LORDSTOWN, Ohio, May 24, 2021 (GLOBE NEWSWIRE) – Lordstown Motors Corp. (Nasdaq: RIDE), (“Lordstown Motors”), a leader in electric light trucks focused on the commercial fleet market, today released its first quarter 2021 financial results and provided a business outlook.
- Reported a net loss of $ 125 million in the first quarter of 2021, capex of $ 53 million and cash of $ 587 million as of March 31, 2021.
- The production start-up schedule (SoP) at the end of September 2021, which will be at limited capacity, remains on track. To date, we have completed construction of 48 of the 57 prototypes and will begin construction of pre-production vehicles (PPVs) in July.
- We passed two of the most difficult crash tests – front end and post – and the vehicles performed as expected in other durability and validation tests; we continue to expect that we will be able to achieve a 5 star collision rating.
- The retooling of the stamping, assembly, bodywork and paint shops at our Lordstown plant is nearing completion.
- The first phase of our battery line is installed and is in commissioning phase, while our first line of electric hub motors remains on track to begin equipment installation in July.
- Upgraded our 2021 operating expense forecast by $ 115 million to the midpoint of the forecast range compared to the guidance provided with our fourth quarter 2020 earnings release to reflect significantly higher related expenses to: (1) completion of our beta program, (2) driving vehicle validation testing, (3) securing parts / equipment needed for production, and (4) utilizing third party engineering resources. Therefore, we need to raise additional capital to carry out our business plans and have started these discussions.
âWe are proud to have built 48 of our 57 beta vehicles and are on schedule to complete the beta program by the end of June,â said Steve Burns, President and CEO of Lordstown Motors. âWe are extremely pleased with the results of beta vehicle testing so far. We recently passed two of the toughest crash tests and as such we believe we stay on track to deliver a 5 star rated vehicle. We were also pleased with the mechanical performance of our Endurance during the San Felipe 250 race in Baja, Mexico last month, despite challenges in predicting power consumption in the Mexican desert. We look forward to moving forward on the road to commercialization as the beta program wraps up this quarter, and conversations with potential future customers are expected to resume.
However, we have encountered some challenges, including issues related to COVID and the industry as a whole, as we move towards our production start deadline. These include significantly higher than expected expenses for parts / equipment, expedited shipping costs, and expenses associated with third-party engineering resources. We have secured a number of critical parts and equipment ahead of time, so we’re still able to ramp up Endurance, but we need additional capital to execute our plans. We believe we have many opportunities to raise capital in various forms and have started these discussions.
We are excited to showcase our plant, vehicle, technologies and strategy at our upcoming Lordstown week during the week of June 21, as we welcome investors, customers, partners, suppliers and the media. at our Lordstown, Ohio facility.
2021 objectives and financial perspectives
We are updating the financial outlook for 2021 that we previously provided in our fourth quarter 2020 results publication. The revised guidance is as follows:
- Endurance production expected in 2021 will be limited and represent at best 50% of our previous expectations.
- Capital expenditure planned between $ 250 million and $ 275 million.
- Planned operating expenses of between $ 55 million and $ 60 million in selling and administrative (S&A) costs and between $ 280 and 290 million in research and development (R&D) costs.
- Liquidity expected at the end of 2021 between 50 and 75 million dollars in cash and cash equivalents after giving effect to certain cost reductions and delayed investments.
As noted above, we are seeking additional capital to fund our business plans. We are seeking an Advanced Technology Vehicle Manufacturing (âATVMâ) loan, which is in the due diligence phase, as well as tax credits and grants in multiple jurisdictions. We hope to complete the ATVM loan opportunity in the coming months.
As we begin to receive feedback from our initial customers throughout this quarter, we expect purchasing commitments to accelerate as early as the second half of the year. Around the same time, we will also start targeting and following up with municipal and government fleets for potential and significant engagement opportunities.
Conference Call Information
Lordstown Motors will host a conference call at 4:30 p.m. EST today (Monday, May 24, 2021). The call is accessible via a live webcast accessible on the Events page of the Lordstown Motors Investor Relations website at https://investor.lordstownmotors.com/. An archive of the webcast will be available shortly after the call.
|Lordstown Motors Corp.
Consolidated income statement
(Amounts in thousands, except per share data)
|Three months ended||Three months ended|
|March 31, 2021||March 31, 2020|
|Selling and administrative costs||14,394||3,522|
|Research and development costs||91 812||8,468|
|Total operating expenses||$||106,206||$||11 990|
|Operating loss||$||(106,206||)||$||(11 990||)|
|Other income (expenses)|
|Other income (expenses)||(19,132||)||126|
|Interest income (expense)||127||(1||)|
|Loss before income taxes||$||(125 211||)||$||(11,865||)|
|Income tax expense||–||–|
|Net loss||$||(125 211||)||$||(11,865||)|
|Loss per share attributable to common shareholders|
|Basic and diluted||$||(0.72||)||$||(0.16||)|
|Weighted average number of ordinary shares outstanding|
|Basic and diluted||174,325||71 911|
|Lordstown Motors Corp.
Consolidated balance sheets
(Amounts in thousands)
|March 31, 2021||December 31, 2020|
|Cash and cash equivalents||$||587,043||$||629 761|
|Prepaid expenses and other current assets||25,989||24 663|
|Total current assets||$||613 037||$||654,445|
|Tangible fixed assets||154,934||101 663|
|LIABILITIES AND EQUITY:|
|Accrued liabilities and other current liabilities||8,041||1,538|
|Total current liabilities||$||67,002||$||34,074|
|Ticket to pay||1,015||1,015|
|Total responsibilities||$||75 767||$||136,481|
|Class A common shares, par value of $ 0.0001, 300,000,000 authorized shares; 176,579,376 and 168,007,960 shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively||$||18||$||17|
|Premium||962 949||765 162|
|Total equity for shareholders||$||703 315||$||630 738|
|Total liabilities and equity||$||779,082||$||767,219|
About Lordstown Motors Corp.
Lordstown Motors Corp. is an Ohio-based light fleet vehicle original equipment manufacturer founded by CEO Steve Burns with the goal of transforming Mahoning Valley and Lordstown, Ohio, Ohio, into the epicenter of the manufacture of electric vehicles. The company owns the 785-acre, 6.2 million square foot Lordstown Assembly Plant, where it plans to build the Lordstown Endurance, believed to be the world’s first fully electric full-size pickup truck designed to serve the market. commercial fleets. For more information, visit www.lordstownmotors.com.
This press release contains forward-looking statements. These statements are made under the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. These statements may be identified by words such as “feel”, “believe”, expect ” , “Estimates”, “plans”, “intends”, “should”, “must be”, or the negative of these terms, or any other comparable terminology. Forward-looking statements are statements that are not historical facts. These forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties, which could cause actual results to differ materially from the forward-looking statements contained herein due to many factors, including, but not limited to ” limit: our significant forecasts the financing needs; the availability, timing and terms of any financing we may seek; our limited operating history; risks related to the deployment of our business and the timing of expected business milestones, including our ability to complete endurance engineering, establish appropriate supplier relationships, successfully complete testing and start production Endurance according to our planned schedule and budget; risks associated with the conversion and retooling of our plant and the acceleration of production; our inability to secure binding purchase orders from customers and the inability of potential customers to integrate our electric vehicles into their existing fleets; competition in the electric pickup truck market; our inability to retain key personnel and hire additional personnel; our inability to develop a sales distribution network; and the ability to protect our intellectual property rights. All forward-looking statements speak only as of the date on which they are made, and Lordstown Motors Corp. does not undertake to update any forward-looking statements to reflect events or circumstances after the date of this press release.
Carter W. Driscoll, CFA