XL Fleet Corp. (NYSE: XL) (“XL Fleet” or the “Company”), a
leading provider of fleet electrification solutions for commercial
vehicles in North America, today announced second quarter 2021
financial results.
Second Quarter 2021 and Recent Highlights
- Generated revenue for second quarter of 2021 of $3.7 million,
compared to $1.9 million in the prior year, driven by the addition
of World Energy in mid-May 2021
- Realized gross profit for the second quarter of 2021 of $1.0
million, reflecting gross margins of approximately 26%
- Exited second quarter of 2021 with cash balance of $384
million
- Achieved nearly 4,500 cumulative hybrid and plug-in hybrid
drive systems sold through second quarter of 2021
- Completed acquisition of World Energy Efficiency Services LLC
(“World Energy”) to accelerate fleet electrification adoption and
expand XL Grid charging infrastructure offering
- Announced significant new partnerships to expand XL Fleet’s
sales, service and product development capabilities
- Gained current CARB Executive Order status for the hybrid Ford
Transit product in June 2021, resuming XL Fleet’s ability to serve
the California market
Management Commentary
“We believe market interest in commercial fleet electrification
solutions remains strong, however, supply chain issues and wide
scale shortages of key materials, especially microchips, continue
to impact the global automotive industry, significantly
interrupting the ability of fleet customers to secure new vehicles
on which our electrified drive systems are installed,” said Dimitri
Kazarinoff, Chief Executive Officer of XL Fleet. “We remain nimble
and are positioning XL Fleet to benefit from the recovery in
vehicle availability whenever it materializes. Since the start of
the second quarter, we have been successful in finalizing several
significant new partnerships that expand our sales, service and
product development capabilities, and we continued our highly
strategic approach to pursuing M&A opportunities which bolster
our current and future electrification suite.”
“We continue to advance our mission of enabling fleets to
electrify more quickly and comprehensively,” said Tod Hynes,
Founder & President of XL Fleet. “This includes new agreements
to collaborate with high quality partners across applications
including waste management, refrigerated trailers, last mile
delivery, and other mission-critical applications, while at the
same time, expecting to remain on target to begin initial shipments
of our first all-electric solutions in 2022. Our recent strategic
acquisition of World Energy and our eNow partnership advance our
electrification-as-a-service strategy and enhance our ability to
deliver the comprehensive set of electrification solutions that our
customers are increasingly demanding."
Second Quarter 2021 Financial Results
Revenue totaled $3.7 million in the second quarter of 2021
compared to $1.9 million in the second quarter of 2020. Revenue
from the sale of drive systems in the second quarter of 2021
totaled $1.3 million compared with $1.9 million in the second
quarter of 2020 due to the microchip shortage and lack of new fleet
chassis. Revenue from XL Grid in the second quarter of 2021 totaled
$2.4 million, which was comprised of partial-quarter contribution
from World Energy following the businesses acquisition on May 17,
2021.
Gross profit was $1.0 million for the second quarter of 2021,
compared to a gross profit of $0.04 million in the second quarter
of 2020. This increase was primarily driven by XL Grid with the
World Energy acquisition. Adjusted EBITDA was ($11.4) million for
the second quarter of 2021, compared to ($3.5) million for the
second quarter of 2020 due to the significant growth in our team
and an increase in service providers to support our growth strategy
and to meet our obligations as a publicly traded company.
Net loss was $10.5 million for the second quarter of 2021,
compared to net loss of $13.5 million in the second quarter of
2020. Net income for the second quarter of 2021 includes a non-cash
gain from the change in fair value of warrant liability of $2.7
million. Adjusted net loss was $11.8 million for the second quarter
of 2021, compared to adjusted net loss of $5.3 million in the
second quarter of 2020. A reconciliation of net loss to adjusted
net loss and adjusted EBITDA to adjusted net loss is set out in the
tables below.
Balance Sheet and Capital
Cash and cash equivalents as of June 30, 2021 totaled $384.1
million compared to $329.6 million as of December 31, 2020. Total
debt outstanding as of June 30, 2021 was approximately $0.6
million. XL Fleet has approximately 139.4 million shares of Common
Stock outstanding as of June 30, 2021.
Operating Summary
Since the beginning of 2020, the Company shipped a total of
1,625 drive systems, of which, 88 drive systems were shipped during
the second quarter of 2021. Drive systems shipped since the
beginning of 2020 include XL Fleet’s hybrid and plug-in hybrid
drive systems. XL Fleet is currently developing all electric
drivetrains that we expect to deploy on new vehicles in 2022. We
have also substantially expanded our XL Grid solutions with the
acquisition of World Energy in May 2021.
Second Quarter 2021 and Recent Operational & Business
Updates
- In July 2021, XL Fleet and eNow announced a partnership
including a supply agreement that entitles XL Fleet to provide
battery and power electronics systems for the first 1,000 units of
eNow’s innovative electrified refrigerated trailer solution.
Concurrent with the agreement, XL Fleet invested $3 million in eNow
with the right to acquire 100% of eNow at a pre-determined
valuation.
- In July 2021, XL Fleet announced the XL Hybrid System is now
available on the Isuzu NPR-HD low cab forward vehicle that serves
demanding applications including last mile delivery, beverage
distribution, utility work and food service.
- In June 2021, XL Fleet and Rubicon announced an agreement to
bring XL Fleet’s offerings for fleet electrification to Rubicon’s
network of waste and recycling hauler partners.
- In June 2021, XL Fleet celebrated the opening of its Michigan
Fleet Electrification Technology Center with a ribbon cutting event
featuring Governor Gretchen Whitmer.
- In May 2021, XL Fleet announced the bolt-on acquisition of
World Energy, a Northeast leader in the delivery of turnkey energy
efficiency, renewable technology, electric vehicle charging station
and other cutting edge energy solutions for small to mid-sized
facilities. The acquisition accelerates XL Fleet’s suite of fleet
electrification solutions, enables customers to charge more
vehicles at their existing facilities which have power constraints,
and expands the capabilities and capacity of the Company’s XL Grid
division. World Energy generated $18 million of total revenue and
was free cash flow positive for full-year 2020. Total consideration
for the acquisition is approximately $16 million.
- In April 2021, XL Fleet appointed Cielo M. Hernandez as Chief
Financial Officer. Ms. Hernandez is a finance professional with
more than 25 years of experience, and an extensive track record of
leading global teams and strategies for publicly traded and private
companies.
- In April 2021, XL Fleet and Dickinson Fleet Services
(“Dickinson”) announced a partnership to expand XL Fleet’s
nationwide service capacity to support the Company’s electrified
vehicle deployments.
- In April 2021, XL Fleet and Apex Clean Energy announced that XL
Fleet is electrifying Apex’s vehicle fleet as part of a
comprehensive effort to reduce its carbon emissions.
Outlook
“Companies continue to seek new and immediate ways to improve
sustainability,” added Mr. Kazarinoff. “We remain in active
conversations with customers regarding vehicle deliveries; however,
the OEMs have pushed out the opening of new orders and extended
lead times, indicating the ongoing shortage of new commercial fleet
vehicles will stretch into 2022. That said, we are very pleased to
have expanded our XL Grid division and also recently gained current
CARB Executive Order status, re-opening our opportunity to sell
certain applications in the robust California market. Additionally,
we are actively pursuing and winning opportunities to retrofit our
drive systems on existing vehicles.”
“While the unprecedented lack of commercial fleet vehicle
availability is now expected to extend into 2022, XL Fleet is
extremely well positioned to continue to execute on our broader
business strategy. We continue to develop new electrification
solutions across a broader range of chassis options and expand on
our energy management and charging infrastructure capabilities,
while also pursuing exciting new opportunities outside of North
America. In addition, we continue to add great new talent and
capacity to our team to successfully navigate the current market
challenges while putting us in position to realize our long-term
goals. We believe we have the financial resources, the strategy,
and the talent to work through this period of new vehicle
disruption and successfully grow our business.”
Conference Call Information
The XL Fleet management team will host a conference call to
discuss its second quarter 2021 financial results today at 5:00
p.m. Eastern Time. The call can be accessed live over the telephone
by dialing 877-300-8521, or for international callers, 412-317-6026
and referencing XL Fleet. Alternatively, the call can be accessed
via a live webcast accessible on the Events & Presentations
page in the Investor Relations section of the Company’s website at
www.xlfleet.com. A replay will be available shortly after the call
and can be accessed by dialing 844-512-2921, or for international
callers, 412-317-6671. The passcode for the replay is 10159082. The
replay will be available until August 26, 2021. An archive of the
webcast will be available for a period of time shortly after the
call on the Investor Relations section of the Company’s website at
www.xlfleet.com.
About XL Fleet
XL Fleet is a leading provider of fleet electrification
solutions for commercial vehicles in North America, with more than
160 million miles driven by customers such as The Coca-Cola
Company, Verizon, Yale University and the City of Boston. XL
Fleet’s hybrid and plug-in hybrid electric drive systems can
increase fuel economy up to 25-50 percent and reduce carbon dioxide
emissions up to 20-33 percent, decreasing operating costs and
meeting sustainability goals while enhancing fleet operations. XL
Fleet’s plug-in hybrid electric drive system was named one of TIME
magazine's best inventions of 2019. For additional information,
please visit www.xlfleet.com.
Forward Looking Statements
Certain statements in this press release may constitute
“forward-looking statements” within the meaning of the federal
securities laws. Forward-looking statements generally are
accompanied by words such as “believe,” “may,” “will,” “estimate,”
“continue,” “anticipate,” “intend,” “expect,” “should,” “would,”
“plan,” “predict,” “potential,” “seem,” “seek,” “future,”
“outlook,” and similar expressions that predict or indicate future
events or trends or that are not statements of historical matters.
These statements are based on various assumptions, whether or not
identified in this press release, and on the current expectations
of management and are not predictions of actual performance.
Forward-looking statements are subject to a number of risks and
uncertainties that could cause actual results to differ materially
from the forward-looking statements, including but not limited to;
the effects of pending and future legislation; the highly
competitive nature of the Company’s business and the commercial
vehicle electrification market; litigation, complaints, product
liability claims and/or adverse publicity; cost increases or
shortages in the components or chassis necessary to support the
Company’s products and services; the introduction of new
technologies; the impact of the COVID-19 pandemic on the Company’s
business, results of operations, financial condition, regulatory
compliance and customer experience; the potential loss of certain
significant customers; privacy and data protection laws, privacy or
data breaches, or the loss of data; general economic, financial,
legal, political and business conditions and changes in domestic
and foreign markets; the inability to convert its sales opportunity
pipeline into binding orders; risks related to the rollout of the
Company’s business and the timing of expected business milestones,
including the ongoing global microchip shortage and limited
availability of chassis from vehicle OEMs and our reliance on our
suppliers; the effects of competition on the Company’s future
business; the availability of capital; and the other risks
discussed under the heading “Risk Factors” in the Company’s Annual
Report on Form 10-K filed on March 31, 2021, as amended and
supplemented by the 10-K/A filed May 17, 2021, and other documents
that the Company files with the SEC in the future. If any of these
risks materialize or our assumptions prove incorrect, actual
results could differ materially from the results implied by these
forward-looking statements. These forward-looking statements speak
only as of the date hereof and the Company specifically disclaims
any obligation to update these forward-looking statements.
Use of Non-GAAP Financial Information
To supplement its consolidated financial statements, which are
prepared and presented in accordance with U.S. generally accepted
accounting principles (“GAAP”), XL Fleet Corp. reports EBITDA,
Adjusted EBITDA, and Adjusted Net Income (Loss) which are non-GAAP
financial measures. EBITDA is determined by taking net income and
adding interest, depreciation and amortization. Adjusted EBITDA is
determined by taking EBITDA and adding change in fair value of
obligation to issue shares of common stock to sellers of World
Energy, non-recurring World Energy acquisition expenses and
accreted contingent compensation obligation to sellers of World
Energy, change in fair value of warrant liability, change in fair
value of convertible notes payable derivative liabilities and loss
on extinguishment of debt. Adjusted Net Income (Loss) is determined
by taking Net Income (Loss) and adding change in fair value of
obligation to issue shares of common stock to sellers of World
Energy, non-recurring World Energy acquisition expenses, accreted
contingent compensation obligation to sellers of World Energy,
change in fair value of warrant liability, and change in fair value
of convertible notes payable derivative liabilities and loss on
extinguishment of debt. This prospective financial information was
not prepared with a view toward compliance with published
guidelines of the SEC or the guidelines established by the American
Institute of Certified Public Accountants for preparation and
presentation of prospective financial information or U.S. GAAP with
respect to forward looking financial information. We believe that
these non-GAAP measures, viewed in addition to and not in lieu of
our reported GAAP results, provides useful information to investors
by providing a more focused measure of operating results, enhances
the overall understanding of past financial performance and future
prospects, and allows for greater transparency with respect to key
metrics used by management in its financial and operational
decision making. The non-GAAP measures presented herein may not be
comparable to similarly titled measures presented by other
companies. EBITDA, Adjusted EBITDA and Adjusted Net Income (Loss)
have been reconciled to the nearest GAAP measures in the tables
within these this press release.
XL Fleet Corp.
Unaudited Consolidated
Statements of Operations
For the Three and Six Months
Ended June 30, 2021 and June 30, 2020
Three Months Ended June
30,
Six Months Ended June
30,
(In thousands, except per share and share
amounts)
2021
2020
2021
2020
(restated)
Revenues
3,694
1,912
4,369
3,144
Cost of revenues
2,732
1,868
4,123
3,152
Gross profit (Loss)
962
44
246
(8
)
Operating expenses: Research and development
2,809
637
4,221
1,651
Selling, general, and administrative expenses
10,822
3,003
18,780
5,494
Loss from operations
(12,669
)
(3,596
)
(22,755
)
(7,153
)
Other (income) expense: Interest expense, net
10
1,729
21
3,025
Loss on extinguishment of debt
-
-
-
1,038
Loss on asset disposal
21
-
21
-
Change in fair value of obligation to issue shares of common stock
to sellers of World Energy
514
514
Change in fair value warrant liability
(2,726
)
-
(74,731
)
-
Change in fair value of convertible notes payable derivative
liability
-
8,174
-
8,737
Other Income
(19
)
-
(25
)
-
Net (Loss) Income
$
(10,469
)
$
(13,499
)
$
51,445
$
(19,953
)
Net (loss) income per share, basic
$
(0.08
)
$
(0.16
)
$
0.37
$
(0.24
)
Net loss per share, diluted
$
(0.08
)
$
(0.16
)
$
(0.17
)
$
(0.24
)
Weighted-average shares outstanding, basic
139,237,805
82,990,664
137,416,593
82,577,953
Weighted-average shares outstanding, diluted
139,237,805
82,990,664
137,598,535
82,577,953
XL Fleet Corp.
Reconciliation of Non-GAAP
Financial Measures
For the Three and Six Months
Ended June 30, 2021 and June 30, 2020
Three Months Ended June
30,
Six Months Ended June
30,
(In thousands, except per share and share amounts)
2021
2020
2021
2020
Reconciliation of Net Income (Loss) to Adjusted EBITDA Net
(Loss) Income
$
(10,469
)
$
(13,499
)
$
51,445
$
(19,953
)
Interest Expense, net
10
1,729
21
3,025
Depreciation and Amortization
382
77
601
296
EBITDA
$
(10,077
)
$
(11,693
)
$
52,067
$
(16,632
)
Change in fair value of obligation to issue shares of common stock
to sellers of World Energy
514
-
514
-
Non-recurring World Energy acquisition expenses
498
-
498
-
Accreted contingent compensation obligation to sellers of World
Energy
427
-
427
-
Change in fair value warrant liabilities
(2,726
)
-
(74,731
)
-
Change in fair value of convertible notes payable derivative
liabilities
-
8,174
-
8,737
Loss on extinguishment of debt
-
-
-
1,038
Adjusted EBITDA
$
(11,364
)
$
(3,519
)
$
(21,225
)
$
(6,857
)
Three Months Ended June
30,
Six Months Ended June
30,
(In thousands, except per share and share amounts)
2021
2020
2021
2020
Reconciliation of Net Income (Loss) to Adjusted Net Income
(Loss) Net (Loss) Income
$
(10,469
)
$
(13,499
)
$
51,445
$
(19,953
)
Change in fair value of obligation to issue shares of common stock
to sellers of World Energy
514
-
514
-
Non-recurring World Energy acquisition expenses
498
-
498
-
Accreted contingent compensation obligation to sellers of World
Energy
427
-
427
-
Change in fair value warrant liabilities
(2,726
)
-
(74,731
)
-
Change in fair value of convertible notes payable derivative
liabilities
-
8,174
8,737
Loss on extinguishment of debt
-
-
-
1,038
Adjusted NET LOSS
$
(11,756
)
$
(5,325
)
$
(21,847
)
$
(10,178
)
XL Fleet Corp.
Unaudited Condensed
Consolidated Balance Sheets
As of June 30, 2021 and
December 31, 2020
June 31,
December 31,
(In thousands, except share and per share amounts)
2021
2020
(audited)
(restated)
Assets Current assets: Cash and cash equivalents
$
384,143
$
329,641
Restricted cash
657
150
Accounts receivable, net
7,086
10,559
Inventory, net
12,390
3,574
Prepaid expenses and other current assets
1,502
1,396
Total current assets
405,778
345,320
Property and equipment, net
2,364
579
Intangible assets, net
1,985
593
Right-of-use asset
4,475
-
Goodwill
9,271
489
Other assets
75
32
Total assets
$
423,948
$
347,013
Liabilities and stockholders' equity (deficit) Current
Liabilities Current portion of long-term debt
93
110
Accounts payable
4,565
4,372
Lease liability, current
845
-
Accrued expenses and other current liabilities
10,919
4,601
Total current liabilities
16,422
9,083
Long-term debt, net of current portion
559
98
Deferred revenue
519
305
Lease liability, non-current
3,541
-
Warrant liabilities
20,812
143,295
Contingent consideration
-
924
Deferred obligation - World Energy, non-current
1,361
-
New market tax credit obligation (1)
4,352
4,412
Total liabilities
47,566
158,117
Commitments and contingencies (Note 12)
Stockholders' equityCommon stock, $0.0001 par value;
350,000,000 shares authorized at June 30, 2021 and December 31,
2020; 139,366,576 and 131,365,254 issued and outstanding at June
30, 2021 and December 31, 2020, respectively
14
13
Additional paid-in capital
453,124
317,084
Accumulated deficit
(76,756
)
(128,201
)
Total stockholders' equity
376,382
188,896
Total liabilities and stockholders' equity
$
423,948
$
347,013
(1) Held by variable interest entity.
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Investor Contact: xlfleetIR@icrinc.com
Media Contact: PR@xlfleet.com
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