XL Fleet Confirms Changes to Accounting Treatment of Mandates Following SEC Statement | Business
BOSTON – (BUSINESS WIRE) – May 11, 2021 –
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 that, following a released statement by the Staff of the US Securities and Exchange Commission of April 12, 2021 concerning the accounting and reporting of warrants issued by ad hoc acquisition companies, the consolidated financial statements as of and for the year ended December 31, 2020 included in the Company Annual Report on Form 10-K filed on March 31, 2021 is expected to be restated.
The restatement will be isolated from this change in accounting treatment, which the Company believes also applies to a significant number of companies and has no impact on the Company’s historical or prospective cash flows and operations. In addition, the Company believes that the change in the accounting treatment of the warrants will have no effect on the current and future business activities of XL Fleet, its competitive position or its business strategy.
The restatement relates to the accounting treatment of public and private warrants outstanding at the time of the business combination between a wholly owned subsidiary of Pivotal Investment Corporation II and XL Hybrids, Inc. which took place on December 21, 2020.
As a result of the restatement, these warrants, which were previously recognized in equity, will be recognized as a liability. The Company therefore expects to recognize additional non-cash non-operating expenses of approximately $ 25 million to $ 45 million in its statement of operations for the year ended December 31, 2020. The Company expects that ‘there is no impact on its historically reported cash flow, or cash flows from operating, investing or financing activities. These estimates are unaudited, preliminary and subject to change as management completes the restatement.
About XL Fleet
XL Fleet is one of the leading providers of fleet electrification solutions for commercial vehicles in North America, with more than 150 million kilometers 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 propulsion systems can increase fuel consumption by up to 25-50 percent and reduce carbon dioxide emissions by up to 20-33 percent, reducing operating costs and meeting sustainability goals while improving fleet operations. XL Fleet’s plug-in hybrid electric drive system was named one of TIME magazine’s best inventions of 2019. For more information, please visit www.xlfleet.com.
Certain statements contained in this press release may constitute “forward-looking statements” within the meaning of federal securities laws. Forward-looking statements are generally accompanied by words such as “believe”, “may”, “will”, “estimate”, “continue”, “anticipate”, “intend”, “expect”, “should” , “Would be,” “plan”, “predict”, “potential”, “seem”, “seek”, “future”, “prospect” and similar expressions which predict or indicate future events or trends or which are not not statements on historical matters. These statements may include, but are not limited to, statements regarding the company’s intention to restate certain historical financial statements and the timing and impact of the restatement. 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 forecasts of actual performance. Forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from forward-looking statements, including, but not limited to, other changes or developments in accounting guidelines. concerning warrants; adjustments to the estimates and ranges shared in this press release following a review by the Company’s independent auditors; failure to realize the expected benefits of the business combination; the effects of current and future legislation; the highly competitive nature of the Company’s business and the commercial vehicle electrification market; disputes, complaints, product liability claims and / or adverse publicity; cost increases or shortages of 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 some important customers; laws on privacy and data protection, privacy or data breaches or data loss; general economic, financial, legal, political and commercial conditions and changes in domestic and foreign markets; the inability to convert its pipeline of sales opportunities into binding orders; risks related to the deployment of the company’s activities and the schedule of planned commercial stages; the effects of competition on the company’s future operations; the availability of capital; and other risks discussed under “Risk Factors” in the Company’s Annual Report on Form 10-K filed on March 31, 2021 and in other documents the Company will file with the SEC in the future. If any of these risks materialize or if our assumptions prove to be 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 expressly disclaims any obligation to update these forward-looking statements.
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CONTACT: Investor contact:
KEYWORD: MASSACHUSETTS NORTH AMERICA UNITED STATES
INDUSTRY KEYWORD: PUBLIC TRANSPORT ALTERNATIVE VEHICLES / FUELS AUTOMOTIVE TRUCKING GENERAL AUTOMOTIVE OTHER ENERGY TRANSPORTATION ENERGY LOGISTICS / SUPPLY CHAIN MANAGEMENT
SOURCE: XL Fleet Corp.
Copyright Business Wire 2021.
PUB: 05/11/2021 8:00 a.m. / DISC: 05/11/2021 8:03 a.m.
Copyright Business Wire 2021.