiveWire Group, Inc.
Consolidated Balance
Sheets
(In thousands)
(Unaudited)
September 30,
2024
December 31,
2023
ASSETS
Current assets:
Cash and cash equivalents
$
88,442
$
167,904
Accounts receivable, net
1,670
4,295
Accounts receivable from related party
541
3,402
Inventories, net
33,358
32,122
Other current assets
3,363
3,004
Total current assets
127,374
210,727
Property, plant and equipment, net
34,863
37,682
Goodwill
8,327
8,327
Deferred tax assets
6
4
Lease assets
965
1,868
Intangible assets, net
1,122
1,347
Other long-term assets
5,641
6,192
Total assets
$
178,298
$
266,147
LIABILITIES AND
SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$
1,865
$
3,554
Accounts payable to related party
14,501
20,371
Accrued liabilities
19,064
21,189
Current portion of lease liabilities
512
1,152
Total current liabilities
35,942
46,266
Long-term portion of lease liabilities
491
792
Deferred tax liabilities
112
93
Warrant liabilities
3,188
12,319
Other long-term liabilities
908
814
Total liabilities
40,641
60,284
Shareholders' equity:
Preferred Stock
—
—
Common Stock
20
20
Treasury Stock
(2,896
)
(1,969
)
Additional paid-in-capital
343,666
339,783
Accumulated deficit
(203,131
)
(131,988
)
Accumulated other comprehensive (loss)
income
(2
)
17
Total shareholders' equity
137,657
205,863
Total liabilities and shareholders'
equity
$
178,298
$
266,147
LiveWire Group, Inc.
Consolidated Statements of
Cash Flows
(In thousands)
(Unaudited)
Nine months ended
September 30,
2024
September 30,
2023
Cash flows from operating activities:
Net loss
$
(71,143
)
$
(76,457
)
Adjustments to reconcile net loss to net
cash used in operating activities
Depreciation and amortization
7,737
2,814
Change in fair value of warrant
liabilities
(9,131
)
2,332
Stock compensation expense
3,883
6,566
Provision for doubtful accounts
25
45
Deferred income taxes
17
63
Inventory write-down
4,294
1,664
Cloud computing arrangements development
costs
—
(470
)
Other, net
(477
)
(677
)
Changes in current assets and
liabilities:
Accounts receivable, net
2,600
(2,313
)
Accounts receivable from related party
2,861
(128
)
Inventories
(5,530
)
(5,238
)
Other current assets
(113
)
2,679
Accounts payable and accrued
liabilities
(1,143
)
(2,149
)
Accounts payable to related party
(5,870
)
15,393
Net cash used by operating activities
(71,990
)
(55,876
)
Cash flows from investing activities:
Capital expenditures
(6,661
)
(10,970
)
Net cash used by investing activities
(6,661
)
(10,970
)
Cash flows from financing activities:
Repurchase of common stock
(927
)
—
Proceeds received from exercise of
warrants (Note 7)
—
1,554
Net cash provided (used) by financing
activities
(927
)
1,554
Effect of exchange rate changes on cash
and cash equivalents
116
—
Net decrease in cash and cash
equivalents
$
(79,462
)
$
(65,292
)
Cash and cash equivalents:
Cash and cash equivalents—beginning of
period
$
167,904
$
265,240
Net decrease in cash and cash
equivalents
(79,462
)
(65,292
)
Cash and cash equivalents—end of
period
$
88,442
$
199,948
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241024077147/en/
Media Contact: Jenni Coats (414) 343-7902 Financial
Contact: Shawn Collins (414) 343-8002
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