New leadership team prepares to accelerate
revenue growth in 2022 by leveraging industry leading technology,
new state-of-the-art manufacturing facility, and the growing
proliferation of electrification across the commercial vehicle
spectrum
Romeo Power, Inc. (“Romeo Power” or the “Company”) (NYSE: RMO),
an energy technology leader delivering advanced electrification
solutions for complex commercial vehicle applications, today
announced its financial results for the fourth quarter and full
year ended December 31, 2021.
Full Year 2021 Highlights
- Delivered total revenues of $16.8 million, in-line with prior
outlook
- Supported by product revenues of $12.4 million, an increase of
326% over the prior year, driven by delivery on four key supply
contracts and an acceleration in production in the second half of
2021
- Increased R&D significantly to further enhance
market-leading technology and capabilities, and support product
development activity
- Began achieving improved cost leverage as product volumes
increased
- Finished 2021 with cash and cash equivalents and investments of
$119.9 million
Recent Business Updates
- Completed the acquisition of BorgWarner’s interest in the joint
venture between Romeo Power and BorgWarner earlier this year, which
enables Romeo Power to:
- Fully control its valuable intellectual property and decide
scope and focus of its research and development activities
- Pursue a broader range of strategic and customer engagements
that were restricted during its prior partnership
- Accelerate commercialization of its products across various
vehicle types and applications worldwide
- Entered into common stock standby equity line purchase
agreement to access additional capital to fund commercialization
programs, advance industry-leading R&D, and support growth
moving forward
- Accelerated growth and commercialization by increasing 2022
average daily production rates by 37% over the fourth quarter of
2021
- Announced a three-year extension of an existing supply
agreement with one of Romeo’s long-standing customers, with a
minimum contractual commitment valued at approximately $17 million
and additional upside potential over the same time period
- Won the first of a multi-phase program with Indigo Technologies
(“Indigo”), an OEM specializing in lightweight commercial vehicles
for rideshare and delivery driving, which first phase is expected
to culminate in the launch of Indigo’s FLOW show car later this
year
- Continued to diversify the Company’s market reach, including
the recent sale of initial samples to multiple new potential
customers across a diverse set of industries including: marine,
electric powertrain, defense contracting, commercial electric
vehicle (“EV”) integrators, and unique short-range ride sharing and
delivery vehicles
- Completed the buildout of the senior management team, adding
seasoned executives across the full C-suite
- Improved key availability for battery cells through a
previously announced long-term supply agreement
- Advanced process of transitioning operations to the Company’s
new state of the art manufacturing facility in Cypress,
California
- Added manufacturing headcount, including a third shift, to
support production growth and scalability
Management Commentary
Susan Brennan, Chief Executive Officer of Romeo Power,
commented: “The second half of 2021 was especially pivotal for
Romeo Power, marked by important progress and the taking of key
steps to position our company for future commercial and operational
success. Since I stepped into the role as Chief Executive Officer
in August of 2021, we have applied a clear focus on the areas that
will be critical to supporting our commercial production ramp as we
prepare for continued revenue growth alongside the rapidly
expanding market for electrification. In the fourth quarter, and
thus far through the beginning of 2022, we have materially improved
our manufacturing capabilities and processes, both of which will
set the stage for production rates and capacity to be further
enhanced as we transition to our new state of the art manufacturing
facility in Cypress, California. This new location will almost
double our floorspace and expand laboratory facilities, each of
which will allow for more efficient and effective expansion as we
grow, and it will keep substantially all of our operations, labs
and personnel under one roof.”
Brennan continued, “While 2021 was a challenging year for our
industry with global supply chain disruptions reducing access to
the supply of key components, including battery cells, we took and
continue to take important steps to mitigate these issues. To that
end, during the year we further supported our ability to meet
growing customer demand by strengthening our supply chain and
sourcing, and entered into a long-term supply agreement with a Tier
1 cell manufacturer. Looking forward we will continue to diversify
into alternative sources with high-quality suppliers of critical
components. This strengthened supply chain should help increase
production throughput and drive down costs and operating downtime
in the future.”
Brennan concluded, “While Romeo Power took numerous foundational
steps that will position us for future success, the next critical
step is the intelligent evolution of our market strategy. We have a
superior and materially differentiated product and we will utilize
that to gain further market advantages in the places where our
products and solutions are most valued by our customers. Further,
since we acquired ownership of the joint venture in early February,
we have opened up numerous conversations and potential
collaborations with partners, not just with heavy-duty commercial
vehicle manufacturers, but in several other adjacent markets that
value our technology as well. We are operating in a very large and
growing market, and believe we have numerous opportunities to
leverage our industry leading technology as the market for
electrification and EV battery technology expands. We will be
growing alongside it, delivering industry-leading energy density,
increased range, product and system efficiency, and superior safety
and reliability. We believe this will support consistent top-line
expansion and value for our shareholders over the long-term.”
2022 Outlook
Based on the Company’s current backlog and commercial outlook,
Romeo Power offered the following outlook for fiscal year 2022
ending December 31, 2022:
- Total Revenue to range between $40 million to $50 million
Kerry Shiba, Chief Financial Officer of Romeo Power, concluded,
“Our business continues to accelerate and evolve with a rapidly
developing market for electrification. As a result, we are
forecasting significant top-line growth for next year. It is
important to understand that our 2022 revenue outlook would be
approximately double the range provided, which would be 5-7 times
higher than our 2021 results, if not for a structural change in how
the value of battery cells are treated in our arrangement with a
major customer. As this change takes place, the value of battery
cells used in our products manufactured for this customer will be
excluded from both our revenues and cost of revenues. Our outlook
reflects ongoing partnerships with our customers and our
expectation of continued operating improvements that support our
ability to meet expected sales demand. Lastly, to support our
continuing growth, we recently entered into a common stock standby
equity line purchase agreement, which will allow us to flexibly
raise capital to support our business. We look forward to what we
believe will be a transformative year for Romeo Power.”
Conference Call Information
Romeo Power will host a conference call at 2:00 p.m. U.S.
Pacific Time (5:00 p.m. U.S. Eastern Time) today, March 1, 2022.
Participating on the call will be Susan Brennan, President and
Chief Executive Officer, and Kerry Shiba, Chief Financial Officer,
of Romeo Power. To access the conference call, parties should visit
the events section of the Investor Relations website at
https://investors.romeopower.com/. A recording of the webcast will
also be available following the conference call.
About Romeo Power, Inc.
Founded in 2016 and headquartered in Los Angeles, California,
Romeo Power (NYSE: RMO) is an energy technology leader delivering
advanced electrification solutions for complex commercial vehicle
applications. The Company’s suite of advanced battery electric
products, combined with its innovative battery management system,
delivers the safety, performance, reliability and configurability
its customers need to succeed. To keep up with everything Romeo
Power, please follow the Company on social media @romeopowerinc or
visit www.romeopower.com.
Disclosures & Forward Looking Statements
Romeo Power files reports with the Securities and Exchange
Commission (the “SEC”), which are available on the Company’s
website under “Investor Relations” free of charge. This includes
Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q,
Current Reports on Form 8-K and amendments to those reports as soon
as reasonably practicable after the Company electronically files
such materials with or furnish them to the SEC. The SEC also
maintains an Internet site that contains Romeo Power’s reports,
proxy and information statements, and other information at
www.sec.gov.
Certain statements in this press release may constitute “forward
looking statements” within the meaning of the “safe harbor”
provisions of the United States Private Securities Litigation
Reform Act of 1995. When used in this press release, the words
“estimates,” “projected,” “expects,” “anticipates,” “forecasts,”
“plans,” “intends,” “believes,” “seeks,” “may,” “will,” “should,”
“future,” “propose” and variations of these words or similar
expressions (or the negative versions of such words or expressions)
are intended to identify forward-looking statements. These
forward-looking statements, including, without limitation, express
or implied statements concerning Romeo Power’s ability to develop
or sell new products, or to pursue customers in new product or
geographic markets, Romeo Power’s expectations regarding its future
financial performance, the demand for safe, effective, affordable
and sustainable EV products, Romeo Power’s ability to produce and
deliver such products on a commercial scale, and Romeo Power’s
expectations that its customers will adhere to contracted purchase
commitments on the currently expected timeframe are not guarantees
of future performance, conditions or results, and involve a number
of known and unknown risks, uncertainties, assumptions and other
important factors, many of which are outside Romeo Power’s
management’s control, that could cause actual results or outcomes
to differ materially from those discussed in the forward-looking
statements. Important factors, among others, that may affect actual
results or outcomes include: Romeo Power’s ability to execute on
its plans to develop and market new products and the timing of
these development programs; Romeo Power’s ability to increase the
scale and capacity of its manufacturing processes; Romeo Power’s
estimates of the size of the markets for its products; the rate and
degree of market acceptance of Romeo Power’s products; the success
of other competing technologies that may become available; Romeo
Power’s ability to identify and integrate acquisitions; Romeo
Power’s potential need for and ability to secure additional
capital; the performance of Romeo Power’s products and customers;
potential litigation involving Romeo Power; demand for battery
cells and supply shortages; the potential effects of COVID-19; and
general economic and market conditions impacting demand for Romeo
Power’s products. You should carefully consider the foregoing
factors and the other risks and uncertainties described in the
Company’s filings with the SEC. If any of these risks materialize
or our assumptions prove incorrect, actual results could differ
materially from those implied by our 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 Romeo Power undertakes no obligation to update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by
law.
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version on businesswire.com: https://www.businesswire.com/news/home/20220301006042/en/
For Investors: Joe Caminiti or Ashley Gruenberg Alpha IR
Group RMO@alpha-ir.com 312-445-2870
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