– Record full year revenue of $21.0 million, increased 131%
year-over-year – Record full year sales of 146 zero-emission
vehicles, increased 103% year-over-year – Record fourth quarter
revenue of $4.2 million, increased 13% year-over-year – Announced
GM partnership to strengthen our chassis supply – Announced today a
partnership with Forest River for factory-certified Lightning
repower powertrains supporting over 50,000 eligible Forest River
Shuttle buses and Vans currently on the road
Lightning eMotors, Inc. (“Lightning eMotors”, “Lightning”, or
the “Company”), a leading provider of zero-emission powertrains and
medium-duty and specialty commercial electric vehicles for fleets,
today announced consolidated results for the fourth quarter and
full year ending December 31, 2021.
“The fourth quarter capped a transformational year for
Lightning, as we strengthened the company by announcing new
strategic OEM partnerships, increasing our sales pipeline,
expanding our factory capacity, shipping new products, and adding
strong executives to the leadership team,” said Tim Reeser, CEO of
Lightning eMotors. “We believe we have more zero-emission Class 3-6
commercial vehicles on the road than any other US OEM, as we
continued to deliver vehicles under our key contracts with Forest
River and Collins Bus, among others. We shipped our first Class A
double deck motorcoach, which we announced as a new product in the
fourth quarter. Recently we announced key partnerships with General
Motors, CATL, and Winnebago. Further, we received our first orders
for electric ambulances from our agreement with REV Group announced
last year. The fact that so many industry-leading commercial
vehicle OEMs are choosing to partner with us validates our model
and product leadership position, and the repeat customer orders we
are seeing from major fleets following initial evaluations speaks
to their belief in our staying power.”
Reeser continued, “Actions we took last year to address supply
chain challenges around battery supply have mitigated much of the
risk we faced in 2021. Chassis supply chain uncertainties that
started in the summer of 2021 remain and are a key challenge now in
2022. Our engineering and supply chain teams have again taken
strategic actions to help mitigate this risk. We announced the
development of our own Lightning eChassis, and we entered into a
partnership with General Motors. These actions and partnerships
should begin to alleviate chassis-related supply constraints later
in 2022 and into 2023. Moreover, our team has directed additional
resources toward repower opportunities, leading to the partnership
we announced today with Forest River to provide factory-certified
Lightning repower powertrains to support over 50,000 eligible
Forest River Shuttles buses that are on the road today. We believe
we are well positioned to capture many of the commercial vehicle EV
repower opportunities that have sprung up with the lack of
available new commercial vehicle chassis. Lightning is the only OEM
today to offer powertrains to replace ICE and EV powertrains in
school buses, shuttle buses, transit buses, and motorcoaches.”
Key Company Highlights
We continue to develop relationships and partnerships with
leading vocational vehicle OEMs and suppliers:
- Lightning eMotors Joins with General Motors to Electrify Medium
Duty Trucks
- Forest River and Lightning eMotors Expand Partnership to Offer
Factory-Certified All-Electric Repower Program for Shuttle Buses
and Passenger Vans
- Lightning eMotors Announces Strategic EV Battery Partnership
for Supply of CATL Battery Systems
- Lightning eMotors Reveals All-New Lightning eChassis for
Electric Commercial Vehicles
- Lightning eMotors Provides Electric Powertrain for Winnebago
Industries’ First All-Electric Concept Motorhome
- Lightning eMotors Expands Manufacturing Facility to Meet
Increasing Customer Demand
- Lightning eMotors to Supply RideCo with Zero-Emission Passenger
Vans for Los Angeles County
Lightning eMotors is a leading zero-emission commercial fleet
vehicle and powertrain manufacturer, with over 1.3 million miles of
zero-emission commercial vehicle road experience. Lightning
provides zero-emission solutions (both Battery Electric and Fuel
Cell Electric) for commercial fleets, including Class 3-5 cargo and
passenger vehicles, school buses, Class 5-6 work trucks, and Class
7 city buses and motorcoaches. Lightning eMotors’ ongoing focus has
been on providing a broad range of premium zero-emission vehicle
and powertrain platforms and charging solutions to help fleets
reduce emissions, improve energy efficiency, and lower costs.
Fourth Quarter 2021 Financial Results
Fourth quarter revenue was $4.2 million, compared to $3.7
million for the prior-year period, an increase of 13%
year-over-year.
Net income was $22.2 million, compared to net loss of $13.4
million during the prior year. The change in net income was
primarily due to a $40.0 million gain from the non-cash change in
the fair value of the earnout liability. Diluted net earnings per
share was $0.28, compared to a loss of $0.42 in the prior-year
period.
Adjusted EBITDA was -$15.9 million, compared to -$5.1 million
during the same period in the prior year. Adjusted net loss was
$20.0 million, compared to $6.9 million during the same period in
the prior year. Adjusted EBITDA and adjusted net loss are non-GAAP
measures. See explanatory language and reconciliation to the GAAP
measures below.
2021 Annual Financial Results
Revenue was $21.0 million in 2021, compared to $9.1 million in
2020, an increase of 131% year-over-year.
Net loss was $100.8 million, compared to net loss of $37.7
million during the prior year. Basic and diluted net loss per share
were $1.67, compared to $1.25 in the prior-year period.
Adjusted EBITDA was -$38.8 million, compared to -$13.2 million
during the prior year. Adjusted net loss was $53.0 million,
compared to $16.5 million in 2020.
We ended the quarter with $168.5 million in cash and cash
equivalents on the balance sheet.
The Q4 and full year information reflects our preliminary
unaudited results and is based on the information available as of
the date of this announcement. The audit may require adjustments
which could result in changes to the Company’s unaudited financial
results included in this press release.
Order Backlog and Awarded Orders
As of March 14, 2022, the Company had an order backlog—including
full vehicles, powertrain systems to be sold directly to customers,
and charging systems—of approximately 1,500 units valued at $169.3
million.
The Company’s sales pipeline remains strong at $1.5 billion and
is expected to grow further due to strengthening forces driving
commercial fleet electrification and a larger sales force. We
expect the 2021 Federal Infrastructure Bill funding programs to
begin to solidify over the next two quarters, resulting in over $10
billion in new funding for medium and heavy duty commercial
electric vehicles, driving customer demand for Lightning products
and services.
Guidance
We continue to experience supply chain challenges involving
chassis and other key components. Delays associated with any of
these components may impact the timing of revenue. Fortunately, our
customers remain supportive, and we have not seen any order
cancellations due to delivery timing. Based on current business
conditions, the Company expects:
- First quarter revenue to be in the range of $5.0 million to
$6.0 million. Approximately $7 million of potential Q1 revenue has
been pushed into future quarters due to supply constraints,
principally chassis.
- First quarter vehicle and powertrain sales to be in the range
of 65 units to 75 units
- First quarter adjusted EBITDA to be in the range of -$15
million to -$17 million
- Quarterly revenue to grow sequentially throughout 2022 as
supply chain issues are managed and incremental revenue is realized
from non-chassis-dependent products such as repowers and Lightning
Energy
Webcast and Conference Call Information
Company management will host a webcast and conference call on
March 28, 2022, at 4:30 p.m. Eastern Time, to discuss the Company's
financial results.
Interested investors and other parties can listen to a webcast
of the live conference call and access the Company’s fourth quarter
update presentation by logging onto the Investor Relations section
of the Company's website at https://ir.lightningemotors.com/.
The conference call can be accessed live over the phone by
dialing 1-877-407-6910 (domestic) or +1-201-689-8731
(international).
About Lightning eMotors
Lightning eMotors has been providing specialized and sustainable
fleet solutions since 2009, deploying complete zero emission
vehicle solutions for commercial fleets since 2018 – including
Class 3 cargo and passenger vans and ambulances, Class 4 and 5
cargo vans and shuttle buses, Class 6 work trucks and school buses,
Class 7 city buses, and Class A motorcoaches. The Lightning
eMotors’ team designs, engineers, customizes, and manufactures ZEVs
to support the wide array of fleet customer needs, with a full
suite of control software, telematics, analytics, and charging
solutions to simplify the buying and ownership experience and
maximize uptime and energy efficiency. To learn more, visit
https://lightningemotors.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of U.S. federal securities laws. Such forward-looking
statements include, but are not limited to, statements regarding
the financial statements of Lightning eMotors (including guidance),
its product and customer developments, its expectations, hopes,
beliefs, intentions, plans, prospects or strategies regarding the
future revenues and expenses, its expectations regarding the
availability and timing of components and supplies and the business
plans of Lightning eMotors’ management team. Any statements
contained herein that are not statements of historical fact may be
deemed to be forward-looking statements. In addition, any
statements that refer to projections, forecasts or other
characterizations of future events or circumstances, including any
underlying assumptions, are forward-looking statements. The words
“anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,”
“intends,” “may,” “might,” “plan,” “possible,” “potential,”
“predict,” “project,” “should,” “would” and similar expressions may
identify forward-looking statements, but the absence of these words
does not mean that a statement is not forward-looking. The
forward-looking statements contained in this press release are
based on certain assumptions and analyses made by the management of
Lightning eMotors considering their respective experience and
perception of historical trends, current conditions and expected
future developments and their potential effects on Lightning
eMotors as well as other factors they believe are appropriate in
the circumstances. There can be no assurance that future
developments affecting Lightning eMotors will be those anticipated.
These forward-looking statements contained in this press release
are subject to known and unknown risks, uncertainties, assumptions
and other factors that may cause actual results or outcomes to be
materially different from any future results or outcomes expressed
or implied by the forward-looking statements. These risks,
uncertainties, assumptions and other factors include, but are not
limited to: (i) those related to our operations and business and
financial performance; (ii) our ability to have access to an
adequate supply of motors, chassis and other critical components
for our vehicles on the timeline we expect (iii) our ability to
attract and retain customers; (iv) backlog amounts and sales
pipeline that may not result in actual revenue or be indicative of
future revenues or sales; (v) our ability to up-sell and cross-sell
to customers; (vi) the success of our customers' development
programs which will drive future revenues; (vii) our ability to
execute on our business strategy; (viii) our ability to compete
effectively; (ix) our ability to manage growth, scale up
infrastructure and manage increased headcount; (x) the ability of
the Company to maintain the New York Stock Exchange’s listing
standards, (xi) potential business and supply chain disruptions,
including those related to physical security threats, information
technology or cyber-attacks, epidemics, pandemics, sanctions,
political unrest, war, terrorism or natural disasters; (xii)
macroeconomic factors, including current global and regional market
conditions, commodity prices, inflation and deflation; (xiii)
federal, state, and local laws, regulations and government
incentives, particularly those related to the commercial electric
vehicle market; (xiv) the volatility in the price of our securities
due to a variety of factors, including changes in the competitive
industries in which the Company operates, variations in operating
performance across competitors, changes in laws and regulations
affecting the Company’s business and changes in the capital
structure; (xv) planned and potential business or asset
acquisitions or combinations; (xvi) the size and growth of the
markets in which we operate; (xvii) the mix of products utilized by
the Company’s customers and such customers’ needs for these
products; (xviii) market acceptance of new product offerings; and
(xix) our funding and liquidity plans. Moreover, we operate in a
competitive and rapidly changing environment, and new risks may
emerge from time to time. You should not put undue reliance on any
forward-looking statements. Forward-looking statements should not
be read as a guarantee of future performance or results and will
not necessarily be accurate indications of the times at, or by,
which such performance or results will be achieved, if at all.
Should one or more of these risks or uncertainties materialize or
should any of the assumptions being made prove incorrect, actual
results may vary in material respects from those projected in these
forward-looking statements. We undertake no obligation to update or
revise any forward-looking statements, whether because of new
information, future events or otherwise, except as may be required
under applicable securities laws.
Lightning eMotors,
Inc.
Consolidated Statements of
Operations
(in thousands, except share and
per share data)
(Unaudited)
Three Months Ended December
31,
Year Ended December
31,
2021
2020
2021
2020
Revenues
$
4,221
$
3,720
$
20,992
$
9,088
Cost of revenues
6,901
4,874
26,293
11,087
Gross loss
(2,680
)
(1,154
)
(5,301
)
(1,999
)
Operating expenses
Research and development
875
567
3,089
1,309
Selling, general and administrative
13,606
3,478
42,851
10,451
Total operating expenses
14,481
4,045
45,940
11,760
Loss from operations
(17,161
)
(5,199
)
(51,241
)
(13,759
)
Other (income) expense, net
Interest expense
3,833
1,741
13,367
2,983
Inducement expense
—
—
—
—
Loss from change in fair value of warrant
liabilities
704
6,472
28,812
20,835
(Gain) loss from change in fair value of
derivative liability
(3,949
)
—
5,341
—
(Gain) loss from change in fair value of
earnout liability
(39,981
)
—
4,183
—
Gain on extinguishment of debt
—
—
(2,194
)
—
Other expense (income), net
46
(31
)
19
76
Total other (income) expense, net
(39,347
)
8,182
49,528
23,894
Net Income (Loss)
$
22,186
$
(13,381
)
$
(100,769
)
$
(37,653
)
Net income (loss) per share basic
$
0.30
$
(0.42
)
$
(1.67
)
$
(1.25
)
Net income (loss) per share diluted
$
0.28
$
(0.42
)
$
(1.67
)
$
(1.25
)
Weighted-average shares outstanding,
basic
74,984,051
31,585,159
60,260,156
30,095,634
Weighted-average shares outstanding,
diluted
78,311,597
31,585,159
60,260,156
30,095,634
Lightning eMotors,
Inc.
Consolidated Balance
Sheets
(in thousands, except shares)
December 31,
December 31,
2021
2020
Assets
Current assets
Cash and cash equivalents
$
168,538
$
460
Accounts receivable, net of allowance of
$3,349 and $0 as of December 31, 2021 and 2020, respectively
9,172
4,122
Inventories
14,621
5,743
Prepaid expenses and other current
assets
7,067
3,999
Total current assets
199,398
14,324
Property and equipment, net
4,891
2,615
Operating lease right-of-use asset,
net
8,742
7,881
Other assets
379
45
Total assets
$
213,410
$
24,865
Liabilities and stockholders’ equity
(deficit)
Current liabilities
Accounts payable
$
6,021
$
2,599
Accrued expenses and other current
liabilities
5,045
2,944
Warrant liability
2,185
21,155
Current portion of long-term debt
—
7,954
Current portion of long-term debt -
related party
—
6,225
Current portion of operating lease
obligation
1,166
1,769
Total current liabilities
14,417
42,646
Long-term debt, net of debt discount
63,768
—
Long-term debt, net of current portion and
debt discount - related party
—
1,649
Operating lease obligation, net of current
portion
9,260
7,265
Derivative liability
17,418
—
Earnout liability
83,144
—
Other long-term liabilities
191
—
Total liabilities
188,198
51,560
Stockholders’ equity (deficit)
Preferred stock, par value $.0001,
1,000,000 shares authorized no shares issued and outstanding as of
December 31, 2021 and December 31, 2020
—
—
Common stock, par value $.0001,
250,000,000 shares authorized as of December 31, 2021 and December
31, 2020; 75,062,642 and 32,949,507 shares issued and outstanding
as of December 31, 2021 and December 31, 2020, respectively
8
3
Additional paid-in capital
206,768
54,097
Accumulated deficit
(181,564
)
(80,795
)
Total stockholders’ equity (deficit)
25,212
(26,695
)
Total liabilities and stockholders’
equity (deficit)
$
213,410
$
24,865
Lightning eMotors,
Inc.
Consolidated Statements of
Cash Flows
(in thousands, except shares)
Three Months Ended
Year Ended
December 31,
December 31,
2021
2020
2021
2020
Cash flows from operating
activities
Net income (loss)
$
22,186
$
(13,381
)
$
(100,769
)
$
(37,653
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
269
99
874
362
Provision for doubtful accounts
3,207
—
3,349
—
Provision for inventory obsolescence and
write-downs
917
261
917
261
Loss on disposal of fixed asset
48
—
39
—
Gain on extinguishment of debt
—
—
(2,194
)
—
Change in fair value of warrant
liability
704
6,472
28,812
20,835
Change in fair value of earnout
liability
(39,981
)
—
4,183
—
Change in fair value of derivative
liability
(3,949
)
—
5,341
—
Stock-based compensation
993
15
2,538
275
Amortization of debt discount
2,072
1,319
6,670
1,789
Non-cash impact of operating lease
right-of-use asset
(462
)
459
991
1,254
Issuance of common stock warrants for
services performed
—
—
433
—
Other non-cash expenses
—
1
—
165
Changes in operating assets and
liabilities:
Accounts receivable
(309
)
(77
)
(8,399
)
(3,016
)
Inventories
(4,777
)
(1,064
)
(9,795
)
(2,017
)
Prepaid expenses and other assets
131
(1,426
)
(6,380
)
(1,621
)
Accounts payable
2,285
1,209
3,578
1,442
Accrued expenses and other liabilities
(1,179
)
1,580
4,005
1,698
Net cash used in operating activities
(17,845
)
(4,533
)
(65,807
)
(16,226
)
Cash flows from investing
activities
Purchase of property and equipment
(924
)
(712
)
(3,244
)
(2,013
)
Proceeds from disposal of property and
equipment
46
—
55
—
Net cash used in investing activities
(878
)
(712
)
(3,189
)
(2,013
)
Cash flows from financing
activities
Proceeds from convertible notes payable,
net of issuance costs paid
—
300
95,000
9,679
Proceeds from Business combination and
PIPE Financing, net of issuance costs paid
—
—
142,796
—
Proceeds from facility borrowings
—
—
7,000
1,000
Repayments of facility borrowings
—
—
(11,500
)
—
Proceeds as part of a redemption of
convertible notes payable and Series C redeemable convertible
preferred stock and warrants
—
—
—
3,000
Proceeds from the exercise of Series C
redeemable convertible preferred warrants
—
—
3,100
—
Proceeds from exercise of common
warrants
—
—
157
—
Proceeds from issuance of Series C
convertible preferred stock and preferred stock warrants
—
—
—
3,225
Proceeds for the exercise of Series C
redeemable convertible preferred warrants
—
500
—
500
Payments on finance lease obligations
—
(38
)
(54
)
(88
)
Proceeds from exercise of stock
options
23
42
575
86
Net cash provided by financing
activities
23
804
237,074
17,402
Net increase in cash
(18,700
)
(4,441
)
168,078
(837
)
Cash - Beginning of year
187,238
—
460
1,297
Cash - End of period
$
168,538
$
(4,441
)
$
168,538
$
460
Supplemental cash flow information
- Cash paid for interest
$
3,686
$
223
$
6,245
$
864
Significant noncash
transactions
Earnout liability at inception
$
—
$
—
$
78,960
$
—
Warrant liability at inception
—
—
1,253
—
Derivative liability at inception
—
—
17,063
—
Conversion of short-term convertible notes
for common stock
—
—
9,679
—
Conversion of convertible notes for common
stock
—
—
10,089
—
Conversion of warrant liabilities for
common stock
—
—
37,580
—
Conversion of convertible notes payable
into Series C redeemable convertible preferred stock
—
—
—
3,000
Finance lease right-of-use asset in
exchange for a lease liability
208
—
208
—
Non-GAAP Financial Measures
In addition to our results determined in accordance with GAAP,
we believe the following non-GAAP measures are useful in evaluating
our operational performance. We use the following non-GAAP
financial information among other operational metrics to evaluate
our ongoing operations and for internal planning and forecasting
purposes. We believe that non-GAAP financial information, when
taken collectively, may be helpful to investors in assessing our
operating performance.
EBITDA, Adjusted EBITDA and Adjusted Net Loss
EBITDA is defined as net income (loss) before depreciation and
amortization and interest expense. Adjusted EBITDA is defined as
net income (loss) before depreciation and amortization, interest
expense, stock-based compensation, gains or losses related to the
change in fair value of warrant, derivative and earnout share
liabilities, gains or losses on extinguishment of debt and other
non-recurring costs determined by management, such as Business
Combination related expenses. Adjusted net loss is defined as net
income (loss) adjusted for stock-based compensation expense, gains
or losses related to the change in fair value of warrant,
derivative and earnout share liabilities, gains or losses on
extinguishment of debt and certain other non-recurring costs
determined by management, such as Business Combination related
expenses. EBITDA, adjusted EBITDA and adjusted net loss are
intended as supplemental measures of our performance that are
neither required by, nor presented in accordance with, GAAP. We
believe that using EBITDA, adjusted EBITDA and adjusted net loss
provide an additional tool for investors to use in evaluating
ongoing operating results and trends while comparing our financial
measures with those of comparable companies, which may present
similar non-GAAP financial measures to investors. However, you
should be aware that when evaluating EBITDA, adjusted EBITDA and
adjusted net loss we may incur future expenses similar to those
excluded when calculating these measures. In addition, our
presentation of these measures should not be construed as an
inference that our future results will be unaffected by unusual or
non-recurring items. Our computation of EBITDA, adjusted EBITDA and
adjusted net loss may not be comparable to other similarly titled
measures computed by other companies, because all companies may not
calculate EBITDA, adjusted EBITDA and adjusted net loss in the same
fashion.
Because of these limitations, EBITDA, adjusted EBITDA and
adjusted net loss should not be considered in isolation or as a
substitute for performance measures calculated in accordance with
GAAP. We compensate for these limitations by relying primarily on
our GAAP results and using EBITDA, adjusted EBITDA and adjusted net
loss on a supplemental basis. You should review the reconciliations
of net income (loss) to EBITDA and adjusted EBITDA and net income
(loss) to adjusted net loss below and not rely on any single
financial measure to evaluate our business.
The following table reconciles net income (loss) to EBITDA and
adjusted EBITDA for the three and twelve months ended December 31,
2021 and 2020:
Three Months Ended December
31,
Year Ended December
31,
2021
2020
2021
2020
(dollar amounts in
thousands)
Net income (loss)
$
22,186
$
(13,381
)
$
(100,769
)
$
(37,653
)
Adjustments:
Depreciation and Amortization
269
99
874
362
Interest expense
3,833
1,741
13,367
2,983
EBITDA
$
26,288
$
(11,541
)
$
(86,528
)
$
(34,308
)
Stock-based compensation
993
15
2,538
275
Loss from change in fair value of warrant
liabilities
704
6,472
28,812
20,835
(Gain) loss from change in fair value of
derivative liability
(3,949
)
—
5,341
—
(Gain) loss from change in fair value of
earnout liability
(39,981
)
—
4,183
—
Gain on extinguishment of debt
—
—
(2,194
)
—
Business Combination expense
—
—
9,098
—
Adjusted EBITDA
$
(15,945
)
$
(5,054
)
$
(38,750
)
$
(13,198
)
The following table reconciles net income (loss) to adjusted net
loss for the three and twelve months ended December 31, 2021 and
2020:
Three Months Ended December
31,
Year Ended December
31,
2021
2020
2021
2020
Net income (loss)
$
22,186
$
(13,381
)
$
(100,769
)
$
(37,653
)
Adjustments:
Stock-based compensation
993
15
2,538
275
Business Combination expense
-
-
9,098
—
Loss from change in fair value of warrant
liabilities
704
6,472
28,812
20,835
(Gain) loss from change in fair value of
derivative liability
(3,949
)
-
5,341
—
(Gain) loss from change in fair value of
earnout liability
(39,981
)
-
4,183
—
Gain on extinguishment of debt
-
-
(2,194
)
—
Adjusted net loss
$
(20,047
)
$
(6,894
)
$
(52,991
)
$
(16,543
)
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